Best Ways to Accept Payments On Amazon (Including PayPal)

Best Ways to Accept Payments On Amazon (Including PayPal)

If you’re running a business, then you know that getting paid is one of the most important parts of any venture. But when it comes to accepting payments, most small business owners don’t have time to figure it out. 

This post will provide you with all the information you need about how to receive payments on Amazon and learn alternative ways to get paid via PayPal.

This article is a part of a special Farida Bayoumi x Synder giveaway!


Introduction to selling online: the best Amazon payment options

What is Amazon Pay?

Afterpay Amazon: how does the “buy now pay later” model work?

Tricks for selling on Amazon, Shopify, Etsy, Walmart, and eBay

Introduction to selling online: the best Amazon payment options

Amazon is one of the largest shopping destinations online. It has over 300 million active users ordering as many as over 1 million items a day in the peak season (during the holiday rush). 

Starting an Amazon Canada store may become a great solution whether you decide to expand your business or start selling online from scratch. Selling on Amazon can be very profitable, but it does take work. Receiving payments will be difficult if you are not set up to accept, process, and account for them. 

That’s why we want to take the time to explain your options for payment processing on Amazon.

List of Amazon payment options 

There is a vast variety of payment options offered to Amazon sellers because not every buyer will want to make a purchase with the same payment method. If you are looking to sell on Amazon Canada, you might be wondering what payment options are available for buyers and merchants.

Here’s a quick rundown of the options you will have: 

  • Amazon Pay. It is a payment system that offers businesses a built-in checkout option for all online buyers with an Amazon account.
  • Payment service providers (or PSPs). Your Amazon store needs to be assigned either to your bank account or to a bank account provided to you by an approved PSP as a deposit method. Amazon does not allow disbursements from other payment providers. 
  • Gift cards. Buyers can purchase a range of gift cards from different brands including Afterpay, Apple, Google Play, Visa, and Amazon itself. Gift cards also step up as a solution for paying with third-party providers, since Amazon does not support many of them, for example, PayPal.  
  • Amazon Store Cards. Amazon accepts its own credit cards, including the Platinum Visa Card, Amazon Prime Store Card, Amazon Secured Card, and Amazon Prime Secured Card.
  • Business lines of credit. Amazon accepts a line of credit as a method of payment with Synchrony Bank, allowing 55-days payment terms for businesses.

What is Amazon Pay?

Amazon Pay is a payment system developed by the marketplace itself. This online service allows small businesses to give customers a chance to choose their preferred way of payment and allows processing payments securely on the site.

Advantages of Amazon Pay for online sellers

Merchants can get a number of benefits from the Amazon Pay system.

Here are some of them:

  • It’s a secure way to accept payment from all buyers with  Amazon accounts. 

Amazon takes care of establishing trusted relationships with buyers all over the globe so that you as a business owner don’t have to worry about this. A simple and trusted checkout experience that is recognized by hundreds of millions of Amazon shoppers will add credibility to your store.

  • It’s free and has no extra fees.

Using Amazon Pay does not add any merchant fees to the sale: no transaction fees, membership fees, currency conversion fees, foreign transaction fees, or any other fees. 

Please note that some fees can be added on the side of the card issuer (for example, a foreign transaction fee if shopping takes place in a country different from the site the card was issued by).

  • It supports a variety of payment methods.

Amazon Pay accepts credit and debit cards. The credit cards currently accepted include Visa, Mastercard, American Express, Diners Club, and JCB. The Amazon Gift card is also available for use with selected merchants.

  • It’s scalable and allows you to sell more on other sites as well.

To you, as an independent seller, this means you offer Amazon Pay as a payment gateway in your own online shop or on other marketplaces. For example, this method will work for the Shopify Amazon cross-platform integration.  

Do Amazon and PayPal work together?

There is no native Amazon PayPal integration available for the Amazon sellers. The major reason for that was a historically close partnership between PayPal and eBay, the biggest competitor of Amazon. The second one is that Amazon Pay also competes with PayPal as a  payment gateway.

Nevertheless, if you have a PayPal account, there are workarounds that will allow you to use PayPal on Amazon.

