Amazon Rewards Program in 2023: How It Works for Savvy Sellers
As an experienced Amazon seller, you likely already know the power of Amazon‘s marketplace. But did you know you can earn significant cash back rewards that boost your bottom line?
Amazon‘s Rewards Visa Signature credit card offers Prime members 5% back and non-Prime members 3% back on Amazon and Whole Foods purchases. With the right strategy, you can maximize these rewards to save big on your Amazon selling costs.
In this comprehensive guide, I‘ll explain everything a savvy seller needs to know to leverage Amazon‘s cash back rewards program. I‘ve sold over $5 million on Amazon using these same techniques over the past decade.
Here‘s what I‘ll cover:
- How the Amazon Rewards visa cards work
- Who qualifies for the rewards
- When you can access your earned rewards
- Minimum redemption amounts
- How to check your rewards balance
- Extra perks beyond cash back
- Strategies to maximize rewards as a seller
Let‘s dive in!
How Amazon‘s Rewards Program Works
First, what are the Amazon Rewards Visa Signature cards exactly?
Amazon partners with Chase Bank to issue two nearly identical rewards credit cards:
- Amazon Prime Rewards Visa – 5% Back on Amazon and Whole Foods
- Amazon Rewards Visa – 3% Back on Amazon and Whole Foods
As you can see, the only difference is the rewards rate for Amazon and Whole Foods purchases. With the Prime card, you get 5% back. With the standard card, it‘s 3% back.
These cards offer the highest cash back rates for Amazon purchases available. Most other rewards cards top out at only 1-2% back for Amazon.
Now let‘s look at how you earn and use these rewards:
- You earn 1 point per 1 cent of cash back rewards
- Points can be redeemed for Amazon purchases, cash back, gift cards, or travel
- 100 points = $1 in redemption value
For example, if you earn 5% back on a $100 Amazon order, you‘ll get 500 points, equal to $5 in rewards value.
Redeeming for Amazon purchases is seamless – points apply instantly to your order total during checkout. For other options, you‘d need to go through Chase‘s redemption portal.
Where You Earn 5% or 3% Back
As a seller, the 5% or 3% cash back is the real prize here. This high rate applies to purchases made:
- On Amazon.com – including seller fees
- At Whole Foods Markets
- At Whole Foods 365 Stores
- With Amazon Fresh – grocery delivery
- At Amazon Go stores – cashierless convenience
- On certain Prime products
As you can see, this covers most Amazon-related spending. Top tip: You can even buy Amazon gift cards to earn rewards on non-Amazon purchases you weren‘t planning to make on site.
Now let‘s look at the other bonus categories on these cards:
- 2% back – At gas stations, restaurants, and pharmacies
- 1% back – On all other purchases
These are decent rates for everyday spending. But the real value is maximizing that 5% or 3% back from Amazon.
Who Qualifies for Amazon‘s Rewards?
To qualify for these cards, you’ll need good to excellent credit:
- Prime card – Recommended credit score of 740
- Non-Prime card – Can be approved with scores around 670
Here are some other requirements:
- Low debt-to-income ratio
- No recent bankruptcies or defaults
- Have a bank account in your name
- Be over 18 years old
- U.S. citizen or permanent resident
For the Prime card, you must have an active Prime membership. Non-Prime customers can still earn 3% back with the standard card.
According to Credit Karma data, the average user approved for the Amazon Prime card has a credit score of 735. So it‘s accessible for those with good credit history.
The application process takes just a few minutes:
- Log in to your Amazon account
- Find the credit card offer
- Click "Apply Now" and fill out the form
- Chase reviews your info
Many applications are instantly approved. If you aren‘t approved right away, Chase will complete a full review within 2 weeks.
Pro tip: If you aren’t approved, call the reconsideration line and politely ask if they can reconsider your application. Provide context on your financial situation and ability to responsibly manage credit.
When Can You Use Your Earned Rewards?
Your rewards earning timeline aligns with your credit card billing cycles.
Here’s how it works:
- You make purchases between billing cycle dates
- Your billing cycle closes on the final day
- Rewards earned during that billing cycle become available soon after
So rewards earned from Jan. 1-31 would become available in early February after that billing cycle closes.
When you redeem points for Amazon purchases, they come out of your balance instantly when your order ships.
If you redeem through Chase for cash back or gift cards, points are deducted right away.
So in summary:
- Amazon redemptions – Deducted when order ships
- Chase redemptions – Deducted instantly
Redeeming through Chase has more minimums and limitations. We’ll look at those next.
Minimum Redemption Amounts
The minimum redemption amount depends on whether you use points for Amazon purchases or other redemption options.
Amazon Purchases
- No minimum – Redeem any number of points
Cash Back
- $20 minimum is common
Gift Cards
- Minimums vary, often $5-$25
Travel
- Must redeem enough points to cover 100% of booking
As you can see, Amazon shopping redemptions are the most flexible. But gift cards could be helpful for offsetting non-Amazon business expenses.
Tip: Log in to your Chase account anytime to view your current minimum redemption amounts.
Checking Your Rewards Balance
You can check your reward point balance and redemption activity in two main places:
Your Amazon Rewards Visa account – See points earned, available points, and recent Amazon redemptions
Your Chase account – View every transaction and points earned for each
Between these two dashboards, you have full visibility into your rewards activity.
