As the coronavirus pandemic speeds up consumers' transitions to online shopping, Shopify reported that new stores created on the platform jumped 62 percent from March 13 to April 24 compared to the six weeks before. According to the company, the growth was powered by “the shift of commerce to online as well as by the extension of the free trial period on standard plans from 14 days to 90 days,” according to an announcement.
Shopify said the number of shoppers believed to have made a purchase for the first time from any merchant on the platform increased 8 percent from March 13 to April 24, compared to the previous six-week timeframe. The company also said the number of shoppers believed to have transacted from merchants they hadn’t shopped from previously jumped by 45 percent compared to the prior six weeks.
However, Shopify noted that gross merchandise volume (GMV) via the point-of-sale (POS) channel plummeted by 71 percent from March 13 to April 24 relative to the comparable six-week timeframe immediately before March 13, as most of the platform’s retail merchants halted their in-store operations. But the platform noted that retail merchants were able to replace 94 percent of lost POS GMV with eCommerce sales over the same timeframe.
Shopify CFO Amy Shapero said in the announcement, "Now more than ever, Shopify needs to be there for our merchants, so our focus during these challenging times is to help solve their immediate pain points. We are well-positioned to help our merchants, particularly given the accelerated shift to online commerce. Our strong balance sheet provides us with the flexibility to continue investing in the right merchant-first initiatives, supporting our merchants’ success now and well into the future.”
The company also rolled out many initiatives to support its retailers and protect its stakeholders over the continuing coronavirus pandemic. Those include the availability of gift card functions on all plans and the introduction of local curbside/in-store pickup/delivery, among other features.
Shopify reported revenue of $470 million and a net loss per share of 27 cents for the first quarter compared to analyst estimates of $443.1 million and 18 cents.