Shopify Inc. (SHOP) and Amazon Inc. (AMZN), struck a deal that is expected to benefit both the companies as well as consumers. Shopify stocks rose by 9 percent, early trading on Thursday while Amazon shares saw a 2 percent rise. Shopify is integrating Amazon’s ‘Buy with Prime’ service into its app ecosystem.
The Wednesday announcement said that Shopify merchants based in the U.S. would be able to gain access to the Buy with Prime service from Amazon. This will let them add the Prime logo to their storefronts as well as provide their customers with the fast turnaround delivery options provided by Amazon.
Prime loyalty club members will be able to check out using their Amazon accounts. Certain Shopify merchants will be invited to use the feature initially. By the end of September all Shopify members who wish to use Amazon’s logistics services will be able to use these services.
When Amazon unveiled its ‘Buy with Prime’ service in 2022 Shopify warned its merchants that the service plugin should not be used as it violated the terms of service of the app, according to a report last May in The Information.
Later, Harley Finkelstein who is the President of Shopify, indicated that the company was “in talks” with the giant retailer with regard to the integration of Buy with Prime on its app.
Shopify focuses on providing tools that help merchants to host their storefronts on the app, to manage their inventory, to process payments and more.
After the deal with Amazon has been struck, Shopify merchants who use the fulfillment network for their orders can add the Buy with Prime option into their Shopify Checkout and it will be processed by Shopify Payments. Merchants can use their existing settings in Shopify as well as their customizations and more when they start using Buy with Prime. Finkelstein also said that customers would also benefit from quick and free delivery from Amazon.
Amazon said that the app would be available for new as well as existing merchants of Buy with Amazon and would also benefit Prime members as they would get “more places to enjoy their shopping benefits.”
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