When somebody visits Amazon, there’s a good chance they’re going to buy something. Check out these conversion rates:
Now, Amazon’s bringing its one-click formula to third-party sites.
“Buy with Prime”, which allows ecommerce sites to integrate with Amazon’s checkout, payment, and shipping services, will be available to all eligible US merchants by Jan. 31. For Prime members, that means free shipping, free returns, and one-click checkout.
During a pilot program, Buy with Prime increased shopper conversion rates by 25% on average, with some sellers reporting 30%+ increases.
Meanwhile, Amazon reaps payment processing fees from Buy with Prime purchases, expanding its total addressable market (TAM) to the entire ecommerce market — not just products sold on Amazon.
The company needs the boost: Amazon announced layoffs of 18k employees this month, and investors have been discouraged by its slowed growth.
Ecommerce competitor Shopify has its own one-click payment offering, Shop Pay, which facilitated 137m+ orders in 2020.
But if its merchants adopt Buy with Prime instead, Shopify’s revenue growth may be at risk — especially if Amazon’s offering sees higher conversion rates than Shop Pay.
A perk or a drawback? Buy with Prime will also allow merchants to display reviews from Amazon.com on their own site, but they won’t be able to hide the bad reviews.