From it’s humble beginnings to the powerhouse it is today, Amazon has become one of the most dominant forces in e-commerce generating 136 billion USD in revenue in 2016. Amazon are constantly evolving as a company and offer an endless supply of varied services from streamable video to cloud servers.
One of it’s latest expansions is into the world of e-commerce payment gateways. This is market that was dominated a few years ago by a small number of companies and is now experiencing quite a varied market share between the leaders like Sagepay, Braintree, Stripe, and Paypal. With more and more companies launching payment gateways, Amazon has entered the arena with Amazon Pay and is becoming progressively popular amongst online retailers.
They have a number of USPs that seperate themselves from the other offerings. One of the biggest selling point we have understood from our clients is the fact that roughly 304 million consumers worldwide have an Amazon account, which can account for a large number of your existing and potential customer base, and Amazon Pay makes it incredibly easy to checkout using all of your personal details already stored on Amazon.
Personally, I feel they are one of few payment services who really want to work with retailers & mutually improve conversion rates.Ashley Hubbard, E-Commerce Manager at Grenson
The flow of checking out with Amazon Pay is incredibly simple. In most cases, a customer will land on your website and add a product to their basket. At the cart page, an Amazon button will be present and clear allowing customers to head straight to the checkout. Clicking the Pay with Amazon button takes the customer in two directions; if they are already a customer it will link their existing Magento account with their Amazon account or if they are a new customer a Magento customer account will be automatically created for them using their details from their Amazon account.
Once this quick process is complete, the customer is already at the checkout with all of their billing addresses, shipping addresses, and stored debit/credit cards present from Amazon allowing the customer to have a quick and easy transaction.
We’ve seen a number of other great implementations of Amazon Pay including express checkout buttons on the product page for an incredibly fast checkout. The simplicity and ease of Amazon Pay is what makes it special.
We spoke to Ashley Hubbard, E-Commerce Manager for Grenson, who are one of our clients converted by Amazon Pay to find out why he chose to implement Amazon’s payment gateway and how much of an impact it’s had on their online business.
Hi Ash, thanks for your time today. Can you talk us through why you decided to implement Amazon Pay on the Grenson website? What were the key selling points for you?
Overall, the main driver from my perspective was for us to be able to leverage the trust in the Amazon brand at the critical point of conversion within our own purchasing journey. This I felt was especially key in trying to build cross border trade. I’m very aware that the Grenson brand has a mixture of brand equity levels across the world where in some territories we are still fairly unknown.
What is it about Amazon Pay that separates it from other payment gateway providers? What do you personally like the most about it, and what have your customers reactions to it been?
To me, they are the first to really try & re-think the user purchasing journey within an e-commerce process. I don’t know of any others that have previously approached me that have tried to influence conversion from a cart page.
Many are still marketing themselves as the afterthought of the purchasing process in that once the item has been added to cart, the payment is whatever suits the customer. This thinking needs to change as with payments becoming easier from a wealth of devices & transaction limits slowly increasing on contactless methods, why would you not be more forwards thinking with online payment innovation? The fact is our payment journey with Amazon Pay can be as short as 5 taps and the entry of an Amazon account detail is magnificent!
Our customers seem to reflect this thinking with Amazon Pay being regularly cited within NPS feedback notes whereas any other payment provider or service is rarely mentioned.
You offer three different payment portals on the website including debit/credit card payment and Paypal. Since implementing Amazon, how popular has it been as payment choice for customers?
Amazon Pay took 44.4% of payment share within the first 2 weeks of our AW17 sale which is a phenomenal share across purchases from many different global territories & I think says it all.
Grenson is a very busy website for transactions year round but none more so than during your sale periods. How has Amazon Pay helped during the times when the website is under the most pressure?
Due to Amazon Pay’s investment in Magento extensions, the server load on our own platform is decreased when under heavy load. As the data is all supplied via widgets directly linking to the customer’s Amazon account, there is a lot less data read/write into the Magento database until the order needs to be processed. The integration also can identify existing accounts within our Magento store if their email address matches, making the customer history still available if logged in to Grenson with their email address & a password or via Amazon Pay with their Amazon account credentials.
You’ve spoken on behalf and with Amazon Pay at a number of technology events in the past year. Why would you recommend it to other online retailers?
Personally, I feel they are one of few payment services who really want to work with retailers & mutually improve conversion rates. As I have mentioned earlier, to me personally the Amazon brand equity & trust globally is huge & covers territories that other common payment services in the western world don’t really have much of an impact in.
The Limesharp team also did a fantastic job of taking the Amazon Pay integration and taking the top down view of how we can best ‘make a difference’ with this integration by looking at some bespoke changes to our existing pages to really make the payment channel sit in the most prominent places.
You mention industry events above; Amazon Pay were using Grenson as the example of an integration on their stand at this year’s Magento Live in London and I believe a few other events which is a great compliment to our integration & the relationship we have built with them over the past 2 months.
Are you considering Amazon Pay for your Magento website? Why not speak to us by emailing email@example.com and see how we can help with the implementation.