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Shopify reached a deal to integrate Amazon’s Buy with Prime service into Shopify’s app ecosystem, enabling its merchants to add the Prime logo and offer Amazon’s speedy delivery and return options through Amazon’s fulfillment network.
Shopify’s payment system will ultimately process the transaction at checkout.
“Merchants can give Prime members access to Prime benefits like fast and free delivery outside of Amazon.com for the first time ever,” said Shopify President Harley Finkelstein in a video. “This will give customers more flexibility in how they make their purchases from the independent brands they know, love, and trust. Most importantly, we’re giving merchants access to Prime members while also ensuring they keep 100% control of their brand and their customer data, all within the Shopify admin.”
Launched in April 2022, Buy with Prime enables marketplace sellers that participate in the Fulfillment by Amazon program to extend that experience to their own website.
Last September, Shopify warned merchants that trying to install Amazon’s “Buy With Prime” button on their storefront would violate Shopify’s terms of service, claiming risks around fraudulent orders and stolen customer data, according to research firm Marketplace Pulse.
Under the new agreement, Shopify earns at least some commission from payments with transactions processed via Amazon Wallet through Shopify Payments. Merchants might still have to deal with potentially significant fees and any risks from providing Amazon with insight into their inventory trends.
For Amazon, the deal provides easier access to Shopify’s volume and increases the value of Amazon’s Prime membership as it extends to other sites, according to Wedbush analyst Scott Devitt in a note attained by Barron’s. Buy with Prime is expected to be used by more merchants with Shopify endorsing the service.
“We’ve been thrilled with the feedback merchants have shared about Buy with Prime, including the increased shopper conversion and new shopper acquisition,” said Peter Larsen, Amazon VP of Buy with Prime, in a statement. “We’re excited to help merchants not only grow their businesses, but also save time and resources—all while giving Prime members even more places to enjoy their shopping benefits.”