Shopify inks deal with Amazon to let its customers use ‘Buy with Prime’ option

Amazon, as we all are aware, is a huge e-commerce company all over the world and it has been in the e-commerce space for a long time now. Same is the case with Shopify that obviously came much later than Amazon but has also made its mark on the e-commerce sector by onboarding a lot of merchants over the years and it provides a platform to the merchants rather than having a platform where they can sell their products which means that those who prefer to have control over their shop can opt for Shopify. Now, a new deal has been inked between Shopify and Amazon.

Shopify and Amazon announced that “U.S.-based Shopify merchants will soon be able to access Amazon’s Buy with Prime service, which allows them to add the Prime logo and offer Amazon’s quick-turnaround delivery options on their storefronts. Members of Amazon’s Prime loyalty club can check out using their Amazon accounts” and also added that “the feature is available by invitation only to some Shopify merchants, but it will open up to all Shopify sellers who elect to use Amazon’s logistics services by the end of September”.

It is also worth noting that before this agreement, Shopify had warned its merchants not to use the “Buy with Prime” option on their platform. The company “warned its merchants against using the plugin lest they risk violating Shopify’s terms of service. The Buy with Prime launch had sparked concerns inside Shopify, including the idea that the feature could capture revenue it generates from processing merchants’ payments”. Shopify President also gave hints earlier this year that “company was “in talks” with Amazon about integrating Buy with Prime on its platform”. Revealing the details of this deal, “Buy with Prime will be accessible via Shopify’s checkout service, and transactions will be processed by Shopify Payments.”

Obviously, this deal can be seen as a great one for both Amazon and Shopify but it is seen that Shopify gained more from this announcement compared to Amazon as the former’s stocks rose up by 10% after this announcement whereas the latter’s stocks grew by 2%. We should keep in mind that Shopify is a Canadian company whereas Amazon is based out of the US which means that a deal should have been on the cards quite a long time ago but it did not take place until now for some reason.

Leave a Comment