Why Isn't Amazon Payments More Popular??

[Aminka Ozmun]

I guess I missed some kind of fine print somewhere, because there must be a reason why not too many e-tailers do Amazon Payments!

I understand why PayPal's so popular, but why not Amazon Payments?? I mean, is there anyone who hasn't bought from Amazon?

And what's the deal with other, what-do-you-call-them, payment gateways (or processors or whatever) such as 2CheckOut.com and ♥♥♥♥♥♥♥♥?? Why would anyone use them over PayPal (despite the horror stories)??

[alexb5784]

I'm familiar with Amazon Payments and I signed up for it two months ago. However, I've yet to find someone who takes it and as a result, it's collecting dust in my cyber wallet.

I use Paypal to send and receive money, it's super easy and everyone knows about it. I also have a merchant account with Paypal which is linked to a PayPal Mastercard. It's easy to get money in 2 minutes, then 3 minutes later go and buy something in person with my business debit card. Amazon payments doesn't have a feature like this.

Second, I use a separate shopping cart software because:

• 1. It allows me to link it with my auto-responder email service (Aweber or MailChimp)
• 2. I can create encrypted download links and coupons if I want.
• 3. I can easily place information in Quickbooks for accounting purposes.
• 4. I get instant delivery of my products.
• 5. I also like having the option to upload my products to my shopping cart's servers but I usually host all my own stuff.

Paypal only allows you to receive money, which is great if you're only selling one-on-one consulting services or want donations. But if you have downloadable products that contain large files, think 250 MB or even 1GB files, then you need a secure shopping cart. I've tested out various companies and most of them have been very good. But whatever company you decide to use, make sure it can meet your needs.

Since 2010, I've used:

• E-Junkie: Super cheap (starts at $5) and great for small downloadable products. But if your products contain large files (audio and video) then you will have to upgrade your account. E-Junkie is very good.
  
• NetPro Soft: I thought it was good but they don't have a hosted service, plus I wasn't doing much at the time when I signed up. In addition, they don't have easy to use 3rd party email management integration. My friend had a lot of problems integrating her email list into this program, it was a pain in butt that required tons of tech support.
  
• 3D Cart: I test drove it and it was good. I recommend it for basic services and online stores selling physical items. You can try it for free and then pay $20 for basic service with 1GB of hosting. That's not too bad
  
• Ultra Cart: My current shopping cart, so far so good. It's not cheap though, $60 a month. But it ingrates with Aweber which is a Godsend. I also use MailChimp for email management but I'm going to shut it down after December 2011. I've raised my consulting/coaching fees by 625% and need something with more professional.
  
  Mailchimp is great to use when you're first starting out (there's a free plan) but I prefer to use Aweber even though it cost mores, it's worth it. There's also no hosting provided with Ultra Cart, but I don't care as I host with GoDaddy. I get unlimited bandwidth which is pretty cool.
  

So, how do you know what shopping cart or payment service is best for you? Who the heck knows? You have to test things out and see for yourself. That's what being an entrepreneur is about, testing. See what works, what doesn't, and then drop what wastes your time and money. You'll never know what's worth your time unless you take a risk

Good luck with Amazon payments. And if you're an entrepreneur, test out different shopping carts systems and see what works best for you.

Peace,

Alex

[Brutha]

First mover advantage

[Curtis2011]

Originally Posted by Aminka Ozmun

I guess I missed some kind of fine print somewhere, because there must be a reason why not too many e-tailers do Amazon Payments!

I understand why PayPal's so popular, but why not Amazon Payments?? I mean, is there anyone who hasn't bought from Amazon?

And what's the deal with other, what-do-you-call-them, payment gateways (or processors or whatever) such as 2CheckOut.com and ♥♥♥♥♥♥♥♥?? Why would anyone use them over PayPal (despite the horror stories)??

Paypal is the market leader. This is the same question as asking why does someone buy an iMac computer when they can buy a better non-Mac one for cheaper. Or why does someone buy an iPhone when they can buy a different phone with similar features for a lower price. Or why does someone use a Bank of America account when they can get better deals with a smaller bank. Etc etc.

It's just the way it is. They are the market leader and everyone knows who they are, so everyone uses them.

[SatvikBeri]

Originally Posted by Curtis2011

Paypal is the market leader. This is the same question as asking why does someone buy an iMac computer when they can buy a better non-Mac one for cheaper. Or why does someone buy an iPhone when they can buy a different phone with similar features for a lower price. Or why does someone use a Bank of America account when they can get better deals with a smaller bank. Etc etc.

It's just the way it is. They are the market leader and everyone knows who they are, so everyone uses them.

Macs are not the market leaders when it comes to computers...at least, not yet. Apple's USP is NOT first mover advantage.

[Curtis2011]

Originally Posted by SatvikBeri

Macs are not the market leaders when it comes to computers...at least, not yet. Apple's USP is NOT first mover advantage.

Eh. Not market leader. But they are the leader in "premium" computers, if you get what I mean. Then again, it's basically Microsoft vrs Apple in that area, so maybe it was a bad example on my part.

[CoolBee]

As to why use other gateways than Paypal, there are certain countries in the world (eg Egypt!) where paypal doesn't operate for reasons best known only to them.
I can use Paypal from Egypt because my account was created and verified - UK bank account and credit cards - when I was in the UK. An Egyptian cannot open a paypal account using Egyptian bank accounts or credit cards for instance.

[Aminka Ozmun]

Wow, Alex, thanks for the info! I'm looking forward to digesting everything you've mentioned (I'm new to e-commerce as a vendor so there are a lot of "industry implications" involved in your observations!), but I do plan on using a separate shopping cart for my eBook site! I also plan on offering Amazon Payments alongside PayPal (and whatever other service) in order to make things easier for potential customers.

Thanks again for the rundown!

[Aminka Ozmun]

Originally Posted by Aminka Ozmun

...what-do-you-call-them, payment gateways (or processors or whatever) such as 2CheckOut.com and ♥♥♥♥♥♥♥♥??

Just curious! It wasn't an HTML link or anything, just the name, "♥♥♥♥♥♥♥♥" or "Alert Pay".....

EDIT: Hey now that's really funny! As one word the company gets censored but as two it's okay??

[Aminka Ozmun]

Good Point, CoolBee! I actually hope to attract an international audience as well, so thanks for the reminder!

Thanks, too, Burtha, Curtis, and SatvikBeri for stating the obvious! I was just thinking maybe there was something else going on....

[itybiz com]

I've used 2Checkout for several years along with Paypal. On one of my sites clients have the choice and the choice is about an even 50/50.

While I hate the interface of 2Checkout, I find their much more fair when it comes to exchange rates. I live in Canada and for various reasons sometimes a transaction currency gets converted a couple of times. I ALWAYS seem to get hit with an extra 1-2% on each conversion. So I may end up loosing 8-10% on a transaction.

Right now there are huge fluctuations in the Canadian/US dollar and Paypal always seems to make out fine no matter which is greater.

There's also the issue with customers demanding refunds. Most credit card processors are pretty good with their investigations. If I get a refund request, Paypal will pull the money out of my account and sit on it until everyone's had their say and then Paypal rules in someone's favor. I've lost several Paypal claims that were wrongly filed, but never had an issue with 2Checkout.

Paypal is definitely more convenient and some people only want to use them, but they're not the best for any/all situations.