Shopify, Inc. is a Canadian multinational e-commerce services company that provides online services such as payment, marketing, and product shipping. The company is headquartered in Ottawa, Ontario, and is the largest publicly traded company in Canada by its market capitalization and hosts about 1,700,000 in more than 175 countries all over the world.
The company was founded in 2006 by Tobias Lütke, who attempted to build an online business of snowboarding equipment but was disappointed with existing e-commerce products and services. Lütke, being a computer programmer, built his e-commerce platform and launched it as Shopify in the June of 2006.
Shopify went public in 2015 on the New York stock exchange and the Toronto stock exchange with ticker symbols “SHOP” and “SH” respectively. On the New York stock exchange, the IPO took place on May 21, 2015, and went extremely successful as its shares started trading on more than 60% of the original offered price.
Shopify caters to the people who want to build an online business and provides a complete package of business services to them, including the online store itself, the marketing tools and analytics, payment processing solutions, mobile app, and even experts to guide you in managing the business on Shopify. In short, it is a complete package of business services available to business owners on a subscription basis.
|HQ:||Ottawa, Ontario, Canada|
|Traded as:||TSX: SHOP; NYSE: SHOP|
|Founders:||Tobias Lütke, Daniel Weinand and Scott Lake|
|Website:||shopify.com / SEO Scores|
|Business data for Shopify:||Google Finance / Yahoo! Finance / SEC filings|
All Corporate Locations for Shopify, Inc.
What is Shopify, Inc.?
Shopify is a technology company that provides e-commerce services to businesses that want to build their online presence and sell their products without going through the hectic process of setting up their shop, managing their online presence, marketing, payment solutions, and other processes.
Shopify’s core product includes subscription-based e-commerce services that allow businesses to sell their products online. Shopify takes care of the setting up, marketing and search engine optimization, inventory management, and other stuff so businesses can only focus on what they do best.
Shopify also provides additional products and services surrounding its core business offering, which include apps and themes, POS lite, payment processing, mobile applications, and customer support, all of which allow the business process to go smoothly than ever before.
Where is Shopify Inc. headquarters located?
The major corporate Shopify location (headquarters) are in the Ottawa, Ontario region of Canada. An additional Shopify location is in Dublin, Ireland.
The phone number of Shopify, Inc. is given below:
Where is Shopify corporate address in the USA?
The corporate address of Shopify location in the USA is given below:
Address: 33 New Montgomery St #750, San Francisco, CA 94105, United States
How do I contact Shopify Inc. corporate?
On the official site of Shopify, Inc., there are 2 different methods that one can use to receive help regarding the company.
The second option that Shopify’s website offers is to contact them by the help center where Shopify, Inc. provides the client a complete guide of everything about starting, managing, and market research in the form of documents. One can easily find relevant information with the help of a search option available in the help center.
If someone still struggles with any problem, Shopify offers yet another option to contact them, which is contact support. Shopify provides direct support to any person facing any difficulty in running their business on their platform.
Does Shopify have chat support?
Yes, Shopify, Inc. provides chat support to its customers through its official site at the contact support section. The link to its chat support is https://help.shopify.com/en/questions#/login.
Shopify Inc. History:
Shopify was not originally an e-commerce platform. Tobias Lütke founded an online business that sold snowboarding equipment. He was dissatisfied with existing e-commerce platforms, and being a programmer himself; he built a platform of his own. In 2006, this e-commerce platform was launched as Shopify.
Shopify slowly started expanding its business to incorporate smartphone applications in a business model that allowed its users to manage their online stores from smartphones.
In 2013, Shopify launched its payment solutions division named Shopify payments. It allowed businesses to maintain transactions without the involvement of any third-party solution provider.
In 2014, Shopify released a new subscription Shopify Plus, for large businesses and thus expanded its customer portfolio, which previously just included small merchants.
Shopify became public in 2015 on the Toronto stock exchange and New York stock exchange. Its IPO was a huge success indicating that the company will continue to grow rapidly after the offering.
In the coming years, Shopify acquired several other companies, such as Oberlo and Primer, which allowed the company to expand in more directions. Shopify also made business relations with other tech giants, especially with Amazon, which allowed its shares to skyrocket.
In 2017, Shopify launched its point-of-sale system, which allowed brick-and-mortar companies to use Shopify to sell their products.
In 2019, the company decided to launch its fulfillment network. Over the years, Shopify expanded its portfolio of products and services to provide the best experience to their businesses.
Shopify Inc. Company Profile:
Shopify is a cloud-based e-commerce platform that allows its users to register their online stores on it to sell their products and services online. The company earns through subscription, its themes and apps, and transaction fees.
Shopify Key Executives
|Tobi Lütke||Founder and CEO|
|Joe Frasca||Chief Legal Officer|
|Toby Shannan||Chief Operating Officer|
What makes Shopify successful?
The main reason that Shopify is very successful is the ease and convenience that it offers. Businesses do not have to worry about all the hectic and boring processes of setting up and managing their online stores, and therefore, they prefer to use Shopify.
