Shopify has launched new tools to help its shoppers sell to other companies and on Twitter as the Canadian tech giant seeks to build sales to counter a post-pandemic delay in online shopping.
More than 100 new tools were unveiled Wednesday, including those to back up their plans to push into business-to-business, for shoppers to connect their cryptocurrencies to a store and Apple’s “Tap to Pay” feature on iPhones.
Shopify, which helps businesses set up their online stores, hit the jackpot during lockdowns as global brands and mom-and-pop stores turned to selling directly online to consumers while their stores were closed.
With the reopening of the economy, however, investors are beginning to question the future of Shopify, lowering the company’s share by 76 percent this year and wiping out a large chunk of its pandemic profits.
Shopify’s response to the delay extends to the wholesale market, a much larger avenue than direct-to-consumer and with “billions in untapped revenue,” according to President Harley Finkelstein.
Companies are looking from direct-to-consumer to “connect with consumer,” making it easier for people to shop through social media platforms and pay with their phones, Finkelstein said in an interview.
“This is the next phase of retail … In many ways, shopping has become a mood with your wallet to support that brand … And that’s what I think consumer engagement is all about,” he said.
The post-pandemic world has also posed challenges for Amazon, Shopify’s biggest rival, as it incurs massive losses after building more warehouses than necessary during the boom.
In a podcast earlier this month, Vijay Viswanathan of Shopify investor at Mawer Investment Management said it was leaving the stock out of concerns about slowing growth and competition. “The internet is getting busy … It’s getting harder and harder to justify the rating.”
© Thomson Reuters 2022
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