Shopify stock grew by 7% over the last few days, with an estimated value of over $5 billion. This is likely linked to the news that Amazon is launching a Buy With Prime (BWP) app in the Shopify store.
Shopify president Harley Finkelstein announced this on social media. He says now merchants and their customers have choices. “We make that a reality with every partnership we execute. Soon, Amazon will release an app in Shopify’s app ecosystem that will give merchants who use Amazon’s fulfillment network the choice to add BWP on Shopify’s checkout – and it’s all processed by Shopify Payments.”
Significant moment: Shopify is working with Amazon
Experts reckon this will improve the buyer and the seller’s experience. Judging how the markets have reacted to the business move, it seems both companies are declaring a win here.
But let’s take you back to why this is such a significant moment for big companies working together.
In 2019 Shopify CEO Tobias Lütke was told on Twitter: ”They (Amazon and Shopify) have an opportunity to build a world-beating company,” to which Lütke responded: “I’d rather buy Amazon.”
LinkedIn reacts to the development
CEO at Talkoot, an AI-powered product, Brian Hennessy, is glad he invested in Shopify. He told LinkedIn: “When I compare the market cap of Amazon and the market cap of Shopify, then look at how they’re competing toe-to-toe, I’m very grateful to my past self for buying Shopify stock.”
The founder of the data agency called Smarter Tomm Enns says, “It could, however, decrease friction in the checkout.” He doubts sellers will change the target of their advertising “to be their own domains instead of Amazon.”
Head of operations at Source Medium, Will Holtz says this development is worth keeping a close eye on. “Especially to track attribution and omnichannel overlap.”
The Snow Agency, an advertising agency based in Florida, recons before this move Amazon had complete ownership over the customer and the customer’s data, and now both Amazon and Shopify own the customer.
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
