A KeyBanc analyst says Shopify could eventually rival Amazon in gross merchandise volume, according to a report by Bloomberg.
Josh Beck wrote in a note to investors that the online marketplace has received “overwhelmingly positive” feedback from developers, partners and merchants at three recent conferences. He also raised his 2020 revenue price target from $300 to $350.
He said Shopify revealed an “impressive array of product launches” for its eCommerce platform, including “complex” shipping innovations like automation capabilities, as well as features for multi-currency use and better developer tools. The company’s market share, he said, could grow three times in five years to 9 percent.
Keybanc maintains an overweight rating on Shopify shares, which have grown 127 percent year to date, through the end of last week. Shopify, which is based in Ottawa, reached a new record high on June 20 when it announced that it was going to spend $1 billion on fulfillment centers in the United States.
In other Shopify news, the company recently announced that merchants can chat with customers through Apple Business Chat inside of Shopify Ping.
“And it’s as simple as using the Messages app on iPhone, iPad, Mac and Apple Watch. With just a few clicks, the Messages button will be featured on every page of your online store, and any visitor can quickly ask for product information, and easily and securely pay for products with Apple Pay right within the conversation,” Shopify said in the announcement. “This new feature brings Apple Business Chat to Shopify’s 800,000+ merchants around the world.”
Customers who talk to a shopping representative are three times more likely to buy a product, Shopify said, and the chat can create a real, personal connection that will increase loyalty and shopper return rates.
“For merchants, you can now manage and respond to all your Apple Business Chat customer conversations through Shopify Ping. We introduced Shopify Ping last year as a dedicated mobile app that brings together all your customer conversations, along with intelligent, automated marketing workflows,” the company said.