eCommerce

Shopify Poised To Become Second-Largest US eCommerce Company

Shopify to Pass EBay, Become Second Only To Amazon

The eCommerce brand Shopify is expected to pass eBay and become the second largest platform in the world in terms of sales volume behind Amazon, according to a report by CNBC.

Stock in the company has been roaring in the past year, going up 150 percent and passing eBay’s market cap. R.W. Baird wrote on Monday (Sept. 9) that if it continues on its current course, Shopify will surely pass eBay.

Shopify is a platform that helps merchants begin to sell online, and it offers certain tools to start shops online, as well as accept payments. Shopify is worth $40 billion to eBay’s $34 billion.

Baird said he expects the amount of merchants using the service to pass 1 million by the end of 2019, and his market research firm upped Shopify’s price target to $410 from $370.

Shopify’s Q2 revenue was $362 million, which is up almost 50 percent from a year ago. Its total merchant sales volume went up to $13.8 billion, which is also up 51 percent from a year ago. eBay has not done as well, and it reported $21.5 billion in total sales volume in its most recent quarter.

eBay recently announced that it was going to roll out Managed Delivery next year starting in the United States. The initiative will let high-volume inventory sellers meet growing customer expectations — and reduce complexity and costs, the company said.

“A common request we hear from our high-velocity sellers is to help make delivery of high-volume items easy and fast,” eBay President and CEO Devin Wenig said in an announcement on Wednesday (July 24). “Managed Delivery will be a competitively-priced logistics solution for businesses selling high-volume goods in popular categories like electronics, home and garden, and fashion. The implementation of this service will dramatically lessen the shipping burden on sellers, while improving the shopping experience and making unboxing fun for buyers.”

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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