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How Shopify Reduced Storefront Response Times with a Rewrite Shopify is huge and they are pushing...How Shopify Reduced Storefront Response Times with a Rewrite Shopify is huge and they are pushing the edge of technologies, especiall Ruby/Rails. They are still strongly emphasize on monolith. In this post, they outline the process of rewrite the store front, which is built based on Liquid theme. As always, the key to performance is handcrafted SQL statement, carefully avoid N+1 queries, caching. The interesting part is before building new thing, they create a verifier mechanism. This mechanism compares the output of both implementation to make sure both systems behave identically.
Shopify's CEO says Amazon isn't a competitor, but Amazon's CEO says it is. Here's what experts say the real relationship is. (AMZN, SHOP)
Amazon CEO Jeff Bezos wrote in his statement to the antitrust House committee last week that...Amazon CEO Jeff Bezos wrote in his statement to the antitrust House committee last week that Shopify is a new competitor. Shopify CEO Tobi Lutke, however, said Amazon is not a "direct competitor" during the company's earnings call last week. E-commerce experts say they're "indirect" competitors that effectively play in the same field. Visit Business Insider's homepage for more stories. Last week, the CEOs of Amazon and Shopify gave contrasting views about each other. In his statement to the antitrust House committee, Amazon's CEO Jeff Bezos singled out Shopify as a new competitor that's helping traditional brick-and-mortar stores launch their own online businesses. But Shopify's CEO Tobi Lutke seemed to disagree when he was asked during the company's earnings call about Amazon as a competitive threat. He said Shopify "doesn't directly compete" with Amazon, instead highlighting its partnership with the online retailer. "I don't think we have any particular insights beyond just fellow travelers in a world of technology," Lutke said. The strikingly different perspectives of the two CEOs begs a question about the true nature of their relationship with each other: Are they competitors? "I think [Lutke] was being diplomatic," said Tom Forte, an analyst at D.A. Davidson, who asked the question about Amazon during Shopify's earnings call. "I really believe Shopify is a competitor to Amazon, and in some instances, the anti-Amazon." Forte said Shopify serves as an "antidote" to the growing power of Amazon and other tech giants in the e-commerce space because it's helping over a million small businesses to compete with them — while fighting over the same market share. Shopify sells the tools needed to launch an online store, including software to run a website and accept online payments. But unlike Amazon, it doesn't sell anything directly to consumers or operate a marketplace where other merchants can sell their products. "Shopify's ultimate mission is to enable sellers to compete more effectively with Amazon," Forte said. The competition is expected to accelerate going forward as Shopify continues to add more services. Most recently, it launched a new service called Shopify Fulfillment Network, which helps store and ship products on behalf of sellers. That service is in direct competition with Amazon's Fulfilment by Amazon, a key piece of its third-party marketplace that generated $53 billion in sales last year. 'Indirect' competitors Amazon is the de facto leader in online retailing, with a market cap of roughly $1.6 trillion. Shopify, with a value of about $125 billion, is much smaller in size, but is starting to catch up. In fact, Shopify helped facilitate more product sales than eBay for the first time in the second quarter, making it the second largest e-commerce service behind just Amazon, according to Marketplace Pulse. Perhaps the better way to describe their relationship is to call them "indirect" competitors, according to Rick Watson, CEO of RMW Commerce Consulting. While they play in the same e-commerce field, Amazon and Shopify are targeting different users, he said. For example, Amazon generates the bulk of its sales from end shoppers, while Shopify makes money by targeting business owners that sell online. Although Amazon has its own marketplace used by third-party sellers, merchants are unlikely to choose one over the other when selling online because each platform serves a different purpose. "It's not mutually exclusive," Watson said. "Direct competition is almost out of the question." That doesn't mean the dynamics won't change in the future. Amazon previously launched a Shopify-like webstore business that shut down in 2015, and there's no reason to believe it won't try it again given the company's ever-growing ambitions. Meanwhile, there's been plenty of speculation about Shopify potentially launching its own marketplace for years. If they end up competing more directly, however, Shopify seems to have one advantage over Amazon: user trust. Mark William Lewis, founder of Netalico Commerce, a consulting agency for online sellers, said the sellers he works with generally prefer to start on independent sites powered by companies like Shopify, before