Tuesday, July 29, 2008

Amazon Launches Merchant Payment Service

Well, it is now official, Amazon has launched two new payment services for merchants at their revamped Amazon Payments website:
  • Amazon Simple Pay - Amazon Simple Pay is a set of payment-only products that allow your customers to use payment information from their Amazon.com account as a payment method on your website.
  • Checkout by Amazon - Checkout By Amazon is a complete checkout solution that leverages Amazon's e-commerce capabilities and offers your customers a familiar, trusted experience.

Both of these new services enable merchants to accept Amazon payments on their website and provide for world class fraud protection and consumer protection with the Amazon A-to-Z guarantee.

Amazon's new services also work seamlessly with Amazon FBA: "Checkout by Amazon combined with Fulfillment by Amazon (FBA) enables you to outsource both transaction processing and fulfillment."

The fee structure is similar to PayPal and both checkout services offer website owners access to Amazon's over 80 million active user accounts. Merchants can now offer Amazon payments on their website as an additional payment option or a complete integrated solution.

Now, I wonder if eBay will allow Amazon Payments on eBay.com :) It really can't be argued that Amazon Payments is un-safe.

Update: In my desire to be the first blogger to post about Amazon Checkout, I didn't go in-depth on the analysis, but Scot Wingo has done a good job giving his 12%

Just my 12%


Rich said...

Unsafe/eBay=WMD/Bush Team

My choices on my sites will now be Amazon and Google Payments.

Way to be on top of things Randy!

Randy Smythe said...

Thanks Rich, I do my best.

jeromy said...


Randy Smythe said...

jeromy, maybe some coffee would help!

Dolph said...


It's not similar to Paypal if Amazon insists on 5% for purchases under $10. That seems to me to be hiighway robbery. For those who tell me that Paypal is evil, I agree BUT I've NEVER had a problem with them in 7 years of working with the site.

Randy Smythe said...


They don't charge the $0.30 transaction fee like PayPal does on under $10 orders.

A $10 order from Paypal would be 5.9% when you add the 30 cents transaction fee.

With Amazon it is 5% plus a $0.05 cent transaction fee.

So on a $5.00 total Amazon would charge $0.30 cents and PayPal would charge $0.44 cents.

Significant savings on low ASP items.

The real story here is you get access to 80 million Amazon customers.

Moonlight said...

Actual numbers speak louder than words. Sometimes, people just don't stop and think for a moment.

When people focus in on one point, they miss many other points in your posts. Having two different payment solutions, Amazon would appeal to both merchants and smaller sellers for their websites.

Thank you, Randy. Your information is always timely.