Shopify

The company operates a multi-tenant, cloud-based commerce platform delivered as software-as-a-service. It creates value by providing merchants with a bundled environment to set up and run online shops, manage catalogues, orders and inventory, and sell across digital and physical channels, while abstracting away infrastructure, security and many payment and compliance complexities. The platform is extended via an app ecosystem and add-on services such as integrated payments, shipping and financing, which increase merchant dependence on the platform and raise average revenue per customer.

Revenue is generated from recurring subscription fees across tiered plans, additional subscriptions for retail POS software, and sales of POS hardware. A large share of revenue also comes from variable fees on payment processing and other merchant solutions, which scale with gross merchandise volume processed through the platform. Enterprise customers use a higher-priced edition on contractual terms with enhanced support and customisation options, providing higher per-account economics.

Shopify Inc. is a Canadian public company that provides a hosted commerce platform and related merchant services for businesses selling online and in person. Its multi-tenant SaaS platform includes website storefronts, checkout, order and inventory management, analytics, a point-of-sale system for physical retail, and an integrated payment gateway, along with an ecosystem of applications and extensions.

The company generates revenue primarily from subscription fees for its core commerce plans and add-ons, from payment processing fees through its integrated payments offering, and from retail POS software and hardware. Additional income comes from merchant services such as shipping and financing for business customers. Its users range from independent merchants and small and medium-sized businesses to high-volume and enterprise retailers using the enterprise edition of the platform.