Business

After surpassing eBay, Shopify is seen as Amazon's most likely challenger

According to the Financial Times, the Canadian company has what it takes to bring down Amazon's e-commerce dominance

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  • Shopify’s shares have climbed more than 150% since the beginning of 2019;
  • Investors are excited because they see Shopify “as the most likely challenger to Amazon’s e-commerce dominance.”

According to the Financial Times, Shopify’s shares, which were first listed on the New York Stock Exchange in May 2015, have climbed more than 150% since the beginning of 2019, making Shopify more valuable than Twitter, Square, and Spotify

Its market capitalization (more than $ 40 billion) surpassed that of e-commerce pioneer eBay earlier this year. According to the FT, investors are excited because they see Shopify “as the most likely challenger to Amazon’s e-commerce dominance.”

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And Shopify`s strategy of betting on small businesses and making the same technology and capabilities available for all of them seems to be the main reason for that. The most recent plans of the Canadian firm aimed at solving the logistic problems of its small merchants also matters. 

The number of merchants using Shopify is growing rapidly. They were less than 200,000 in 2013; today, they are more than 800,000. The global fintech EBANX provides local payments solutions for Shopify stores in Brazil and other four Latin American countries (Mexico, Argentina, Colombia and Peru).

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“In a lot of ways, Amazon are the guys who are convincing everyone that online shopping is simply superior. But after you purchased all your necessities on Amazon, you want to buy some things that you are really looking forward to . . .  you very quickly end up outside Amazon, which usually means Shopify stores,” said Tobi Lütke, Shopify’s CEO, to the FT.