While Amazon might be one of the biggest eCommerce companies today, there are other companies which are also making their presence known online.
Shopify is one of those companies which has seen a meteoric rise. It is a site that is home to many merchants, much like Amazon and eBay but rather than be a marketplace it is an eCommerce website platform.
The Growth of Shopify
Whilst still fairly new to eCommerce, in less than three years it has already has a cap of $10 billion. With Shopify, members can make their online store for just $29 a month and the first few weeks are free.
This is one of the reasons why Shopify has been successful—for a small fee, people can sell and make their own store online. Making the barrier to entry incredibly low.
They has grown so fast that it has already returned shares by 500 percent since it has become public.
Whilst it has yet to make a real profit, analysts have said it would only be a matter of time before it does so. Once it does so, other companies are bound to take notice of it. The biggest that will likely take notice would be Amazon.
Amazon right now is acquiring assets to further dominate the market, and Shopify just might be on its sights as a possible acquisition later on.
What makes Shopify unique is that because of the ease in entering it, the market there has become vibrant. Sellers going after the latest product trends in order to cash in before their competitors.
Drop shippers have also set up shop there, taking in orders from customers and then buying the products from other sellers to send them to customers.
Shopify can be a good place for new sellers, as there is much opportunity to learn and grow. Those who might not be successful at first can try out again, since entry into it is low.
Sellers who have failed can then take the time to learn from earlier mistakes and correct them, all without having to take in big expenses to try again.
Shopify will continue to grow, though some analysts wonder if it can sustain it. With large competition such as Amazon, it can be fierce in eCommerce.
With Shopify also integrating with both eBay and Amazon for U.S. sellers right now, could they become the next big thing in multichannel eCommerce?
Let us know what you think in the comments below.
