Amazon.Com Inc AMZN now sees the logistical gap created when Shopify Inc SHOP discontinued its shipping services, allowing the online retail giant to profit from products ordered from non-Amazon.com sites.
The company is promoting its Buy With Prime service, which offers fast delivery of customer orders on other websites, helping online merchants boost sales by attracting new customers and converting them at higher rates, Bloomberg reports.
Also Read: Amazon's Groundbreaking Supply Chain Service: Expanding Beyond Online Retail
Amazon's dominance in the U.S. e-commerce market has led it to increasingly provide services like packing and delivery to online merchants, a shift from directly selling products.
The company anticipates that more shoppers will purchase items now from brand websites rather than through online marketplaces like Amazon.com and Walmart Inc WMT Walmart.com.
Direct-to-consumer sales will likely rise 17% in 2023, reaching $182.6 billion, nearly double the 9.3% overall online spending growth rate.
The move follows a truce between Amazon and Shopify after the latter sold its logistics unit to Flexport Inc in May.
Both companies have integrated their logistics networks to benefit merchants and shoppers.
Some merchants have expressed satisfaction with Buy With Prime, citing increased website sales due to customer trust in the Amazon process.
Price Action: AMZN shares traded higher by 0.39% at $145.51 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
