Shopify (NYSE:SHOP) sells a software package that helps small businesses open online storefronts. At that most basic level, it competes with eBay (NASDAQ:EBAY) and Amazon (NASDAQ:AMZN), which also help small businesses sell stuff online.
Shopify has come a long way since it first started. Two years ago, it partnered with Amazon to allow its merchants to sell items through its third-party marketplace. It’s made similar agreements with burgeoning marketplaces on several social networks. Now, Shopify is entering partnership with eBay to allow merchants to sell items on its platform, which it expects to roll out this fall.
eBay becomes yet another place on the internet for Shopify merchants to reach new customers, turning it into a partner instead of a competitor.
Shopify’s integration with eBay won’t require merchants to use eBay’s website very much at all. Customer questions and requests will all get forwarded to Shopify’s dashboard. Orders will be imported into Shopify for fulfillment, and inventory will automatically get updated on eBay. Shopify’s integration with Amazon works in a similar fashion.
This is great for Shopify merchants. With just a few mouse clicks, they’ll instantly have access to millions of eBay shoppers, potentially expanding the merchants’ reach.
This is becoming one of the biggest strengths of Shopify. It attracts customers with nice front-end tools for developing a web store, but it’s able to retain them by supporting sales all over the web. Shopify generates nearly half of its revenue from subscriptions, but subscriptions generate significantly higher gross margin (about 80% versus 30%) than its merchant solutions segment. Retaining merchants is essential to Shopify’s bottom line, and helping merchants expand to more marketplaces is exactly what will keep them paying month after month.
Shopify has come a long way since it first started. Two years ago, it partnered with Amazon to allow its merchants to sell items through its third-party marketplace. It’s made similar agreements with burgeoning marketplaces on several social networks. Now, Shopify is entering partnership with eBay to allow merchants to sell items on its platform, which it expects to roll out this fall.
eBay becomes yet another place on the internet for Shopify merchants to reach new customers, turning it into a partner instead of a competitor.
Image source: Shopify.
More than just online stores
Shopify started as an easy way to set up an online store at a hosted domain, but it has quickly expanded into a centralized hub for online merchants to manage their inventory, customer service, and fulfillment across various marketplaces.Shopify’s integration with eBay won’t require merchants to use eBay’s website very much at all. Customer questions and requests will all get forwarded to Shopify’s dashboard. Orders will be imported into Shopify for fulfillment, and inventory will automatically get updated on eBay. Shopify’s integration with Amazon works in a similar fashion.
This is great for Shopify merchants. With just a few mouse clicks, they’ll instantly have access to millions of eBay shoppers, potentially expanding the merchants’ reach.
This is becoming one of the biggest strengths of Shopify. It attracts customers with nice front-end tools for developing a web store, but it’s able to retain them by supporting sales all over the web. Shopify generates nearly half of its revenue from subscriptions, but subscriptions generate significantly higher gross margin (about 80% versus 30%) than its merchant solutions segment. Retaining merchants is essential to Shopify’s bottom line, and helping merchants expand to more marketplaces is exactly what will keep them paying month after month.
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