How To Maximize ROI with Buy with Prime for Shopify

Only a handful of companies can match Amazon’s rapid pace of innovation, and Shopify is a close contender. If you follow Harley Finkelstein on LinkedIn, you will be amazed to know how quickly the platform introduces features that simplify and enhance the adoption of its platform for merchants. These innovations are designed to make it more convenient for businesses to utilize Shopify. For over a decade or so, Amazon and Shopify have been core competitors when it comes to online eCommerce and retail. While Amazon offers a marketplace that gives customers a wide variety of choices and Amazon’s fulfillment options, Shopify offers a scalable and intuitive webstore with all kinds of information that the customer might need. Surprisingly, however, these two rivals have joined hands! The collaboration between Amazon and Shopify, who have traditionally been competitors, introduces Buy with Prime for Shopify which marks their first joint effort and is a promising step forward in the eCommerce industry.

With the “Buy with Prime” offer, customers on the Shopify store can take advantage of faster, free deliveries and easy returns through Amazon’s fulfillment network. While the app has not been officially launched, numerous details are already available. Currently, the app is being rolled out on an invite-only basis, with plans to make it publicly accessible by the end of September 2023.

While enabling this feature provides significant value to Shopify merchants, this article delves into some of the less evident aspects and challenges related to this. We believe that by addressing these challenges and considerations, merchants can maximize their gains.

How does Buy with Prime for Shopify work?

Buy with Prime for Shopify is an application jointly developed by Amazon and Shopify that empowers merchants to provide a user-friendly feature, enabling customers to log in using their Amazon Prime account and make purchases on the merchant’s Shopify store. Subsequently, Amazon handles order fulfillment, ensuring delivery within the Amazon Prime expedited shipping window.

This integration not only simplifies the checkout process but also ensures that orders are fulfilled promptly and efficiently by Amazon, aligning with the fast delivery expectations of Amazon Prime members. This can be a significant benefit for both merchants and customers, enhancing the overall shopping experience.

Here is a detailed breakdown of how the process works:

• Shopify Platform: Shopify eCommerce allows businesses to set up and manage their online stores. Merchants use Shopify to list their products, manage inventory, process orders, and handle various aspects of online retail. Retail buyers visit the merchant’s Shopify store and add items to their Cart.
• Amazon Prime Integration: With “Buy with Prime for Shopify”, merchants can integrate their Shopify stores with Amazon Prime. Amazon Prime members enjoy benefits such as fast and free shipping on eligible products, access to streaming services, etc. During checkout, the buyer is presented with the option to “Buy with Prime”. All the buyer needs to do is to log in to their Amazon Prime account.
• Order Placement: Once logged in with their Amazon Prime account, customers can browse products on the merchant’s Shopify store and place orders as usual. When they complete an order, it goes through the Shopify platform.
• Incoming Customer Experience: When a customer checks out of a Shopify store that has integrated “Buy with Prime” option, they can log in to their Amazon Prime account. This simplifies the checkout process, as customers do not need to create a new account or enter shipping and payment information. The payment methods from the Amazon Wallet are also presented to the customer.
• Payment: The customer completes the checkout process and pays for the order. The payment processing for the order is taken care of by Shopify.
• Fulfillment by Amazon: Here is where integration becomes valuable. Instead of the merchant handling order fulfillment themselves, the order is fulfilled by Amazon using the merchant’s Amazon Seller Central account. This means that the customer can expect their order to arrive quickly, in line with Amazon Prime’s speedy delivery standards.
• Data Retention: Merchants retain ownership of customer data and can view their orders within Shopify. Subsequently, they can use this data in their CRM (Customer Relationship Management) and plan further campaigns for their buyers.

This integration between Amazon and Shopify streamlines the customer experience while allowing merchants to maintain control over their orders and customer data as well. Here is how:

• Payment Processing Fees: Shopify and Amazon will share the payment processing fees, having reached a mutually agreeable arrangement.
• Fulfillment and Storage Fees: Amazon will charge Fulfillment fees and storage fees, which are standard charges for using their logistic network and storage infrastructure. Additionally, there might be a fee associated with enabling Prime Service, typically applied per order.
• Returns Handling: Amazon will take care of managing any product returns, ensuring a seamless and efficient process for both merchants and customers.

Although the companies have not publicly revealed the pricing for this Buy with Prime for Shopify feature, the following is how the pricing for Buy With Prime works in general.

What is in there for Amazon, Shopify, Merchant, and the Customer

Buying with Amazon Prime is a win-win situation for all parties involved. Let us explore how each party benefits:

• Amazon – Amazon gains access to an extensive network of over 4 million Shopify merchants, making a compelling case to onboard them as Amazon Sellers. This influx of new sellers leads to a higher volume of Fulfilled by Amazon (FBA) orders, thereby increasing Amazon’s revenues. Also, through their collaboration with Shopify for payment processing, Amazon earns a share of the payment processing fees. Furthermore, Amazon enhances the value of its Prime subscription by impressing Prime customers with a broader range of products.
• Shopify – In addition to the financial benefits through sharing additional revenue with Amazon, Shopify serves as a facilitator, streamlining the multi-channel commerce journey for its store owners. This simplification enhances the appeal of Shopify as an e-commerce platform, making it more attractive to businesses looking to expand their reach and offerings.
• Merchants – The major advantage for merchants is the trust they earn from their customers. This leads to increased conversion rates without adding complexity to fulfillment or returns. Amazon foresees an average conversion rate increase of up to 25%, which is a significant boon for businesses.
• Retail Buyers – With Amazon taking charge of order fulfillment, buyers can anticipate exceptional customer service and fast delivery. They no longer need to rely solely on Amazon.com; instead, they can purchase directly from the merchant’s store without having to create a separate login or worry about managing multiple payment methods across various stores.

