Shopify has announced that it has hit one million merchants across the globe. However, in its latest Q3 report, Shopify’s shares have dropped due to international gain.
According to the report, businesses that integrate Shopify have ‘supported $183 billion in global economic activity from 2016-2018’. Moreover, those businesses have delivered more than $100 million in economic activity in more than 40 countries.
Due to this explosive growth, its shares fell seven per cent which is not surprising as its aggressive approach to globalisation can hit hard for unicorn companies. Shopify’s “million merchant milestone should be lauded not only for the achievement by a steadfast management team with customer-first objectives, but for its consistent financial execution all the way up,” explained Mark Zgutowicz of Rosenblatt Securities.
Despite this drop in shares, this isn’t a time for investors to become worried. The rapid growth as shows in Shopify’s latest global economic impact report offers a promising future for the e-commerce platform.
“Shopify is investing more into building out a full retail operating suite, which involves things like its Shopify Fulfillment Network, international expansion and product enhancements. It’s a strategy that makes sense for a company at this point in its growth trajectory,” said Ygal Arounian, Shopify Analyst at Wedbush Securities.
“The global economic impact report details our incredible growth, driven by our focus on these key principles,” said Tobi Lütke, the CEO of Shopify. “The importance of democratizing technology; individuals can change the world, from anywhere in the world; entrepreneurship elevates communities, and the future is borderless commerce.”
The report found that the merchants who have integrated the Shopify platform have experienced a sales growth of 59 per cent in 2018, which is ‘more than double the growth of the global e-commerce market’.
“More than ever before, business owners from rural communities, small towns, and developing nations are launching new stores, with businesses on Shopify generating over $3 billion in revenue from 2016
to 2018. Regions such as sub-Saharan Africa are experiencing exceptional growth, with more entrepreneurs paying suppliers, spending profits,
and creating jobs—all while boosting economies around this region,” Mr Lütke said.
“Shopify is taking on fulfilment the same way we’ve approached other commerce challenges, by bringing together the best technology to help everyone compete,” said Mr Lütke. “With 6 River Systems, we will bring technology and operational efficiencies to companies of all sizes around the world.”
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