We saw the writing on the wall in 2019. Brands needed a way to connect with consumers on the digital front, directly.
At LikeFolio, we listen for consumer mentions of brands and services on social media… in real time, every day.
And one company was garnering serious buzz in response to this Direct-to-Consumer behavior shift: Shopify.
Now it’s clearer than ever:
Shopify is a Big Winner for Brands and Consumers
You can think of Shopify as the anti-Amazon.
In fact, you’ve probably completed a purchase powered by Shopify’s platform and didn’t even know it.
That’s one of its main value propositions.
Shopify empowers companies and brands to build out custom and effective digital experiences for consumers WITHOUT relying on an intrusive middleman (like… ahem… Amazon).
Just look at Shopify’s recent performance versus peers in the e-commerce space.
The x-axis displays current Purchase Intent Growth. The number of consumers talking about actually using one of Shopify’s services has increased nearly +120% vs. 2019 — and this is the FASTEST rate of growth versus peers.
The y-axis displays Consumer Happiness Levels. This is the percentage of sentiment mentions that indicated a consumer was happy with their Shopify experience — and this is also the HIGHEST rate of consumer happiness versus peers: +86% positive.
So — Shopify is exhibiting the FASTEST demand growth and HIGHEST levels of consumer happiness.
Shopify is Propelled by Major Consumer Behavior Tailwinds
Couple this Consumer Demand and Happiness outperformance with major consumer tailwinds, and you have a very powerful trifecta as an investor.
And boy is Shopify harnessing these tailwinds.
- Shopify is a complete e-commerce solution for businesses. The platform powers online presence, platform integrations, transactions and/or fulfillment for more than one million businesses in more than 175 countries.
- Shopify jumped on the buy-now-pay-later bandwagon with Shop Pay Installments, powered by Affirm. This functionality allows merchants to offer customers more payment choice and flexibility at checkout, helping merchants boost sales through increased cart size and higher conversion.
- Shopify provides logistical support for brands, creating a more robust shipping experience. Not only does Shopify partner with Returnly to optimize the product exchange process, but Shopify has made serious investments in fulfillment . On its last report, Shopify noted: “We give entrepreneurs the resources traditionally reserved for big business. Shopify’s scale enables us to negotiate on behalf of our smaller merchants as we do with Shopify Shipping. Since its launch five years ago, Shopify Shipping has really come into its own for self-shippers with over half our eligible merchants in the U.S. and Canada now using it.”
This trifecta is how we were so confident in Shopify, which re-iterated our Bullish outlook in May, even after booking triple-digit gains.
Shares have gained as much as +30% since then.
And, data says, the company is STILL growing. Check out consumer-facing Shop Pay mentions:
Isn’t it nice to have an edge?