An employee works at Shopify’s headquarters in Ottawa, Ontario, Canada.
Chris Wattie | Reuters
Shares of Shopify surged up to 9% in early trading on Thursday following the announcement that the Canadian e-commerce company has partnered with Amazon to offer its “Buy with Prime” program to merchants.
In a late Wednesday announcement, Shopify revealed that its U.S.-based merchants will soon have access to Amazon’s Buy with Prime service. This service allows merchants to display the Prime logo and offer Amazon’s fast delivery options on their storefronts. Customers who are members of Amazon’s Prime loyalty club can conveniently checkout using their Amazon accounts.
Initially, the feature will be available by invitation only to select Shopify merchants. However, by the end of September, it will be open to all Shopify sellers who opt to use Amazon’s logistics services, as confirmed by Amazon sources from Business Wire.
Upon the announcement, Amazon’s stock increased by more than 2%.
Buy with Prime was initially introduced by Amazon in April 2022. Analysts predict that this program could become a significant revenue stream, potentially generating $3.5 billion for the company.
Initially, Shopify expressed concerns about Buy with Prime, fearing it could violate Shopify’s terms of service and potentially divert revenue from payment processing. However, Shopify President Harley Finkelstein confirmed that the company was in discussions with Amazon about integrating Buy with Prime on its platform.
As part of the agreement, Buy with Prime will be seamlessly integrated into Shopify’s checkout service, with transactions being processed by Shopify Payments.
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