In all sectors, the completion rate for online purchases is between 20% and 30%. With Amazon Pay, some merchants can achieve a rate of 50% above the average. What is their recipe for success?
Interview with Giulio Montemagno, General Manager Europe, Amazon Pay.
How do you explain the high rate of completion of online purchases with Amazon Pay?
The goal of all e-merchants is to encourage as many customers as possible to complete their online purchases. Today, almost a third of purchases are finalised during the payment process. This phenomenon is frustrating for traders who have managed to attract traffic, only to see their customers leaving the site without spending a single penny. This represents a shortfall for traders, and the accumulation of these lost sales leads to a considerable loss of income. A lack of payment options is one of the main causes of non-finalisation of purchases but not only that: the purchase tunnel may be too long, there is a lack of transparency or trust, postage is too expensive and/or lengthy, visitors are unqualified, etc.
At Amazon Pay, we've addressed these topics because we're always looking for ways to improve the consumer experience. As a result, we see conversion at a rate of sometimes 50% above average.
What is your secret?
There is no secret. Building trust in a brand is a long-term job. The idea is not a new one: a satisfied customer will keep coming back. Our strategy is based on a range of consumer-centric services designed to make the experience simple and reassuring. On Amazon, customers can pay for their purchases in a few clicks; they know they can be refunded if the product does not arrive on time or is not compliant, etc.
As a result, most Amazon users are repeat customers who use Amazon Prime - our loyalty program offering multiple benefits (free and unlimited delivery in 1 business day or the same evening, tailored membership packages, and so on) and exclusive services (Music Premium, Video Bonus, Free and Unlimited Photo Storage, Twitch Prime, Kindle Loan Library).
How will Amazon Pay change the deal for e-merchants?
For customers, regardless of where they buy and the delivery method (via Amazon or third-party sites), they can use their Amazon account information to purchase products and services on third-party merchant sites. Active Amazon account holders only need to enter their username and password when validating their order and the purchase is made in a few clicks, without having to create a new account.
On the merchant side, adopting Amazon Pay means they can build on the loyalty work that Amazon has been doing for years. They access the more than 33 million customers around the world that have already used Amazon Pay to make a purchase on a third-party merchant site. More than half of them are Prime members, that is, some of Amazon's most loyal and active customers. The purchase on their site becomes, in the eyes of the users, as simple and as safe as on Amazon. This is our added value: a community of loyal buyers, and the simplicity and immediacy that has made our success. Several companies in the UK have already adopted Amazon Pay, including BT FON, Virgin Experience Days, Hawes & Curtis, Muddy Puddles, All Saints and Seedlip Drinks.