The Canada based shoptech provider Shopify is growing nicely.
Merchants use Shopify’s software platform to design, set up and manage their stores across sales channels including the web, mobile devices, social media and brick-and-mortar outlets.
The company’s clients include Procter & Gamble Co (PG.N), Tesla Motors Inc (TSLA.O) and the New York Stock Exchange.
The company said more than 133,000 net new merchants began selling on Shopify last year. The company ended the year with 377,500 merchants on the platform.
Revenue from Shopify’s merchant solutions business more than doubled to nearly $74 million in the fourth quarter ended Dec. 31.
Shopify is one of a few shoptech providers that could, in theory, go to the next level and provide, additionally, a marketplace solution that connects all Shopify shops. (Standalone shops + marketplace exposure: Comparable to what marketplaces like Etsy are offering their sellers, but coming from the opposite direction.)
The stronger ‘traditional’ marketplaces from Amazon to Zalando to Alibaba get, the more uncertain the future for someone like Shopify becomes. (We’re talking here about 5+ years. How many small merchants and brands will then really still have a need for a shop system that is not deeply connected to the big distribution places?)
On the other hand, someone like Shopify could seize the opportunity to build a more ‘dezentralized’ shop tech system.
Think headless ‘shops’: chat bots, presences on social media like Pinterest, integration into other marketplaces and so on. Providing a ‘control center’ to merchants for this emerging world should be highly profitable.
The opportunities for innovation are certainly there.
The Globe and Mail:
The fourth quarter is Shopify’s busiest, encompassing the holiday shopping season. Shopify ended the year with 377,500 merchants using its platform, up by more than 50,000 since Sept 30, and said merchants on average increased the value of merchandise sold through the platform in 2016 by 25 per cent year over year.
Shopify recently experienced its first scandal as the company is hosting the shop for the far right site Breitbart.
More on this topic:
* The Faustian Pact Between Manufacturers and Amazon
* A New Breed of E-Commerce Tech Is Needed
* At Least 27 Shopping Bots in the Wild, Germany based chatShopper a User Favorite
* The 3 Rules on How to Expand Marketplaces
* Amazon Marketplace Services, AWS & Prime Each Doubled in Revenue Since 2014