Shopify Merchants Can Soon Have “Buy With Prime” Option in Major E-Commerce Tie-Up

Key takeaways

• Shopify and Amazon are now in business as the platform unveils Buy with Prime tie-in
• The platform had initial concerns over Amazon eating into its revenue when the service was unveiled last year
• Shopify’s share price climbed 10% while Amazon gained 2%

If you can’t beat ’em, join ’em. Shopify and Amazon are officially partnering up so Shopify customers can make purchases with the new “Buy with Prime” option. Wall Street loved the primo partnership, and with Shopify already in investors’ good books after its earnings beat, the deal looks promising. Here’s the latest.

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What’s the latest with Shopify?

Canadian e-commerce company Shopify has announced it’s joined forces with shopping titan Amazon on its Buy with Prime scheme, first launched in 2022.

After initially expressing disdain at the service last year, with Shopify worried the service violated its terms of service and could capture revenue away from the platform, Shopify has decided it’s safer to work with Amazon than against it.

As part of the deal, customers buying through Shopify can choose Buy with Prime if they’re a Prime member. The transactions will continue to be processed by Shopify Payments. The feature is only available to select Shopify merchants for now, with plans to roll out the service across the Shopify platform by the end of September.

How did Wall Street react?

The dream duo tie-up sent both stocks climbing higher. Shopify’s stock soared 10% on Thursday, bringing its total 2023 gain so far to 88%, while Amazon’s share price gained 2% at the news. Amazon has climbed 59% since the start of the year.

Shopify merchants can now give Amazon Prime members access to fast and free delivery for the first time ever. For investors, it’s a match made in heaven as Shopify’s latest earnings beat impressed Wall Street and indicated more businesses are turning to the e-commerce platform.

Shopify surpassed analyst expectations for the second quarter, with total revenue climbing 31% to $1.69 billion and 14 cents per share on earnings, which Shopify said was down to new signups and price increases across its services. The company also anticipated revenue growth for the next quarter to be in the “low twenties”, compared to the 17% predicted by Wall Street.

The bottom line

It’s pretty sensible for Shopify and Amazon to work together in this regard. The move will undoubtedly make customers happier with free and fast delivery and should also boost both companies’ bottom lines. It’s a match made in online retail heaven.

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