The option, dubbed Buy with Prime, will initially be available by invitation only to merchants who already use Fulfillment by Amazon, the service that companies use to ship products to Amazon (AMZN) fulfillment centers and the tech company does the packaging, Let customer service take care of shipping, returns and handling.
Prime subscription members will see the Prime logo on eligible products in other retailers’ online stores and can checkout using payment and shipping information stored in their Amazon account.
The move, which may loosen Amazon’s grip on other online retailers, comes as Amazon faced renewed antitrust scrutiny in part for allegedly gaining an unfair advantage over third-party retailers. Amazon has come under fire for allegedly using data from individual third-party providers to inform the development of its own private label products. Amazon has denied this. With this new option, Amazon also seems to be targeting the rise of services like Shopify, which help businesses run their own online stores. Demand for Shopify surged during the pandemic amid a broader e-commerce boom. The appeal of Shopify for many businesses was that it allowed businesses to have closer relationships with customers and have more control over their online stores. (Shopify saw its stock price falls significantly this year as the pandemic boom appears to be fading.) Shopify (SHOP) shares fell more than 8% on Thursday.
Amazon is positioning Buy with Prime as a win for merchants looking to build their relationships with customers while still maintaining access to Amazon’s coveted logistics and shipping infrastructure.
“Enabling merchants to offer Prime Shopping benefits in their own direct-to-consumer online stores is an exciting next step in our mission to help merchants of all sizes grow their business – whether on Amazon or beyond,” Peter Larsen, vice president of Amazon Buy with Prime, said in a statement Thursday. “As shoppers buy directly from merchants’ online stores, Buy with Prime will enable merchants to build customer relationships and brand loyalty while offering conversion-boosting benefits like fast, free shipping.”
The Buy with Prime option will cost traders an undisclosed sum calculated based on usage, the company said. No long-term contract is required.