What is the Amazon Store Card? An Entrepreneur‘s In-Depth Guide

As an entrepreneur, you want to maximize value on business expenses without sacrificing quality. If you‘re an avid Amazon shopper like many small business owners, the Amazon Store Card can be a strategic financial tool. This comprehensive guide provides insights from an entrepreneurial perspective on how to optimize this card.

A Card Designed for Frequent Amazon Shoppers

With over 49% market share in US ecommerce, Amazon is the go-to online retailer for many entrepreneurs. The Amazon Store Card is designed specifically for avid Amazon users.

As a small business owner, I do a significant portion of my supplies and inventory shopping on Amazon because of:

  • Huge selection of business-relevant products
  • Fast, free Prime shipping
  • Easy ability to compare prices between sellers
  • Top-notch customer service for resolving issues

For entrepreneurs like myself who rely heavily on Amazon, the Store Card makes the most sense compared to general travel or cashback cards.

Maximizing the 5% Back Rewards

The highlight of the Amazon Store Card is the 5% back rewards, but it does come with caveats:

  • Only eligible for Amazon Prime members
  • Applies to select products, usually Amazon-owned brands
  • Max reward per eligible item is $75

Based on my experience, these rewards can add up quickly, especially on pricier inventory purchases. Here‘s a comparison of the rewards rates across popular cards:

Credit Card Rewards Rate
Amazon Store Card (Prime) 5%
Amazon Store Card 3%
Chase Freedom 5%
Discover It 5%

The Amazon Store Card competes with other top rewards cards if you maximize the Prime 5% back benefit.

Financing Options to Consider

As an entrepreneur, you may need to make large purchases that are tough to fund upfront. The Store Card‘s financing plans allow you to stretch out payments over 6-24 months.

I try to avoid debt whenever possible, but these plans have come in handy when I‘ve needed to invest heavily in new equipment or software to grow my business.

Here are two financing options I have utilized strategically:

  • Deferred interest promotions – No interest if paid in full within 6-24 month promotional period
  • Equal monthly payment plans – Fixed monthly payments with interest (19.99% – 29.99% APR)

The key is to understand the terms and have a plan to pay off the balance before promotional periods end to avoid retroactive interest.

Maximizing Value as an Entrepreneur

Here are some tips from my experience for maximizing the Amazon Store Card as an entrepreneur:

  • Enroll in Prime – Get access to 5% back and other Prime perks
  • Plan large purchases strategically – Use financing options wisely for investments
  • Track rewards earned – Use them to offset future business purchases
  • Monitor utilization – Keep credit usage low to avoid impacting business credit score
  • Pay in full each month – Avoid high variable APR interest charges

The Bottom Line

As a small business consultant and entrepreneur who shops frequently on Amazon, I find the Store Card to be a valuable tool for earning rewards and financing large purchases intelligently. Just be sure to pay close attention to the terms and manage the card responsibly. With the right strategy, it can optimize your business spending on Amazon.