Shopify Looks to Bigger Clients for Steadier Profits

Shopify is expanding beyond small businesses into enterprise e-commerce, signing major brands like Reebok and Lionsgate, despite analyst concerns about the challenges of onboarding large clients, positioning itself as a competitor to Oracle, Adobe, and SAP.

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Shopify is a company that helps small businesses to set up online stores. Shopify introduced a new platform to help with large businesses to manage their online storefronts. Its customers include Reebok, Overstock, and Barnes & Noble. However, the analysts are critical about the move, as they think that Shopify is a company that helps small businesses, not big companies. Shopify President Harley Finkelstein has said that Shopify is for all types of businesses. 

Shopify has a market value of $145 billion, and their revenue rose 30% to $7.06 billion in 2023 and is on pace to rise by 28% this year. According to analysts, signing on big customers is not easy, because it requires sales teams, months of face-to-face negotiations and system integrations, which can take years. Shopify signed a contract with big brands, such as Off-White, BeautyCounter, and Lionsgate Entertainment. Shopify is now a strong contender against Oracle, Adobe and SAP, said Rick Watson, founder and CEO of the consultancy RMW Commerce Consulting with Shopify’s simpler sign-on process.