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Wed Dec 16 2020 20:39:32

Lookout, Amazon. Should Shopify Launch a Marketplace?

By: Ina Steiner

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Ecommerce guru Juozas Kaziukėnas who runs Marketplace Pulse made some provocative posts suggesting Amazon and Shopify could encroach on each other's spaces.

In this December 14th tweet, he wrote, "If Shopify ever wants to become a consumer brand (like, I don't know, launch a marketplace) they should probably start sooner than later."

It seems like a logical and potentially lucrative move for a large ecommerce platform hosting merchants' stores to launch a single buyer-facing marketplace aggregating their listings, though liability and regulatory issues might diminish the appeal. (Marketplace Facilitator laws require marketplaces to collect and remit sales tax, for example.)

Accompanying the post was a chart from Google Trends showing "Interest over time" for three sites: Amazon, eBay, and Shopify. It showed interest in Amazon on the rise, interest in eBay on the decline, and Shopify well below the marketplaces in a flat line.

The same day, Kaziukėnas tweeted a link to a Business Insider article about Jeff Bezos becoming more involved in Amazon's daily operations with a callout to this line from the article: "Bezos has been directly involved in discussions about launching a new online store service that could potentially compete with Shopify [...] there's been a scramble among Amazon executives to respond to Shopify's meteoric rise."

"Shopify sells the software tools needed to build an e-commerce site and has become a popular alternative to Amazon for small businesses looking to sell their products online," Business Insider wrote.

But Amazon appears more interested in getting merchants to open "Stores" on Amazon itself, and for merchants with their own stores to accept Amazon Pay. And it doesn't appear sellers are beating down Amazon's door asking it to host their independent web stores. (Sudden flashback to Toys R Us.)

The questions are whether Shopify merchants would be interested in a Shopify marketplace (and if by doing so it would attract new merchants), and, if Amazon did launch a web-hosting service, would sellers be interested? Would you?



Comments (5) | Permalink

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Perminate Link for Lookout, Amazon. Should Shopify Launch a Marketplace?   Lookout, Amazon. Should Shopify Launch a Marketplace?

by: TDAKS This user has validated their user name.

Thu Dec 17 01:02:36 2020

Why not. Maybe it could simply promote itself as a search engine rather than a marketplace and avoid the sales tax carp.

Perminate Link for Lookout, Amazon. Should Shopify Launch a Marketplace?   Lookout, Amazon. Should Shopify Launch a Marketplace?

This user has validated their user name. by: The End

Thu Dec 17 01:24:24 2020

Amazon Pay ?
Never heard of it.
If Shopify develops a "mall", a 3% take is enough.
Otherwise is just doesn't make sense.
Materials, fuel, energy, and  an Hourly Living Wage must be taken into consideration.
And......ABUSE OF SELLERS AND ARTISTS.....will not be tolerated.
So the name of the game is to COUNTERACT the wrong headed Ebay / Etsy  effect.
The "Mall" may NOT butt in.
Our Stores, Our Rules.
Or, move on.

Perminate Link for Lookout, Amazon. Should Shopify Launch a Marketplace?   Lookout, Amazon. Should Shopify Launch a Marketplace?

by: shut1968 This user has validated their user name.

Thu Dec 17 03:01:03 2020

Anything to take away some of Amazon Market share is fine by me.

Perminate Link for Lookout, Amazon. Should Shopify Launch a Marketplace?   Lookout, Amazon. Should Shopify Launch a Marketplace?

by: Chicago48 This user has validated their user name.

Thu Dec 17 03:35:02 2020

I think it's cool that Shopify wants to be AMZ version 2.  As long as it doesn't let the CHEAP Chinese stuff overrun the site, like AMZ has done.  I go to do a simple search for "plates" and run into knock-off, off-brand, no-name dresses and shoes.  The AMZ catalog is messed up.
I'm surprised that Google has been so dismal trying to open a marketplace.  It just doesn't seem to know how to do it.

Perminate Link for Lookout, Amazon. Should Shopify Launch a Marketplace?   Lookout, Amazon. Should Shopify Launch a Marketplace?

by: Denny This user has validated their user name.

Sun Mar 14 10:53:56 2021

Anything would be better then selling on Ebay or Amazon unless they copy them. I'll sign up if they make the move and treat sellers right.



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