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? |
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