Could Shopify Really Partner With Amazon?

In April 2022, Amazon (NASDAQ: AMZN) introduced a product called Buy with Prime. Prime, of course, is the e-commerce giant's membership program. One of its perks is free and fast shipping with a reliable delivery estimate. Buy with Prime allows third-party e-commerce companies to offer these same delivery perks to their customers.

When it started, Amazon's Buy with Prime was by invitation only. But as of January, it's open to anyone who wants to use it. For some analysts, this is a problem for e-commerce platform company Shopify (NYSE: SHOP). For example, UBS analyst Kunal Madhukar says that up to 14% of Shopify's revenue is possibly at risk due to Buy with Prime adoption trends, according to The Fly.

With so much apparently at stake, it might seem strange that Shopify is in talks to partner with Amazon on Buy with Prime. But that's exactly what's happening right now. Here's why.

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Source Fool.com