Amazon.com Inc. is targeting a logistics void left by Shopify Inc.’s abrupt retreat from shipping services earlier this year, which created an opportunity for the online retailer to make money delivering products ordered on sites other than Amazon.com.
The e-commerce giant is promoting Buy With Prime, which was introduced last year and offers online merchants fast delivery of customer orders placed on other websites. The company, at its Accelerate sellers conference Thursday, revealed metrics highlighting the sales boost merchants see when shoppers take advantage of their Amazon Prime membership to receive fast shipping and other benefits.
Direct-to-consumer sales, where shoppers buy items directly from a brand’s website, will increase 17% this year to hit $182.6 billion, nearly double the 9.3% growth rate of overall online spending, according to Insider Intelligence. Shopify’s retreat from logistics appears to have ushered in a truce between the companies. Tensions between them escalated last year when Shopify purchased logistics startup Deliverr in a deal worth $2.1 billion, signaling ambitions to compete more directly with Amazon. But Shopify abandoned those plans in May when it sold its logistics unit to San Francisco startup Flexport Inc., which just replaced its chief executive officer and is going through its own strategy shift.
Aaron Cordovez, co-founder of Zulay Kitchen, which sells about 1,000 products on Amazon, said the service is helping him increase sales on his website because “customers trust the Amazon process. There’s not many downsides, so I think more people will try it.”
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
27 Home Products Amazon Customers Are Loving Right NowThese Amazon home goods are going to level up your living situation.
Read more »
Bullish Lowe’s Companies Inc.A technical look at the stock
Read more »
Maple Leafs' Matthew Knies on next step: 'I want to be that power forward, that traditional hockey player'Matthew Knies has big plans for the coming hockey season. “I want to play with the big players, I want to play with the big club and I’m just going to ...
Read more »
Will BNB bounce to this level before going short?BNB's $220 level has not been tested in September, and previously served as support in June, marking it as an area of interest for bears.
Read more »
'Everyone is going to feel some sort of influence'; Lee likely to lash Cape BretonSYDNEY, N.S. — The track of hurricane Lee remains uncertain but there is likely to be an impact on Cape Breton. More details are to be known on ...
Read more »
Toronto man arrested after allegedly going on verbal tirade against TTC driverA man who allegedly went on a 30-minute-long tirade directed at a female TTC bus driver that he filmed and posted online has been arrested and is facing several charges.
Read more »