Shopify rises after Amazon permits "Buy with Prime" on Shopify stores

Investing.com -- Shares in Shopify Inc (NYSE:SHOP) jumped in early U.S. trading on Thursday after the e-commerce group and Amazon (NASDAQ:AMZN) announced a new app integration that will allow merchants to offer "Buy with Prime" on Shopify stores.

"Buy with Prime" is a service provided by Amazon that pledges to give its Prime members fast and free delivery as well as easy returns through the tech giant's fulfillment network. It was unveiled last year largely as an answer to Shopify, the Canadian maker of e-commerce tools that help merchants sell products on their own websites instead of through online marketplaces like Amazon.

Previously, Shopify merchants managed "Buy with Prime" independent of the admin section of Shopify that helped organize and store businesses' information.

The app will be available by the end of September for all Shopify sellers in the U.S. who would like to use or are already using Amazon's logistics network, the companies said in a statement. Amazon added that it has already begun rolling out the app to invited Shopify merchants.

The companies said the app will give merchants the ability to select items from their Amazon inventory to be part of their "Buy with Prime" product catalog on Shopify. Meanwhile, members of Amazon's Prime service will be given the option to select "Buy with Prime" on a product's detail page before completing their order with Shopify. 

"We see potential for the Amazon partnership to improve a merchant's fulfillment experience and increase conversion, consistent with management’s core focus," analysts at Oppenheimer said in a note following the announcement.