The anti-Amazon moves of the Canadian e-commerce group Shopify
The Canadian e-commerce giant Shopify, after having signed important agreements with Facebook and now with Walmart, is trying to seize the opportunities of the pandemic to challenge the giant of the Amazon sector.
WALMART OPENS IN SHOPIFY
Earlier this week Walmart announced in a statement that it would open its online market, which reaches 120 million monthly visitors, to over 1 million Shopify corporate customers. This means that Walmart buyers will also be able to find merchandise from resellers who use Shopify.
COLLABORATION WITH FACEBOOK
But the challenge promises to be very particular given that last month, Facebook said it wanted to collaborate with Shopify, among other e-commerce platforms, to launch a new online shopping market called Facebook Shops. As Sara Fischer and Kia Kokalitcheva of Axios have noted, challenging Facebook and Amazon "Shopify will have to deal with the largest social network on the planet and with the company that defines itself as the largest retailer in the world".
In any case, this is a great opportunity for the Canadian giant as Shopify CEO Tobias Lütke, interviewed at the time of the agreement, stated that by combining Shopify's e-commerce capabilities and Facebook's reach and scale , were "reducing the barriers to entrepreneurship and advancing the future of commerce".
COMPETITION WITH MARKETPLACE
"With its latest offers, the Canadian company is moving directly on the turf of the Amazon Marketplace, which allows third-party resellers to sell through the Amazon online store – observed Fischer and Kokalitcheva on Axios -. Earlier this year Shopify also relaunched its consumer-oriented shopping app, putting it even more in competition with the Seattle e-commerce giant. "
Unlike Amazon, however, "Shopify only charges payment fees to merchants on its Shop app, which according to the company is less of a market and more of a way to help customers shop directly from merchants," read The Guardian. . Despite this, Amazon has a great advantage, that is, more than 300 million customers worldwide.
In addition, in order to operate in the Walmart market, Shopify retailers will have to meet a number of criteria: by the end of the year, Shopify says it expects more than 1,200 retailers able to sell through Walmart.
THE REASONS FOR THE SHOPIFY BOOM
The pandemic forced many retailers to quickly move their online business and the Canadian company sold them digital tools to do so. In this short period, it has introduced new features, such as home pickup and the ability for customers to add order suggestions at restaurants. It has also expanded services such as Shopify Capital (its merchant financing business), which is now available in Canada and the United Kingdom. Between March 13 and April 24, new stores created on Shopify grew 62% over the previous six weeks, COO Harley Finkelstein tweeted in early May.
Investors, well aware of Shopify's opportunities, have increased their shares by around 150% since the start of the lockdown in March.
THE POSITIVE SIDE FOR AMAZON
“There is a positive side for Amazon. When antitrust regulators poke your business, it's always nice to have a credible competitor or two, "said Fischer and Axios' Kokalitcheva.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/shopify-va-a-caccia-di-amazon-con-il-nuovo-affare-walmart/?utm_source=rss&utm_medium=rss&utm_campaign=shopify-va-a-caccia-di-amazon-con-il-nuovo-affare-walmart on Sat, 20 Jun 2020 05:26:57 +0000.