In addition to the ease and convenience, Shopify also offers extensive additional features which give great customizability to its users. Both features of Shopify are possible due to its innovative technology and business model, which other companies seldom offer at such low prices.
How Does Shopify Inc. Make Money?
Shopify primarily makes money through subscriptions, transaction fees, partner programs, POS service, and its themes and apps.
The businesses that work with Shopify pay the subscription fee to it in return for the integral e-commerce services that Shopify provides to them. It is one of the primary sources of earnings for the company. Shopify has different subscription packages that it offers to business owners, each one tailored for different scales and sizes of businesses.
Additionally, Shopify earns money through transaction fees of the products and services sold through its platform. There are different plans of transaction fees or different brackets which specify what type of transaction of what type of business would pay how much transaction fee on its products and services sold.
Furthermore, Shopify also earns money through its partner program. Shopify has its Appstore where graphic designers, editors, programmers, and other skilled people develop and list their software, apps, themes, and designs. These important tools are very integral to the store owners who work on Shopify, so they buy them, and as Shopify facilities this transaction, it earns money on it. As there are thousands of mobile applications and software, Shopify earns a significant portion of its revenue from its partner program.
Shopify provides its point-of-sale service and its data analytics tools which store owners can use to track their sales, transaction, profit, loss, and other important business metrics. For these services, Shopify charges them some amount of money.
Lastly, Shopify also earns from its themes and applications that it sells on its Appstore. There are several hundreds of apps, including designing apps, analytics apps, and others that business owners need to improve their business management. Shopify provides these apps and charges money for them.
What is the technology stack behind Shopify?
Top 5 Biggest Companies That Use Shopify
Tesla is a famous American multinational technology company that manufactures electric cars and clean energy products. It is headquartered in Palo Alto, California, and is one of the largest car manufacturing companies in the world by its market capitalization.
For this purpose, Tesla sells most of its products through its site, which is powered by Shopify Inc. Not only does relying on Shopify helps in cutting down supply chain costs, but it also allows to minimize the amount of time and effort needed to customize the store because Shopify allows using its built-in features, which make the whole process much smoother and more efficient than ever before.
2. LVMH Moet Hennessy Louis Vuitton
LVMH or LVMH Moët Hennessy Louis Vuitton is a French multinational conglomerate that specializes in luxury goods. It is headquartered in Paris, France, and is one of the most valuable companies in the world and the most valuable in Europe.
LVMH has recently entered tried to build its online presence due to the additional opportunities e-commerce can provide to it. LVMH has used Shopify to enter e-commerce as Shopify provides excellent marketing, analytics, store management, payment processing, and delivery services to its hosts.
Nestle is a Swish multinational food and beverage company and is headquartered in Vevey, Vaud. Nestle is the largest food and beverage producing company in the world.
Nestle has used Shopify in many of its marketing campaigns; for example, Nescafe’s sweet and creamy campaign is highly aided by Shopify’s e-commerce services. Shopify provides excellent data-related services such as data collection, data analytics and which are highly useful in the field of marketing.
Pepsi Corporation is an American multinational drinks and snack manufacturing company famous for its flagship product Pepsi, a cola-flavored drink. It is headquartered in Harrison, New York. Pepsi corporation has also tried to strengthen its online presence, especially after the Covid-19 pandemics when the sales of most to the business are plummeting down.
Pepsi relies on Shopify for its e-commerce related business activities, mainly for the marketing of its products in an online environment.
5. Anheuser-Busch InBev Sa Nv
Anheuser-Busch InBev Sa Nv or AB InBev is a Belgium multinational brewing and alcoholic drink producing company. The company is based in Belgium and has an international management office in New York City, and has regional headquarter in many major cities of the world.
AB InBev has also tried expanding its product portfolio into an online environment and, within doing so, has taken aid from Shopify Inc.
Top 5 biggest Shopify Inc. Competitors or Alternatives
Oracle is an American multinational technology company headquartered in Austin, Texas. The company manufactures and sells database systems, software and services, cloud systems, and enterprise software and is one of the largest software manufacturing companies in the world.
Oracle’s CX commerce is a division of Oracle Corporation that provides e-commerce services to small to large scale businesses and is one of the largest competitors to Shopify. Oracle CX commerce is costlier than Shopify services and includes large-scale businesses as the target market, unlike Shopify.
Salesforce Inc is an American multinational technology company headquartered in San Francisco, California. Its main services include customer relationship management and enterprise software and applications for analytics, marketing automation, and customer service.
Salesforce provides B2B and B2C commerce cloud services, due to which it is a direct competitor to Shopify. Its payment model is slightly different, with the company earning a percentage of profits from the sales you make by using its platform.
Adobe, Inc. is an American multinational technology company that specializes in manufacturing computer software. Adobe has recently expanded its product and service portfolio towards e-commerce after the acquisition of Magento. Adobe has made Magento into a platform as a service (PaaS) and has mainly targeted mid and large-scale businesses that need to build their online presence.
In addition to the premium package of adobe commerce, it also provides an open-source version of Magento, which is free to use. Adobe is expensive than Shopify but provides several unique additional features, which makes it a worthy competitor to Shopify.
