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Shopify and Amazon Partners to Strengthen E-commerce Industry, SHOP Shares Spike Over 10%
Shopify Inc (NYSE: SHOP) shares closed Thursday, end of August 2023, trading at $66.49, up 10.80 percent from the day’s opening price. Yesterday’s gains cemented Shopify’s impressive performance YTD, fueled by heightened use of online shopping. The sudden gains in SHOP shares were attributed to an announcement that Shopify merchants will have the choice to offer their products to Amazon.com Inc (NASDAQ: AMZN) Prime members on Shopify for the first time. The companies highlighted that users of the new services will continue to maintain 100 percent control of their brand and their customer data in Shopify’s admin. As a result, AMZN shares closed the day trading at $138.01, up 2.18 percent from the day’s opening price.
“This new app will make it easier for our merchants who also partner with Amazon to offer Buy with Prime to their customers on their Shopify-powered site. More choice means more opportunities to succeed as an entrepreneur, and that’s what we are powering here at Shopify,” Harley Finkelstein, Shopify’s president, noted in a YouTube video.
With the new application on Shopify, merchants can give Amazon Prime members access to Prime benefits like fast and free delivery outside of Amazon.com. As a result, online shoppers can now rest assured of more options to make their purchases with independent brands.
Shopify and Amazon’s Market Outlook
The close collaboration between Shopify and Amazon is expected to further enhance the e-commerce market in the United States, Canada, and beyond. Furthermore, both companies have dominated in their respective markets, and their volume is expected to further increase following their strategic partnership. The Buy with Prime app for Shopify will significantly simplify how sellers interact with buyers, hence drastically reducing the time spent navigating different brands.
“The build of this app was a collaboration with Shopify, and 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,” Peter Larsen, Amazon vice president of Buy with Prime, noted.
Notably, the Shopify merchants previously managed Amazon’s Buy with Prime independently of their Shopify admin. With the Buy with Prime app for Shopify, the merchants are expected to see their orders automatically synchronized within the Shopify admin. Interestingly, Amazon highlighted that Buy with Prime increased shopper conversion by about 25 percent on average through the promise of fast, free delivery, and an easy return policy.
Meanwhile, the integration of Shopify and Amazon will significantly help their respective revenue collections. During the second quarter, Shopify reported total revenue of about $1.7 billion, up 31 percent YoY.
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Shopify and Amazon Partners to Strengthen E-commerce Industry, SHOP Shares Spike Over 10%