Amazon.com, Inc. is getting ready to close its e-commerce tools business. In hopes of making this up to users, the firm recommended online firm and rival, Shopify, as a suitable stead. The endorsement was made public on Thursday.
In March, Amazon announced its plans to shut down its online shopping tools arm, Amazon Webstores. The sector has filled with rivals in the form of small online firms.
Amazon Webstores Bows Out Gracefully
Competitors, like Bigcommerce and Shopify, give web retail tools to small to midsize entities. These companies have expanded and grown in number over the years. The trend has left Webstores as an uneconomical venture for Amazon. The company announced in March that it was giving its Webstores users more than 12 months to find another vendor.
Pacific Crest states that its number of Amazon Webstores users sit at around 100. The analyst firm estimates these figures to “represent low single digits of its more than 2,900 merchants as of the end of 2Q15.”
Shopify Will Keep The Amazon Feel
Those who migrate to Shopify will not lose much from what they had got from Webstores. Shopify said it will offer merchants the choice of using Amazon’s end services. It will also allow the use of Amazon’s purchase technology. According to Fortune, Shopify says that it only makes sense to let merchants use Amazon payments. Most of Shopify’s 175,000 clients already use of Amazon for sales anyway, Shopify relays.
Pacific Crest says, “While Shopify now offers Amazon’s login and payment solutions, it is positive because it will increase options for merchants. However, it is unclear how many merchants will adopt solutions from their biggest competitor.”
Bearing competition in mind, analyst Brendan Barnicle expects only a small take on Amazon’s login and payments tools.
More Good Things For Shopify
Amazon’s endorsement is not the only great thing going on for Shopify right now. The company will be working with social networking giants to allow users to buy items straight on their apps.
Facebook said earlier this year that it would be working with Shopify to bring users a “buy” button. The partnership will allow Shopify merchants to sell their products directly on the social network. The same idea is said to be in the works with Twitter, too.
Shopify went public earlier this year. It is now valued at $2.13 billion. Along with Bigcommerce, the firm is among Webstores’ biggest rivals. It has had steady growth since it’s launch in 2006.