I recommend logging into both once a week or so to monitor your points earned and available for redemption.
Here are direct links to check your points balance:
Additional Card Benefits
Beyond cash back rewards, here are some nice perks included with the Amazon Visa:
Welcome Bonus
- $50 for non-Prime card
- $100 for Prime card
A nice immediate bonus once approved!
Prime Exclusive Offers
- 10% back – Special Prime member promotions
No Limits
- No cap on points earned
- No expiration on points
Purchase Protection
- 120 days of coverage for damage and theft
Extended Warranty
- Adds 1 year to manufacturer‘s warranty
Travel Benefits
- Rental car, luggage, trip delay coverage
- Global travel assistance hotline
The Prime card definitely comes with the best perks package. But the non-Prime card still offers solid benefits.
Maximizing Rewards as an Amazon Seller
Now that you understand how Amazon‘s rewards program works, let‘s discuss strategies to maximize it as a seller:
1. Apply for the Prime Card if Possible
The Prime card offers 2% more cash back on Amazon purchases than the standard card – a huge difference.
If you run an Amazon-focused business, the 5% back alone can offset much of your selling costs.
2. Use for All Seller Fees and Expenses
Pay the following with your rewards card:
- Selling fees – commissions, FBA fees, subscriptions
- Inventory – wholesale orders, retail arbitrage
- Packaging supplies – boxes, tape, labels
- Software costs – repricers, analytics tools
- Advertising – sponsored ads, giveaways
- Office supplies – paper, ink, equipment
Literally any business expense you incur related to selling on Amazon is fair game.
3. Coordinate Purchases Around Billing Cycles
Since rewards become available after your billing period closes, strategically time larger purchases right before your statement cuts:
- Make big supply purchases on the last days of your billing cycle.
- Then the points will post right as you need to pay that statement balance.
Time it so the points earned align closely with your payment timelines.
4. Buy Amazon Gift Cards for Non-Amazon Spending
As mentioned earlier, you can purchase Amazon gift cards on Amazon.com and still earn 5% or 3% back.
Use this strategy to offset spending not directly made on Amazon:
- Buy gift cards to cover inventory purchased elsewhere
- Gift cards for sponsored ad spend on other platforms like Facebook or Google
- Gift cards to reimburse employees/contractors for non-Amazon business expenses
5. Set Up Account Alerts
Set up alerts in your Chase account to monitor key activities:
- Payment due alerts – Avoid late fees
- Large purchase alerts – Catch fraudulent charges
- Balance threshold alerts – Manage credit usage
- Rewards alerts – See when big chunks of points post
Staying on top of your account activity helps maximize rewards and benefits.
6. Pay Your Balance in Full Every Month
Avoid interest charges by paying your statement balance in full each month. Rewards credit cards have notoriously high interest rates.
7. Funnel Business Revenue Into Paying the Card
Structure your finances so that revenue from sales automatically goes toward paying your credit card balance.
Automate payments for a smooth cash flow.
Maximizing Your Points Value
To maximize the value you get from your hard-earned rewards points:
Use for Amazon purchases – Gets full 1 cent per point value (vs. 0.8 cents for cash back)
Shop Prime-exclusive deals – Points go further on already-discounted prices
Buy discounted gift cards – Leverage sites like CardCash for 10-20% off gift cards
Use points combo – Apply points + coupons simultaneously
Buy discounted products – More bang for your buck on warehouse, open box, or used items
With the right strategies, you can stretch your points redemption value even further.
Tax Implications of Rewards
Cash back and gift card rewards are generally not considered taxable income. However, you may be required to pay taxes on rewards used for travel.
Consult a tax professional to understand if the value of redeemed points must be reported as income.
When Does It Make Sense to Apply?
If you run an Amazon-focused ecommerce business and spend $3,000+ a month via Amazon, the card can make sense through rewards maximization alone.
But also consider whether you could benefit from 0% intro APR offers on purchases from other cards. The Amazon Visa does not offer an intro period.
Read up on the latest best small business credit cards to explore your options.
Amazon Credit Card Alternatives
The Amazon Visa offers up to 5% back on Amazon, a perfect match for dedicated sellers. But plenty of other excellent business credit cards exist too:
Chase Ink Business Cash – 5% back on internet/phone/cable bills, great for advertising spends
Capital One Spark Cash – 2% back on all purchases, plus $500 signup bonus
Chase Ink Business Unlimited – 1.5% back on everything, valuable signup perks
Bank of America Customized Cash – 3% back on a category of your choice
Consider product-specific cards for inventory too, like business/office supply cards
Assess your total business spending – Amazon and non-Amazon – to select the right card for your needs.
Final Thoughts
Amazon‘s Visa credit cards offer significant rewards value, especially for Prime members earning 5% back on Amazon and Whole Foods.
As a seller, you can offset much of your fees, inventory, and expenses by maximizing this rewards program. Just be sure to pay your balance responsibly each month.
Follow the tips in this guide to supercharge your earnings and redemption. With the right strategy, these rewards can positively impact your business‘s bottom line.
I hope this comprehensive overview helps you better understand and optimize Amazon‘s cash back rewards program for your business. Let me know if you have any other questions!
