The Canadian e-commerce company that got its start selling snowboards online is expanding beyond mom-and-pop shops.
Driving the news: In a push to snatch a bigger piece of the US$6 trillion global e-commerce market, Shopify has started going after larger businesses that offer higher profit margins, including the clients of its rival, Salesforce.
- The company says it has already poached hundreds of clients from Salesforce, including Toys “R” Us and Casper, and is publicly encouraging more to jump ship.
- Shopify has also added more high-profile brands to its platform this year like Lionel Messi’s beverage company Más+ and Sofía Vergara’s Dios Mío Coffee.
Why it’s happening: The Ottawa-based company saw its growth stall coming out of the pandemic as consumers eased up on excessive online shopping. With profits from its smaller clients down, the company pivoted to bigger retailers with higher order volumes.
Zoom out: Shopify’s software already powers 10% of all U.S. e-commerce, but the company has been steadily building its global presence. Over half of its new merchants in Q2 came from outside its core, English-speaking markets like the U.S., Canada, and the U.K.—LA