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Amazon announced the introduction of Buy with Prime, a brand new initiative for Prime members that will grow the convenience of Prime shopping to online stores outside of Amazon. This is a momentous change to its business strategy that we believe was made to compete with fast-growing rivals like Shopify, GoDaddy and even PayPal.

What is it exactly?

When buyers visit your ecommerce site, they will have the option to check out items just like they would in any Amazon product listing. Buyers will be prompted to log in to their Amazon accounts where their information is stored (e.g., name, address, contact details), making checkout easier. The processing and shipping will then be just like any other Prime order. Customers can expect free shipping, next-day delivery, and free returns, if applicable.

Amazon says adding the buy with Prime button is easy and involves only four steps:

  1. Sign up and create your account using your business details.
  2. Set up Buy with Prime by linking your Seller Central and Amazon Pay Accounts to Buy with Prime. Then, import your existing Amazon product catalog information.
  3. Select which products to offer with the Prime logo and delivery promise.
  4. Copy and paste the code for the Buy with Prime button into your existing site.

Benefits of selling with the Amazom prime button

  • Deliver on a promise millions trustDisplay the Prime logo and delivery promise on your existing site to convert shoppers with the promise of fast delivery and free returns.
  • Simplify your fulfillmentYou can use ********your existing inventory at Amazon fulfillment centers to start fulfilling your Buy with Prime DTC orders, and let Amazon handle all of your storage, delivery, and returns.
  • Convert shoppers with the ease of Buy with PrimeTurn Prime members into your customers, letting them use their Prime membership for an easy and expedited checkout experience.
  • The Prime member’s data is also shared with youThis includes their name, email, shipping address, phone number, and the last four digits of their payment method used during checkout. You can use that data to build direct relationships with customers. However, you are not allowed to share it with “any third party that identifies shoppers as Prime members unless it is solely for providing a service to the merchant.”

Conlusion

We see this new Amazon feature as an attack on Shopify. If Amazon came out with an all in one solution for ecommerce brands to build stores and fulfil inventory via Prime Shipping, they would have a clear dominant edge over all other competitors in the market.

On the other hand, Shopify is strengthening its fulfillment game. It recently partnered with Shippo and plans on purchasing Deliverr.

So while Buy with Prime is seen as a threat to Shopify, the latter is also doing its best to beat FBA.

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