Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue July 25 2017 15:35:18

Would You Use Amazon Instead of PayPal?

By: Ina Steiner

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A Wall Street analyst believes Amazon may be readying a PayPal clone. Amazon is already pushing merchants to accept its Amazon Pay service on their websites, and Bernstein analyst Lisa Ellis believes the marketplace could expand it in the next several years. 

Bloomberg quoted Ellis: "This scenario involves taking a page out of the book of what eBay did with PayPal and Alibaba did with Alipay, and building up independent wallet service based off of the Amazon Pay wallet," Ellis wrote in a note to clients Tuesday. Such a service would be of concern to Visa and Mastercard "specifically if consumers start storing their money in the Amazon Pay wallet and not in their underlying checking accounts."

Many small sellers like using PayPal so they don't have to go through the process of getting a merchant credit-card account, and when they're paid, they can store the funds in their account and use it to pay bills or fund purchases.

That would be true of a PayPal-clone from Amazon, except for one major drawback: sellers wouldn't be able to use it on eBay.

If Amazon had a comparable service, would you use it instead of (or in addition to) PayPal? What features and policies would it have to offer merchants and consumers to make it an appealing option (i.e., dispute resolution, funding methods, etc.)?




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This user has validated their user name. by: toolguy

Tue Jul 25 16:26:20 2017

NO!

Amazon is big enough, besides I don't shop there.

Paypal works and works fine. . .

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by: FeelingFroggy This user has validated their user name.

Tue Jul 25 17:07:33 2017

Faster than a new york second. Paypig is corrupt.

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by: pace306 This user has validated their user name.

Tue Jul 25 17:38:37 2017

I would think that initially, Amazon wants it so that they can A) get you into an Amazon CC and make money off the interest and B) you would use your money (in the Amazon payments account) to buy goods on Amazon since it would be faster to get the stuff "you are going to buy anyway".

Must further down the road is becoming a Paypal killer. Just 'caused they hoodwinked Samsung and Apple, doesnt mean that Amazon is that dumb. They know Paypal for what it really is - just a way to force control over sellers (its not even a bank) and Amazon doesnt need that kind of control - since you dont get "paid" till you ship.

Amazon will also pressure ANY merchant that takes Paypal (since they like the rest of us here) KNOW that eBay and Paypal arent "really" 2 separate companies.

They have it all planed and "it couldnt happen sooner to a worse bunch of people" (eBay/Paypal)

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This user has validated their user name. by: RKTOYS

Tue Jul 25 18:08:19 2017

What?  The mechanism that  Amazon uses to pay sellers right now is every bit as controlling and unilateral as people say PayPal is.  In fact they are even worse with holding payments for up to two weeks.

Having dealt with Amazon's two-faced "buyer experience" clowns twice this year and been screwed both times, it will be a cold day in hell before I help them grow even more monstrous.

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This user has validated their user name. by: eXtinctBay

Wed Jul 26 11:05:31 2017

I had a PP chargeback instance recently, and researched what my rights were. It stated that a buyer can file a SNAD with their credit card company, and keep your merchandise and your money.

It appeared as if one of these claims was filed, you did not have the opportunity to offer a return, and PayPal would close the case. The buyer then gets a full refund and free stuff.

Luckily,  the buyer in my case just claimed that the purchase was unauthorized, and I won the claim because it was shipped to a confirmed address.

Wonder if Amazon Pay, Apple Pay, or Google (Android) Pay will have any vendor / seller protections in place? Or just kowtow to the CC issuers??

I think these companies are positioning themselves so that eBay will have to offer them as payment options when the PayPal agreement (of a guaranteed percentage of eBay transactions) ends.

All three of these companies manufacture devices that enable online payments, and PayPal doesn't. So eBay may have to eventually include Apple, Google, and Amazon as partners. Whether they wish to or not.  

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by: TomH This user has validated their user name.

Wed Jul 26 12:05:14 2017

Yes I would offer it along with PP and any other legitimate avenue of collecting payment for my goods.  

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by: MostlyArt This user has validated their user name.

Wed Jul 26 23:59:10 2017

Not instead of PayPal, but wouldn't hesitate to trust an Amazon payment service. I used the first version of Amazon payments when I sold on Artfire with no problems. Still prefer PayPal.

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This user has validated their user name. by: tanzi

Thu Jul 27 00:35:20 2017

It would depend on what their terms were.  

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by: comments This user has validated their user name.

Thu Jul 27 00:47:18 2017

Amazon pay is AWEFUL and  as shocked as you guys may be to hear this it is true.....Paypal is MUCH better and MUCH more user friendly then amazon payments.

I used amazon for a while for non ebay stuff. You can not initiate deposits to your bank, they do it for you.

Chargebacks and claims are done by threatening email with a unique address to reply to that does not work. Their emails tell you to respond with the reply button to them in 3 days or they issue an automatic refund to the buyer. When you hit reply the email fails and says the address is unknown. Customer support is unable to help sellers in any capacity and require you to email or chat support, not so great when your in a 3 day window to reply or they issue an auto refund.

Daily payments are difficult to find and often missing shipping information and when linked to checkout from another site. Also product descriptions usually don't show up either so it is hard to determine what item sold.

navigation sucks and if there was a 3rd party checkout way to print shipping labels I never found it.

the grass is NOT greener!

I don't know what amazon payments is like when you sell on amazon because I never have, but third party checkout was the absolute worst thing I have ever used. Paypal is light years ahead of them.

I do have to say though I hope some day ebay will process their own payments and move away from paypal. An alternative and competitive pricing would be welcome.

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by: val2525 This user has validated their user name.

Thu Jul 27 02:22:25 2017

Absolutely not. Personally, my preference is for Square.

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by: Old Maggie the Cat This user has validated their user name.

Thu Jul 27 05:21:47 2017

I would use it in addition to PayPal. I've never had a problem with PayPal so I would have no reason to cancel it.

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by: treasurehunter777 This user has validated their user name.

Thu Jul 27 06:51:43 2017

I never us Paypal not my Pal. Read the horror stories on paypal sucks.com and they do suck. Paypig is licence to steal from merchants.

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by: JohnGermaine This user has validated their user name.

Thu Jul 27 09:16:09 2017

No!! I consider Amazon way more evil than eBay.  I don't shop there, ever.

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by: Sierra This user has validated their user name.

Thu Jul 27 09:24:14 2017

I sell on Handmade @ Amazon (did you even know that Amazon HAS a Handmade department?!), and have no choice but to accept Amazon Payments for those sales.

I don't have a stand-alone web site at this time, but I would consider offering Amazon Payments there if I had a site ... or on FB (where I do sell a lot) ... especially if Amazon throws in a Prime membership as a bribe! ;-)

However, as a shopper, I would NOT store money on Amazon (what money? I'm already living sale to sale as it is!).  

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This user has validated their user name. by: toolguy

Thu Jul 27 11:33:43 2017

Jeff Bezos passes Bill Gates as the world's richest man!

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by: tiastreasures This user has validated their user name.
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Thu Jul 27 13:37:28 2017

I would switch as soon as eBid enabled it . . .  

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by: Whatever This user has validated their user name.

Sat Jul 29 15:02:15 2017

Heck no - actually since Amazon won't allow me to sell there without a cash bribe - closed category - why would I ever let them process my funds? Since I can't sell there - I don't shop there either.  

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by: unusual1 This user has validated their user name.
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Sun Jul 30 14:55:00 2017

ABSOLUTELY!! I am thinking of putting on my website as an option to the checkout I already use. I use it for payment on Bonanza - a pleasure - no problems.  



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