Why 2017 Was a Year to Remember for Shopify Inc.
Maintaining an online business for small and medium-sized companies can be tough because of the competition and many other factors. Shopify is very well-known among such companies having difficulties in their e-commerce business as the platform helps to manage companies their online business, provide a solution for website customization, ready to use a template and also helps them with payment solution. If any of these factors go wrong they take away the focus of the owner from business and Shopify takes care of them pretty well. 2017 was a very important year for Shopify and I think it was just the beginning.
The company was public in the second quarter of 2015 and the financial status of Shopify in the third quarter just represented what the investors have to expect from this young company. The growth revenue increased $171.5 million which is 72% year over year with the loss of $12.7 million which is 7.4% of revenue.
Latest improved Shopify features:
Shopify added a new feature in 2017 named Shopify pay, which was for the comfort of merchants as for Shopify merchants are the backbone of company’s business. This feature was a big success which increased conversion rate by 18% for returning customers and reduced checkout time by 40%. They also introduce chip and swipe reader which works with the chip technology on credit cards. They made a new plan for Shopify plus which operates large and multi-channel businesses like red bull, Arby’s, and Blue Diamond which generates $5.3 million dollars or 20% of the company’s revenue.
Success attracts attention:
The year 2017 was not all good for Shopify. In October, claimed that the company is just “get rich quick scheme” and most merchants of Shopify were just fooled by the promise of an easy way to make money. This caused the stock fall of 21% which was the largest drop in Shopify’s history. Later on, Shopify’s founder and CEO confirmed: “the company was targeted by a short-selling troll who made all sorts of preposterous claims”.
A memorable year for Shopify:
Shopify has a revenue growth of 70% year over year. It has remarkable financial growth records of 340% since debut and 135% in 2017. The company now supports 500,000 merchants in 175 countries. I must say it has faced a lot of challenges but it continues to execute the mission to make e-commerce better for everyone.