Is Amazon's Buy With Prime Better Than Using Your Credit Card?

It's like PayPal and UPS had a baby.

There are few things Amazon truly excels at more than taking your money. It has streamlined the checkout process in remarkable ways. You can go from browsing an item to "Thanks for your purchase!" in seconds. Set up your favorite credit card ahead of time and it's even a one-button process.

And Amazon has extended that seamless experience to many small businesses through Amazon Pay. You can have the convenience of an Amazon checkout while actually supporting your favorite small business! Win-win.

Now, Amazon's taken it a step further. May I introduce: Buy with Prime.

Amazon Pay + Prime shipping = Buy with Prime

A new service that was tested last year, Buy with Prime is set to launch more broadly by the end of January. Its goal? To make every purchase an Amazon purchase -- even when you're not actually making an Amazon purchase. (Cue Twilight Zone music.)

For shoppers, Buy with Prime is basically an upgrade to the Amazon Pay program (provided you have a Prime membership). And it really does make it seem like you're making an Amazon Prime purchase, no matter whose website you're really on.

Using Buy with Prime is a bit different than regular Amazon Pay, however. For one thing, you won't be filling up your shopping cart.

Instead, you'll find bright blue Buy with Prime buttons on individual product pages. Once you hit the button, you'll be prompted to log into your Amazon account. From here, your payment and shipping information will automatically populate and you can complete your purchase.

Eligible Buy with Prime items are then shipped using Amazon's network to your door. 

The Amazon behind the curtain

For merchants, Buy with Prime is a more cosmopolitan version of the Fulfillment by Amazon program. It's what you get when small businesses want to use Amazon's huge fulfillment network -- but they don't want to actually sell stuff on Amazon.com.

It's like a retail mullet: small business in the front, giant corporation in the back.

Given the issues facing Amazon's marketplace lately -- including a systemic issue with fake reviews and a growing counterfeit problem -- this is an ideal compromise for many small businesses. 

Whatever issues customers have with the sellers on Amazon.com, Amazon's fulfillment platform remains very popular. It's not uncommon to see reviews bemoaning the poor quality of an item -- while lauding Amazon's shipping and returns process.

And it seems to be working so far. Numbers from Amazon claim that Buy with Prime increases conversion by an average of 25%. (This means 25% more people completed a purchase when Buy with Prime was an option than when it wasn't.)

Should you use Buy with Prime?

It sometimes feels like every time I check out with a small retailer, there are more payment options than there were the last time. Not that long ago, you simply entered your credit card information. Then, it was credit card or PayPal. Now, there's half a dozen digital wallets, some pay-over-time programs, and now this.

But with so many options, which should you actually use? Should you stop using your credit card for online shopping in favor of Buy with Prime?

In the end, I think it all really depends on what kind of service you usually get from the company. Do they typically have some sort of free shipping option and good customer service for returns or exchanges? Then Buy with Prime isn't necessarily going to be any better.

Even if you want the convenience of paying with your Amazon account, using Amazon Pay at checkout after filling your cart is still a viable option. One that could be easier if you're buying multiple items and don't want to Buy-with-Prime them individually.

However, if you want the benefits of Prime shipping and the convenience of Amazon Pay and you want it all in the click of a button -- well, then you just may love the new Buy with Prime.