Taking On Amazon

Taking On Amazon

over 4 years ago2 mins

Mentioned in story

Canadian ecommerce company Shopify has been having a vintage year, with its valuation’s rise to $40 billion 🙌 surpassing not only that of online shopper eBay but also companies like Twitter and Spotify. Some, however, fear that Shopify’s new move into delivery fulfillment may be a bridge too far... ⚠️

What does this mean?

Traditional retailers are battling to replicate ecommerce king Amazon’s“everything store” approach, with the likes of Walmartspending big on upping their online offerings 💸 But Shopify has taken a different approach, instead empowering other sellers (like Kylie Jenner) with the tools to set up their own online storefronts 🤝

800,000 of them sold more than $40 billion of stuff using Shopify last year. And investors have been lovin’ it – in spite of growing losses 🤷‍♀️

Shopify’s stock price has nearly tripled since January
Shopify’s stock price has nearly tripled since January

Shopify isn’t resting on its laurels, however 🌿 It’s launching its own Amazon-like fulfillment network, organizing storage, shipping, and returns for its clients. But that’s a notoriously bruising business… 🤕

Why should I care?

The increasingly dominant – and domineering – Amazon has been criticized for everything from its unethical working conditions 😠 to its un-recyclable packaging 🙄 Champions of small retailers, many of whom may have been illegally exploited by Amazon, may therefore cheer Shopify on in its endeavors.

But some fear that Shopify will struggle to best Amazon on delivery: the costs stack up, as Just Eat knows 🍔 The ecommerce leviathan has set the bar high – and assembled a 100,000-strong army of robots that’ll be expensive to replicate 🤖

Amazon is also spending $1.5 billion on its own US air hub (Source: Stratechery)
Amazon is also spending $1.5 billion on its own US air hub (Source: Stratechery)

Your social media usage may be one way to support Shopify’s quest: Instagram sales have been key to Shopify’s growth to date 📈 But with parent company Facebook keen to see scrollers buy without leaving its app – perhaps using its Libra cryptocurrency – and to hoover up a bit of the social shopper cash for itself, some may ask: Is there no escaping the tech titans? 😫

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