Shopify App - A Little Conflicted

SaaS
Written By Rick Watson

Shopify released earnings this morning. The company has "deleted" its plans and is pretending this is the new normal for acceleration, boosted by a new 90 day trial. Wow.

A few things stood out to me from Tobi's comments in Q&A:

Shop App first:

  • Shop App's primary goal is to increase LTV (Parker Block music to your ears). A direct quote from Tobi.

  • In particular: "We aim to deepen relationships with brands you are already buying from." Shop App is not about consumer purchase consideration at all. (i.e. finding which brand to buy from). So yeah no marketplace.

EXCEPT

  • The "local discovery" feature in the app was an experiment launched from a hack day. And is already driving at least some sales. That's good, because it feels bolted on.

  • The big problem is this feature is about discovery not LTV. Which is a little against the mission Tobi just talked about. The local brand you discover is a Shopify merchant with POS, not "someone you already bought from that you're trying to improve LTV on". So it's already a little conflicted.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
Previous

7 Deadly Marketplace Sins
Next

Wayfair Earnings Calls Are Exhaustive / Detailed Presentations