Shopify (SHOP) provides a technology suite for e-commerce businesses with relative ease and efficiency and you can easily add Bitcoin and Ethereum addons to accept as payment. Since Shopify’s 2015 IPO the stock has been averaging 70% annual revenue growth and achieved 47% expansion over the most recent nine months, which is impressive since the amount of revenue required to sustain that growth also increases over time.
Future of Shopify (SHOP)
The retail industry has been shifting to the e-commerce channel for 15 years with online sales growing from 4% to 11% over the decade. Nonetheless, Shopify has never delivered net profits for a full year because they continue to invest heavily into growth but what will happen when growth slows? Moreover, growth is bound to slow down over time as low-hanging fruit runs out and the user base grows. At the very least, customer acquisition costs will eventually rise once the early movers and easily acquired customers are already on board, which will lead to either margin compression or slower growth.
As e-commerce grows it will be very hard for newer & smaller businesses to grow since e-commerce has become quite saturated with all these drop shippers advertising cheap products. In order for these small businesses to survive is to put customers first in every situation.
According to a recent report, the next 25 years of the evolving arena of e-commerce will be dependent on two trends, m-commerce (mobile commerce) and personalization. A customer-centric approach means being where the customers are and it’s likely on their mobile devices. From shifting buying habits to the next innovations, like voice commerce and monetizing the Internet of Things (IoT), shoppers increasingly expect the convenience of shopping whenever and wherever.
It’s not easy to predict where commerce will go next. We do know that for brands, the innovation imperative boils down to two things: keeping up with the rapid pace of consumer technology; and using that technology to create new efficiencies in core business processes.
To stay competitive and top-of-mind for shoppers, retailers need to be agile and innovative, and be able to touch consumers at all points within their buying journey, regardless of which channel they prefer.
We’ve moved beyond the initial discovery of being able to buy something online, which consumers began experiencing 25 years ago. As we look to the next 25 years, investment in the customer experience will be the key for the continued success of e-commerce.
Final Thoughts on Shopify (SHOP)
Although predicting where e-commerce may end up in 25 years is hard but I would keep Shopify on my watch-list throughout half of 2020.
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