Categories: Market Movers

Shopify (SHOP) and Amazon (AMZN) Shares Rallied Aimed a Deal

It’s reported on Thursday that Shopify has reached a deal with Amazon to integrate the company’s Buy with Amazon’s Prime service into Shopify’s app ecosystem. Shopify (SHOP) share rallied almost 9% in early trading on Thursday and now trading at $65.72 after the Canadian e-commerce company said it struck a deal with Amazon.

 After this deal, the merchants will be able to tap into Amazon (AMZN)’s Prime loyalty program and speedy delivery.

    The agreement serves as a detente between the two companies after Shopify initially urged merchants not to use Buy with Prime, citing security risks.

The new feature is available by invitation only to some of the Shopify merchants initially, but it will open up to all Shopify sellers, who elect to use Amazon’s logistics services by the end of September, Amazon said. Amazon (AMZN)’s stock jumped more than 2% on the news and trading at $137.81.

The Buy with Prime will be accessible via Shopify’s checkout service, and the transactions will be processed by Shopify Payments.

Amazon (AMZN) unveiled Buy with Prime in April 2022. At that time market analysts had speculated that the said program could emerge as a sizable business over time, and now potentially it is generating $3.5 billion in revenue for the e-commerce giant.

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