Today's video focuses on Amazon's (AMZN -0.49%) recent announcement that merchants will be able to use Amazon's logistics network outside of Amazon's website. The new solution might seem like a direct shot to Shopify's (SHOP) core business, but is it? Here are some highlights.
- On April 21, Amazon announced Buy with Prime, a solution that brings Amazon's logistics to merchants' online stores. Amazon's merchants will be able to use fast and free delivery, free returns, and other checkout features for their customers.
- Buy with Prime will initially be available by invitation only for merchants already using Amazon's fulfillment business, and the services will roll out through 2022. Eventually, even merchants not currently using Amazon's fulfillment business will be able to use Buy with Prime.
- Buy with Prime is a nonsubscription service, so merchants can cancel at any time. Merchants get charged monthly storage fees and various other fees for using Amazon's solutions. At the moment, Buy with Prime is just one tool compared to the large toolbox Shopify has created for its customers.
*Stock prices used are the market prices of April 21, 2022. The video was published on April 21, 2022.