3 ways to accept PayPal payments on Amazon

There are three ways to use Amazon PayPal indirect integration:

  1. You can create a payment link with Synder software for e-commerce accounting. Just send the link to your online customer, and they can easily pay using their PayPal credentials. For more details, visit our Amazon PayPal payment link guide.

If you don’t use Synder accounting for your e-commerce sales yet, there is a free trial to see how it works. 

  1. You can request a PayPal Cash Card, which is a debit card. If you have a Business account, you can apply for the PayPal Business Debit Mastercard. PayPal Key is a virtual card that can be used at any online merchant that accepts Mastercard. 
  1. Your customers can buy an Amazon Gift Card using their PayPal account and then use this gift card to purchase your goods. Bear in mind, that as the last two methods are not direct ones, it may require a few days to process the transaction. But all PayPal transactions can be easily auto-recorded and reconciled by Synder, so you won’t have any bookkeeping headache about this. 

Afterpay Amazon: how does the “buy now pay later” model work?

Buy now and pay later is a payment model allowing customers to pay over time without finance changes or paying interest. Those with Amazon business accounts can use the Pay by Invoice service. But what about all other Amazon shoppers? 

Recently, a new BNPL alternative has been added to Amazon. Afterpay is a payment processor from Australia providing this service for shopping online. The Afterpay Amazon option has become available on the marketplace, introducing more flexibility for non-business buyers online. 

Customers can now buy your goods when they have fallen in love with them even if they don’t have the whole budget right away. They will pay in small installments later. For merchants, it means more possibilities to catch clients while they are “hot” and close the deal. On the not-so-bright side, this option brings delays in payments and a certain level of operational inconvenience due to negative cash flow in your bank account. 

Tricks for selling on Amazon, Shopify, Etsy, Walmart, and eBay

Trying to reach out to as many customers as possible, you might decide to start selling online not only on Amazon but on other popular marketplaces too, such as Shopify, Etsy, Walmart, and eBay.

When your business is present on several e-commerce sites simultaneously, you might wonder if there are ways to integrate these platforms somehow, or at least share some valuable information between them to optimize your business processes.

There are two integration tricks we can share with you.

1. Shopify Amazon integration

For maximum Shopify Amazon integration, try adding the Amazon Pay button to your Shopify online store. Enabling this payment option will not require any programming and will be quite easy. 

Just like PayPal or any other external gateway, this system is very easy to add to your site. Buyers with an Amazon account can use their credentials to pay you more quickly, without having to add any information manually.

The marketplace will not share the full credit card, debit card, or bank account data with any parties that accept Amazon Pay. The merchant only receives the information that is required to complete and support a transaction. This information usually includes the client’s name, email address, and shipping address.

2. Amazon Walmart, Amazon Etsy, eBay Amazon

Unfortunately, Amazon Pay will not work for Etsy, Walmart, and eBay the same way it does for Shopify. However, there is another secret to get the most out of connecting Amazon Walmart, Amazon Etsy, and eBay Amazon.

Synder accounting software allows e-commerce companies to add multiple sales platforms into their accounting

It means if you have online stores on Amazon, Etsy, Walmart, eBay (and Shopify too), you can get all sales data from each source automatically synchronized into your accounting system. With no manual work involved. You will know how many sales you have made via what channel, what the net and gross amounts are. The customer, vendor, merchant fees, and shipping data will be correctly reflected as well. It will be much easier to track inventory and even pay taxes, as all your financials will be securely recorded in one place.

Wrapping up

Amazon marketplace will offer you plenty of payment options. It will be crucial for you to choose the right one and build a checkout process that converts more customers.

As an Amazon seller from Canada, you can get paid via credit and debit cards, invoice payments, and some other ways. You can also use Amazon gift cards not only as an additional payment option for your customers, but also to connect payment providers like PayPal, or Afterpay too.

Amazon’s native payment processing system, Amazon Pay, will allow you to build a simple and trustworthy checkout process. It will enable you to scale your online business, as you can also use Amazon Pay on your own website or in your Shopify store. 

Olga Shvets

Olga Shvets

Olga is a FinTech writer with a degree in communications and business experience in e-commerce. Passionate about all things connected with money and the principles of human behavior. Financial psychology and trends of global markets are her favorite topics to investigate.

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