Shopify Strengths, Domain Expertise, and Key Differentiators
Shopify is a cloud-based, multichannel commerce platform designed for small and medium-sized businesses. Merchants can use the software to design, set up, and manage their stores across multiple sales channels, including web, mobile, social media, brick-and-mortar locations, and pop-up shops. This provides a merchant with a single view of their business. The Shopify platform was engineered for reliability and scale, using enterprise-level technology made available to businesses of all sizes.
Shopify has four levels of monthly payment plans: Shopify Lite, Basic Shopify, Shopify, and Advanced Shopify. There is also Shopify Plus for high growth, high volume merchants. Specific features differ based on which plan is picked, and Shopify Payments rates vary between 2.9% + 30 cents to 2.4% + 0 cents. The Shopify platform includes a content management system that allows users to manage inventory, edit HTML and CSS code, create coupons and discount codes, and accept online payments online with Bitcoin, PayPal, and major credit cards. Shopify went public raising more than $131 million. The Shopify platform provides merchants with an intuitive user experience that requires no up-front training to implement and use. Merchants can set up their shop in less than 1 hour.
In June 2018 Shopify launched Shopify Ping, a free mobile app that brings business conversations and tasks all within one interface. With Shopify Ping, merchants will be able to manage their tasks through messaging on their mobile phones, spend more time serving their customers and grow their businesses without having to fumble between apps and tools. Shopify Ping is a free iOS app available to Shopify merchants in the App Store. It consolidates messages from other apps used to interact with customers through social media, a merchant’s online storefront, email, and more in one single interface, making it easier to manage conversations and respond in real-time. In addition, it comes built-in with Shopify’s free virtual assistant, Kit, which helps merchants plan, creates, and manage marketing activities through a conversational interface. With these integrations, Shopify Ping will support actions like running Facebook and Instagram ads, email campaigns, and retargeting campaigns, as well as quicker customer conversations. With almost half (45%) of Shopify’s entrepreneurs running their businesses and engaging shoppers on their mobile devices, flexibility and timeliness are key success factors. Ensuring that entrepreneurs have the tools to keep up is critical to minimizing redundancies and saving time.
Shopify Recent Developments
In June 2021, Shopify acquired augmented reality startup Primer, which makes an app that lets users visualize what tile, wallpaper or paint will look like on surfaces inside their home. Shopify has worked on some of their own integrations, allowing sellers to embed 3D models into their storefronts that users can drop into physical space, but it’s clear that there’s much more room left to experiment.
In January 2019, Shopify launched Shopify Studios, a full-service television and film content development and production house that will focus on the stories of entrepreneurs.
Shopify Mergers and Acquisitions (M&A) Activities
In October 2019 Shopify acquired 6 River Systems, Inc. With this acquisition, Shopify is changing the fulfillment industry. The transaction adds 6 River Systems’ cloud-based software and fleet of collaborative mobile robots called “Chuck” to the Shopify Fulfillment Network, accelerating its growth. The talented 6 River Systems team, with more than 130 employees, brings extensive experience in fulfillment software and robotics to Shopify. This will enable Shopify to help thousands of businesses improve their fulfillment operations, while 6 River Systems will continue to expand its industry-leading solution for warehouses.
In May 2019, Shopify acquired Handshake, a business-to-business e-commerce platform for wholesale goods. Handshake and Shopify, is targeting the area of the e-commerce market where brands and other merchants sell items wholesale, potentially alongside consumer-focused retail efforts.
Shopify Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Shopify applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Shopify and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Shopify, customers.
Shopify Overview
Ownership: - NYSE:SHOP
Number of Employees: 10000
Functional Markets: eCommerce,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction, Real Estate, Consumer Packaged Goods, Distribution, K18, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Faith-Based Nonprofit, Youth and Elderly Care, Special Cause Nonprofit, Oil and Gas, Chemicals, Professional Services, Retail, Transportation, Utilities,
Shopify Key Enterprise and Cloud Applications
Shopify,
Shopify Revenues, $M:
| Type/Year | 2020 | 2021 | YoY Growth, % |
|---|---|---|---|
| Total Revenues, $M | Subscribe | Subscribe | Subscribe |
| Enterprise Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
| Cloud Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Shopify Revenue Breakdown By Type, $M:
| Type | License | Prof. Services | Hardware | Support & Maintenance | SaaS | PaaS | IaaS | Other (Non Enterprise Application Revenues) | Total |
|---|---|---|---|---|---|---|---|---|---|
| % of Total Revenues | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | 100% |
| Revenues, $M | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe |
Shopify Enterprise Applications Revenues By Functional Markets, $M:
Shopify Enterprise Applications Revenues By Verticals, $M:
Shopify Revenues By Region, $M
| Region | % of Total Revenues | 2021 Total Revenues, $M | 2021 Enterprise Applications Revenues, $M | 2021 Cloud Applications Revenues, $M |
|---|---|---|---|---|
| Americas | Subscribe | Subscribe | Subscribe | Subscribe |
| EMEA | Subscribe | Subscribe | Subscribe | Subscribe |
| APAC | Subscribe | Subscribe | Subscribe | Subscribe |
| Total | Subscribe | Subscribe | Subscribe | Subscribe |
Shopify Direct vs Indirect sales
| Region | Direct Sales | Indirect Sales | Total |
|---|---|---|---|
| Type % | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe |
Shopify Customers - Breakdown by Geo, Size, Vertical and Product
List of Verified Shopify Customers
No. of Shopify Customers: 1749000
No. of Shopify Enterprise Applications Customers: 1749000
No. of Shopify Cloud Customers: 1749000
No. of Shopify Cloud Subscribers: x
Shopify supports 1,749,000 businesses. Allbirds, Gymshark, Heinz, and Staples Canada are among the more than 10,000 merchants leveraging Shopify Plus. Among its customers are Tesla Motors, Budweiser, Red Bull, LA Lakers, the New York Stock Exchange, GoldieBlox, and many more.
