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Shopify’s strategy to attract bigger clients is paying off, quite literally.
The tech company that builds e-commerce stores added 16 enterprise clients for the most recent quarter, Shopify President Harley Finkelstein said, shortly after the company reported strong third-quarter financial results.
A rise in revenue from larger brands like Reebok and Off-White helped push Shopify’s Q3 revenue up 26% to $2.16 billion.
“Q3 was an exceptional quarter in terms of new enterprise-level brands coming to Shopify,” Finkelstein said.
In the three months to September, Shopify has onboarded enterprise clients like luxury handbag company Fashion File, jewelry designer Brilliant Earth, and cosmetics company Beautycounter, as well as apparel brands Haynes and Vera Bradley.
On the enterprise side, Shopify now has multiple gateways for brands to engage with, including Shopify Plus and Commerce Components. The Canadian company is leaning towards becoming a customized e-commerce platform as opposed to all in one.
“Our platform’s composability gives large brands the flexibility to choose modular components,” Finkelstein said. “One of the best things about modular components is that integration can happen fast. In fact, we recently had an outdoor gear company go from handshake to full implementation in less than three weeks. Seriously, in under a month, we had the Shop Pay button up and running in their checkout.”
In June 2023, Shopify made its popular checkout feature Shop Pay available to enterprise clients. Brands like Victoria’s Secret are coming soon to the Shop Pay commerce component, Finkelstein said on the earnings call.
“This idea that some of these large brands that are very sophisticated still don’t have an optimized checkout like they would have on Shopify is becoming a competitive liability. And so that’s also driving things quite a bit,” he added.
Shopify’s low cost for managing e-commerce stores is another key factor. Last month, Bloomberg reported that Shopify managed to woo some Salesforce clients for the same reason.
“The fact that we have this very transparent pricing with very large enterprise brands makes it that they understand exactly what they’re getting,” Finkelstein said.
Ultimately, Finkelstein said, “enterprise is not a short-term play. It is a massive opportunity to build for the long term, and we are positioning ourselves well to continue to capitalize on it today and in the future.”