The future of Ecommerce is shifting as before and after the pandemic. Despite every business that saw huge losses during the pandemic, the E-Commerce industry and online shopping saw good development. Out of all digital commerce platforms, Shopify turned out to be the most popular one. And it’s positioned itself higher even with the huge competition as Amazon. Here in the post let’s see how Shopify became a stand-out platform after the pandemic.
How Shopify turned its A-game while the pandemic?
Covid-19 hugely made changes that are quite complex for the business. And this Canadian e-commerce platform turned out to be a saver for the business. With business seeing huge losses, Shopify started to see good growth. On other hand, Shopify started to perform. After two years, Shopify’s share price started to see a 60% growth. A crucial portion of the improvement was seen in April 2020. It makes a lot of sense as the coronavirus crisis quickly burst the digitization of commerce. As a significance, Shopify saw a considerable boost in retailer sign-ups.
In the short term, things can be tough. One of the main problems for Shopify is the prevalence of the retailers are small & medium-sized businesses. As Shopify looks after just back-end work for running an online store for retailers. Yet, it’s not involved in the retailer customer acquisition, it counts on individual retailer potential to add on profit. Normally, it’s not a problem due to Shopify retailer diversification.
During a pandemic, diversification never works well as every retailer suffers. Small & medium brands are the tough disappearance of every demand during this crisis. Where many can’t survive after the federal basis money dries up. Also, a large small business that shares Shopify’s platform never sells essentials such as food.
Rather they go with elective items such as clothing or high-end cosmetics that can bounce back to the last post-recession. Nevertheless, small business problems occur from the consumer’s side & from the supplier’s viewpoint. Many of Shopify’s third-party logistics services and developers have bankruptcy issues. This is vital for Shopify’s fulfillment capabilities. A Shopify agency can develop your in-house capabilities a leap higher.
How has Shopify encountered the hurdles of a pandemic?
Generally, the public looks down on Shopify, by comparing it to the E-commerce legends such as Amazon. Amazon hugely benefits from in-house fulfillment which developed over decades. Shopify depends upon third parties for the fulfillment network and on small businesses as revenue generators. These both lead to more volatility & uncertainty in the covid-19. For helping brands with the tools throughout the pandemic, Shopify teamed up with the Canadian government. This partnership helped businesses online. The main reason behind their goal is to cultivate a terrain where SMBs can turn as big players.
The thing to remember is that there is a huge evolution in consumer preferences. So, just offering customers a fully integrated experience isn’t enough. Now merchants should focus on selling where the target customers are. Whether it’s offline or online, website or social media. Because customers’ choice matters most in the upcoming e-commerce industry. Shopify benefited through this formula during the pandemic. Its capitalization of markets made it a valuable company across Canada. More than one million businesses relied on Shopify. Where 65,000 stores from Canada alone are supported by Shopify.
What are the Strategies of Shopify post-COVID?
Not only Shopify’s marketing strategies during the pandemic but also their post-pandemic strategies should be appreciated. Shopify shop is a mobile app that enables customers to browse or buy products directly from the merchant network. What we can learn from here is that Shopify supported retailers in the customer gain by accessing customers to reach every retailer’s products. Rather than downloading apps on the internet. However, Shopify can also invest in improving the core platform by connecting retailers with the required resources. Shopify experts at Shopify plus agency can let you know what resources are better to invest in.
Not just that Shopify needs to invest heavily in bringing some of its fulfillment capabilities in-house. Similar to payments, which Shopify has partly brought in-house, fulfillment will increasingly become a key differentiator for any e-commerce business. Relying on a web of third-party logistics providers was an adequate and fast intermediate solution. But will not suffice in the long run for such a critically important area. Especially when your main competitor is fulfillment wizard Amazon.
Not just that, Shopify can invest in fulfillment capacities in-house. Because fulfillment can turn out to be a crucial differentiator for the ecommerce business. Banking upon third-party services can be a quick intermediate solution. However, it might not be good enough in the long run. Shifting the retail mix to add more retailers which offer services such as toiletries and food can surely play an important role in the growth.
Or else changing towards subscription revenue rather than merchants solutions can also offer good revenue growth. Shopify can face short-term difficulties through the pandemic. But it’s positioned well with few changes and adjustments. This Canadian e-commerce platform is surely a dominant platform in the upcoming digital commerce.