Shopify integrates Buy with Prime / E-commerce software by market share / PDD shares jump after strong results

Plus, Walmart offers sellers new e-commerce features

Inside Ecommerce

For August 31, 2023

Hi Insiders!

Today, we:

Cover Shopify's truce with Amazon
Analyze e-commerce software platforms by market share
Explore PDD Holdings' strong quarterly results

And much more!

If you find this newsletter helpful, please share it with your friends and colleagues. Thank you!

Gregory
p/Gregory_Bridgman

Shopify will allow its sellers to use Amazon's "Buy With Prime" button. The announcement marks a major reversal for Shopify, which previously opposed integration with Amazon.

More:

Shopify announced a native integration with Amazon's Buy with Prime program.
Shopify warned its sellers last year that using Amazon's Buy with Prime button violated its terms of service.
The new integration will allow Shopify's platform to process Buy with Prime payments.
- The change suggests that the two e-commerce giants reached a compromise.
Amazon Pay will also be added as a payment option within Shopify Pay.
The new partnership will provide a more streamlined checkout process for Prime members.

Why do you think Shopify reversed its policy toward Amazon's Buy with Prime program? Join the conversation here.

What the numbers say: Shopify controlled 28% of the market for e-commerce software in the U.S. in June 2023. WooCommerce Checkout came in second with a 17% market share, and Wix Stores came in third with 16%.

Relevance: The e-commerce software application market is expected to be worth over $7.1B worldwide by the end of 2024, up from about $6B in 2019. Shopify warned sellers on its platform that efforts by some merchants to install Amazon's "Buy with Prime" button manually were in violation of Shopify's terms of service. At the time, Buy with Prime competed with Shopify's own payment processing platform.

What's next: Shopify announced on Wednesday that it struck a deal that will enable Buy with Prime to be natively integrated into its e-commerce tools. Shopify is also reportedly planning to offer a new level of customer support for high-volume sellers in a bid to attract larger companies to its platform.

Q2 revenue for PDD Holdings was up 66% YoY. The Chinese firm's U.S.-traded shares rose 17% after the announcement.

More:

PDD Holdings owns the popular e-commerce apps Temu and Pinduoduo.
The company reported Q2 revenue of $7.17B (52.28B yuan), up 66% YoY.
Company executives said consumer sentiment in China was growing.
Chinese competitors Alibaba and JD.com also reported better-than-expected growth for Q2.

Walmart launched its first-ever Marketplace Seller Summit on Wednesday. The retail giant announced additional e-commerce features for its third-party sellers.

More:

Walmart will expand its marketplace to Chile for eligible cross-border sellers.
The firm announced new fulfillment options for large and bulky items, such as boats.
Walmart plans to establish local pickup and delivery options for sellers that operate their own brick-and-mortar stores.
Sellers will also be able to create dedicated store pages and curate product assortments with Walmart's "Brand Shops" and "Brand Shelves."

Ann Taylor, Loft, and Talbots will join a new holding company called KnitWell Group. The brands within the umbrella are expected to generate more than $3B in combined annual sales.

More:

Ann Taylor and Loft were previously part of Ascena Group's brand portfolio.
The portfolio was dismantled when Ascena filed for bankruptcy in 2020.
Sycamore Partners agreed to acquire Ann Taylor and Loft during Ascena's bankruptcy.
- Sycamore's portfolio also includes Talbots.
Talbots CEO Lizanne Kindler was appointed as CEO and executive chair of KnitWell Group.

Vera Bradley's Q2 net revenue fell 1.7% YoY. The company is currently undergoing a transformation that includes refocusing on "core categories."

More:

Vera Bradley owns jewelry brand Pura Vida in addition to its namesake brand.
The firm posted Q2 revenue of $128.2M, down 1.7% YoY.
Vera Bradley achieved net income of $9.3M after posting a loss of $36.9M a year before.
Vera lowered the top end of its revenue outlook for fiscal 2024 from $510M to $500M.

QUICK HITS

Defend your home with Frontpoint's DIY security. Hurry, Labor Day sale is ending soon — lock in your savings now!*
Shoe Carnival is using CommerceHub's platform to enable the sale of third-party-owned items on its e-commerce site.
Indian SaaS firm Invoice to Finance (I2F) rolled out a digital invoice financing solution.
ShipEngine launched an application programming interface (API) that allows e-commerce platforms to incorporate unified shipping into their own services.
Optimize your health in key areas with a customized program built for you and your life. Use code FOUNDER to receive $500 off.*

*This is a sponsored post.

Upcoming Events

OCT
10

Optimizely is bringing back its annual conference, Opticon, to San Diego! Inside readers get a discount by using the code InsideDeal.*

San Diego, California

OCT
16

Meet Our Fund 5, Building and Investing in AI

San Mateo, California

Save Your Seat

* This is a sponsored event

Knowledge Hub

Term of the Day

Sarbanes-Oxley Act of 2002: The Sarbanes-Oxley Act of 2002 requires companies to establish and maintain internal controls to ensure accurate financial reporting and transparency.

Question of the Week

Do you share details about your salary with your coworkers?

Join the conversation

INSIDE ECOMMERCE LEADERBOARD (30 DAYS)

Writer / Editor

Gregory Bridgman is an e-commerce researcher with a PhD. from the University of Cambridge. He also holds a Master of Science from University College London and a Bachelor's degree from the University of Cape Town. Please follow me on Twitter or email me at gregory@inside.com.