Home » Latest News » US E-Commerce Weekly Update (Aug 28-Sep 3): Amazon and Shopify’s Strategic Alliance, TikTok’s E-Commerce Evolution

US E-Commerce Weekly Update (Aug 28-Sep 3): Amazon and Shopify’s Strategic Alliance, TikTok’s E-Commerce Evolution


Amazon: Strengthening ties and refining business models

Amazon and Shopify’s strategic partnership: Amazon and Shopify have recently formed a strategic alliance, allowing online merchants on Shopify to seamlessly integrate Amazon’s “Buy with Prime” program into their platforms. This move aims to offer Amazon Prime members a unified checkout and delivery experience across various online platforms. While Shopify had previously cautioned its merchants against using the “Buy with Prime” feature, this new collaboration signifies a major shift in the e-commerce landscape. The integration will not only enable Prime members to utilize their Amazon wallets for transactions but also ensure that Shopify handles these payments. The “Buy with Prime” app is currently being rolled out to select Shopify merchants and will soon be available to a broader audience.

Amazon’s revised FBA strategy: Amazon is set to replace its FBA Small and Light program, which catered to low-priced, lightweight products, with a more streamlined fee structure. From August 29, 2023, all products priced under $10 will benefit from reduced FBA rates, ensuring faster delivery times at a lower cost. This change reflects Amazon’s commitment to simplifying its fee structure and enhancing the seller experience on its platform.

TikTok: Pioneering new e-commerce frontiers

TikTok’s e-commerce shift: TikTok has decided to phase out its TikTok Storefront feature, including its integration with Shopify. By mid-September, sellers will need to list their products directly on TikTok Shop, marking a significant shift in TikTok’s e-commerce strategy. This move underscores TikTok’s ambition to become a comprehensive e-commerce platform, encouraging users to shop directly within the app rather than being redirected to external sites.

TikTok’s innovative search ad feature: TikTok has unveiled a new search ad feature, allowing advertisers to serve users with relevant in-feed ads based on their search queries. This development highlights TikTok’s growing emphasis on search functionalities, catering to the evolving behaviors of its predominantly younger user base.

Walmart: Bolstering its third-party marketplace

Walmart’s Enhanced Seller Services: Walmart is actively seeking to expand its third-party online marketplace. The retail giant recently hosted a summit, unveiling a range of new services for sellers, including enhanced delivery options and marketing services. These initiatives reflect Walmart’s determination to strengthen its online presence and compete more effectively with e-commerce giants like Amazon.

eBay: Enhancing user experience

eBay’s Innovative Response-Time Feature: eBay is set to introduce a new feature that showcases the response time of sellers to customer inquiries. This feature aims to foster trust and encourage more interactions between buyers and sellers on the platform. While still in the testing phase, this initiative highlights eBay’s commitment to enhancing user experience and building trust within its community.

Early Onset of the US Holiday Shopping Season: A recent study by Bazaarvoice has shed light on the shopping behaviors of American consumers for the upcoming holiday season. The findings reveal that a significant portion of consumers commence their holiday shopping as early as August. The study also emphasizes the influential role of advertisements, social media, and user-generated content in shaping purchase decisions during peak shopping periods like Black Friday and Cyber Monday.

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