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What’s behind Shopify’s sensational success?
With revenue up 86% last year and their stock price popping 4,200% in five years, what can we learn from Shopify’s journey?
In the last decade or two, we’ve witnessed massive changes in business, with the explosion of direct-to-consumer (DTC) brands and the increasing democratization of business, knowledge, and expertise. Design plays a significant role in both of these trends, helping entrepreneurs understand user needs, build relevant and intuitive products, and bridge the gap between complex technology and consumers.
Shopify is the third-largest e-commerce platform behind Amazon and eBay, supporting 1.7 million businesses ranging from mom and pop shops to corporate behemoths. They had $2.9 billion in 2020 revenue, an 86% increase from 2019. Harley Finkelstein, the President of Shopify, praises the company for democratizing entrepreneurship by empowering merchants and lowering the barrier of entry to business.
What’s driving Shopify’s success and what can we learn from them?
What sets Shopify apart?
Pinpointing user needs and developing an ecosystem around them
While Shopify started as a simple e-commerce website builder, it has evolved into an entire entrepreneurship ecosystem. It helps entrepreneurs set up their online presence, develop their brand, expand their reach, sell online and in-person, manage payments and shipping, and even secure additional funding.
By starting small and then expanding based on user needs, Shopify has become a one-stop-shop for businesses of all shapes and sizes. They’ve focused on merchants’ core journey, goals, and pain points in order to provide a hyper relevant and highly valuable product.
After building out the tools for anyone to quickly and easily create an online store, Shopify has expanded their offerings to address common pain points such as the checkout, point of sale, and fulfillment experiences. Shop Pay makes checking out quick, easy, and secure. Shopify Fulfillment Network handles inventory distribution logistics and provides automatic packing and shipping services. And Shopify’s Point of…
