Can Shopify Compete With Amazon Without Becoming Amazon? (Published 2020)

But Finkelstein is keen to point out that while Shopify made a billion dollars in revenue last year, Shopify app developers made almost $7 billion as a community.

In a landscape where customer attention is the scarcest resource, Shopify’s very identity as a neutral platform and invisible infrastructure is perhaps both its greatest asset and its greatest limitation.

You need two components to build a successful e-commerce business, the software that runs the online store and the marketing to get customers to come to the store. A large part of what makes marketplaces like Amazon so attractive to merchants is that it provides both components.

If the key to Amazon’s success has been to put the customer first, for Shopify the key has been to put the merchant first.

Influencers, in turn, have realized that it’s more lucrative and meaningful to promote their own products rather than someone else’s.

“Amazon is designed to commoditize products to the lowest common denominator of what they stand for,” Joey Zwillinger, Allbirds’s co-founder

It took eight years for e-commerce as a share of retail sales in the United States to grow to 12 percent from 5 percent. It took only the 12 weeks between March and June this year to reach 16 percent from 12 percent.

For these sorts of e-commerce brands, what’s being sold isn’t just some product with utility. It’s a feeling, a community, an identity. Shopify, being the blank canvas it is, is much more suitable for this kind of projection than Amazon, which, by virtue of being Amazon, effectively eclipses individual brands on its site.

Shop resembles Google Shopping more than Amazon, and it lacks the convenience of a single cart. It’s a product that reflects the philosophical tug-of-war between Shopify’s original antimarketplace stance and its stated ideal of helping merchants be as successful as possible.