Amazon integrates Paypal with Pay with Prime

After the promotion of Amazon’s Prime program in the health sector, the web giant is focusing on its development in the US e-commerce market, relying on the enrichment of its "Pay with Prime" offer. Amazon will be able to count on its new partnership with PayPal, to offer this payment method alongside the cards already allowing to use the service "Buy with Prime". An improvement that is accompanied by other important updates to the program.

FACTS

• "Pay with Prime" is a feature introduced by Amazon to allow Amazon Prime members to take advantage of their subscription when purchasing from partner e-commerce sites. It is materialized by the "Buy with Prime" button on the pages of e-merchants partners, thanks to an API.
• In addition to the cards that can be attached to these accounts for example, buyers using the "Buy with Prime" button will now also be able to pay their purchases with PayPal on the sites of merchants collaborating with Amazon.
• As of next year, Prime members will also be able to link their Amazon account to a PayPal account so that the Prime benefits are automatically activated each time they use PayPal when they make purchases.

CHALLENGES

• To establish itself in the e-commerce market: "Buy with Prime" was launched in 2022 with a dozen brands. The program recorded a 45% increase in orders in 2023 over the previous year.
• Optimize online sales: "Buy with Prime is not just a payment service. To help retailers reduce their cost of acquiring customers, Buy with Prime also introduces advertising solutions such as Amazon Demand-Side Platform (DSP) or Google Shopping Ads. The objective of these solutions is to help merchants generate traffic to their "Buy with Prime" eligible products.
• Manage procurement: Amazon finally combines with "Buy with Prime" a logistics service. The web giant manages orders from merchants integrating the program, since stocks sold via "Buy with Prime" are sheltered in Amazon warehouses. In addition to advertising and payment, the web giant also offers its e-commerce partners to take advantage of Amazon Multi-Channel Fulfillment (MCF), a supply chain service operating in 10 countries. This year, the service saw a 70% increase in orders processed. But Amazon does not stop there since its service also reduces today its standard delivery time, from 5 days to 3 days without additional costs for merchants. MCF Quick Badges will display real-time delivery estimates on merchant sites.
• An all-in-one e-commerce solution: With payment, advertising and sourcing, "Buy with Prime" is a complete e-commerce experience, embedded from a simple payment button. With an average 16% increase in revenue per buyer for merchants using this service, Amazon wants to expand its influence on the e-commerce market by supporting the activity of other ecommerce retailers.

MARKET PERSPECTIVE

• The number of merchants offering "Buy with Prime" has increased by 25% this year, with partner brands such as IZOD, Elizabeth Arden, Dollar Shave Club.
• By combining PayPal with its service, Amazon is now counting on the attraction of the huge PayPal customer base to further boost the use of Buy with Prime.