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Shopify Idea Proposal (SHOP)

Shopify Idea Proposal (SHOP)

Will anything slow Shopify down in 2018?


Report Available: March 14, 2018


Blueshift’s initial research found SHOP surging with dramatic revenue growth and more than 600,000 merchants generating over $9 billion on its platform in the fourth quarter. SHOP is adding features and partnerships to continue offering its merchants the tools to excel in their online businesses. The company weathered an October 2017 attack from Citron Research. Still, SHOP’s Q4 growth was the slowest since 2015 despite outperforming expectations.



  1. SHOP’s Q4 beat expectations with revenue up 71%. Monthly Recurring Revenue (MRR) was up 62% compared to the same period last year. Shopify Plus made up 21% of Q4 MRR compared to 17% a year earlier. SHOP platform merchants generated $1 billion Gross Payments Volume over the four-day Black Friday-Cyber Monday weekend which peaked at $1 million of orders processed per minute. SHOP’s full year 2017 revenue increased 73% year to year. This growth resulted in a 50% increase in SHOP’s employee headcount.
  2. SHOP introduced shipping label printing capability on its mobile app so businesses can process customers’ orders more quickly directly from their phones. The app allows access to all the features currently available with Shopify Shipping, including lower shipping rates than retail. SHOP is also including augmented reality into its offerings to provide a richer e-commerce experience. The AR app allows customers to see how a potential purchase would look in their home or elsewhere, catching the attention of AAPL’s CEO Tim Cook for use on the company’s ARKit platform. SHOP has a deal to use its platform to run the Ontario government’s online and mobile cannabis sales.
  3. In October, noted short-seller Citron Research published a report saying SHOP was a “get-rich-quick scheme” with its growth driven by customers who would never have a viable business. These customers, the report asserts, were recruited by SHOP to create a website as an easy way to make money without doing much work, offering false promises of becoming millionaires with illegal marketing practices running afoul of the FTC. It also accuses SHOP of paying bloggers and to promote the company. SHOP shot back saying it does not sell business opportunities but a commerce platform, it complies with FTC rules, and it does not promise success to its merchants. A large portion of SHOP’s revenue is tied to sales generated by its users, challenging claims that its customers do not have a sustainable business.
  4. Blueshift’s April 27, 2017, report revealed that SHOP’s growth trend will not be hurt by the new variable-pricing model for its Shopify Plus enterprise platform, according to sources representing Shopify Plus users and partners. Shopify Plus customers said they would remain with SHOP despite price increases. The value proposition for SHOP users includes ease of use, reliability, customizable theme and design tools, coding flexibility, mobile apps, constant innovation, an assigned customer representative, a best-practice user community and 24/7 support.


How are merchants responding to Shopify Plus? How frequently are merchants using Shopify Plus? Are customers using SHOP’s payments, shipping, and capital features?What are the most frequently used features of SHOP? How are merchants’ business growing? How is SHOP facilitating this growth? What would derail merchants’ use of SHOP? Is SHOP getting merchants into higher-priced plans? What are trends around merchant churn for SHOP? If there is churn, where are customers going? What were the effects of the Citron report on SHOP’s ability to sign up new merchants? How is SHOP’s AR feature being received by merchants? What other features is SHOP rolling out?  To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Shopify merchants, Merchants using competitors, Shopify partners, and Industry specialists.


Companies: Shopify Inc. (SHOP), PayPal Holdings, Inc. (PYPL), Inc. (CRM), SAP SE (SAP)


Research Begins: February 26, 2018


Are you aware Intro-act, our corporate access solution, is part of the Blueshift Research ecosystem? To learn more, go