Shopify And BigCommerce Building API-based Ecosystems

For the current fiscal, Shopify plans to invest in five key areas of growth. First, Shopify Fulfillment Network will continue to be a growth area. Shopify plans to invest in building the software that will fully integrate fulfillment into Shopify’s tech stack, optimize its distributed network of nodes, and improve the overall merchant experience to deliver fast and affordable fulfillment to end consumers.

Second, it plans to continue to develop the Shop App to transform it into a must-have shopping companion that promotes buyer loyalty and retention. It is looking at investing in building features that will help manage discovery to delivery for the buyer throughout the purchase process. Third, it plans to encourage international adoption by continuing to localize the platform in several non-English speaking geographies.

Fourth, it will invest in growing the adoption of Retail POS and POS Pro offering by investing in foundational technologies to make it easier for merchants to onboard and will be expanding its POS products to more countries. And, finally, it plans to invest in bringing Shopify Plus’s enterprise-level capabilities to more brands both in North America and internationally.

Meanwhile, Shopify has built a PaaS ecosystem through API integrations. The Shopify App Store allows developers to leverage API keys to publish apps on its platform. Shopify claims that it has delivered over 11.6 million app installs so far. 84% of the apps on its App Store have earned revenues for the developers and nearly half of its top 25 grossing apps were published in the last two years. Shopify allows developers to use its Billing API to charge for their app in three different ways: one-time, usage-based, or recurring charges. And, in return, the developer keeps 80% of all revenue. You can read more about my view on the Platform vs API Ecosystems here.

Shopify’s stock is trading at $1,300.24 with a market capitalization of $151.4 billion. It had touched a 52-week high of $1,499.75 earlier this month. The stock hit a 52-week low of $305.30 in March last year.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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