The Amazon Prime program creates a winning situation for all participants, enriching the overall buying experience while driving success for Amazon, Shopify, merchants, and retail buyers alike. It demonstrates how strategic collaborations in the eCommerce space can yield substantial benefits and enhance the shopping landscape for all involved.

Practical Challenges While Executing Buy with Prime Strategy

To maximize the business potential unlocked by enabling Buy with Prime, merchants should carefully consider and address the following key aspects:

• Operational Excellence for Multi-Channel Commerce: Meeting the demands of multi-channel commerce requires an elevated level of operational efficiency. Ensuring smooth operations across various sales channels is crucial for success.
• Procurement and Production Elasticity: Elasticity in procurement and production is pivotal for maximizing profits, especially during peak seasons and events like Prime Day. Flexibility in adapting to fluctuating demand can significantly boost earnings.
• Customer Feedback’s Dual Impact: Positive customer feedback not only builds trust with buyers but also enhances the ranking on Amazon’s platform. Prioritizing and actively seeking positive feedback can strengthen the online reputation.
• Automation for Scalability: Implementing automation in processes and systems is a powerful strategy to handle increased sales without significantly increasing manual effort. It ensures that your operations remain efficient and effective as your business grows. Integration platforms like APPSeCONNECT can help you in seamlessly connecting your business applications and processes with its pre-configured integrations and allow merchants to skyrocket their sales and revenue.

The diagram below summarizes why operational efficiency, effective vendor management, sound production planning, and proactive management of customer feedback are fundamental elements for success.

• Operational Efficiency for Amazon Merchants – Amazon places immense importance on customer satisfaction. Enabling this feature entails that merchants must closely monitor inventory, prices, and financial reconciliation with Amazon. The process of shipping goods to Amazon and reconciling inventory as Amazon receives and manages it within its distribution centers plays a pivotal role in shaping the profitability of the Amazon business.
• Establishing a Procurement, Sourcing, and Production Framework – The surge in order volume necessitates a streamlined framework for procuring raw materials and products from vendors, particularly during peak seasons such as Prime Day.
• Robust Backend Systems and Processes – Backend applications and systems must be keenly optimized to effectively manage financial reconciliation. Automated business processes ensure data accuracy and reduce reliance on manual labor.

Here is the SWOT Analysis of Buy with Prime, keeping the merchant in mind.

The above SWOT analysis offers the following inference for merchants enabling Buy with Prime for Shopify:

• Strengths: Merchants possess the capability to proactively offer customers a seamless multi-channel shopping experience, capitalizing on well-established platforms. This strength enables them to expand their reach and cater to a broader audience by leveraging trusted platforms like Shopify and Amazon.
• Weakness: A potential weakness arises from the presence of disjointed and disparate systems. There is a pressing need for an efficient Enterprise Resource Planning (ERP) system that seamlessly integrates with both Shopify and Amazon. Such an ERP system would harmonize data and processes, enhancing overall operational efficiency.
• Opportunities: With the adoption of this integrated approach merchants can tap into a larger market, expanding their customer base and fulfilling more sales. Furthermore, by strategically capitalizing on special occasions such as Prime Day, Thanksgiving, etc. merchants can maximize their business outcomes. These opportunities allow them to align their sales strategies with specific periods of heightened consumer activity and peak seasons.
• Threats: Inefficient operations and processes present a significant threat – if not managed effectively, these inefficiencies can lead to a downgrade by Amazon, impacting the visibility and ranking of the merchant’s products on the platform. Moreover, errors in critical areas such as pricing, inventory management, and payment reconciliation have the potential to result in financial losses. These threats underscore the importance of keen attention to detail and the implementation of smart operational procedures to maintain the health and sustainability of the business.

Who uses Buy with Prime and What are the business results to expect?

The “Shop with Amazon Prime” feature has been around in the market and is accessible on various e-commerce platforms, including those mentioned below.

• Magento
• BigCommerce
• WooCommerce

It is important to note that this widespread availability underscores the positive impact it can have on merchants – when they integrate this feature, they often witness substantial returns on their investment.

Amazon has highlighted some of its customer testimonials that attest to the notable benefits of this feature. One of the most striking outcomes has been the significant increase in conversion rates. Customers have shown a clear preference for checking out with Prime as soon as this option becomes available on a merchant’s website.

“Shop with Amazon Prime” is embraced by a wide range of users, and the expected business results are impressive. Merchants stand to gain higher conversion rates, improved customer satisfaction, and access to Amazon Prime’s extensive customer base. The shift towards Prime for checkout highlights the convenience and appeal of this integration, making it a valuable addition to any merchant’s toolkit.

Conclusion And Further Read

As I said before, it is amazing to see Amazon and Shopify come together and find synergies. I would love to hear your take on Buy with Prime for Shopify. Here are some further read.

• The Complete Guide to Amazon Seller Central Integration – Efficient Inventory and Order Management.
• Top 12 Apps for Shopify Integration to Boost ROI

Get started with automation for your Amazon Seller Central and Shopify platforms. Seamlessly connect both applications under a single, intelligent, and secure Business Process Automation platform through APPSeCONNECT’s robust integration packages and achieve exponential business growth.