Amazon.com Inc. said on Thursday that it will provide merchants with free software for handling customers’ orders both on and off its platform as the retailer expands its e-commerce reach. Veeqo, a shipping software startup the company just acquired, would no longer charge monthly fees to merchants who fill orders on other websites like Shopify, eBay, or Etsy.
The acquisition of Veeqo, according to D.A. Davidson analyst Tom Forte, “could strengthen Amazon’s capacity to compete against Shopify,” which assists retailers in setting up online sites and selling elsewhere.
Shopify apparently responded after Amazon’s “Buy with Prime” initiative, which allows retailers to promote the company’s quick delivery service on their direct-to-consumer websites, was unveiled in April. According to Amazon, Veeqo, which offers access to lower shipping rates, will be free for merchants in the US and the UK.