Amazon announces the Buy with Prime app for Shopify, which will let US-based Shopify merchants natively integrate Amazon's program into their Shopify stores

GeekWire 2023-08-31 Todd Bishop

Context & Ripple Effects

Buy with Prime began as a way for third-party merchants to use Amazon’s fulfillment network on their own sites, then expanded toward all US-based merchants in its initial external-store fulfillment rollout and the planned broader US availability.

The Shopify connection puts that logistics program inside a commerce platform that has long enabled merchants to manage storefront operations through integrations, including its earlier commerce-management SDK. It matters because Amazon’s delivery network can now be selected within a merchant’s existing storefront workflow rather than requiring a separate implementation.

First-order effects

US-based Shopify merchants can add Buy with Prime directly to their Shopify stores, making Amazon’s program available within their current storefront setup.
Amazon gains a native distribution channel into Shopify merchant stores; Shopify accommodates an Amazon-operated fulfillment and Prime-benefits option on its platform.

Second-order effects

Merchants using the app can route more direct-site orders through Amazon’s fulfillment network, strengthening Amazon’s share of the post-purchase logistics workflow.
The integration increases pressure on Shopify’s effort to build a scaled shipping alternative, a risk identified when Buy with Prime’s logistics advantage was first assessed.

Third-order effects

If similar integrations spread, e-commerce platforms may increasingly compete by offering merchants access to multiple logistics networks rather than owning every layer themselves.
Amazon’s fulfillment infrastructure could become a cross-platform service for direct-to-consumer commerce, while merchants retain storefront control; the eventual balance depends on adoption and the economics of competing shipping options.

The trend: Commerce infrastructure is shifting toward interoperable storefronts that let merchants plug external logistics networks into their own customer-facing sites.

Discussion

@taylorsicard @taylorsicard on x
Never thought we'd see this happen, but this is a huge W for consumers which ultimately is a win for brands which by proxy is a win for the Shopify platform. This is really really cool.
@harleyf Harley Finkelstein on x
What matters most to our merchants and their customers is: choice. We make that a reality with every partnership we execute. Soon, Amazon will release an app in @Shopify's app ecosystem that will give merchants who use Amazon's fulfillment network the choice to add Buy with... [v…
@benthompson Ben Thompson on x
Called it: [image]
@fromvalue @fromvalue on x
This is fantastic news for both $SHOP and $AMZN. Buy With Prime was unacceptable to Shopify because of Payments. Now Shopify can keep that part after long negotiations. Amazon's great fulfillment network can be a huge booster to sales. Long both, since long (2017), for long!
@jerrycap @jerrycap on x
@modestproposal1 How do we know what the payment split looks like? Does this protect their payments “brand”? Presumably Shop *Pay* is not the button it's *Buy with Prime*, in which case over time if BWP is massively prefered over Shop Pay Amazon can negotiate a lower split with S…
@modestproposal1 @modestproposal1 on x
Shopify protecting their payments revenue while benefiting their merchants and Amazon extending logistics as a service in a native way strikes me as a rare positive sum outcome
@mattahertz Matthew Hertz on x
This feels huge but my head is spinning with these circular references: Amazon releasing an app in Shopify that allows Shopify merchants who use Amazon fulfillment the ability to use Amazon's Buy with Prime in their Shopify checkout 🤯 https://news.shopify.com/...

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