Shopify has been one of the best-performing stocks of the last decade, with its share price skyrocketing by more than 5,000% since its IPO in 2015. The e-commerce platform has become the go-to choice for entrepreneurs and small businesses looking to set up an online store, and its success has been reflected in its stock price. In this article, we will take a closer look at how Shopify became one of the best-performing stocks of the decade.
History of Shopify
Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake in Ottawa, Canada. Initially, the company was an online snowboard shop called Snowdevil, but the founders struggled to find an e-commerce platform that met their needs. They decided to build their own platform and soon realized that their platform was more valuable than their snowboard business. They pivoted to become a platform provider, and Shopify was born.
Shopify went public in May 2015, with its initial public offering (IPO) raising $131 million. Since then, the company’s stock has been on a tear, increasing more than 5,000% to its current market capitalization of over $175 billion.
Factors Behind Shopify’s Success
Several factors have contributed to Shopify’s success, including its user-friendly platform, scalability, and customer support. Here are some of the key factors that have contributed to Shopify’s success:
One of the main reasons for Shopify’s success is its user-friendly platform. The platform is easy to use, even for those with little to no coding experience. This makes it an attractive option for entrepreneurs and small businesses who want to set up an online store quickly and easily. The platform’s drag-and-drop interface allows users to create a professional-looking online store without having to write a single line of code.
Shopify’s platform is also highly scalable, meaning that it can grow with a business as it expands. The platform can handle everything from a small mom-and-pop shop to a large enterprise-level business with thousands of products. As a business grows, Shopify can accommodate the increased traffic and transaction volume, without the need for the business to switch to a new platform.
Shopify is also known for its excellent customer support. The company offers 24/7 support via phone, email, and live chat. This level of support is essential for small businesses that may not have an IT department to rely on. The company also offers a vast knowledge base and community forum, where users can find answers to common questions and connect with other users.
Another factor behind Shopify’s success is the explosive growth of e-commerce. Online shopping has become increasingly popular, with consumers spending more time and money online. According to eMarketer, e-commerce sales are expected to reach $6.3 trillion by 2024, up from $3.5 trillion in 2019. Shopify is well-positioned to benefit from this trend, as more businesses look to set up an online store.
Shopify has also formed strategic partnerships that have helped to boost its success. For example, the company has partnered with Facebook to allow businesses to set up a Facebook store directly from their Shopify account. Shopify has also partnered with Amazon to allow businesses to sell on Amazon directly from their Shopify account. These partnerships have helped to increase the visibility of Shopify and make it a more attractive option for small businesses.