How Shopify’s business works
Since going public in 2015, Shopify’s annual revenue increased significantly, hitting over 4.6 billion U.S. dollars in 2021. As stated by the company, the business is based on subscription services and merchant solutions. Merchants can subscribe to get a full package of e-commerce tools - including the upgraded version known as Shopify Plus, while booking additional solutions, mostly related to payment services. That is the case with Shopify Payments, whose value has rapidly grown over the last years.The online shopping demand shift driven by the coronavirus pandemic made the e-commerce industry more competitive than ever before. Small retailers require a constantly expanding series of marketing and fulfillment services, which Shopify has highly invested in. The company’s strive for innovation is confirmed by the year-over-year increasing investment in technology: Shopify’s research and development spending nearly quadrupled between 2018 and 2021.
