Shopify, the e-commerce platform that provides tools for merchants to host storefronts and manage inventory, has announced a surprising integration with Amazon. This integration allows Shopify merchants to offer the “Buy with Prime” feature on their Shopify stores. This means that online consumers will now have the option to purchase items using the store payment method in their Amazon wallet when processing payments through Shopify’s checkout. Not only that, but they will also receive fast, free delivery and have the option for returns through Amazon’s fulfillment network.
Background on the Integration and Unexpected Partnership
This tie-up between Amazon and Shopify is notable because Shopify has historically been seen as a challenger to Amazon’s business. However, with this integration, the two companies are working together to provide more choice and convenience for their customers. It is worth mentioning that just a year ago, Shopify warned its merchants not to use Amazon’s Buy with Prime, as it was a violation of Shopify’s terms of service. The company encouraged its merchants to use its own payment and checkout service, Shop Pay. But now, Shopify has changed its stance.
Key Takeaway
Shopify has integrated with Amazon to allow its merchants to offer the “Buy with Prime” feature, enabling customers to purchase items using the store payment method in their Amazon wallet and benefit from fast, free delivery and easy returns.
How the Integration Works
Soon, Amazon will release an app that allows U.S. Shopify merchants who use Amazon’s fulfillment network to add Buy with Prime into their Shopify Checkout, which is processed by Shopify Payments. This app makes it seamless for merchants to get started with Buy with Prime and uses their existing Shopify settings, customizations, and supported third-party app integrations. Merchants will also have visibility into automatically synced orders, promotions, catalog listings, and taxes within their Shopify admin.
For customers, this app offers the convenience of fast, free delivery that they would expect on Amazon.com. Merchants, on the other hand, will still have complete control over their brand and customer data, ensuring a seamless and integrated experience for their customers.
Benefits for Merchants and Customers
This integration provides several benefits for both merchants and customers. Installing the app allows merchants to select items from their Amazon inventory to be part of their Buy with Prime catalog on Shopify. Once added, the Buy with Prime button will automatically appear on the product’s detail page, matching the existing theme of a merchant’s Shopify store. At checkout, customers will have the option to choose Amazon Pay as a payment method alongside Shopify Payments.
According to Peter Larsen, Amazon Vice President of Buy with Prime, merchants who have already used Buy with Prime have provided positive feedback, including increased shopper conversion and new shopper acquisition. This collaboration between Shopify and Amazon aims to help merchants grow their businesses while also saving time and resources. Additionally, it offers Prime members even more places to enjoy their shopping benefits.
Market Response and Conclusion
The announcement of this integration has had a positive impact on Shopify’s stock value, with shares rising 4% in aftermarket trading on Wednesday. The stock has continued to rise by over 6% after the markets opened on Thursday morning. This response indicates that investors see value in this partnership between Shopify and Amazon, recognizing the potential for increased business and customer satisfaction.
This unexpected partnership between Shopify and Amazon will undoubtedly provide advantages for both merchants and customers, giving them more choices and convenience in their e-commerce experience. As the integration rolls out and more merchants start using the Buy with Prime feature on their Shopify stores, it will be interesting to see how this collaboration shapes the future of e-commerce.
