Shopify has quickly come to dominate the online retail business space.
And its powerful performance has shocked Wall Street.
Here are 5 surprising things you should know about how it has achieved this …
#1: The historic pandemic/lockdown/recession online boom
Before the pandemic, there were 300 million online buyers.
15% of retail was online.
Then, when businesses were forced to close their doors, and consumers forced to stay home, people didn’t just stop spending. Rather, they changed the way they spent … turning online to get what they needed … and since lockdowns and restrictions were eased, those new spending habits seem to be here to stay.
Online operations and sales have boomed. More than 30% of retail is now online. That’s more than 10 years’ worth of growth in just three months.
Shopify is helping that happen …
And there are still 47 million small businesses that aren’t using it yet.
#2: Sales Boom!!
The company’s numbers are great.
It’s sales are up 120%!
Monthly recovery revenue was up 21% from a year ago.
And all revenue was up 99% from just the second quarter, hitting $714.3 million
#3: What Shopify does for retailers & consumers
Shopify helps retailers with everything they need to become an online marketplace:
- A landing page
- Shopping cart
- Texting – new SMS integration
- Gift cards
- Instant payments
- Credit card processing
- And much more.
It is a seamless, one-stop shop.
For consumers, although most don’t know if the online store they’re using is supported by Shopify, it gives them the ability to support local businesses and entrepreneurs at a time they need the support most.
This has created a “tale of two retails” … the brick and mortar retail stores that are collapsing in a steady stream under the economic disruption … and online retails stores that are seeing the best sales ever.
#4: It’s not just something for small businesses
Shopify is much more than just a solution for small businesses. It boasts some countless big customers as well, including the likes of …
- Red Bull
- And Nestle
This list is under constant expansion.
#5: Recurring sales
The company’s model is good. For small businesses, it’s just $29 a month, which averages out to about $1,650 per year per customer.
Shopify Plus, for larger retailers, is $2,000 per month, bringing in $12,000 per year.
Shopify’s accomplishments before the pandemic and since, are noteworthy and admirable.