Is Shopify Growth Threatened by Facebook?


Canadian e-commerce firm Shopify has helped hundreds of thousands of entrepreneurs around the globe to set up their own online stores with minimal effort. While it should be credited for spurring entrepreneurial growth, it may also be in hot water soon as Facebook attempts to beef up its security features and get rid of fraudulent e-commerce advertisers. Shopify’s online business could be affected as a result.

Facebook recently announced that it is taking a more active role in improving its customer service. One way is to encourage its users to leave feedback on its advertisers. Firms who get complaints for failing to deliver products at promised turnaround time, offering unclear return policies or misrepresent their products could face ad reduction or worse, complete ban.

Shopify Dilemma

Shopify should be credited for sparking an entrepreneurial revolution. After all, it has empowered retail merchants to sell online by setting up their own digital stores with little effort. Today, it is estimated that the e-commerce platform powers more than half a million online outlets.
But the problem is, most of the users of the e-commerce platform lack the fulfilment experience in speeding up deliveries as well as process returns.

And in an age when millions of people, particularly in the US, have been spoiled by Amazon’s Prime shipping where orders are delivered in 2 days without charges, Shopify does face a lot of problems in its users who can’t do the same for their customers.

Shopify Continued Growth

The Canadian e-commerce firm is doing great at this moment. Its latest quarterly report showed that revenue jumped by 68%.  And even if growth slows down—the company says it is targeting 52 to 55% growth in the latest quarter—it has shown that it has the capability to further grow.

But experts have long feared that the 600,000 storefronts of the firm could be lacking in experience in fulfilling deliveries. And with Facebook attempting to get rid of retail merchants that can’t fulfill customer orders, then Shopify better hope that its entrepreneurs shape up really soon.