The Company By Accident

Business strategies of SHOPIFY

 Introduction
To Shopify History
The firm was founded back in 2006 by Tobias Lütke, Daniël
Weinand and Scott Lake together. The company got started when
the founders first tried to open Snowdevil: an online retailer
specializing in snowboarding gear, but did not like either the
performance or the aesthetics of the contemporary equipment.
Lütke, a programmer of computer, developed his own e-commerce
platform using Ruby on Rails, which caused the birth of Shopify.

Current Position in Market as of 2024

● 29% market share in the US eCommerce platform market.
● 62% of Shopify stores are based in the US.
● Market capital: $104.63 billion in Q1 2024.
● Shopify: 4th largest eCommerce platform globally, with 10.32%
market share in 2024.
● 19% market share among the top 100k websites, surpassing
WooCommerce.

Shopify. (2024, April 11). Wikipedia. https://en.wikipedia.org/wiki/Shopify

Mosby, A. (2024, April 8). Shopify Market Share & Statistics 2024 (Facts & Data). Yaguara. https://www.yaguara.co/shopify-market-share/
 Key Revenue Streams
01 Subscription Solutions
This source of revenue stems from several
subscription programs offered by Shopify to the
companies. These subscriptions will tailor to
the varying needs of organisations that are
anywhere from small scale startups to big
corporations. The Shopify subscription fees
provide a steady stream of income that helps to
maintain the company's financial stability.
Shopify offers three primary subscription plans:
Basic Shopify, Shopify, and Advanced Shopify.
A. (2023, June 21). Shopify Revenue Model - How Shopify Makes Money | Appscrip Blog. Appscrip Blog. https://appscrip.com/blog/shopify-revenue-model-how-shopify-makes-money/
02 Merchant Solutions
Shopify also collects a large sum of money
from various services that it highpoints to the
merchants under the name of Merchant
Solutions. As push-button services comprise
several areas, the mentioned services, are only
among them, and include the payment
processing fees from Shopify Payments, the
transaction fees, Shopify Shipping, Shopify
Capital, and the referral fees from partners.
Shopify pay is a fully integrated payment
processing service that can be used in online
as well as storefront businesses. This service is
aimed at boosting the retention levels of
merchant subscribers with about two-third
(66%) of Shopify’s merchants having settled for
Shopify Payments as their payment platform.
 WE BUILD
QUALITY
ENTREPRENEURS
PPT BY
EMPOWERING
THEM THROUGH
E-COMMERCE
 User-Interface Model
BUILD AN ONLINE STORE FRONT CRAFT THE BRAND YOU WANT
Allows you to create a drag-and-drop Choose from the editable templates
store creator, realizing your vision. Just created by top designers.
bring on your next BIG IDEA—coding

FT
experience not required.

A
R
B

C
U
IL LE
D VE
L
U
P

SELL TO EVERY BUYER, EVERYWHERE LEVEL UP WITH APPS

Use the marketing tools to sell Use apps created by reputable Shopify
worldwide, in person, and online. You LL developers to expand the features and
SE

need to use social media integrations functionality of your online store.

and sales channels to expose your
product to potential buyers.
 Software Features
HANNEL
C
OMNI LING
Use a connected back office to sell in person,
online, on social media, and marketplaces.
SEL

Set staff permissions to control what employees

NAGEMENT
MA
STAFF
can access.

Accept popular payment methods at competitive

OCESSING
R
transaction rates.
AYMENT P
P
Receive inventory, manage stocks and create
NAG EMENT
purchase orders from a single platform.
ENTO RY MA
INV
S
Boost customer loyalty by tracking purchase
ANALYTIC
OMER
preferences and reporting data analytics.
CUST
Point of Sale (POS) for Business. (n.d.). Shopify. https://www.shopify.com/ca/pos
 T Algorithm Framework
1. Cloud computing and virtualization appeal to human instincts and rank
highly on Google searches.
2. Acting as a Career Accelerant: It draws and keeps the most talented
individuals. Encourage opportunities for learning.
3. Margins and Growth are Balanced: Every FY, the average growth rate
is almost 100%.
4. Product sourcing, fulfillment, marketing, shipping, and payment are all
included in vertical integration.
5. Benjamin Button Products: It brings entrepreneurs together through
horizontal dialogue to create a sense of community. increasing in value
as time passes.
6. Visionary Storytelling: Persuading others with compelling stories to
purchase their services. making calls to their merchant clients.
7. Likeability: VCs and customers are drawn to his story of problem-
solving from his time as a merchant.

Chow, V. (2023, May 12). Strategy Case Study: How Shopify will become the next trillion-dollar company. Medium. https://medium.com/@vivianwchow/strategy-case-study-how-shopify-will-become-the-next-trillion-dollar-company-36450012003c
1. Ecommerce platform which helps small or
midsize business to handle their own
stores.
2. Caters businesses who wants to establish

3.
their own online presence.
Gives full control over SKU’s branding, EBAY/AMAZON
design and customer experience
4. Have their own domain, website and
payment gateway.
5. Provides inventory management tools.
1. Revenue model is transaction and listing
fees for products on the platform.
2. Same product can be viewed on various
level of competitive pricing.
3. provides a standardized shopping
experience across all listings, with limited
opportunities for customization.

SHOPIFY 4. eBay supports various payment methods,

including PayPal, credit cards, and other
third-party payment processors.
5. eBay offers basic inventory management
features for sellers to track their listings and
sales
 Principles ,
transparency, integrity
and accountability
1.Shopify is honest with its customers regarding how they
operates.
2.Shopify provides clear and transparent information
regarding their fees and policies.For example, their privacy
policy.
3.They treats their users honestly in order to maintain
loyalty
4.Deliver high quality services.
5.Always asks for their users feedback in order to improve
their services.

Shopify Privacy Policy. (n.d.). Shopify. https://www.shopify.com/ca/legal/privacy

What is the core value and
CSR initiatives:-
1.Shopify believes in diversity as they creates various
tools in which people can run their businesses online
2.Shopify helps in reducing carbon footprint by having the
slogan Make a low carbon future a reality
3.Shopify removes the barriers for independent.
business.
4.Shopify is a carbon removal company
5.Shopify also helps in raising funds for charity or
donation.
6.Shopify provides Health and Wellness benefits to their
employees.
7.Shopify also provide paid vacations and maternity leave
to their employees.

Better commerce for a better planet | Shopify Climate. (n.d.). Shopify.

https://www.shopify.com/climate#:~:text=A%20carbon%2Dneutral%20company&text=We’ve
%20procured%20enough%20green,we%20purchase%20verified%20carbon%20offsets.
%20%20https://www.glassdoor.ca/Benefits/Shopify-Canada-Benefits-
Difference of culture and work from
other countries as compared to
Canada

Workforce Global Culture Operational

Diversity Collaboration Adaptation Flexibility
 Strategic
position
PLATFORM EXPANSION
INTERNATIONAL
GROWTH
CUSTOMER CENTRIC
APPROACH
 Challenges

Competition Infrastructure Cybersecurity

Opportunities

Omnichannel Integration

Market Domination

Expansion of Shopify App

Global Selling
THANK YOU
Group - 6