Shopify, the eCommerce platform out of Canada, has inked a deal with eBay to enable merchants to sell directly through eBay.
According to a news report in Bloomberg, by teaming up with eBay, Shopify has another outlet for its 400,000 users. The eBay integration will first be available for U.S. customers selling in U.S. currency.
When the company inked a deal with Amazon back in 2015, that was similar in nature. Shares surged on the news, noted the report. Shopify’s strategy has long been to integrate with as many eCommerce channels it can so that its customers can diversify away from their own website. Shopify provides merchants with payment tools, shipping services and small loans.
Unlike Amazon and eBay, which build marketplaces, Shopify provides tools for merchants to sell their products online and offers point-of-sale software and hardware for physical retailers. Bigcommerce, a rival of Shopify, is already integrated with eBay, noted Bloomberg.
Satish Kanwar, vice president of product at Shopify, told Bloomberg its customers have been requesting integration with eBay for some time now. “We think a lot of merchants will gravitate toward this,” Kanwar said in the report.
In June, Shopify Capital released details from its Q1 2017 earnings call, which many are speculating will lead to a 25 percent return on investment (ROI). Following a recent $561 million equity funding round, and with $18.6 million in merchant cash advance (MCA) and $11 million in new cash advances as of April 2017, the company is likely in a solid spot.
Through high-level subscription plans, Shopify is enabling retail merchants to continually grow with changing needs. The company is also pushing highly sought high-volume merchants onto its Shopify Payments offering. Shopify tends to pay back its MCA receivables within seven to nine months. The potential for Shopify Capital to provide a 20 to 25 percent ROI is dependent upon its remittance rate, and the given timeframe for MCA payback will likely be a determining factor.