Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems.
Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.
Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake after attempting to open Snowdevil, an online store for snowboarding equipment. Lütke used the open source web application framework Ruby on Rails to build Snowdevil’s online store, and then launched Shopify in 2006 to offer the same technology to other retailers.
Shopify was initially written in Ruby on Rails as well, but was later rewritten in Elixir. In 2019 it represented 82 percent of gross merchandise volume (GMV) processed by all merchants using third-party platforms with $41.1 billion GMV out of $50 billion total.
Shopify has been praised for its ease of use, with some reviewers writing that setting up a new store on Shopify is easier than setting up a new WordPress site. It also offers users a wide range of customization options, which can be a pro or a con depending on the user’s needs.
Shopify has been growing rapidly since it went public in 2015, but its stock price took a hit in 2018 when it announced that it would be increasing its investment in marketing and R&D in order to sustain its high growth rate. However, Shopify’s stock price has recovered since then and is now trading at around $130 per share.
– Caveat emptor!
– Let the buyer beware!
Overall, Shopify is a good long-term stock to buy and hold. It is a leader in the e-commerce space and is well-positioned to continue growing at a rapid pace.