The Rapid Ascent
The rise of Shopify is mainly due to influencers on the world wide web. For example, Instagram star Kylie Jenner was looking to sell her products directly to her fans.
Shopify is ideal for this. In addition to low prices and easy operation of the store software, countless extensions were also available. The next milestone followed in May 2015 when Shopify went public.
Shopify’s share price was up a staggering 588 percent as of November 2017. Due to the enormous demand fueled by the global corona pandemic, Shopify was traded on New York’s Wall Street in August 2020 at a value of 110 billion US dollars.
Shopify Pros And Cons
Shopify has grown into a global player in the e-commerce industry over the years. The Shopify platform is so popular that dedicated agencies help entrepreneurs create a Shopify online store.
A reputable Shopify agency takes over the analysis, the strategy, the setup, and the setup and development of the design for the Shopify shop, so that you as an entrepreneur can concentrate fully on your core tasks.
The main advantage of Shopify is reflected in its easy-to-implement solution, which is suitable for both large and small businesses. No programming skills are required due to the first-class user-friendliness.
This makes Shopify one of the most attractive solutions for small businesses to implement their online shop. In addition, the solution can be used as SaaS (Software as a Service). Specifically, this means that the software is operated on the platform’s servers. Customers pay a monthly subscription and get access to the Shopify server and software in return.
However, the store principle also has some disadvantages and is therefore not suitable for all companies. Since the software is not developed under an open-source license, it is also not possible to implement changes in the backend code. In addition, Shopify charges a commission for every order, which can be up to two percent.
The Corona Pandemic And Its Effects
The corona pandemic has brought many companies around the world to their knees. The global lockdowns did not hurt Shopify, however. On the contrary, the company became the most valuable in Canada during the pandemic.
The main reasons for this were the lockdowns and the severe restrictions due to the virus. Shopify was able to win many new customers during this time. However, the company has also invested heavily in new services and functionalities for its customers in recent years.
Shopify recently implemented the options for small retailers to define respective delivery areas and better calculate delivery routes. In addition, a variant for large companies was launched with Shopify Plus. This version is used by international companies such as Google and Tesla, among others.
Shopify scores with a user-friendly and cost-effective e-commerce solution that generates a lot of demand. It remains to be seen in which direction the company will develop further.