Shares of Shopify (SHOP) rose 10% on news that the Canadian e-commerce company has struck a deal to offer Amazon’s (AMZN) “Buy with Prime” program to its merchants.
Shopify merchants will soon be able to access Amazon’s “Buy with Prime” service, which will enable them to add the Prime logo and offer Amazon’s quick delivery options on their storefronts.
The new feature is being made available by invitation only to some Shopify merchants now but will become available to all Shopify sellers who choose to use Amazon’s logistics services by the end of September.
Amazon launched “Buy with Prime” in April 2022. Analysts say the program could eventually become a big business and generate as much as $3.5 billion U.S. in annual revenue.
Shopify had initially been concerned about “Buy with Prime” and warned its merchants against using the service for fear it would capture revenue that it generates from processing payments.
However, under terms of the deal with Amazon, Shopify customers that use “Buy with Prime” will use Shopify’s checkout service, and transactions will be processed with Shopify’s payment platform.
Shopify’s stock has now risen 118% over the last 12 months to trade at $89.89 per share.