Amazon launched the Buy with Prime service earlier this year. Shopify seems to be pushing back on the service which alerts merchants with a bold pop-up stating that installing the Buy with Prime service will cause them to lose protection against fraudulent activities.
The Shopify warning pops up when merchants try to add the Buy with Prime button to their page, reported Marketplace Pulse.
A Shopify spokesperson told CNBC, “Shopify believes it’s a good thing when a company like Amazon opens their infrastructure to more independent businesses to succeed in commerce.”
The pop-up script states that Shopify Fraud Protection will not be guaranteed and alerts that adding the Amazon service could steal customer data and potentially cause customers to be charged the wrong amount.
Shopify is facing a slump in stock price of 77 percent, they were also forced to carry out mass layoffs this year.
Buy with Prime poses as direct competition to Shopify’s business model, when customers choose Buy with Prime, the order is wholly managed and fulfilled by Amazon while other payment methods places orders via Shopify.
Buy with Prime operates with a fairly simple system, the button can be added to potentially any website or e-commerce store by an input of two HTML lines, the only way Shopify can prevent this is by scanning the template code which is what Shopify seems to have started doing.
“You have a code snippet on your storefront that violates Shopify’s Terms of Service,” Shopify wrote in its message to sellers, as reported by Marketplace Pulse.
Shopify’s terms of service require merchants to use Shopify Checkout “for any sales associated with your online store,” seemingly discouraging them from offering alternative checkout options.
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