Image Courtesy: The software report
Shopify Inc. will make its e-commerce checkout system available to all retailers selling through Google and Facebook Inc., expanding an existing collaboration with the two U.S. tech behemoths and marking the first time the Canadian technology company has offered a product to merchants who do not use its platform.
Retailers who sell items on Facebook or Google sites such as Instagram, YouTube, or Google Maps will be able to give customers the option to pay using Shop Pay beginning in July for Facebook and later in 2021 for Alphabet Inc.’s Google. Shop Pay is a checkout tool that saves customers’ information, allowing them to complete online transactions more quickly. Retailers may currently access it through those social media sites, but they must be Shopify merchants to use it.
From its early days of assisting merchants in setting up websites in order to move their businesses online, Ottawa-based Shopify has grown to provide a suite of goods, including shipping, data analytics, and small business financing, and now refers to itself as a “retail operating system.”
Small businesses pay a monthly fee to utilise its basic e-commerce software; bigger businesses may pay hundreds of dollars per month depending on sales volume, a strategy that has proven extremely profitable for shareholders.
Shopify declined to comment on what, if any, income will travel between the three businesses as part of the agreement, which will be revealed later today. According to the company, more than 1 million merchants sell on the Facebook and Google platforms; each day, more than 1.8 billion individuals log on to Facebook, and a billion purchasing sessions take place on Google. As of 2:30 p.m. in New York, Shopify was up 0.8 percent to $1,317.59.
Furthermore, throughout the pandemic, global e-commerce has increased; market research company eMarketer forecasts that online retail sales would be valued at $4.89 trillion in 2021. According to Finkelstein, over 10% of e-commerce in the United States is done through Shopify businesses.