SHOP - Does Shopify's Recent Deal With Amazon Make it a No-Brainer Buy?
2023-09-08 07:31:00 ET
A big obstacle for Shopify (NYSE: SHOP) in the past has been that it often finds itself competing head-to-head against tech giant Amazon . But a recent development suggests that it could actually benefit from Amazon's vast legion of Prime members. Shopify merchants will soon be able to offer the same benefits to Prime members that they receive on many other sites. And that could be huge for Shopify.
Last week, Shopify announced that its merchants will soon have the option to offer Amazon's "Buy with Prime" service to their customers. Through an app that Amazon will soon release, Shopify merchants in the U.S. who also use Amazon's fulfillment network can offer the option to their checkout, allowing Prime members to benefit from fast and free delivery. The payments will be processed on Shopify's platform.
For Shopify, it's a move that makes more sense after the company divested its logistics platform earlier this year. Since it's no longer competing head-to-head on fulfillment with Amazon, it can leave that part of the transaction to the tech giant, which is known for its speedy deliveries. There are over 200 million Amazon Prime members in the world.
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Does Shopify's Recent Deal With Amazon Make it a No-Brainer Buy?