In this guest article, Derek O’Carroll, CEO, Brightpearl, outlines three reasons for eCommerce merchants to monitor the behind-the-scenes ongoing battle between Amazon and Shopify.
The behind-the-scenes battle going on between the two biggest eCommerce platforms in the US – Amazon and Shopify – could have significant implications for merchants.
Amazon’s real customer is the end consumer – rather than the merchants that make up its Marketplace business. The eCommerce king keeps its eye on its most successful merchants and often introduces its own similar products — sometimes at lower prices — in direct competition
It’s a strategy that’s starting to see Amazon lose ground to Shopify, with New York Times Magazine recently revealing that some merchants are starting to leave Amazon in favour of the eCommerce platform which focuses on merchants as its only customers. This trend raises the stakes, and while, for now, Amazon and Shopify occupy different roles in the eCommerce ecosystem – the two might soon become direct competitors.
Here’s three reasons why this budding rivalry matters to online merchants: 1. Amazon and Shopify Could Launch Competing Services
It’s simplistic to think that merchants either sell on the Amazon marketplace or run their own stores on the Shopify platform. But, with increasing overlap between these players, things are starting to get interesting.
There remains speculation about whether Amazon might launch a service to go head-to-head with Shopify. In January, Australian web store platform Selz announced that Amazon was acquiring the company. Industry analysts think Amazon could use Selz to try again with web store services.
On the other hand, Shopify’s focus is on helping its retailer customers cultivate their brands. Right now, about a million small-and-medium-size businesses pay Shopify $29 a month for the basic software and 7,100 Shopify merchants subscribe to Shopify Plus — a more customizable, upgraded version.Could Shopify be […]
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