Amazon Payments

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AgendaIntroductionThe OpportunityOur Value PropositionHow Merchants BenefitIt Works - Case Studies

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Introduction

285mActive global customer accounts13.5bGlobal monthly page views61%** UK audience reachGlobal reach*** Amazon operates websites in 13 countries

Monthly UV19.5m 925K146.3m28.2m28.8m31.3m7.4m13.6m9.1m5.0m 25.3mMobileUV95.6m14.1m18.6m9.3m4.9m7.1m4.1m

*Alexa Top 500 Shopping - April 2015; ** ComScore, Amazon audience reach (mobile + desktop) UK/US April 15; ***ComScore, MMX - April 2015 (Monthly UV); Mobile UV Mobilens April 2015; Amazon customer accounts, Q1/20151stGlobal Shopping destination

300k

TBC*Amazon at a glance

When you consider adding an alternative payment method, your goal is to make it easier for the greatest number of customers to purchase on your site. Looking at the Amazon demographic shows there is no larger group of customers to help you accomplish your goals.

Fresh off from US Press briefing:Pay Amazon CustomersSince 2013, more Than 23 Million Customers Have Used Their Amazon Account to Make a Purchase on Third-Party Merchant Websites; Talking about global reach, of that 23m number, customers from more than 170 countries have used their Amazon account to make a purchase on Third-Party Merchant WebsitesDrilling down further - More than 50 percent of Pay with Amazon customers are Prime members

2015 Pay with Amazon GrowthMerchants using Pay with Amazon grew more than 200 percent year-over-yearCustomers using Pay with Amazon grew more than 150 percent year-over-yearPay with Amazon payment volume grew by more than 150 percent year-over-year2015 Pay with Amazon Business HighlightsWe launched in the US in 2013, EU in 2014 and Japan in 2015 you can expect to see more international expansionsWe partnered with Shopify to serve as a native payment solution in the Shopify commerce platform (Globally)We partnered with PYMNTS.com on a survey and found that twice as many consumers were comfortable using a new online and mobile payment method from Amazon than any other service(US only)

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Source: Forrester study, US Data, Why Amazon Matter Now More than Ever 7/26/2012The Amazon impactWhere online customersbegin their product search:30%13%Search Engines

The customers using Pay with Amazon are product and purchase focused. They have made it to your site in order to buy something directly from you yet there is a high likelihood they have Amazon credentials5

we start with what the customer needs and we work backwardsOur guiding principleJeff Bezos, CEO Amazon

In this scenario we are focusing on two distinct customers: You as a merchant and customer of Amazon Payments and the end customer buying from you. We want to make the experience as seamless for the end customer as possible and in doing so we are helping you achieve your conversion goals. 6

The Opportunity

Average visit time:7mins 59s*Sources: *Hitwise average visit time, top 500 shopping sites, between Nov 2013 Nov 2014** Checkout Report Q1 2015: http://www.konversionskraft.de/conversion-optimierung/infografik-checkout-report.html

On average it takes 3 minutes and 12 seconds to complete a purchase onlineThe typical checkout process makes up too much of this time

Online Shopping Fact:The average checkout has 14.6 data insert fields**

Data entry on the desktop journey is challenging enough, but in the mobile experience, it is a killer.8

Sources: Fireclick Index, Top Line Growth, 2012; Blue Research, 2013; Redshift research, 2014SpeedOn average it takes 3 minutes and 12 seconds to complete a purchase onlineConvenience86% of consumers are bothered by registeringon a websiteTrust58% say better security measures would encourage online shopping

70% of shoppers abandon their cart

Speaking for myself, when I have something I know I am going to buy, very little will stop me completing that purchase. But when I am shopping (say at work), only somewhat committed, finding my card and entering all that data, especially on a site for first time, is a big blocker.9

Purchase completion rates for one retailer

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So lets look at this in more detail.

This is an example of the shopping experience of one merchant who works with us. It is a Germany Retailer called BabyArticle and we have observed that it takes the average customer 3 minutes to complete registration, enter the delivery address, enter credit card details and then confirm the payment.

