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Shopify is going up against Amazon once more. According to a recent report by Marketplace Pulse, the eCommerce platform is warning users that using Amazon’s Buy with Prime feature in their Shopify stores could allow Amazon to steal their customer data.
Buy with Prime, an Amazon plugin introduced earlier this year, essentially enables customers to use Prime membership perks while making purchases from non-Amazon online retailers.
The launch was initially met with fanfare from Shopify during its Q1 2022 earnings call. When Amazon announced the introduction of Buy With Prime, Shopify CEO Tobi Lutke expressed his company’s “happiness” to include the feature in its platform. Internal debates began soon after as to whether this feature should actually integrate with the platform.
A snapshot of a notice Shopify provided to merchants states that it will not defend sellers who attempt to use Buy With Prime against phony orders. Additionally, the notification cautions that using Amazon’s service could result in data theft and erroneous billing.
Shopify Checkout must be used “for any sales related with your online store,” according to the Shopify terms of service.
Shopify’s payment platform has checkout connections that retailers can employ. Providers must accept the conditions of Shopify’s API and Partnership Program Agreement to participate in the payments platform.
Shop Pay, Shopify’s rapid checkout and payment service, competes directly with Buy With Prime. By signing agreements with Facebook and Google last year, Shopify allowed customers to use the system to make purchases outside of its platform.
According to an Amazon spokeswoman, “We protect information collected via Buy with Prime, including shopper data, in accordance with Amazon’s high-security standards. We use this information to provide and improve Buy with Prime for merchants and shoppers.”
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