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A Study in Strategy: Why More and More E-Commerce Brands Choose Amazon Pay at Checkout

This is a guest post from the BigCommerce team. BigCommerce is an e-commerce platform that allows you to customize your site, manage shipping and payments, and list your products on Amazon, Ebay, and Facebook.

Looking to expand your business internationally, build trust for your small brand, or just offer a better checkout experience on your e-commerce site?

Don’t underestimate the power of the Amazon Pay button.

According to BigCommerce data, online stores using both Amazon Pay and BigCommerce are seeing more than 20% of their customers choose Amazon Pay over other payment methods. Some businesses are even seeing up to 80% of their customer base primarily checking out with Amazon Pay.

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Benefits of Amazon Pay

Here are a few reasons why online retailers are implementing the Amazon Pay button and how they are reaping immediate benefits.

Easy setup

Amazon Pay integrates with BigCommerce and a host of other e-commerce platforms with a simple API and minimal setup time. Transactions are completed on your site, but with the added trust and familiarity of Amazon checkout.

“Amazon Pay was quick and easy to set up on BigCommerce, and after two weeks, 26% of our orders were processed by Amazon Pay,” said customer Tim Lorang of Power Support International.

A Study in Strategy: Why More and More E-Commerce Brands Choose Amazon Pay at Checkout

Added trust and credibility

Amazon is the number one marketplace in terms of sales for a reason. Nearly half of online shoppers start their product searches on Amazon, and this is due to the transparency, ease of shopping, ease of checkout, and brand trust shoppers have for Amazon.

Having the Amazon Pay button on your site adds the familiarity and trust of checking out on Amazon to your store, which is especially important if you’re a small or unknown brand. Though customers are checking out on your site, the use of their Amazon login information lends credibility and comfort to your checkout process. It also comes with Amazon’s A-to-Z guarantee, adding an extra layer of protection for your customers at no extra cost.

“By building these integrations with companies like Amazon Pay, BigCommerce provides non-household brands, like me, instant credibility. This equals a clear path to ~5% conversion rates on mobile with over 80% of sales on mobile,” said Brandon Chatham of NatoMounts.

A Study in Strategy: Why More and More E-Commerce Brands Choose Amazon Pay at Checkout

Fewer barriers to checkout

Because Amazon Pay leverages existing shipping and payment information, it simplifies the shipping process immensely, saving customers time and effort and boosting your conversion rates.

Get the spreadsheet we use to capture and analyze our e-commerce metrics.

“The goal of our website is to make it easier for customers to do business with us. The Amazon Pay button allows customers to use their already established Amazon account to make a payment quickly and easily,” said customer Mark Hawley of Metal Tech 4x4.

A Study in Strategy: Why More and More E-Commerce Brands Choose Amazon Pay at Checkout

Amazon Pay especially reduces friction for mobile shoppers. Today’s consumers are now spending almost as much on mobile orders as they do on desktops for the first time, and much of this has to do with the growing ease and comfort of shopping on mobile devices.

The ability to simply click an Amazon Pay button rather than having to enter payment and shipping details on small mobile device screens can greatly reduce your cart abandonment numbers.

Fewer shipping errors

When combined with Skubana’s automated platform, there’s virtually no room for error in your sales process from clicking to shipping.

Because Amazon Pay automatically syncs information from customers’ Amazon accounts, there is less probability they’ll mistype their shipping information. This saves your customers time in the checkout process but also saves you time by reducing the number of returns, lost items and customer service inquiries you have to handle.

Having the address information curated from the customer's Amazon account significantly reduces the amount of invalid shipping addresses. When I added that as an option, our shipping people noticed the decrease the next day,” said customer Chris Bair of Ketochow.

A Study in Strategy: Why More and More E-Commerce Brands Choose Amazon Pay at Checkout

More payment choices for customers

When trying to appease customers from different countries and backgrounds, more payment choices can make your store more appealing than competitors’. Additionally, Amazon Pay is available across devices, meeting customers wherever they choose to shop with you. Many retailers notice an immediate uptick in shoppers using Amazon Pay as payment after implementing the choice.

“From a branding perspective, we feel Amazon Pay is more appealing than other options and offers a better long-term merchant processing solution,” said customer Eric Jones of Couture Candy.

A Study in Strategy: Why More and More E-Commerce Brands Choose Amazon Pay at Checkout

Immediate ROI

Not only are retailers seeing customers take advantage of Amazon Pay as soon as it becomes a checkout option, they are also seeing the immediate ROI of the tool.

Ease of use, added trust and fewer barriers to checkout for customers are resulting in a tangible revenue boost for retailers leveraging Amazon Pay. The cost of Amazon Pay is comparable to other payment processors, and also helps merchants reduce fraud.

“We converted a $2,000 sale in the first couple of hours after implementation, and we are seeing steady usage of the Amazon Pay option,” said customer Spiro Alafassos of Play Better.

A Study in Strategy: Why More and More E-Commerce Brands Choose Amazon Pay at Checkout

Amazon is continuously working to improve Amazon Pay based on customer and retailer feedback, backed by years of the innovation and customer-oriented strategy Amazon is known for. As many retailers have already discovered, adding Amazon Pay is an easy-to-implement strategy that results in a quick win for your e-commerce store and customers alike.

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