Shopify’s Business Model
Shopify’s company mission is focused on "making commerce better for everyone." It offers a product plan priced between $29 to $299 per month. Through its software, Shopify provides what could be considered an "end-to-end" service for a store merchant.
I’ll break this up between the front-end and back-end:
- The front-end is the actual store website or everything that the merchant’s customers will see when they go to their website. It's similar to what you see while creating your own website with Squarespace or Wix.
- The back-end includes inventory management, payment processing, financing, data analytics, fulfillment, and reporting.
Shopify's essentially about providing a core value proposition of making it easy for a merchant to start and operate an online store. It’s also not obvious to shoppers that they are shopping on a Shopify platform; Ben Thompson from Stratechery noted how 218m people who bought products through a Shopify store didn't even know the company existed.