Stay at Home Success! Shopify saw 97% revenue growth in 2nd quarter

Finance
1

Although many are struggling to stay afloat during the pandemic and quarantine, some are thriving. Among those are grocery stores, professional cleaning services, food and package delivery services, meal subscription services, telehealth, construction/DIY related businesses, and of course, online retailers. Shopify is no different, and they saw enormous growth in Q2 2020.

Shopify, for those who are unfamiliar, is defined on their website as an “all-in-one commerce platform to start, run, and grow a business.” It helps businesses create websites and check out systems in order to process orders and payments.

In Q2 2020 they saw a 7.2% increase in shares and a 97% revenue growth. That’s some success! With the pandemic, the shift to online shopping was evident. We saw a number of restaurants jump onto delivery service platforms and Shopify experienced a similar thing. They saw a 71% growth from Q1 to Q2 in new stores and a 119% growth in merchandise volume.

Do you think this success will continue for them once the pandemic dies down and the shops will stay active? Was the pandemic a “push” to move most retail to online? What other companies have you seen report such sizable growth in recent months?

2

97% growth is incredible. It makes wonder how well their supply chain was able to handle that kind of increase. I do think the pandemic is changing retail for good to the majority of transactions being online. However, other industries, such as food delivery I think will see a decrease once it’s over.

3

Agreed on the food delivery thoughts. I have friends who own a food truck, and they reviewed food delivery options when the Stay at Home orders first hit. They said that the cut that companies such as Grub Hub or Uber Eats take isn’t worth the extra time and effort to implement online ordering systems. They also mentioned that many of these food delivery companies are contractual, meaning that each restaurant has signed on for X number of months/a full year on the platform. So after COVID-19 is managed, I think it’ll take a few months for many of the newer addition restaurants to trickle off.