(Bloomberg) – Amazon.com Inc. and Shopify Inc. has struck a deal to allow merchants who pay for Shopify’s e-commerce tools to use Amazon’s logistics network.
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Both companies, which sell e-commerce software and services to brands and merchants, say Amazon’s “Buy With Prime” will soon be one of the tools available to Shopify’s merchants in the US. The program began Wednesday for invited Shopify sellers, and will roll out by the end of September to all Shopify merchants who want to use Amazon’s logistics network, Amazon said in a statement.
Shares of Shopify climbed more than 2% in extended trading, while Amazon shares rose less than 1% after the partnership was announced.
Amazon launched Buy with Prime last year, a move widely seen as an attempt to blunt Shopify’s momentum. The Canada-based company has grown rapidly in recent years by building an e-commerce tool that promised to help brands sell goods from their own websites, rather than through a marketplace like Amazon or eBay.
Amazon, the largest US online retailer, maintains a huge customer base, but has received complaints from some of its sellers about being slow to set terms and respond to their concerns.
Shopping with Prime enables merchants who use Amazon’s payment and fulfillment services to include Amazon’s checkout service and expedited shipping guarantees on items sold from their sites. Amazon says the integration will make shoppers more likely to purchase from unfamiliar brands or websites because they trust the experience with Amazon.
Under the deal announced Wednesday, Shopify Payments will process payments through the company’s checkout service. Previously, Shopify warned merchants using Buy with Prime that the integration violated Shopify’s terms of service, and prevented it from protecting against fraud, according to Marketplace Pulse, which tracks online sellers.
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