What is Amazon Pay?
Like any business, Amazon wants to encourage sales on its website and is doing everything it can to make it easy for sellers to sell and buyers to buy. One of the ways Amazon is doing this is through a feature known as Amazon Pay. Amazon Pay adds a button to your website that can allow customers to feel comfortable with the checkout process and trust that any information they enter into your site during checkout is safe and secure from fraud.
Once the customer is logged into their Amazon account, they can visit your website and shop with ease. All of their information is already entered into Amazon which makes it simple for customers to continue shopping on your site. When customers see that you have an Amazon Pay button, it will help new customers feel as though they are making a safe purchase from a credible business. In addition, the business itself will be protected under Amazon’s fraud and payment protection policies.
Amazon requires those merchants who use Amazon Pay to pay a fee for each transaction made within the United States. The domestic processing fee is 2.9 percent of each transaction and there is an additional $0.30 authorization fee required. There are other fees associated when the transactions take place internationally. It is important to be aware that sales across international borders have a 3.9 percent processing fee.
If you have questions regarding your Amazon business, including Amazon Pay, it is important to speak with an experienced Certified Public Accountant who specializes in helping Amazon sellers. They can run the numbers and determine whether it is in your best interest to make this type of business decision.
If you are an Amazon seller and require the assistance of an experienced Certified Public Accountant, please contact Ebiz Accounting for an initial consultation.