Introduction:
Shopify has been one of the most talked-about stocks in recent years, and for good reason. The Canadian e-commerce company has seen its stock price soar by over 5,000% since its IPO in 2015, making it one of the most successful IPOs of all time. This success has been fueled by the rapid growth of e-commerce, which has accelerated due to the pandemic. In this article, we will take a closer look at Shopify, its growth drivers, and the future of e-commerce, and how it is shaping retail investing.
The Story of Shopify
Shopify was founded in 2006 by Tobias Lütke, Scott Lake, and Daniel Weinand as an online store platform to help small businesses set up and manage their online stores. The company has grown rapidly over the years, and as of 2021, it has over 1.7 million merchants in 175 countries, with over $120 billion in gross merchandise volume (GMV) sold on its platform.
One of the key drivers of Shopify’s success has been its ease of use and affordability. The platform offers a simple and intuitive interface that enables merchants to set up and manage their online stores with ease. Additionally, the platform is affordable, with plans starting at just $29 per month, making it accessible to small businesses with limited budgets.
The Growth of E-commerce
The rise of e-commerce has been one of the biggest trends in retail over the past decade. Online shopping has become increasingly popular due to its convenience and accessibility, and the pandemic has only accelerated this trend. According to eMarketer, e-commerce sales are expected to reach $6.38 trillion by 2024, up from $3.53 trillion in 2019.
Shopify has been at the forefront of this trend, providing small businesses with the tools they need to succeed in the online marketplace. The company’s success has been driven by several factors, including the increasing popularity of online shopping, the ease of use and affordability of its platform, and its ability to provide merchants with access to a global audience.
The Future of E-commerce and Retail Investing
As e-commerce continues to grow, the future of retail investing is becoming increasingly intertwined with the success of e-commerce companies like Shopify. Investors are taking notice of the potential for growth in this space, and many are betting on companies like Shopify to continue their success.
One of the biggest opportunities for e-commerce companies is the growth of mobile commerce. With the increasing use of smartphones and tablets, consumers are increasingly turning to mobile devices to make purchases. According to eMarketer, mobile commerce is expected to account for over 72% of e-commerce sales by 2021, up from just 58% in 2017.
Another area of growth for e-commerce companies is international expansion. As the world becomes increasingly connected, the potential for growth in international markets is enormous. Shopify has already established a presence in over 175 countries, but there is still room for growth as more small businesses look to expand globally.
Conclusion:
Shopify has been one of the biggest success stories in the world of e-commerce and retail investing. The company’s success has been driven by several factors, including the growth of e-commerce, the ease of use and affordability of its platform, and its ability to provide merchants with access to a global audience. As e-commerce continues to grow, companies like Shopify are well-positioned to continue their success, and investors who bet on these companies are likely to reap the rewards in the years to come.
