- Shopify has reached an agreement with Amazon to integrate the company’s Buy with Prime service into Shopify’s app ecosystem.
- Merchants can take advantage of Amazon’s Prime loyalty program and fast delivery.
- The agreement serves as a relaxation between the two companies after Shopify initially asked merchants not to use Buy with Prime, citing security risks.
Shopify’s logo is seen outside its headquarters in Ottawa, Ontario, Canada on September 28, 2018.
Chris Wattie | Reuters
Shopify’s shares soared as much as 9% in early trade Thursday after the Canadian e-commerce company announced it had struck a deal with Amazon to offer merchants its Buy with Prime program.
The companies announced announced late Wednesday that U.S.-based Shopify merchants will soon be able to access Amazon’s “Buy with Prime” service, allowing them to add the Prime badge and offer Amazon’s fast delivery options in their storefronts. Members of Amazon’s Prime loyalty club can pay with their Amazon account.
Initially, the feature will be available by invitation only to some Shopify merchants, but by the end of September it will be open to all Shopify sellers who choose to use Amazon’s logistics services, Amazon said.
Amazon shares rose more than 2% on the news.
Amazon introduced “Buy with Prime” in April 2022. Analysts said the program could become big business over time, potentially bringing the company $3.5 billion in revenue.
The service initially drew the ire of Shopify, which warned its merchants not to use the plugin or risk violating Shopify’s terms of service. The launch of Buy with Prime had raised concerns from Shopify, including the idea that the feature could generate revenue generated by processing merchant payments. The information reported last May, citing sources familiar with the matter.
Shopify President Harley Finkelstein later proposed The company is “in discussions” with Amazon about integrating Buy with Prime onto its platform.
Under the agreement, Buy with Prime will be accessible through Shopify’s checkout service and transactions will be processed through Shopify Payments.
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