From its 3000 employees, Shopify has neither the size of an Amazon nor the market value of a Square. And yet, this e-commerce specialist is growing at a fast pace as a lucrative niche in the transactional business, both online and offline.
Ottawa’s full-service business in Montreal, Toronto and Waterloo have doubled in size since 2016. Its superb offices in Montreal’s downtown Victoria Square have gained an extra floor to give space to 120 newcomers in the short term, then 150 other professionals thereafter.
In short, even if the likely arrival of a new rival like Adobe Systems in the transactional tools was enough to drop its 6% stock market at the beginning of the week, the company is not afraid for its future.
“We see the same everywhere: there are more people than ever who want to start a business. In Quebec, 46% of people are thinking of creating their own online storefront to sell their products. For us, the total amount of sales made using our platform has jumped 187% in one year, “says Cynthia Savard Saucier, Shopify user experience manager.
A giant who does not know
In the eye, we really feel that Shopify is a giant who ignores himself. One has the impression that its existence outside Silicon Valley weighs on the perception of investors and technology experts. After all, this is a company that helps 600,000 merchants in some 175 countries.
However, the company remains to generate stable and sustainable profits. In 2017, it recorded a net loss per share of $ 0.40, which is typical for a start-up, but what will have to change, if Shopify wants to consolidate its place in a digital retail market that is becoming hotter.
“It’s going very well for us, but we feel we can do better,” says Savard Saucier. “In Quebec and elsewhere in the world, we need to become more involved in local communities.” A lesson learned a little bit the hard way two years ago when management was looking for a communications expert to serve the French-language market. Quebec … based in Toronto.
“Today would not work,” said Larry Lumsden, vice president of engineering. “We’ve grown a lot since then.” Both physically, with bigger workspaces, than mentally, understanding better the need for face-to-face visibility where we do business, even if everything is based on online sales dematerialized.
Canada at the heart of the world
Last fall, on the occasion of the famous crazy American Friday, Shopify treated for a billion dollars in online sales, in one day. All this was done from Montreal, where the payment tools (“check-out”) of its platform are developed. Unlike others, in addition to creativity, it’s the technical quality of Montreal workers that interests Shopify.
“There are very competent people on the technical side of digital in Montreal. You do not have to go to California to look for them. At the same time, they do not need to go to California to find a job in their field either. We are here! “Says Lumsden.
Another dissonant bell-sound: the shortage of labor, which is perhaps not as serious as we like to portray it, in Quebec. “With only six universities in Montreal, we have all the talent we need.”
It helps when we have to ensure the proper functioning of thousands of transactional sites on a daily basis. In addition to branch payment tools, a key component of Shopify’s strategy to differentiate itself from Amazon.
“Shopify was founded by a snowboard manufacturer who had to create their own digital sales platform, both online and in person. We do not want to hide our traders. We want to help them develop their brand. We believe that the more voices, the more choices, “says Savard Saucier.
“No, the retail business is not dead.”
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