Shares of jumped 10% on Thursday after the Canadian e-commerce company said it struck a deal with to offer its "Buy with Prime" program to merchants.
The companies late Wednesday that U.S.-based Shopify merchants will soon be able to access Amazon's Buy with Prime service, which allows them to add the Prime logo and offer Amazon's quick-turnaround delivery options on their storefronts. Members of Amazon's Prime loyalty club can check out using their Amazon accounts.
To start, the feature is available by invitation only to some Shopify merchants, but it will open up to all Shopify sellers who elect to use Amazon's logistics services by the end of September, Amazon .
Amazon's stock popped 2% on the news.
Amazon Buy with Prime in April 2022. the program could emerge as a sizable business over time, potentially generating $3.5 billion in revenue for the company.
The service initially of Shopify, which warned its merchants against using the plugin lest they risk violating Shopify's terms of service. The Buy with Prime launch had sparked concerns inside Shopify, including the idea that the feature could capture revenue it generates from processing merchants' payments, reported last May, citing sources familiar with the matter.
Shopify President Harley Finkelstein the company was "in talks" with Amazon about integrating Buy with Prime on its platform.
As part of the deal, Buy with Prime will be accessible via Shopify's checkout service, and transactions will be processed by Shopify Payments.
