Shopify says it is not going to create a marketplace, but the Shopify app recently became one. The app now allows you to find merchants, add their products to the cart and make purchases without leaving the app.
Toby Lütke, CEO of Shopify states: "There's a completely obvious plan of action for Shopify that I think everyone can see. "#nbsp
In an interview with Harley Finkelstein, president of Shopify, The Verge's Neil Patel asked: "Do you see your development in the consumer direction, where you're launching a catalog for a lot of independent businesses?" Harry replied, "No. We have no plans to become a marketplace."
Still, Shopify is gradually adding functionality that brings the Shop app closer to a marketplace. When the app launched in April 2020, it didn't have a shopping cart or built-in checkout. When you clicked on items, a pop-up window appeared with a page on the Shop's website. Now all of these features are integrated, allowing you to shop without leaving the app. The app meets the definition of a shopping site.
Shopify app for the store.
The missing element is the ability to search for products, not sellers. That is, the app does not allow you to find sweaters among all possible "Shopify" sellers. Instead, it shows sellers with the word "sweaters" in the name. But Shopify is now pilot testing a feature that solves this problem. "Shopify is secretly testing a new search feature that will allow customers to search for items by all Shopify sellers - meaning items from competing brands will be displayed next to each other," Madeline Stone wrote for Business Insider.
However, not everyone at Shopify agrees that the product search feature should be present. Universal search means a ranking algorithm and deciding which metrics affect the order of items. Ultimately, universal search also means an advertising platform for sellers who want to pay to rank higher.
Shopify doesn't have a clear direction for the app, but in the meantime it gets millions of downloads a month because Shopify includes it in emails after purchase. More people download this app than Walmart, Nike, Target.
If Shopify deployed universal search for everyone, the Shopify app - because of the tens of millions of shoppers who downloaded it - would immediately bring in significant GMV. But not significant enough to affect broader e-commerce.
Instagram, Facebook, TikTok, Pinterest, Google Shopping are shopping sites for "Shopify" sellers. So are Amazon, Walmart and Target shopping marketplaces. Shopify isn't ultimately competing with Amazon - its sellers are - and even they are increasingly no longer competing with Amazon. Becoming more like Amazon, trying to compete with Amazon, seems like a pointless idea.
Shopping site functionality is not enough to make "Shopify" a place to shop. "Shopify" may have it all in place, but it doesn't have a value proposition for shoppers. The app won't be able to replace Amazon or other retailers because its choices are very limited. It also won't be able to focus on just a few categories because that's already done well by the new wave of DTC marketplaces like The Fascination, Thingtesting or Etsy. It also won't be able to replicate the social features and user-generated content of Instagram or TikTok. Finally, it's unclear whether brands will benefit from it or instead see their products get lost in search results.
"Shopify, perhaps unintentionally, has created a marketplace. But, as Toby Lütke said, it's a consistent plan of action. The scheme won't lead to e-commerce imbalance.
read more here*.Shopify says it is not going to create a marketplace, but the Shopify app recently became one. The app now allows you to find merchants, add their products to the cart and make purchases without leaving the app.
read more here*
Toby Lütke, CEO of Shopify states: "There's a completely obvious plan of action for Shopify that I think everyone can see. "#nbsp
In an interview with Harley Finkelstein, president of Shopify, The Verge's Neil Patel asked: "Do you see your development in the consumer direction, where you're launching a catalog for a lot of independent businesses?" Harry replied, "No. We have no plans to become a marketplace."
Still, Shopify is gradually adding functionality that brings the Shop app closer to a marketplace. When the app launched in April 2020, it didn't have a shopping cart or built-in checkout. When you clicked on items, a pop-up window appeared with a page on the Shop's website. Now all of these features are integrated, allowing you to shop without leaving the app. The app meets the definition of a shopping site.
Shopify app for the store.
The missing element is the ability to search for products, not sellers. That is, the app does not allow you to find sweaters among all possible "Shopify" sellers. Instead, it shows sellers with the word "sweaters" in the name. But Shopify is now pilot testing a feature that solves this problem. "Shopify is secretly testing a new search feature that will allow customers to search for items by all Shopify sellers - meaning items from competing brands will be displayed next to each other," Madeline Stone wrote for Business Insider.
However, not everyone at Shopify agrees that the product search feature should be present. Universal search means a ranking algorithm and deciding which metrics affect the order of items. Ultimately, universal search also means an advertising platform for sellers who want to pay to rank higher.
Shopify doesn't have a clear direction for the app, but in the meantime it gets millions of downloads a month because Shopify includes it in emails after purchase. More people download this app than Walmart, Nike, Target.
If Shopify deployed universal search for everyone, the Shopify app - because of the tens of millions of shoppers who downloaded it - would immediately bring in significant GMV. But not significant enough to affect broader e-commerce.
Instagram, Facebook, TikTok, Pinterest, Google Shopping are shopping sites for "Shopify" sellers. So are Amazon, Walmart and Target shopping marketplaces. Shopify isn't ultimately competing with Amazon - its sellers are - and even they are increasingly no longer competing with Amazon. Becoming more like Amazon, trying to compete with Amazon, seems like a pointless idea.
Shopping site functionality is not enough to make "Shopify" a place to shop. "Shopify" may have it all in place, but it doesn't have a value proposition for shoppers. The app won't be able to replace Amazon or other retailers because its choices are very limited. It also won't be able to focus on just a few categories because that's already done well by the new wave of DTC marketplaces like The Fascination, Thingtesting or Etsy. It also won't be able to replicate the social features and user-generated content of Instagram or TikTok. Finally, it's unclear whether brands will benefit from it or instead see their products get lost in search results.
"Shopify, perhaps unintentionally, has created a marketplace. But, as Toby Lütke said, it's a consistent plan of action. The scheme won't lead to e-commerce imbalance.
read more here*.Shopify says it is not going to create a marketplace, but the Shopify app recently became one. The app now allows you to find merchants, add their products to the cart and make purchases without leaving the app.
read more here*