Shopify unveils new tools, Twitter tie-up to beat e-commerce slowdown

The logo of Shopify is seen outside its headquarters in Ottawa, Ontario, Canada, September 28, 2018. REUTERS / Chris Wattie / File Photo

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June 22 (Reuters) – Shopify Inc (SHOP.TO), has launched new tools to help its merchants sell to other businesses and on Twitter, as the Canadian tech giant attempts to shore up sales to counter a post-pandemic slowdown in online shopping. General Chat Chat Lounge

More than 100 new tools were unveiled on Wednesday, including those pushing for business-to-business, shoppers to connect their crypto wallets to a store and Apple’s (AAPL.O) “Tap to Pay” feature. iPhones.

Shopify, which helps businesses set up their online stores, hit the jackpot during lockdowns as global brands and mom-and-pop stores alike turned to selling online directly to consumers while their shops were shut down.

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With the economy reopening, however, investors are starting to question Shopify’s future, sending the company’s stock down 76% this year and erasing a big chunk of its pandemic gains.

Shopify’s answer to the slowdown is expanding into the wholesale market, a far larger avenue than direct-to-consumer and with “billions in untapped revenue”, according to President Harley Finkelstein.

Businesses are looking to move from direct-to-consumer to “connect-to-consumer”, which makes it easier for people to shop through social media platforms and pay using their phones, Finkelstein said in an interview.

“This is the next phase of retail … In many ways, shopping has become a vote with your brand to support that brand … and that’s what I think connect-to-consumer is all about.”

The post-pandemic world has thrown up challenges for Amazon as well, Shopify’s biggest rival, as it fields huge losses after building more warehouses than needed during the boom.

In a podcast earlier this month, long-time Shopify investor Mawer Investment Management’s Vijay Viswanathan said it was exiting the stock’s concerns about slowing growth and competition.

“The internet is getting crowded … it is getting harder and harder to justify the valuation.”

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Reporting by Nivedita Balu in Bengaluru; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

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