Shopify, the Canada-based e-commerce platform has issued a warning against sellers using Amazon’s “Buy With Prime” button on their storefront. According to a report published by research firm Marketplace Pulse, the company states that Amazon’s one-click checkout service violates the terms of service of Shopify and is also raising security concerns.
According to a screenshot of the notice sent to sellers, Shopify will not protect those using Buy With Prime against fraudulent orders. The company also states that Amazon’s service can be a threat to customer data and customers can also be charged incorrectly. As per the terms of service of Shopify, merchants are required to use Shopify Checkout for any kind of sales associated with their online store, apparently prohibiting them to offer alternative checkout options.
We protect information collected via Buy with Prime, including shopper data, in accordance with Amazon’s high security standards. We use this information to provide and improve Buy with Prime for merchants and shoppers.
Amazon spokesperson
What is Buy With Prime?
Amazon rolled out Buy With Prime in April 2022 marketing the option as a way for sellers to boost website traffic. Merchants can add the Prime logo on their sites and offer Amazon’s speedy delivery options. Members of Amazon’s Prime loyalty club can check out via their Amazon accounts. Amazon’s Buy With Prime competes with Shop Pay, rival Shopify’s instant checkout and payment service. Collaborating with Facebook and Google last year, the e-commerce giant is looking to expand Shop Pay beyond its own platform.
Happy or Unhappy?
When Amazon announced Buy With Prime, Shopify CEO Tobi Lutke welcomed the launch saying Shopify was “happy” to include this feature into its platform. “This fits perfectly into our world view,” said Lutke. “And it’s not nearly as zero-sum as some people make it out to be,” he told investors on the first-quarter earnings call.
However, Shopify is reportedly not pleased about Buy With Prime. According to CNBC report, there was an internal debate in May whether the company should integrate Buy With Prime or not. A Shopify spokesperson also informed the publication that CEO’s comments are his personal opinion and company needs to think more before deciding on this matter.
Is it Safe?
Reacting to Shopify’s claims that Buy With Prime is not safe, an Amazon spokesperson told CNBC: “We protect information collected via Buy with Prime, including shopper data, in accordance with Amazon’s high security standards. We use this information to provide and improve Buy with Prime for merchants and shoppers.”
“We use Amazon Pay to process payments for Buy with Prime orders. Amazon Pay is backed by the fraud protection technology used on Amazon.com. Merchants have complete control over the prices customers are charged,” spokesperson said further. “Shopify didn’t immediately respond to a request for comment,” wrote CNBC in its report.
About Shopify
Shopify has emerged as a popular alternative for those who want to establish their online stores or expand beyond Amazon. The Canadian company help merchants with the software that easily help them establish an online presence. In July, Shopify completed the acquisition of a logistics start up, Deliverr, thus coming in direct competition with Amazon’s logistics arm.
