Amazon is extending the benefits of a Prime subscription to online stores beyond its own site, a move geared toward boosting revenue from merchant fees and expanding its logistics footprint.
The company said Thursday the new service called"Buy with Prime," will initially be available by invitation for merchants who ship their products using Amazon's warehouse and delivery services. Then, it will be rolled out for merchants who don't sell on Amazon or use its delivery services.also said the service will only be available for U.S. customers. Launched in 2005, Prime has more than 200 million members worldwide who pay $139 a year, or $14.
Merchants who use the service will pay various fees, which the retailer says are calculated depending on what features sellers use."With no fixed subscription fee or long-term contract required, merchants can expand selection or cancel at any time," it said.
, though some are speculating Thursday's announcement could have also been geared toward blunting the momentum of the Canadian e-commerce company Shopify, which makes software that allows businesses to run online stores.
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