![]() ![]() Wong said Adobe was one of a handful of legacy players that remained significant Shopify competitors. AdobeĪdobe acquired Magento, an open-source commerce platform, for $1.68 billion in 2018. "Now they have resources to invest in a go-to-market, invest in their product," Ken Wong, a Guggenheim Securities analyst, told Insider. While Shopify's ambitions are to appeal to merchants of all sizes, BigCommerce's clients tend to be midsize or enterprise businesses, like Ben & Jerry's and Skullcandy, whose businesses are more likely to be complex enough to benefit from a more flexible tech approach.īigCommerce raised $216 billion in its August 2020 initial public offering. Like Shopify, it offers customers a variety of services from online-storefront building to omnichannel selling.īigCommerce's biggest differentiator is its emphasis on an open platform that allows merchants to combine services using application programming interfaces. Here are the companies that analysts say could be Shopify's biggest challengers across e-commerce, payments, and website building, from legacy tech companies to upstarts: BigCommerceīigCommerce provides e-commerce software for all kinds of online businesses. "They're methodically looking at all of the pain points that a merchant has, and they're trying to solve for them." ![]() "Our view is that Shopify's laser focus is what's really differentiating for them," Samad Samana, a Jefferies analyst, told Insider. Other companies that have previously focused solely on website building, like Squarespace and Wix, are leaning more into creating transactional tools as the opportunity for e-commerce continues to grow.īut analysts told Insider they were still largely optimistic that Shopify would continue to dominate the field. These product updates and the shift in strategy to promote its omnichannel services put Shopify in more direct competition with payments companies like Square and Lightspeed, as well as open-platform players like BigCommerce. Last year, Shopify also rolled out a social-commerce integration with TikTok, made key updates to its Shop app, and launched Shopify Markets, a services hub that makes it easier for its merchants to sell their products internationally. In recent earnings calls, Shopify has emphasized the strength of its services that help its merchants blend their online and offline offerings, including its revamped point-of-sale system, as many shoppers have grown more comfortable returning to stores. The e-commerce platform is now growing at a more normalized rate after it grew revenues 86% in 2020 and nearly doubled the sales transacted on its platform. Shopify's core storefront-builder product benefited from lockdowns that forced many small and medium-size businesses to sell online for the first time. Others are also leaning into e-commerce more, as the business opportunity remains large.Ī year after Shopify reported explosive growth amid the COVID-19 pandemic, the e-commerce giant is plotting its next moves - and taking on new competition in the process.Its new services have put it in competition with more companies than before.Shopify is constantly launching new services with an eye toward its merchants' needs.Account icon An icon in the shape of a person's head and shoulders. ![]()
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