Summary of Amazon adds PayPal as a payment option to Buy with Prime | TechCrunch

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    Amazon Buy with Prime Adds PayPal as Payment Option

    Amazon's Buy with Prime program, which allows shoppers with a Prime membership to purchase items from third-party stores and check out using their Amazon account, is getting a new payment option: PayPal.

    • Prime customers can now use PayPal to check out on websites that have integrated the Buy with Prime API.
    • Starting next year, Prime members will be able to link their Amazon account to a PayPal account, enabling Prime benefits to automatically apply when using PayPal for shopping.

    Buy with Prime: An Amazon-Powered E-commerce Experience

    Buy with Prime, launched in April 2022, allows brands to offload fulfillment to Amazon, requiring them to store inventory in Amazon warehouses. It offers a complete e-commerce experience within a checkout button, acting as an alternative to payment intermediaries like Shop Pay and Apple Pay.

    Growth of Buy with Prime

    Amazon claims rapid growth for Buy with Prime, with brands like Dollar Shave Club and IZOD adopting the service. The company reports a 45% year-over-year increase in Buy with Prime orders and a 50% rise in Prime member usage compared to the previous year.

    Third-Party Perspectives on Buy with Prime

    While Amazon presents a positive narrative, some sources suggest that Buy with Prime, despite its growth, remains a niche business. Marketplace Pulse points out the significant barrier of sending inventory to Amazon, which has even led Shopify to initially discourage merchants from offering Buy with Prime through their storefront.

    Expanding Buy with Prime Capabilities

    Amazon has revealed several updates to Buy with Prime, including:

    • Real-time delivery estimates in TikTok ads for Buy with Prime merchants.
    • The ability to purchase items with Prime and without Prime in one checkout on Shopify stores.

    Impact on Shopify and E-commerce

    The integration with Shopify and the addition of PayPal as a payment option are significant steps for Amazon's Buy with Prime program. It signifies a potential shift in e-commerce, offering brands more control over their customer experience while leveraging Amazon's vast logistics network and Prime membership base.

    • Merchants can now reach a wider audience of Prime members through PayPal integration.
    • The integration with Shopify further expands the reach and accessibility of Buy with Prime for merchants using Shopify.

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