The Sap is a German multinational technology company that manufactures enterprise software. The company is headquartered in Waldorf, Baden-Württemberg. It is one of the largest software companies in the world.
Due to Sap’s acquisitions of e-commerce companies such as hybris, Crossgate, praxis software solutions, and frictionless commerce, it can be considered a competitor to Shopify. While Sap does outperform Shopify in some respects, such as better road mapping and feature updates, customers are more loyal to Shopify as an e-commerce platform.
Intuit is an American technology company that specializes in developing financial software. It is headquartered in Mountainview, California, and most of its revenue is received from within the United States.
Intuit has expanded its portfolio to include e-commerce products and services; for example, QuickBooks e-commerce is an e-commerce platform suitable for product-based online businesses. Similarly, Intuit has acquired some e-commerce companies such as StepUp commerce and Homestead technologies allowing them to further penetrate the e-commerce industry.
QuickBooks e-commerce provides more than satisfactory services to business owners, but they have slightly fewer services than Shopify. Consequently, the price is also lower than Shopify.
Fun Facts About Shopify
Shopify originally started as an online store itself selling snowboarding equipment online. Its founder, Lütke, only never intended to make an e-commerce company; rather, he only wanted to build an online store. But as he was dissatisfied with the available e-commerce platforms, he created his own for his business which became very successful. It is interesting to note that what was intended to be just an aid for one online store is now catering to millions of online businesses.
Shopify was not originally named as such. In the very beginning, when it was just an online store of snowboarding equipment, it was called Snowdevil. When it transformed its business model towards an e-commerce platform, it was named Jaded Pixel.
Shopify is headquartered in Ottawa, while its founder Lütke is from Germany. One may assume that there must have been some business incentive in the mind of the founder to headquarter the company in a country other than his own. Interestingly enough, Lütke shifted to Canada because his love interest resided there, and he could not move to Germany. It is quite weird to think that this love story impacted a multinational e-commerce company’s location in this way.
- Current performance:
Currently, Shopify is one of the largest e-commerce platforms in the world and is constantly ranked in the top 3 e-commerce platforms along with some other consistent entries such as WooCommerce, Squarespace, and magneto. Shopify hosts more than a million merchants and has a revenue of approximately $2.9 billion as of 2021.
- Future Speculation:
An interesting fact to note about Shopify is that despite its marvelous statistics, i.e., number of online businesses and websites connected with it, website visits, and financial conditions, the company is still in its early stages of business and has a lot of space to grow further.
Is Shopify stock a good buy when considering long-term investments?
Shopify has some competitors like Oracle and Salesforce, among others, but it has always proved itself one step ahead of others. Small business owners mostly do not use the expensive e-commerce services of Oracle, Salesforce, or other companies and prefer Shopify.
Even without considering the low price, store owners prefer Shopify due to the ease and simplicity of its design and working.
Shopify has also started working with big businesses such as Tesla, PepsiCo, and others which show that it is steadily expanding its customer portfolio to target other areas of the market. Both the above-mentioned facts hint that the demand for the products and services of Shopify will continue to rise over the coming years.
Also, the financial condition of the Shopify stock strengthens its chances to be a successful investment.
The company has shown remarkable performance over the recent years, and as it can be seen from the booming e-commerce industry and e-commerce companies that can provide platforms for such boom, Shopify stock is sure to be a good long-term investment. Buying Shopify stocks won’t be a bad decision.
1. When did Shopify Inc. go public?
Shopify filed for an IPO on the New York stock exchange and the Toronto stock exchange on April 14, 2015, with ticker symbols “SHOP” and “SH,” respectively.
2. Does Shopify Inc. pay dividends?
Shopify, like most other high technology companies, does not pay dividends to its investors rather prefers to reinvest its earnings in the company. Furthermore, investors and speculators do not expect the company to pay any dividends in the foreseeable future.
3. Who is the auditor of Shopify?
In the 2020 meeting of shareholders of Shopify, Pricewaterhousecoopers LLC, a professional accounting services network, was appointed as the auditor of Shopify.
4. How many websites do Shopify host?
Builtwith, an analytics company, states that Shopify hosts about 1.58 million websites as of 2021.
5. How much does Shopify spend on R&D?
According to statista.com, Shopify spent about $552 million on research and development in the fiscal year 2020, which is a huge increase from what it was spending about 5 years ago (about $50 million)
6. What hosting provider does Shopify use?
While in recent years, Shopify has used Amazon Web Services for its cloud infrastructure, it is trying to shift towards using Google cloud for these purposes. Amazon web services will still be used for some functions; the majority of the cloud functioning of Shopify is being moved towards Google.
Shopify is one of the largest, most well-reputed, and preferred e-commerce service providers in the world. The main reasons behind its success include its technology stack and innovation, customer-centric approach, and low prices.
Businesses can easily create their online stores with the help of Shopify, Inc. and can utilize the additional products and services offered by the company.
While Shopify has some large competitors, its strong financial performance in the past years and innovative business model indicates that the company will continue to be a huge success in the years to come.