Do your customers want Checkout by Amazon?

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Following the news that M&S have launched a new Webstore with Checkout by Amazon it’s worth taking a closer look at the solution. M&S have opted to exclusively accept payments via Amazon Checkout on their Outlet website so they obviously believe Amazon Checkout won’t deter customers from purchasing. With that in mind why wouldn’t you offer Amazon payments on your website and would your customers want to use Checkout by Amazon?

Checkout by Amazon makes it easy for Amazon customers to shop on your site by using the delivery and payment information stored in their Amazon account. As an additional benefit customers may feel more confident making purchases knowing that they have the same protection under the Amazon A-to-Z Guarantee as they have when they shop on Amazon.

Recent interviews of US Sellers found that up to 90 per cent of customers using Checkout by Amazon are new-to-file and that average order size for orders placed through Checkout by Amazon is 10% to 17%
higher than other payment methods. These two stats taken together can make a big difference to a business. If offering an alternative payment method encourages new customers to complete orders and at the same time spend more why wouldn’t you offer more payment options.

If like M&S you opt for an Amazon Webstore then you’ll automatically be set up for Checkout by Amazon. However you don’t have to use Amazon Webstore to offer Amazon as a payment option – you can add Checkout by Amazon to any eCommerce website.

Many eBay sellers start with a website offering PayPal as a payment option. Others start off with just credit cards as an option. Why wouldn’t you offer all three – PayPal, credit card and Checkout by Amazon? What about Google Checkout, is that an option worth offering? Which payment options do you offer on your website and which are most popular with customers? Do you see a difference in order value between payment methods?

7 Responses

  1. There have been reports of Amazon using the data around customers shopping habits obtained from purchases made on eCommerce website using Checkout by Amazon to make recommendations to customers of products they might be interested in purchasing on Amazon. These are suggestions by email and the next time they visit Amazon.

    It worries me that after getting a customer to our site and getting a sale, Amazon then tries to poach that customer for future sales.

  2. On our website we offer Google Checkout, No Chex and Paypal. What I like about On Chex is that there is no sign up, so a customer can simply put in their card details without signing up with the payment gateway. Hopefully this benefits a certain type of customer who doesn’t want to put their details all over the web, which I find is quiet common.

  3. If you’re considering CbA bear in mind that settlement only happens once every 14 days and it’s then another 4 days or so before the money actually hits your bank account. So Amazon will have your money for up to 18 days.

    The charges are exactly the same as PayPal but the settlement period is not.


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