
Two years after Amazon launched delivery and one-click checkout in April 2022, thousands of brands have adopted Buy with Prime.
Buy with Prime allows shoppers with a Prime membership to make purchases on e-commerce sites other than Amazon and use their Amazon account for checkout. Crucially, Amazon is also responsible for fulfillment, meaning that Buy with Prime is not a replacement for eBay, Shop Pay or Apple Pay, but rather a complete e-commerce experience within a checkout button.
The service grew slowly after launching in April 2022 because Amazon didn't integrate with Shopify, the largest hosting platform for e-commerce brands.In August 2023, Amazon and Shopify announced a partnership and a few months later in November 2023 launched a plugin for all Shopify merchants. Previously confusing integrations, where Shopify even discouraged merchants, have become easy and quick.
Most of the thousands of merchants using Buy with Prime are Shopify merchants. Most of them are already selling on Amazon and have either launched a DTC channel with the service or offer a payment method on an existing site. Not many brands have deployed Buy with Prime outside of Amazon because the service requires inventory from Amazon warehouses.
Interestingly, buying with Prime increases conversion rates. Outside of large retailers, where delivery estimates are rare, "buying with Prime" makes them the most important customer to serve, but also because of the "Prime" in the name. For the tens of millions of people in the U.S. who have Prime memberships, "buying with Prime" is axiomatic. However, so is Amazon Payments. It's not clear that "buying with Prime" speeds up shipments because it's not an alternative payment method, but one that's tied to a delivery service. This became apparent the next day when the first items appeared in Amazon's packaging. However, this intangible benefit is why more brands are reluctant to try it - they would have to send their inventory to Amazon. Without them, the wheels don't turn.
There are no estimates of the number of Prime paid purchases yet. It's growing, but it's still niche - with thousands of brands, it's a drop in the bucket compared to the millions of e-commerce sites on Shopify. Two years on, many brands are still not convinced of the potential increase in conversions. Adoption is growing, but the service has yet to become a disruptive force.
