• by Laurie Sullivan  @lauriesullivan, August 30, 2023

Amazon announced Wednesday the Buy with Prime app for Shopify, an app integration that makes it easy for merchants to offer Buy with Prime on Shopify stores.

The app began rolling out on an invite-only basis to select Shopify merchants on Thursday and will become available to all U.S.-based Shopify merchants who already use or Amazon's fulfillment network, or want to use it, by the end of September.

Amazon Vice President of Buy with Prime Peter Larsen says both companies collaborated to build the app.

“We've been thrilled with the feedback merchants have shared about Buy with Prime, including the increased shopper conversion and new shopper acquisition,” he said.

The feature gives Prime members the option to select Buy with Prime on a product's detail page before completing their order within Shopify's Checkout.

After signing into their Amazon accounts, Prime members pay for their orders using a payment method from their Amazon wallets and Shopify Payments will process the payment through Shopify's Checkout.

Shopify merchants previously managed Buy with Prime independently from their Shopify account.

The integration is intended to simplify the day-to-day merchant activities by using their existing Shopify settings, customizations, and supported third-party app integrations automatically.

With the Buy with Prime app for Shopify, merchants will see synced orders, promotions, catalog listings, and taxes within their Shopify admin.

Merchants will continue to own the customer data that comes through Buy with Prime purchases.

As part of this integration, Amazon Pay will also be offered as a payment option within Shopify Payments, making it simpler for Shopify merchants to manage their Amazon Pay transactions.

Baird Equity Research Analyst Colin Sebastian published a note on Thursday explaining that while Prime members will buy products using a payment method from their Amazon wallet, Shopify Payments will process the payment through Shopify's Checkout. 

Sebastian believes this will enable Shopify to earn Payment transaction fees with these orders, making the deal similar to Shopify integrations with Meta and TikTok, among others.

Amazon had been reluctant to share revenues previously, which was likely a barrier to formal integration, Sebastian wrote.