More alarming, only two thirds of customers actually complete the purchase. These are customers who have committed to buy but a third walks away. Imagine if one in three people walked away when they got to the till in your supermarket

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70%of basketsabandonedSources: Fireclick Index, Top Line Growth, 2012; Blue Research, 2013; Redshift research, 2014Customers dont want tospend their time in this wayThe Opportunity

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How often do you use Social Login?Source: Blue Research 2014Why do you use Social Login?Faster than registering at a siteMeans one lesspassword to rememberEnsures websites are more personalizedSome other reason

65%50%12%5%51%Nearly Every Time: 5%Sometimes: 46%use social login when it is an optionCustomers dont want to register new accountsThe Opportunity

Over half of people consider using social login when it is available as an option and the overwhelming motivation is speed and ease.15

UsernamesPasswordsThe average Briton is dealing with 19 accounts!The Opportunity

So, lets talk a bit more about usernames and passwordsResearch done in the UK by Cyber Streetwise shows that the average Briton regularly access 19 sites that require username and passwords

So if you think of it as a key, imagine jangling around nineteen keys and having to pick out the right one for your front door each time

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UsernamesPasswords53% of consumers state they have more than 5 accounts and passwords**Source: Janrain dataThe Opportunity

Im sure everyone here has been through the challenge of inputting several variations on the same password to try and hit upon the correct combination of numbers, capital letters and symbols. Its pretty frustrating.

As security standards and password conventions have evolved, our task of remembering names and passwords has become more and more difficult.Psychologists say that most humans can store up to five things at once in short term memory. So these security measures are just making things incredibly painful for consumers.

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92%of people have abandoned a site because they cant remember their account details*Source: Janrain Data

Well here is the data. Nine out of ten customers just give up when faced with the dreaded password reset.

Those 294M Amazon customers already have a Pay with Amazon account since you can simply use your Amazon account to make a purchase there is no need to create a separate account18

What this all means is that people have two many usernames and passwords to remember, and those passwords are too difficult or retrieve which translates to high abandonment rate.19

Our Value Proposition

Simple sign-into access an easy way to pay

Pay with Amazon is a single ecommerce identity.Unlike social sign in, a single ecommerce identity needs to give customers the opportunity to pay for goods and services.

Additionally, an ecommerce identity gives users access to their delivery preferences as well as their digital wallet dozens of safely stored debit and credit cards for them to choose their payment method and authorise the transaction with one click post log in21

One usernameOne passwordOne accountAddress bookDigital wallet

One username and one password for one account tied to any address they have shipped to as well as all of the cards they routinely use that is Login & Pay with Amazon.

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How Does it work

All Saints Demo24

Customer experience on Magento

Route One demo25

We created a better buying experience

For customersFast, easy, secureEliminates the hassle of multiple accounts.

For merchantsIncrease conversionAccess to our customer base Receive up-to-date customer dataHigher spendMore customers, more loyalty

We talked earlier about our two customers, the end customer and you as a merchant. Our better buying experience is tailored to the customer by being fast, easy and secure which for you translates into increased conversion.More than that though, you access the Amazon customer base, and grow yours by obtaining relevant customer data.26

Author (A) - replace with Route one screenshot

Speedy checkout in a few tapsUp to 90% conversion rate in less than 30 secondsConvenient login using Amazon accountCustomer acquisition & personalisationSeamless mobile experience across all devicesKindle, iOS, AndroidUKs most trusted online brandA-to-Z guaranteeOptional recurring paymentsSubscriptionsSources: All Saints, September 2014; UKCSI Best in UK Award, January 2014Login and Pay with Amazon

Lets look a little further at Login & Pay specifically

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How Merchants Benefit

Higher average order valueCart shareIncrease in conversion

15%24%34%Reduced checkout time

70%

Source: AllSaints, September 2014Increased conversion

We looked just a minute a go at the All Saints side by side which translates into these results.29

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Typical checkoutPurchase completion rateTimeTime66%Purchase completion rate82%

Lets put some hypothetical numbers to these rates, say annual turnover was 5m. Assume a 15% cart share for Pay with Amazon. By increasing conversion from 66% to 82% for the 15% using Pay with Amazon, that would result in a overall boost to revenue of 3.6% and gross increase of 182k.

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Ok, so we have gone through the challenges you face in trying to increase conversion and how Amazon Payments can solve this.We are pretty confident in our solution. So much so that we are willing to let you try it for 3 months without and processing fees. The timing of todays event is quite good. All you need to do is register for Amazon Payments prior to the 15th, and have it implemented live on site by the 20th of March. I know that Screen Pages is quite familiar with our extension and would be more than happy to help.

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Thank you

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Internet

Amazon Payments