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Authors: M Vasudha
Published by: Amity Research Centers
Published in: 2019

Abstract

Shopify, a leading multi-channel e-Commerce platform, was co-founded by Tobias Lutke along with two of his friends in 2004. The company which started off as an e-Tailer selling high-end snowboards soon evolved into an e-Commerce platform which helped merchants to set up web stores. Shopify offered a widespread suite of tools for creating and handling an online store. Shops were wholly hosted, and the company delivered an excellent content-delivery network to make sure that stores operated quickly, worldwide. By 2019, there was a growing breed of small and medium sized businesses online. These merchants were unhappy with the services offered and fees charged by the likes of giants such as Amazon and Walmart. Shopify's Fulfillment Network unveiled in June 2019 was to cater to this cohort by going head-to-head with these giants. Shopify planned to spend USD1 billion on the Fulfillment Network in the near future. The company also planned to be able to offer two-day shipping for the hundreds of thousands of American merchants on their retail platform by the end of 2019. Will this democratisation of commerce by Shopify be successful? Will Shopify's Fulfillment Network help it to gain market share in this domain?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

About

Abstract

Shopify, a leading multi-channel e-Commerce platform, was co-founded by Tobias Lutke along with two of his friends in 2004. The company which started off as an e-Tailer selling high-end snowboards soon evolved into an e-Commerce platform which helped merchants to set up web stores. Shopify offered a widespread suite of tools for creating and handling an online store. Shops were wholly hosted, and the company delivered an excellent content-delivery network to make sure that stores operated quickly, worldwide. By 2019, there was a growing breed of small and medium sized businesses online. These merchants were unhappy with the services offered and fees charged by the likes of giants such as Amazon and Walmart. Shopify's Fulfillment Network unveiled in June 2019 was to cater to this cohort by going head-to-head with these giants. Shopify planned to spend USD1 billion on the Fulfillment Network in the near future. The company also planned to be able to offer two-day shipping for the hundreds of thousands of American merchants on their retail platform by the end of 2019. Will this democratisation of commerce by Shopify be successful? Will Shopify's Fulfillment Network help it to gain market share in this domain?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

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