Amazon's Buy With Prime Strategy: Profiting from Non-Amazon.com Orders Amidst E-commerce Shifts
Portfolio Pulse from Anusuya Lahiri
Amazon is capitalizing on the discontinuation of Shopify's shipping services by promoting its Buy With Prime service, which facilitates orders from non-Amazon.com sites. This move is expected to boost online merchants' sales and conversion rates. Amazon anticipates more shoppers will now purchase from brand websites rather than online marketplaces like Amazon.com and Walmart.com. Direct-to-consumer sales are projected to rise 17% in 2023, reaching $182.6 billion.
September 14, 2023 | 6:20 pm
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POSITIVE IMPACT
Amazon's Buy With Prime service is expected to boost sales and conversion rates for online merchants, potentially increasing Amazon's revenue.
Amazon's new strategy of profiting from non-Amazon.com orders could potentially increase its revenue. The company's shares traded higher following the news.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Shopify's discontinuation of its shipping services has created a logistical gap that Amazon is now filling.
Shopify's decision to discontinue its shipping services has created an opportunity for Amazon, which could negatively impact Shopify's market position.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Amazon's strategy could potentially divert shoppers from online marketplaces like Walmart.com to brand websites.
Amazon's anticipation of more shoppers purchasing from brand websites could potentially impact Walmart's online marketplace.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60