- By Sean Captain
- 1 minute Read
Company | Profile
After surveying the smartphones and favored apps of its employees, the popular e-commerce software platform Shopify realized that three major social hubs--Facebook, Twitter, and Pinterest--were missing out on a big retail opportunity. If store owners poured resources into crafting their social profiles, why not enable followers to buy items they coveted with a few taps of a button? To CEO Tobias Lütke, buy buttons were a natural extension of Shopify's mission to support small business owners. Now, more than 275,000 Shopify-powered stores can boost their mobile presence by selling on social media--and anyone can post products to Sello, the company's new app, before committing to the upkeep of a full-blown Shopify store. Though Shopify became a publicly traded company in 2015, its goal is to stay behind the curtain, all the while empowering sellers to simplify the shopping experience--wherever their clientele may be.
The company's competitive advantage in 2016:
End-to-end service for small businesses, online, and in stores
The biggest challenges standing in this company's way in 2016:
ProfitabilityStock prices post-IPOCompetition from Bigcommerce and Demandware, which also secured buy button partnerships with Twitter and Pinterest
What to look out for:
Shopify partnered with UberRUSH in 2015 for same-day delivery; as its clients are given the ability to sell through more channels (and rack up more sales), delivery capabilities will likely become more important. Pinterest's Buyable Pins have already yielded twice the conversion rate of regular Pins on mobile; in other words, twice as many people are viewing an item on Pinterest and then making a purchase. Increasing reach across social media and mobile would continue to be a goal. In 2016, the company added Apple Pay and Postmates to its list of partners.
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