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Research Outline
Prepared for Barb H. | Delivered October 24, 2019
Shopify
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Goals
Provide an overview on Shopify, including key markets of business, current advertising campaigns or marketing case studies, and information on company structure
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Early Findings
S
h
o
p
i
f
y
primarily
targets small and medium businesses
, but recently has
b
e
g
a
n
to invest more resources into encouraging
larger and enterprise size
companies to use the platform as well.
The company has seen rapidly growing revenues, earning
$1.1 billion in 2018
, compared to
$.2 billion in 2015.
S
h
o
p
i
f
y
’s revenue comes from
two streams
, subscriptions to users to access the platform and tool for their shop and merchant services, which are fees from payments, shipping, and other purchase related expenses.
The company had approximately
5,300 users
as of June 2019.
S
h
o
p
i
f
y
’s merchant revenue has had an annual growth of
60% in the last four years
, and their subscription revenue has had an annual growth of
40% per year
.
S
h
o
p
i
f
y
has a total team of around
4,000 total
employees.
One source
notes that Shopify’s key competitive advantage is that they create highly
c
u
s
t
o
m
i
z
a
b
l
e
e-commerce tools which
integrate well with social media
, to make marketing and store design accessible.
S
h
o
p
i
f
y
has recently received press related to their investing in
their own fulfillment network,
which will allow those on their platform to better compete with e-commerce giants like Amazon.
The company is expected to invest
around
$1 billion
into the initiative.
In order to launch this program, the company recently acquired 6 River Systems, a warehouse fulfillment solution provider, for
$450 million.
S
h
o
p
i
f
y
went public in 2015, and its IPO raised
over $131 million.
S
h
o
p
i
f
y
’s
CEO Craig Miller
doesn’t consider their growth a marketing strategy, but rather a growth strategy.
This growth strategy was primarily based on an
intentional use of free trials
to get new users invested in their store creation before paying a subscription fee.
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