Why the Amazon Prime Visa Matters for Your eBay Store
That 5% cashback on Amazon purchases sounds small, but on a busy eBay store it can be one of your biggest sources of income. Here's the math.
When we talk to new store owners, the profit split gets all the attention. But there's a second source of income that's easy to overlook: the cashback on the card used to buy the products.
How it works
Every time an eBay customer places an order, the product is bought on Amazon and shipped straight to them. Those purchases go on your card, in your Amazon account.
With an Amazon Prime Visa and an active Prime membership, Amazon purchases earn 5% back. That cashback belongs to you. It isn't shared with us and it isn't part of the profit split.
Why 5% is a bigger deal than it sounds
On a typical store, the products themselves make up most of the cost, often around 70% of sales. So the cashback is earned on a large number.
Here's how it scales:
| Monthly eBay sales | Approx. Amazon spend (70%) | Your 5% cashback |
|---|---|---|
| $5,000 | $3,500 | $175 |
| $10,000 | $7,000 | $350 |
| $25,000 | $17,500 | $875 |
| $50,000 | $35,000 | $1,750 |
On a store doing $10,000 a month at a 15% margin, your 40% profit share is about $600. The cashback adds roughly another $350. That's more than half as much again, from a card you were going to use anyway.
A few things to keep in mind
- Check the current terms. Card rewards, eligibility and Prime requirements are set by the card issuer and Amazon, and they can change. Read the latest details before you apply.
- Credit limit matters. Products are bought before eBay pays out. A card with a comfortable limit keeps orders flowing without stress.
- Pay it off. Cashback only makes sense if you're not paying interest. Treat the card like a debit card and clear it as payouts arrive.
The bottom line
The profit split is what you earn from the store. The cashback is what you earn from simply being the one who buys the stock. Together, they usually add up to well over half of the store's net profit.
Want to see your own numbers? Try the profit calculator, or book a call and we'll run through it with you.