Shopify announces revenue up 46% for the third quarter
During lockdown and more generally during the COVID crisis, many companies chose Shopify as a way to diversify their revenue streams.
As traditional sales channels (such as physical points of sale) were inoperative, it was urgent for them to create an e-commerce store to maintain their income.
Indeed, small businesses were able to survive thanks to the Canadian firm, through home delivery and consumer orders. But what about Shopify's revenues?
During the last quarter, Shopify's revenues increased by 46% compared to the same period last year. This increase is surprising, especially since physical stores are gradually reopening worldwide.
How is this possible?
Last Thursday, in an interview, Shopify's president announced that major accounts such as L'Occitane, Muji, Spanx, and Dockers were joining the platform to manage their e-commerce.
The increase in the number of subscriptions must also be taken into account. Indeed, during the 3rd quarter of 2021, more than 40,000 subscriptions were taken out.
Even if this figure is lower than the 80,000 expected by analysts, it remains a very promising figure for the sustainable growth of the Ottawa-based firm. This is how Shopify generated a total of 1.15 billion US dollars in turnover.
A historic record for the firm. More recently, the Z event, a charity event, generated more than €2,700,000 in revenue through a goodies shop. This shows great ease of use and development capacity for the biggest players, who are increasingly deciding to turn to the platform.
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Why Shopify and not WooCommerce?
But what motivates all these merchants to go to the Shopify platform?
Why not go for a comparable CMS like WordPress? The ease of use of the Shopify software is surely the reason. Indeed, a WooCommerce would take a small merchant far too much time to manage and set up. Repeated updates combined with site maintenance and development make it a solution to avoid. With Shopify, you only have to worry about the sales side; everything else, such as the domain name, integrations, etc., is already included in a Shopify site. The solution is not just adapted for small merchants. Indeed, as mentioned above, large accounts have recently declared using Shopify for their e-commerce. They can notably use Shopify Plus to scale their online store and generate millions of euros in turnover. But generally, it's better to delegate all this work to certified Shopify agencies to do professional work that will generate sales. Customization is also a big argument for Shopify. Indeed, Shopify's programming language, Liquid, is an open-source programming language. This means that the code is freely accessible to everyone. This therefore leaves immense scope for developers or a certified Shopify agency to make modifications to different themes and the user interface of an e-commerce site.
What's next for Shopify?
For Shopify, the key will now be to conquer the general public. Indeed, even if the company has achieved record turnover, it must not rest on its laurels and must push its growth. The firm had already diversified enormously in recent months with its partnership with TikTok, and it has just announced a recent partnership with Microsoft and its search engine Bing. This also shows a desire to counter other marketplaces such as Amazon, which notably appears in Google Shopping results. Something that Shopify could not guarantee until now, as it is a vast e-commerce ecosystem and not Shopify itself. Want to create your ideal website and build your online future now, thanks to Shopify? Let's go! I'M STARTING MY PROJECT!