For those merchants across Europe affected by the announcement that Shopify is removing the Amazon Pay function from 6 August 2024, here’s what we know and what we think…
This is what we know
On 27 June 2024, Shopify emailed its European merchants with this surprising and not-very-welcome announcement:
Beginning August 6, 2024, Amazon Pay will no longer be available on Shopify shops in your region. Amazon Pay will be deactivated from your shop and past order information for Amazon Pay will be available on Amazon Seller Central.
For questions related to the discontinuation of support or managing your Amazon Pay transactions after August 6, please contact Amazon Support.
We know this may be an inconvenience and we’re here to help. You can still offer your customers other payment methods available in your region– Shopify email to merchants
TL;DR?
It says that, from 6 August 2024, Shopify merchants in Europe will no longer be able to offer Amazon Pay as a payment option and encourages merchants to explore other payment options.
Shortly after, Amazon responded with this statement:
Following the recent email update you received from Shopify, we want to make you aware that the deactivation of Amazon Pay, effective from August 06, 2024, may require an additional reserve amount from your Amazon Pay account.
Beginning June 27, 2024, you may see an additional reserve amount to your account based upon your refund and disputes rate over the past 30 days. This reserve ensures your account is sufficiently funded to deliver a seamless post-order experience for customers for any outstanding claims and refunds, and is in accordance with our User Agreement.
For any enquiries, including requests for additional assistance, please contact Amazon Pay Merchant Support.– Amazon email to merchants
Meaning?
So merchants don’t just stand to lose Amazon Pay as an option, they could also face higher reserves on their accounts because of the anticipated decrease in transaction volume – a logical business move from Amazon (to protect against final refunds without further income to cover them), but a double-whammy blow for merchants.
This is what we think
Like our friends at Channel X, we see this as a classic standoff situation between two major players – each calling the other’s bluff and holding out for a better deal.
Though these disputes can be incredibly frustrating for merchants, we’d be surprised if the two don’t come to an eventual agreement – that “Buy with Prime” feature on Shopify is too huge for either to just walk away.
And Shopify’s suggestion that merchants contact Amazon Support for help smacks of a strategic move – directing merchants to lobby Amazon directly and putting extra pressure on the retail giant that way.
What should you do?
Whatever happens, this is a “don’t put all your eggs in one basket” situation.
We strongly suggest you:
- Explore Other Payment Methods – ensure you have alternative payment options ready to go live by August 6.
- Communicate with your Customers – inform your customers about the upcoming changes and any new payment options you’ll be introducing. Transparency helps maintain customer trust.
- Monitor Communications – keep an eye on further announcements from both Shopify and Amazon. The situation could evolve, and staying informed will help you adapt quickly.
- Consider Lobbying – if Amazon Pay is crucial for your business, don’t hesitate to contact Amazon Support. Your feedback might contribute to a resolution.
Need some expert advice? Speak to our team today.