Future of Shopify – eCommerce Software as a Service
Last Updated | January 16, 2024
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Did you know that Shopify raised $131 million in its IPO in 2015, making it the largest tech IPO in Canadian history?
Shopify has become a renowned name in the world. But the question is, what brought Shopify’s software as a service eCommerce platform to prominence in the e-commerce SaaS market, and what is in store for this company in the future?
- In 2020, Shopify’s GMV (Gross Merchandise Value) – total value of goods sold on the platform – was $119.6 billion which is an increase of 96% from $61.1 in 2019.
- Currently, Shopify has over 7000 apps and integrations available in its app store, allowing merchants to maximize their operational efficiency.
This article will explore Shopify’s impact on eCommerce software as a service industry. Further, we will explore its origins, key features, and benefits that have made it popular with businesses of all sizes. In addition, we will examine how Shopify compares to its competitors and the trends shaping the future of SaaS eCommerce.
History of Shopify
A trio of Ottawa entrepreneurs founded Shopify in 2006: Tobias Lütke, Daniel Weinand, and Scott Lake. They initially tried to sell snowboards online but could not find a suitable eCommerce platform. They developed their platform using Ruby on Rails, a web application framework.
Based on positive feedback from other entrepreneurs, the founders decided to pivot their business and focus on building an eCommerce software-as-a-service platform. In 2010, they raised their first major investment, which helped them expand their team and improve the platform.
Shopify introduced its App Store in 2012, allowing third-party developers to create apps and integrations that extend the platform’s functionality. Due to this proliferation of apps and integrations, Shopify became a more powerful eCommerce software-as-a-service platform.
2015 marked the year that Shopify plus went public following its rapid growth. Throughout the years, the company has acquired several companies and technologies to expand its offerings, such as Oberlo for dropshipping and 6 River Systems for warehouse automation.
Shopify’s Features and Benefits
Shopify, software as a service eCommerce, offers a variety of features and benefits to help eCommerce businesses succeed. From custom themes and payment processing to shipping and fulfillment, marketing and analytics dashboards, and powerful APIs for custom integrations by hire a Shopify development company, Shopify has everything you need to make an online store and then grow an online store.
This section explores Shopify’s key features and benefits for eCommerce businesses.
1. Easily Customizable Themes
Creating a visually appealing online store is easy with Shopify’s customizable theme development. Each theme can be customized with your branding, colors, and content from various free and premium themes.
With Shopify’s drag-and-drop editor, you can easily customize your theme without coding knowledge. Additionally, you can work with a Shopify partner to create a custom theme.
2. Processing Payments
Shopify Payment processing is one of the most important features of any eCommerce software-as-a-service platform. The Shopify platform makes it easy for businesses to accept payments from customers anywhere in the world.
Your store can accept credit cards and other payment methods directly through Shopify Payments without needing a third-party payment gateway. Moreover, Shopify Payments offers competitive rates and no hidden fees, making it a cost-effective solution for all businesses.
3. Shipping and Fulfillment
Another key feature of Shopify is its shipping and fulfillment capabilities. With Shopify Shipping apps, you can easily print shipping labels, track packages, and manage your entire shipping process from one place. You can also integrate with leading shipping carriers like USPS, UPS, and FedEx to offer your customers a range of shipping options at checkout.
4. Marketing and Analytics Tools
Analytics dashboard enables you to track your sales data in real time, analyze your customer behavior, and make data-driven decisions to grow your business. Shopify also offers a variety of marketing and analytics tools to help you drive traffic to your store and analyze your sales data.
With Shopify built-in SEO features, you can optimize your store for search engines and attract organic traffic. You can also use Shopify’s email marketing integration tools to create and send targeted email campaigns to your customers.
5. Powerful APIs
Finally, one of the most powerful features of Shopify is its APIs. Using eCommerce software as a service with API, Shopify developers can build custom integrations and Shopify app development to extend the platform’s functionality.
Further, with Shopify’s APIs, you can integrate with a wide range of third-party tools and services, from accounting and inventory management to marketing automation and customer service. You can also build your custom apps to automate your workflows, enhance your store’s functionality, and create a seamless shopping experience for your customers.
In summary, Shopify’s features and benefits make it a versatile software-as-a-service eCommerce platform for businesses of all sizes.
Shopify’s Impact on E-commerce
Since its founding in 2006, Shopify has profoundly impacted the eCommerce software-as-a-software industry. One of the key ways that Shopify has impacted eCommerce is by democratizing online business.
