July 8, 2024

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Payment Processing Fuels Shopify Earnings

In a sense, Shopify’s financial overview is similar to Amazon’s. Both derive the most profit not from their core products but from complementary services.

Amazon’s cloud computing division, an outgrowth of its marketplace infrastructure, accounts for over 60% of gross profit.

Shopify’s “Merchant solutions” — almost entirely Shopify Payments, its credit card processing service — produced roughly 70% of revenue in Q1 and 56% of gross profit.

Total revenue for Q1 — Subscription solutions plus Merchant solutions — grew by roughly 23% from the prior year, from $1.5 billion to $1.9. In comparison, Amazon’s Q1 2024 revenue was $143.3 billion, with $80.4 million for BigCommerce.

Shopify was an obvious pandemic winner, with its share price hitting an all-time high of $169.21 in November 2021. The stock (NYSE: SHOP) is down by roughly 60% — to $66.73 on July 4, 2024 — amid accelerating revenue but lagging net income.

Read article >

A Message from Walmart Marketplace

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Charts: Global Workforce Outlook Q2 2024

Per a recent PwC survey, the global workforce is experiencing much upheaval from technology and other forces. Read article >

Beware of Instant Site-speed Fixes

A Shopify store owner paid a firm to redesign his site. The result was slow page loads and the owner's journey to improve them. Read article >

Practical Ecommerce: Articles by Year

Our new archive presentation is a quick chronological rundown of every article and author from our founding in 2005 and selections from Web Marketing Today's founding in 1995. See archive >

From the Archive: August 2011

Entrepreneur Describes Selling an Ecommerce Business

Many merchants dream of building a successful ecommerce business and then selling it. Shirley Tan, the founder of AmericanBridal.com, did just that. Read article >

🔥 Today's Great Ecommerce Idea

Use Static Images Over Videos

"For faster page loads and better conversions, use optimized static images instead of videos or carousels." - Lukas Tanasiuk, Founder, The Nice Agency

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