Shopify...The Real Winner Of Facebook Shops
Shopify Inc. provides a cloud-based multi-channel commerce platform for small and medium-sized businesses. But don’t get it twisted, their customers also include customers such as Johnson & Johnson, Unilever and the Obama Foundation.
Shopify’s platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, ship orders, build customer relationships, leverage analytics and reporting, and access financing.
Well in June, Shopify introduced to their customers the Shopify Fulfillment Network, which gives merchants cheaper shipping, warehousing, and picking/packaging services. In early Sept., Shopify acquired 6 River Systems, a provider of warehouse fulfillment solutions and automation robots. And get this, the two founders of 6 River were previously executives at Kiva Systems. It’s such a small world, Kiva Systems makes those warehouse automation robots which was eventually acquired by Amazon. Com
This past week, Facebook announced Facebook Shops.
Facebook Shops which lets businesses operate online stores on Facebook and Instagram and in due time, Messenger and WhatsApp. Why now, Zuckerberg said because of COVID-19, small businesses have been force to move online, so Facebook Shops was created to assist small businesses with their endeavors online. According to Deutsche Bank analyst Lloyd Walmsley, the opportunity for Facebook Shop could amount to $30 billion in revenue. But the real winner of Facebook Shops is Shopify.
We’re announcing our partnership with Facebook to help businesses create Facebook Shops, a new and free tool helping merchants create a customized online storefront for Facebook and Instagram. As consumers increasingly shift to online and mobile shopping to find the products they want, tools like Facebook Shops will help merchants offer more seamless experiences and strengthen relationships with their customers.
Shopify has partnered with Facebook since 2015 to provide merchants the best multi-channel commerce solution, and is one of the first commerce partners supporting this new, mobile-first shopping experience. Merchants will get control over customization and merchandising for their storefronts inside Facebook and Instagram, while managing their products, inventory, orders, and fulfillment directly from within Shopify.
Shopify stock was once up 300% in 2019, before pulling back to the monthly demand when the company announced plans to sell 1.9 million shares in a secondary offering. But the reason for selling more shares was so justify, they want to take on Amazon.com How else is Shopify going to build a U.S. distribution network to store and ship products for its merchant customers?
The partnership with Facebook will most definitely will expand Shopify's user base. As businesses get more and more comfortable moving their business to the internet...this should only amplify the need for Shopify tools in the future.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