Before Shopify, launching an eCommerce store required significant technical expertise and a substantial upfront investment. With Shopify, anyone can building a Website with Shopify from Scratch in a matter of hours, with no technical knowledge required.
This has led to a surge in entrepreneurship, with many small businesses and individuals opening their own eCommerce stores using Shopify. In fact, Shopify has become the go-to eCommerce software-as-a-service platform for direct-to-consumer (DTC) brands, which have exploded in popularity in recent years.
Shopify’s impact on eCommerce is also reflected in the success of the businesses that use the platform. Many of the world’s most successful eCommerce businesses, including Kylie Cosmetics, Allbirds, and Gymshark, use Shopify as their eCommerce platform.
These businesses have been able to leverage Shopify’s features and benefits to scale their operations and reach customers around the world.
The most significant impact of Shopify on eCommerce has been its disruption of the industry. Traditional eCommerce solutions, which large enterprise software companies once dominated, have struggled to keep up with the innovation and agility of SaaS platforms like Shopify.
As a result, many legacy eCommerce solutions have either gone out of business or been forced to pivot their business models.
Future of Shopify – eCommerce Software as a Service
As Shopify has continued to grow and evolve as an eCommerce software-as-a-service platform, it has also expanded its focus beyond eCommerce to other areas of business. One of the most significant areas of expansion for Shopify has been in the realm of financial services.
In 2019, Shopify launched Shopify Capital, a lending program that provides working capital to eligible businesses using the Shopify platform. This program has provided a valuable funding source for small businesses that may have difficulty obtaining traditional loans.
In addition to Shopify Capital, the company has also launched a number of other financial services, including Shopify Pay, which allows customers to save their payment and shipping information for faster checkout, as well as Shopify Balance, a banking and money management service for business owners.
In essence, Shopify’s expansion into financial services has the potential to significantly impact the eCommerce industry, as it provides a complete suite of services for businesses operating online.
Another area of focus for Shopify has been sustainability. The company has set a goal of becoming carbon neutral by 2030. It has launched a number of initiatives to support this goal, including a $5 million investment fund to support sustainable packaging solutions.
In addition to its own efforts, Shopify has encouraged its merchants to adopt sustainable practices, offering resources and guidance on reducing waste and carbon emissions.
While Shopify has experienced significant growth and success in recent years, it also overcame many challenges. The eCommerce industry is highly competitive, and other companies are vying for market share.
Furthermore, consumer behaviors and preferences are constantly evolving, and Shopify will need to continue to innovate and adapt in order to stay ahead of the curve. However, Shopify has demonstrated a strong track record of success and innovation. Its commitment to sustainability and small businesses has earned it a loyal following among entrepreneurs and consumers alike.
Shopify has played a significant role in the growth and democratization of eCommerce, providing a powerful platform for businesses of all sizes to operate online.
Through its eCommerce software-as-a-service model, Shopify, the best eCommerce Software as a Service, has made it easier and more affordable for entrepreneurs to start and grow their businesses while also disrupting traditional eCommerce solutions and paving the way for new approaches to online business.
As Shopify continues to expand its focus beyond eCommerce to areas such as financial services and sustainability, it has the potential to continue transforming the way businesses operate online and further strengthen its position as a leader in the industry.
Whether you are an established business owner or just starting out, Shopify offers a powerful platform and a wealth of resources to help you succeed in the world of e-commerce.
So why not consider using Shopify for your own eCommerce business? With its powerful features, affordable pricing, and commitment to innovation and sustainability, Shopify is a platform that is well worth exploring.
FAQs – Best eCommerce Software as a Service
How Does Shopify Work?
Shopify provides businesses with a software-as-a-service eCommerce platform to create and manage their online stores. Businesses can choose from various templates and themes to design their store, add products and services, and customize their store’s settings. Shopify also provides tools for order management, shipping, and payment processing, among other things.
Can I Use Shopify To Sell Physical And Digital Products?
Yes, Shopify supports the sale of both physical and digital products. It also provides tools for managing bulk inventory, shipping, and fulfillment.
Shopify offers a range of pricing plans to fit different business needs and budgets, from $29/month to $299/month for their Advanced plan. There is also a free trial available to help you get started.
Can I Use My Domain Name With Shopify?
Yes, you can use your domain name with Shopify. Shopify also provides a free myshopify.com domain name for your store.
Can I Integrate Third-Party Apps With My Shopify Store?
Yes, Shopify can be used as an eCommerce software-as-a-service with API. Many third-party apps and services can be integrated with your store. This includes apps for marketing, customer service, shipping, etc.