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Amazon’s Buy With Prime

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Amazon’s Buy With Prime

Amazon got the ecommerce industry talking when it announced Buy with Prime a few weeks ago, extending the benefits of Amazon Prime off the retailer’s site. Amazon has invested significantly in delivery and fulfillment capabilities over the past few years, and Buy with Prime is a way to monetize that investment. This will initially be invite-only to merchants using Fulfillment by Amazon (FBA).

Some of the Buy with Prime features include:

  1. Amazon Prime shipping benefits
  2. Checkout with Amazon Pay
  3. Free returns on eligible orders

There has also been a ton of speculation about the steps Amazon is taking to compete with Shopify. In fact, Amazon acquired a Shopify-like site called Selz a while back, which it is now shutting down. Buy with Prime would perhaps be the first step in directly competing with direct-to-consumer (DTC) solution providers like Shopify. Potentially, Amazon could drive adoption of Buy with Prime, and then follow-up with DTC shopping site capabilities.

Shopify’s reaction to it was much-anticipated. On the company’s Q1 2022 financial results call last week, CEO Tobi Lütke said the company is “happy to integrate this into Shopify.” However, Shopify’s actual response remains to be seen—a company spokesperson told The Information it needed more information before making a decision.

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