Shares in Shopify Inc. (NYSE: SHOP) soared more than 10 percent on Thursday after Amazon.com, Inc. (NASDAQ: AMZN) revealed a new app named “Buy with Prime” for Shopify merchants. This app aims to simplify the shopping process for members of Amazon Prime.
The new app will enable Amazon Prime members to conveniently opt for the “Buy with Prime” option while browsing a product on Shopify. This selection will lead them to a swift checkout process integrated within the Shopify Inc. (NYSE: SHOP) platform.
This service grants exclusive privileges to Amazon Prime members, including speedy and free shipping, with hassle-free returns via Amazon’s vast logistical network. In addition, shoppers can use their saved Amazon payment information to pay through their Amazon accounts, and Shopify Payments will handle the transaction.
Beginning as an invite-only app for select Shopify merchants, the app will become available to all U.S.-based Shopify sellers who are part of Amazon’s delivery network by the end of September.
The introduction of this new app will not only simplify the shopping process for customers but also contribute to streamlining merchants’ operations.
Its seamless integration with existing Shopify settings and third-party apps ensures the automatic synchronization of order details, promotions, product listings, and taxes on Shopify’s administrative dashboard.
In addition, the new app improves the user experience of Shopify’s platform, making it more user-friendly for merchants to handle and organize customer data. It is worth noting that all customer data remains the property of the sellers, while the Shopify interface is more accommodating and user-friendly.
Furthermore, Shopify Payments will soon add Amazon Pay as a payment option. It is worth noting that the “Buy with Prime” feature has resulted in a significant average increase of 25% in shopping conversions, which demonstrates its positive impact on customer engagement and sales.
As of press time, Shopify stock is trading at $66.36, up 10.58% over the last trading session.
Maria Reed is a financial journalist with a passion for covering US equities. She joined the ABBO News team in June 2023. Maria holds an M.S. degree in International Economics and Finance from Otto-von-Guericke University in Magdeburg and is a CFA Level 2 candidate.
