Amazon adds PayPal as payment option to buy with Prime

Amazon’s Buy with Prime program now supports PayPal, allowing Prime members to use PayPal for checkouts on third-party sites. Starting next year, Prime benefits will automatically apply when linked with PayPal. Buy with Prime has seen significant growth, but challenges remain with inventory requirements.

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Amazon has expanded its Buy with Prime program by introducing PayPal as a payment option, allowing Prime members to check out using PayPal on integrated third-party websites. This new feature will enhance the convenience of the Buy with Prime experience by integrating PayPal’s widely used payment system. Starting next year, Prime members will be able to link their Amazon and PayPal accounts, ensuring that Prime benefits are automatically applied whenever they make a purchase using PayPal.

The Buy with Prime service, launched in April 2022, enables shoppers to use their Amazon Prime membership to buy products from third-party retailers while managing their purchases through Amazon’s platform. This service not only simplifies the checkout process but also leverages Amazon’s fulfillment network, requiring brands to store their inventory in Amazon’s warehouses. Unlike other payment intermediaries such as Shop Pay and Apple Pay, Buy with Prime offers a complete e-commerce experience through a checkout button.

Amazon reports strong growth for Buy with Prime, noting a 45% increase in orders year-over-year and a 50% rise in Prime member usage compared to the previous year. Brands like Dollar Shave Club and IZOD have joined the platform, reflecting its expanding reach. However, there are challenges. Marketplace Pulse’s Juozas Kaziukėnas highlights that the requirement to store inventory with Amazon remains a significant barrier for many brands, and some platforms, like Shopify, initially discouraged merchants from adopting Buy with Prime.

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Additional updates to Buy with Prime include real-time delivery estimates in TikTok ads for participating merchants and the ability for consumers to buy both Prime and non-Prime items in a single checkout on Shopify stores. These enhancements aim to further streamline the shopping experience and broaden the appeal of Buy with Prime to a wider audience.