Shopify Market Opportunities, M&A and Geo Expansions
Total revenue for Shopify for the full-year 2020 was more than $2.9bn, an 86% increase compared to 2019. Shopify’s growth is not surprising given the sharp rise in online shopping in the past year, with Covid-19 restrictions forcing many bricks-and-mortar businesses to shut.
In August 2019, Shopify launched Shopify Chat, a new native chat function that allows merchants to have real-time conversations with customers visiting Shopify stores online. Part of Shopify's mobile app Ping, Shopify Chat adds another chat option through which merchants can provide customers with things like product recommendations, discounts, or check out links.
In June 2019, Shopify launched its own Fulfillment Network. The service promises to handle shipping logistics for merchants and will compete with an established leader, Amazon FBA. Shopify Fulfillment Network will at first be available to qualifying U.S. merchants in select states. It also added 11 new language capabilities and rolled out a multi-currency payment system to all merchants. It’s planning a new point of sale system until the end of this year.
In May 2018 Shopify unveiled the latest in commerce technology. Product announcements focused on helping entrepreneurs in three key areas – selling more, working more efficiently, and making the most of the Shopify partner ecosystem. Shopify POS is receiving significant upgrades for retail stores, including multi-channel returns and exchanges, in-store pickup, tipping options, a companion app for a customer-facing checkout experience, and a developer SDK. Introduced new premium Tap & Chip Reader to transform the in-store shopping experience by accepting all major contactless payments, including Apple Pay and Google Pay. Retail-specific features will be bundled with the standard Shopify Plan and above at no extra cost.
The first-ever Shopify space is opening in 2018 to be a place retailers can visit to help grow their business. This space will be a permanent hub for the best of Shopify’s products, services, and new technology, and a source of support, inspiration, and education for retailers. Announced a new Marketing section in the Shopify dashboard that enables merchants to create, run, and measure all marketing campaigns using their favorite Shopify apps. Merchants will also receive detailed and actionable marketing recommendations, personalized for their products and store. Dynamic Checkout surfaces the consumer’s preferred payment method directly on the product page and allows transactions to happen with a single tap using Shopify Pay, Apple Pay, and many more wallets, and many other features.
Shopify Risks and Challenges
In 2021, almost half of the Shopify's C-level executives left the company. The company's Chief Talent Officer, Chief Legal Officer and Chief Technology Officer all transitioned out of their roles. The trio followed the departure of Craig Miller, Chief Product Officer.
The move to migrate customers to Shopify Plus will be strategically important in the future for the eCommerce vendor, which has taken advantage of the online commerce boom triggered by the pandemic. The question is whether Shopify needs to cast a wider net to address the onmichannel requirements, along with CRM-related issues raised by its customers that now find themselves struggling with a litany of service and support requests from fulfillment to returns, and from API integration to subscription management.
Shopify Ecosystem, Partners, Resellers and SI
Shopify's partnership with Alipay unlocked the power of cross-border commerce for Shopify’s merchants. The new payment gateway will allow Shopify merchants to seamlessly accept payments through Alipay from more than one billion annual active users in China alone, and, in the future, hundreds of millions more across Asia.
Shopify’s partner ecosystem, a critical component to Shopify’s success, was well represented at Shopify’s first-ever partner conference, Unite, in San Francisco. More than 650 partners participated in Unite, where we unveiled a number of platform enhancements, including the Sales Channel SDK, which enables partners to use Shopify’s APIs to build out new channels for Shopify merchants. Houzz, Wanelo, and Ebates have already built channels through which Shopify merchants can list and sell.
Shopify launched the Shopify Plus Partner Program, partnering with global, digital, marketing, and design agencies to continue evolving how businesses succeed in commerce. The program launches with top industry leaders and experts, including One Rockwell, R/GA, Redstage, and Something Digital. Consumer expectations are rapidly changing. Over the past two years, Shopify Plus has started to alter the landscape for large merchants, offering a radically different model for them to align their commerce strategies with consumer needs. To ensure they’re at the forefront of the industry and emerging trends, these brands look to partner with innovative, global creative firms to help drive strategy and success.
The Shopify Plus Partner Program will develop and grow a partner ecosystem for Shopify Plus merchants, helping to connect the two groups. Shopify has recently partnered with SingTel, the largest telco in Southeast Asia, as a distribution partner.
Shopify Cloud Infrastructure Insights
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- Shopify Public Cloud and Infrastructure (IaaS)
- Shopify Platform (PaaS)
- Shopify Application Delivery
- Shopify Private Cloud and Data Centers
Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
For additional information on our methodologies, here's the link:
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