Jul 24, 2020
Shopify; The Canadian tech champion taking on Amazon
According to internal figures, new stores created on the Shopify platform grew 62% between 13 March and 24 April this year, compared to the prior six weeks. That's not to say though that people have been turning their backs on Amazon, which has also seen sales boom this year - in the first quarter revenue jumped 26% to $75.4bn. Shopify is going up against Amazon by launching its own warehouse and delivery network that lets shop owners deliver their products quickly to customers. "Amazon's competitive advantages are its vast supplier portfolio, which Shopify can already compete with, and its seamless distribution network. Shopify has been falling short in this second aspect. By focusing on distribution, their business model is getting closer to Amazon's, which is known to work well." Shopify will probably never compete in unbranded everyday goods, particularly as Amazon has its own ranges of products like batteries, light bulbs and pots and pans. As a meat supplier to more than 150 restaurants in the UK, Mr Warren's business took a hit when lockdown began, inspiring him to launch a Shopify store dedicated to selling his products directly to consumers.
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