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Shopify and Amazon Partnership, who are the Big Winners?

Last week the news broke that Amazon and Shopify were going to enter into a partnership. Amazon is going to create an app in the Shopify ecosystem that will allow for a deeper integration between the two companies. As a Shopify Plus agency owner, I think this is huge news and a win for four different groups: Shopify merchants, Shopify customers, Shop Pay, and Amazon FBA.

Shopify merchants that already use Amazon fulfillment network (FBA) will be able to offer customers on their Shopify store a Buy with Prime button. Most importantly, Shopify merchants will be able to keep all of their customer data (email, contact info, etc). The bottom line here is that the Shopify merchant will be able to own their brand and customer information, which is critical for driving future sales.

Shopify customers can use their Amazon wallet to make payments through Shopify’s checkout. In addition, customers will get the free and ultra fast delivery through FBA that they have come to expect when making purchases on Amazon.

Shop Pay will process all the payments when customers select the Buy with Prime button during the Shopify checkout process. This is a big win for Shopify as they are able to maintain the payment processing volume and merchant gross merchandise value (GMV) on their platform.

Amazon FBA will now be an option for Shopify merchants. Most Shopify merchants currently use their own third party logistics company (3PL) to ship products. In the past, Shopify merchants could only use FBA if they sold directly on Amazon, but now FBA will become a viable alternative to using your own 3PL.

I think this news is really big for the entire Shopify ecosystem. Shopify gets to leverage Amazon’s excellence in fulfillment, while Shopify merchants continue to own their customer’s experience. If I’m a Shopify competitor (Magento, BigCommerce, Salesforce Commerce Cloud, etc.) I would be very worried about how close Amazon and Shopify just became. As a Shopify Plus agency owner, I’m excited to get out there and talk about this new partnership and the benefits for the merchants we serve.

Chad Fisher


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