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 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 Shopfy. 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 coupon 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 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 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 ask 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.
Ownership: - SHOP :NYSE
Number of Employees: 4000
Functional Markets: eCommerce,
Shopify Key Enterprise and Cloud Applications
Shopify Revenues, $M:
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* 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:
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Shopify Enterprise Applications Revenues By Functional Markets, $M:
Shopify Enterprise Applications Revenues By Verticals, $M:
Shopify Revenues By Region, $M
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Shopify Direct vs Indirect sales
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Shopify Customers - Breakdown by Geo, Size, Vertical and Product
No. of Shopify Customers: 800000
No. of Shopify Enterprise Applications Customers: 800000
No. of Shopify Cloud Customers: 800000
No. of Shopify Cloud Subscribers: 1 million
Shopify has more than 800000 businesses in approximately 175 countries using its platform as of December 31, 2018.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
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 checkout 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 payments 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
Shopify’s future strategy will be shaped by the makeup of its merchant solutions, which are primarily based on payments, an area that could be easily outsourced to third-party payment merchant service providers. Through such outsourcing arrangements, Shopify could concentrate on its core competency in eCommerce, catalog creation and mobile functionality.
Shopify Ecosystem, Partners, Resellers and SI
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. In October 2015, Shopify signed a strategic partnership with Uber to offer UberRUSH delivery services to Shopify merchants. In September 2015, Shopify launched a partnership with Twitter to allow Shopify merchants to sell products directly on Twitter.
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
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).
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