Even is Shopify is no match to the e-commerce giant Amazon, there are really two options for almost every retailer in the world: they can either engage in a DTS (direct to customer) business model, or list their products in markets controlled by big tech dogs like Amazon, Shopify or eBay.
According to recent data, Amazon controls almost 40 percent of online sales in the United States (38% for OCD readers). Except from advertising word-to-mouth, there’s little space to move around Amazon when selling stuff on the “interwebz”.
However, Shopify is quickly emerging as a viable solution for many SMEs, as the Canadian based company offers more control over customer relationships plus 3rd party services like fulfillment and payments.
To be more specific, a customer may never know that they are actually buying merch from a Shopify store, and actually that’s the point. And that’s because Shopify makes the merch available on the seller’s own website, while listing it on Shopify’s multi-million-views-per-second market. You see where this is going, right?
And that’s true competition for companies like Amazon and eBay (hello Ali Baba by the way), and it actually determined the former to build or acquire its own services for creating stores outside the market.
In the current year, Shopify is world’s largest provider of services and software for online sellers who own their own store, and saw revenues up 86 percent in 2020, to 2,9 billion dollars. There are over 1,7 million merchants on Shopify currently, offering services ranging from payment services to lending.