Shopify is giving direct competition to other e-commerce giants like eBay and soon to Amazon as its merchant sales figures have been touching the roof. Its stocks have also been jumping more than 150% en route to surpassing eBay.
Shopify will therefore be taking the second place to Amazon as one of the most preferred e-commerce destinations by customers in the United States. The brand is well known for its software that helps merchants sell online, including tools to launch e-commerce sites and accept online payments.
Shopify works this beautiful seamless virtual space where small businesses can run their shops, at no extra cost of infrastructure and the likes. It provides online retailers a suite of services that includes easy payments software, marketing tools, shipping and customer engagement tools to simplify the process of running an online store for small merchants.
The company is the brainchild of Tobias Lütke, Daniel Weinand, and Scott Lake in Ontario, Canada.
RW Baird, a market research firm has estimated that Shopify would be catering to more than one million merchant customers by the end of 2019. The company has already reported $362 million in second-quarter revenue last month, up 48% from the year-ago period. Total merchant sales volume was $13.8 billion, a 51% jump from the same period of last year. eBay, meanwhile, reported $21.5 billion in total sales volume in its most recent quarter. Neither company breaks down its merchant sales volume by region.
The company is already on its way to making preparations to meet the souring needs of its business. For example, the idea of buying more warehouse space is a smart move indeed. The company has put in its money to purchase a start-up 6 River Systems for $450 million recently.
The start-up is best known for its “Chuck” autonomous vehicles that can move around packages in the warehouse. Also, Shopify has recently launched a new fulfillment service that packs and ships products for sellers that pay an additional fee. The aim of the brand remains the same: help the small businesses compete with the big retailers.