Shopify is a leading one-stop Canadian commerce company that allows to establish an online store and sell products online or in-person through Shopify POS. Tobias Lutke, Daniel Weinand, and Scott Lake – the founders of Shopify started the e-commerce platform 16 years back when they found it was very difficult to sell snowboards online using the available platforms. The firm gained more than $7 billion in gross merchandise volume within 3 years of its establishment.
The e-commerce company has experienced a 10X growth and is continuing to boom. Let’s have an insight behind such growth factors:
#1 Online push for shopping due to COVID-19 restrictions
According to Forbes, U.S. retailers’ online year-over-year revenue growth which was 49% in January exceeded by 19% in April.
The e-commerce had a 129% YoY growth in the U.S and Canadian Market. Due to the lockdown, people are shifting to online shopping as remote buying is not safe. Shopify has a wide range of products and fulfills the demand of the customer in one-stop, so the demand for Shopify has been increasing.
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#2 Shoppers want an alternative to Amazon’s monopoly
Amazon must have established and gained a bigger customer line than its competitors but the customers are now looking for wider options. There is a range of customers who are dissatisfied with Amazon’s service and policies.
The shoppers find it confusing to buy in Amazon. According to the customers, Shopify offers better value for money and is cheaper, scalable, and transparent than its prime competitor.
#3 Sellers want to retain their freedom against Amazon
It is very difficult for sellers in Amazon to create a unique or strong brand image but it is easier to create an image in Shopify as it lets you create your e-commerce website.
Shopify gives the seller the freedom to design their forum to promote their products. A seller in Shopify has the freedom to control their brand experience and customer relationship.
#4 Sellers unwilling to pay 30-40% commission to Amazon
The sellers have to pay a commission when selling through Amazon, one of the biggest competitors. Maximum of their earning are gone by giving charges to amazon. Even when a product is damaged, the seller is not paid the full amount and the commission charge is deducted whereas in Shopify the seller has to pay monthly fees as a subscription. This in turn helps the products listed on the website to be cheap and worth the money.
#5 Sellers mitigate the risk of delisting in Amazon
A seller can be delisted from amazon if they neglect the price parity, operate a second seller account, or include a message to promote their brand/product. Once they get delisted, it creates a bad reputation which invites loss. Such risks are not involved in Shopify and it enables the smooth functioning of the business.
#6 Sellers have more control over managing negative reviews
The Shopify sellers are free to curate the positive and negative reviews to maintain a balanced reputation to show new customers. The reviews of customers cannot be managed by sellers but according to Amazon, the customers do not belong to sellers but amazon.
#7 Integrations with various payment and marketing tools
For successful marketing, Shopify offers marketing tools such as discount coupons, custom gift cards, targeted email markets and more. It also allows the seller to set up the payment gateway with various options without any extra charges.
#8 Easy setup and low fees for sellers
The seller face no fuss on setting up with Shopify. It also offers different plans for sellers according to their needs. The seller gets to choose from Shopify Lite, Basic Shopify, Shopify, and Advanced Shopify plans. These plans range from $29 to $2000.
#9 Sellers don’t need much technical knowledge for setup
People with no technical knowledge can also set up their businesses and sell products through Shopify. This platform does not require technicalities experts
but offers the software and hosting that is needed for launching one’s website.
#10 Easy to drop ship, resell, or sell unique products
Shopping is search-engine-friendly and lets one set their general shipping rates. Not only it allows to sell products online but one can sell it in person and through media too. It allows the seller to sell whatever product they want in a unique way.
With so many benefits offered, no wonder Shopify witnessed such a growth rate and is listed on the New York Stock Exchange.
