Shopify saw excellent numbers during the recent holiday shopping season, and it appears to be a retail trend. This from Harley Finkelstein, COO of Shopify. He goes on to state in an interview with ‘Mad Money,’ “It’s an example that direct-to-consumer isn’t a fad. It’s a steady state, powered by Shopify. We’re at the center.”

The Age of Online Shopping

With the increase in online consumerism, direct-to-consumer was a necessary part of evolving retail strategy. Here brands can eliminate the red tape of the middleman and work directly with the consumer. Tesla Motors is a huge brand leading this trend. Nike is another big name involved heavily with direct-sales marketing and business.

Earnings Reports Are Above Predictions

Shopify saw an increase of 61 percent in sales from Black Friday through Cyber Monday in November of 2019. The e-commerce platform recorded nearly $3 billion in sales globally by providing business with an easy method to make online sales.

These numbers come from Shopify’s fourth-quarter Earnings report and as it turns out, they are much better than expected. Shopify is up more than 80 percent from a year ago when forecasters were predicting 24 cents. It made 43 cents a share. Analysts estimated $482.1 million in earnings and the company rose above by 47 percent with $505.2 million in earnings for its December quarter.

Finkelstein goes on to say, “We want to be the entrepreneurship company. Others are trying to build empires and we’re busy arming rebels. The rebels are winning.”

Shopify’s gross product volume saw a 49 percent increase from 2018 coming in at $60.8 billion. This number is representative of the total value of goods sold through the website. Its revenue came in near $1.6 billion, which was a 47 percent increase from last year. This number is representative of subscription fees and merchant fees. Shopify has been profitable for three years running according to these numbers. Shopify is setting aside a significant portion of earnings to build warehouse infrastructure. They plan to stay at the top of their game and compete with other big names such as eBay and Amazon.

Source:

https://www.cnbc.com/2020/02/12/shopify-coo-on-q4-earnings-direct-to-consumer-is-no-longer-a-fad.html

The post Direct-to-Consumer Retail Is No Longer Just a Fad According to Shopify appeared first on Subastral Inc..