The code necessary to install the button to offer Amazon’s free, two-day delivery service to shoppers violates Shopify’s terms of service, spokesperson Jackie Warren said. Merchants who add it to their store templates receive a pop-up message warning that the addition “removes Shopify’s ability to protect your store against fraudulent orders, could steal customer data and may cause customers to be charged the wrong amount,” according to screenshots published by e-commerce research firm Marketplace Pulse. (The Logic)
Talking point: Amazon is marketing the Buy with Prime button to direct-to-consumer brands, offering to take the work of fulfillment off their hands. But the feature also routes orders through the e-commerce giant’s payment processing service. Both strike at the heart of Shopify’s business model. The Canadian company makes much of its revenue from fees for its own payment processing service, and is spending billions to build out its own fulfillment network in the U.S. “Shopify believes it’s a good thing when a company like Amazon opens their infrastructure to more independent businesses to succeed in commerce,” Warren said, citing comments from CEO Tobi Lütke on the firm’s first-quarter earnings call. The company did not answer The Logic’s question about whether it plans to launch a direct Buy with Prime integration. Meanwhile, Shopify said it will contest a $40-million award that a Delaware jury on Wednesday ordered it to pay Larkspur, Calif.-based Express Mobile in a patent infringement suit.