Amazon is setting up an independent website to challenge Shopify


Author:Yu Xiaoying
Source: ennews

Benchmarking Shopify, Amazon Layout Independent Station


According to Bloomberg24thReport, AmazonInsiders say that,Amazon is developing aandShopify similar products,This will help sellersEstablish an independent online store.


Regarding this,Tobi L ü tke, CEO of ShopifyThe response is that Amazon is a respected competitor,Shopify is ready for this competition.


Amazon andShopifyThe dispute over independent stations seems to be brewing. In fact, as early asIn 2015, Amazon ceded its independent website business toShopify.


Sellers who have been out to sea for a long time may know that Amazon previously operated a service calledWebstore”. This business mainly helps small and medium-sized enterprises establish their own online retail stores. Bang&Olufsen, Fruit of the Room, Lacoste, and other 80000 companies have all been its customers.


However, at that timeAmazon ExecutiveBelieving that,The service of Webstore is not very good, and its sales are comparable to Amazon'sshoppingwebsiteSales onOvershadow.At the same time, the competition in this market is becoming increasingly fierce, including the emergence ofNew technology companies, including Shopify and Bigcommerce, have secured strong venture capital investments and started improving their product lines to compete for customers.


two hundred and one5 yearsAmazonannounceClose the website building service for online storesWebstore.Not only that,Amazon willRecommended toShopify,And publicly announced that this Canadian company is its preferred partner for overseas online stores,And withSell its website construction department to Shopify for $1 million.In exchange,Shopify agrees to provide Amazon Pay to merchants.


A business that was once not favored by Amazon, but later developed rapidly. One personFormer Amazon executiveRepresent:Shopify makes us look like fools.


Strong development momentum, Shopify challenges Amazon's position


ShopifyThe rise of Amazon has seen opportunities.


ShopifyThe development in recent years is evident to all. according toAccording to MarketplacePulse, the number of merchants on the Shopify platform reached 1.749 million in the fourth quarter of last year.


Not only merchants, but also consumers have increased accordingly. this yearIn September, Similarweb data showed that Shopify's monthly average independent visitors surpassed Amazon's for the first time in the second quarter of this year. In the three months ended June, Shopify's monthly average independent visitors reached 1.16 billion, while Amazon's was 1.1 billion.


ShopifyAs it becomes hot, its income also increases accordingly.In 2020,ShopifyThe total annual revenue is$2.9295 billion, an increase of 86% compared to 2019. Among them, subscription solution revenue increased by 41% to $908.8 million; The revenue from merchant solutions increased by 116% to reach $2.007 billion. In addition, GMV reached $119.6 billion, an increase of 96% compared to 2019.


The latest data shows that in the third quarter of this yearShopify's revenue was $1.124 billion, a year-on-year increase of 46.5%. The net profit was 1.148 billion US dollars, compared to 191 million US dollars in the same period last year, a year-on-year increase of 501%, maintaining profitability for six consecutive quarters.


During the entire Black Five Network One period,Shopify's sales reached $6.3 billion, a 23% increase from global sales of $5.1 billion in 2020


Outgoing Information Amazon Layout Independent Station, Wanting to Challenge Shopify


Shopify's growth has also brought challenges to Amazon. Between 2015 and 2020, Shopify's compound annual growth rate (CAGR) reached 70.2%, while Amazon's CAGR during the same period was only 29.3%. Moreover, Shopify's stock price has soared by 4460% in the past five years, while Amazon has only risen by nearly 400%.


For Amazon today, it has been pursuingCustomerssupremeThe attitude of neglecting the seller's feelings has been criticized. andShopify's services focus onsellHome, forsellerProvide technology and templates for building online stores, manage omnichannel marketing, sales, payment, logistics and other services. For sellers, they are relatively free and can also build their own brand.


Shopify frequently releases new features, striving to catch up with Amazon


However,Shopify's $182 billion market value is still less than one tenth of Amazon's $186 trillion market value. thereforeShopifyWant to catch up with AmazonofAmbitionIt's not just about drawing pancakes.


Amazon providedPrimeMembers have launched aSend a GiftThe function of allowingPrimeMembers can also choose gifts for their family or friends without a shipping address.


andShopifyTwo days ago in the United StatesQuietly launched a 'gift shop'(Gift Shop”The function of can also be said to directly benchmark Amazon.


