Amazon and Shopify have announced a new partnership that will allow merchants who pay for Shopify’s eCommerce tools to use Amazon’s logistics network. This means that Shopify merchants in the U.S. will soon have access to Amazon’s “Buy with Prime” option, which offers fast and free delivery to Prime members. The program has already started for invited Shopify sellers and will roll out to all merchants by the end of September.
According to Bloomberg, the new app will be released in Shopify’s app ecosystem and will be processed by Shopify Payments. This integration will give Shopify merchants the opportunity to offer Prime benefits to their customers for the first time ever. It will also allow them to maintain 100% control of their brand and customer data within the Shopify admin.
Shopify President Harley Finkelstein explained in a video that this app integration will provide more choice and opportunities for success to Shopify merchants. He emphasized that the partnership with Amazon will give customers more flexibility in how they make their purchases from independent brands they trust.
In addition to this partnership, PYMNTS reports that Amazon has recently resumed its shipping service, called Amazon Shipping, which competes with UPS and FedEx. The service allows sellers to ship Amazon orders or products sold on other sites. Amazon had put the program on hold during the pandemic but has now relaunched it to provide more shipping options to its selling partners. This move comes as Amazon continues to expand its fulfillment and logistics services, aiming to streamline its delivery network.
The re-introduction of Amazon Shipping and the partnership with Shopify reflect Amazon’s efforts to strengthen its last-mile delivery capabilities and reduce its reliance on traditional carriers. By offering its logistics network to Shopify merchants and expanding its own shipping service, Amazon aims to capture more of the end-to-end consumer journey and have more control over the delivery window.
This news may have implications for UPS, as Amazon represented a significant portion of its consolidated revenues in 2022. The demand for delivery remains high, with an increasing number of consumers opting for home delivery when making online retail purchases.