By Deborah Mary Sophia
(Reuters) – Heather Perry made a bold bet before last year’s holiday rush: switch all e-commerce operations of her family-owned roastery, Klatch Coffee, to Shopify.
The 42-year-old small business CEO from Southern California was drawn to the Canadian company’s artificial intelligence-based services that automate routine tasks such as generating discounts and product descriptions, its improved customization tools and a broader suite of apps.
“Running the business from scratch during the holiday season? I can’t even imagine,” Perry, who migrated to Shopify in July, told Reuters.
“Shopify allows us to make really quick changes. Honestly, I can’t imagine doing it manually.” She declined to name the platform she was on before making the shift.
Perry is among hundreds of merchants in North America who have migrated to Shopify to build online stores and manage retail businesses, according to data from internet analytics firm BuiltWith and Reuters interviews with a dozen sellers.
The company’s AI suite, “Shopify Magic”, is reshaping the e-commerce landscape by equipping small businesses with automation tools once exclusive to retail giants, fueling growth in a challenging retail environment.
Shopify generates revenue largely from subscription fees and cuts on transactions on the platform. Its revenue is expected to jump 27.3% — the fastest growth in six quarters — when the company reports its holiday quarter results on Tuesday, according to data compiled by LSEG.
The growth is also faster than that of the industry. Global e-commerce sales are estimated to have risen 8.4% to $6.091 trillion in 2024, according to forecasts from eMarketer. In comparison, Shopify’s revenue is expected to have climbed 24.6% during the same period, according to LSEG.
The move is also putting Shopify on a firmer footing after a post-pandemic slowdown. Revenue had soared more than 90% for four straight quarters during the COVID-19 lockdowns as homebound consumers flocked to online shopping. Growth sputtered as restrictions eased.
Now, the store count is climbing again. BuiltWith data shows the number of stores registered on Shopify increased by 20% in the July-September quarter, a crucial period of planning for businesses.
Shopify is “attracting a large volume of sellers” at a pace approaching COVID-era growth rates, said Ken Wong, an analyst with Oppenheimer.
‘GAME-CHANGER’
The company’s subscription plans range from $39 per month for a basic package to $2,000 for the enterprise-focused Shopify Plus. All plans come with some “Shopify Magic” features that automate tasks such as generating images, writing product descriptions, tracking sales and setting up discounts.