Users can send gifts directly through text messages, emails, or social media. Users through similarSweet treats”“Gift under $50”Wait for the tag, browse through the selected gifts inside, and select fromShopifySelect from the relevant merchant product list. After consumers have finished selecting, the system will prompt them to enter relevant information about the recipient and sender, and provide custom links. Afterwards, the consumer sends the link to the gift recipient.


The system will not charge consumers any fees until the recipient accepts the gift and enters their own information. And it will also provide the recipient with some detailed information about the seller of the modified product.


Amazon, a cross-border e-commerce platform, plans to establish an independent website and challenge Shopify


Gift ShopThe function not only ensures the financial safety of consumers, but also avoids unnecessary losses caused by the recipient not accepting the gift. At the same time, it can also allow merchants of related products to gain as much exposure as possible.


andGift ShopNot reallyShopifyin order toThe only feature introduced through evolution.ShopifyWe are currently testing a new search feature that allows consumers to display related products from multiple merchants while searching for products.However, many businesses have expressed that such a search function may cause disputes among competing brands and harm the interests of businesses.


Because the algorithm used in this search results in determining which indicators will affect ranking. It is also likely that ultimately, the ranking of search results will be determined by the amount of payment.


Therefore, many sellers participating in the testing are concerned that this search function will eventually become aThe Victory of Capital.


Amazon is in danger, and multiple platforms want to take a share


Not onlyShopify, evenSHEINTikTokMore and more platforms are interested in the Amazon marketThe cake is eyeing with envy.Especially with Amazon's frequent suspension of accounts, many sellers have defected to small and medium-sized e-commerce platforms such as independent websites with higher degrees of freedom and less platform constraints.


according toOnlineCasinoMaxi. deData,SHEINThe combined download volume in Google App Store and Apple Store worldwide is approximatelyone thousand seven hundred and fifty-twoTen thousand times, which is more than twice the total download volume of Amazon applications. alsoSHEINOur revenue is also steadily increasing, fromtwo thousand and sixteenAnnualforty100 million yuan totwo thousand and twentyYear approachingone hundredRMB100mn This growth rate has also given many business sellers high hopes for it.


In the eyes of some experienced cross-border e-commerce professionals,TikTokE-commerce is also a branch ofPotential stocks.according toTikTokThe latest data released shows that its global monthly active user count has exceededtenBillion, and launchedTikTok ShoppingIntegrating marketing and advertising functions. The various product promotion functions included can bring great traffic and exposure to merchants.


ShopifyAndTikTokAlsoThe "strong alliance" continuously deepens the linkage.


In the third quarter of this year,ShopifyandTikTokCollaborated to develop a feature that allows shoppers to purchase products directly from social apps, and also providesShopifyMerchants can provide product links atTikTokMark the product in the post.TikTokUsers can shop directly from the merchant's storefront, or click on the merchant'sTikTokTag in the video, enter the merchant's store for purchase.


This approach increases the channels for merchants to expose their products and stores,Can also provide consumers withThe usage scenario and dynamic details of the product will be decided upon for purchase later. Providing a more favorable trading environment for both buyers and sellers.


In the Chinese market, JD has also accelerated its overseas layout and closed downJoyBuy, forShopifyThe seller has launchedOne Stop Selection PlatformJDSourcing.


In addition to investing in cross-border e-commerce platforms, we are also actively building our own logistics system and fully expanding our global business. According to public information, JD's global sales businesstwo thousand and twentyThe annual sales revenue has increased year-on-year251%. Among them,two thousand and twentyJD ThailandGMVYear-on-year growth170%, registered userfive hundred and tenten thousandOrder quantity increased year-on-year82%.


Although the Amazon market has gradually been dominated by variousIt is difficult to guarantee that the future of Amazon will not be affected by the encroachment of "rising stars" if no changes are madestillyesOne branch stands out alone. But overall, Amazon's position as a global e-commerce giant remains relatively stable, coupled withShopifySHEINTikTokThe development of e-commerce and other platforms provides sellers with more choices and layout ideas, which is not necessarily a good thing.

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