With the recent explosion of online marketplaces, many companies are vying for control of the digital payment space. One from a well-known internet presence is Checkout by Amazon. With an already large customer base, adding Checkout by Amazon to your small business allows millions to buy with pre-established accounts, using a system known for its ease and security. Using the same security as Amazon.com, Checkout by Amazon offers full protection from fraud-related chargebacks from transactions that meet their payment protection policy. Further, it has no start-up costs, hidden feeds, or monthly charges.
One of the main selling points of Checkout by Amazon is that the entire process can be placed on your website. While some other digital payment services redirect your customers to other pages, Checkout by Amazon allows sellers to control the buying experience and could help lower shopping cart “abandonment” rates, when many consumers rethink their potential purchase. Further, you can upsell and promote other products through the checkout process.
The only costs associated with Checkout by Amazon are when something is purchased. The seller is charged 5% plus $0.05 for purchases under $9.99, and 2.9% plus $0.30 for purchases over $10.00. They even offer volume discounts ranging from 2.5% plus $0.30 for average transactions of $3,000-$9,999.99, to 1.9% plus $0.30 for average transactions over $100,000. In terms of costs, this makes it very comparable to Paypal, another player in the digital payment market.
Another feature is how it can be implemented in a way that fits your business. The inline checkout allows customers to select their information from their Amazon accounts, through your existing checkout flow with no pop-ups or redirections. The standard checkout creates a pop-up screen where the customer selects their information. The pre-integrated cart allows users to keep track of their items to be purchases, and a buy now button allows users to select and purchase a single product without a shopping cart.
Overall, Checkout by Amazon seems to be a great way to let your customers manage the checkout process, assuring them a secure and quick method of payment many are already familiar with. When compared to Paypal, it lacks the ability to transfer funds to another person, but the brand recognition and security of transfers and financial information more than make up for it. Further, with the many ways to pay and incorporate into your business, Checkout by Amazon is not only consumer friendly; it’s very business friendly.