Shares of Shopify spiked before market close on Thursday in anticipation of an announced deal that allows the company’s merchants to sell on the Amazon marketplace through the platform.
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Shares of the Ottawa-based e-commerce firm (NYSE:SHOP)(TSX:SHOP) rose 8.1 per cent on the New York Stock Exchange and 7.3 per cent on the Toronto Stock Exchange over the course of the day. Shopify officially announced the deal in a release after market close.
The release stated that since December, Shopify merchants dealing in U.S. dollars have been able to integrate an Amazon sales channel through their Shopify accounts.
“This is our first integration with an online marketplace. Our work with Amazon is an important step in strengthening our robust multichannel commerce strategy and the ability of our merchants to sell anywhere their customers buy,” Brandon Chu, director of product at Shopify, said in a statement.
The company estimates that 40 per cent of its merchants already sell through Amazon or other online marketplaces.
The deal with Amazon is the latest in a number of high-profile collaborations for Shopify in the past year. Shopify launched Apple Pay on its platform in the fall and announced in April that it was making commerce available through Facebook’s Messenger platform.