Amazon Prime and Shopify extend their reach into each other’s territories
Amazon.com is looking for growth beyond its own platform.
The company yesterday said it was making its “Buy with Prime” program, which offers the same easy checkout, free shipping and returns on its platform, available to third-party sellers for use on their own sites.
Amazon, which first began offering Buy with Prime on an invitation-only basis in April, said that participating merchants increased shopper conversion rates by 25 percent on average by making the program available versus those without the option during the same time period.
Peter Larsen, vice president of Buy with Prime, wrote on a company blog, “We’ve seen some merchants, like Trophy Skin, report shopper conversion of more than 30 percent since adding Buy with Prime to their online store. Additionally, merchants such as Wyze have told us they are seeing a 25 percent higher conversion rate and have added Buy with Prime to all eligible products in their catalog. Hydralyte told us that after adding Buy with Prime, they have seen a 14 percent increase in conversion.
Amazon said that Buy with Prime merchants would now have the ability to display customer ratings and reviews from Amazon.com on their own online stores. Mr. Larsen said this functionality increases shopper conversion by enabling shoppers to make more informed purchasing decisions.
Mr. Larsen touted Buy with Prime’s interoperability with ecommerce service providers, notably BigCommerce, to enable merchants to add Buy with Prime without the need for coding.
Amazon is clearly looking to extend its reach into new revenue streams with Buy with Prime, even as the company has come under scrutiny from lawmakers from both major political parties for its business practices, including the alleged use of data from third-party sellers on its platform to develop its own private labels, which it prioritizes in search results.
Buy with Prime is seen by many as Amazon’s answer to Shopify. The Canadian company last week introduced “Commerce Components by Shopify” for enterprise retailers. It enables large organizations, such as Mattel, to choose from Shopify’s back office components and add them as needed.
“Commerce Components by Shopify opens our infrastructure so enterprise retailers don’t have to waste time, engineering power and money building critical foundations Shopify has already perfected, and instead frees them up to customize, differentiate, and scale,” said Harley Finkelstein, president of Shopify, in a statement.
- Amazon’s Buy with Prime increases shopper conversion by 25 percent on average – Amazon.com
- Will Buy with Prime give Amazon an answer to Shopify? – RetailWire
- Shopify enters its next era of growth: redefining enterprise retail. Introducing Commerce Components by Shopify – Shopify
DISCUSSION QUESTIONS: What impact do you expect Buy with Prime to have in the U.S? Will Commerce Components be well received by enterprise retailers and direct-to-consumer brands?