expanding to Amazon's marketplace. More importantly, he said, many sellers are worried about Amazon's dual role of being both a seller and a marketplace, an issue that's been at the center of the recent House antitrust investigation. Recent reports of Amazon copying best-selling products from its sellers and repeated claims of unfair suspensions that lead to unexpected losses have amplified those concerns, he said. Still, Shopify seems mindful of Amazon's presence in the e-commerce space, Lewis said. It's common for Shopify to mention Amazon in company presentations, often creating an impression that they're winning share against the e-commerce giant, he said. (referring to the slide below that was used during last year's Shopify Unite conference.) "Maybe Shopify is not a competitor, but an alternative to Amazon," Lewis said. "But they definitely look at Amazon as an 'us vs. them' situation." In 2018 Amazon's GMV was $277 billion. It's kind of weird that @Shopify and @tobi left out @Magento's $100 billion GMV on this chart from #ShopifyUnite as they would be right below Amazon at ~20%. pic.twitter.com/jwbEvcrLl4 — 🍕Mark William Lewis (@mrloo) September 13, 2019 SEE ALSO: Amazon quietly launched a new website for its big ad conference, which returns for its second straight year amid the company's surging digital ad sales Join the conversation about this story » NOW WATCH: A cleaning expert reveals her 3-step method for cleaning your entire home quickly
Business Insider Intelligence and eMarketer are now Insider Intelligence, a digitally-focused research company from Insider Inc....Business Insider Intelligence and eMarketer are now Insider Intelligence, a digitally-focused research company from Insider Inc. Learn more about what we offer. This story was delivered to Business Insider Intelligence Payments & Commerce Briefing subscribers earlier this morning. To get this story plus others to your inbox each day, hours before they're published on Business Insider, click here. Stay up-to-date with our latest coverage on the impacts of coronavirus on technology, marketing, and the digital economy here. The commerce solutions provider is rolling out several tools that should help merchants operate their businesses and make online sales. The sudden focus on e-commerce created by the pandemic may increase the number of merchants looking to improve their online performances by working with solutions providers: The number of new stores created on Shopify's platform jumped 62% from March 13, 2020 to April 24, 2020, compared with the previous six-week period. So, rolling out new features could help Shopify stand out to merchants and boost their sales. It's offering a business account complete with cards and rewards for merchants so they can manage their spending and earn cash back in the process. The account, called Shopify Balance, enables merchants to pay bills and keep an eye on their expenses, offers physical and virtual cards that allow spending across channels, and provides cash back and discounts on categories like shipping and marketing that bolster their finances. The tool is launching early access in the US later this year, and could make it easier for merchants to operate while not using their personal accounts and cards for business — something 40% of merchants currently do, according to Shopify. Shopify is introducing a buy now, pay later (BNPL) solution that would let merchants give consumers more payment flexibility to boost sales. Shop Pay Installments, which is launching later this year in collaboration with a currently unnamed partner, will allow consumers to split purchases into four payments with no interest or fees. This would help Shopify merchants tap into BNPL solutions' growing ability to boost conversions and average order values, and may be particularly valuable during the pandemic when consumers face rising unemployment and an uncertain economic future. The solutions provider is building out its fulfillment offerings to help merchants complete online orders. Shopify Fulfillment Network, which uses machine learning (ML) to predict demand, allocate inventory, and route orders to the nearest fulfillment centers, is ending early access and accepting applications, and it's expanding a new product focused on local delivery that helps merchants fulfill orders for nearby consumers. These programs should allow merchants to meet increased e-commerce demand during the pandemic while potentially limiting their fulfillment costs, helping them maximize their performances. Merchants may need more help than ever selling online during the pandemic, offering commerce solutions providers the opportunity to bolster their volumes and customer bases, if their solutions are attractive to merchants. With many stores closed, merchants now need to get the most out of their online businesses, and those without e-commerce expertise may turn to solutions providers for help. This is likely why Shopify is rolling out these new features, and why WooCommerce added an integrated payments feature, because the solutions providers that are able to attract merchants with comprehensive solutions now may be able to keep sellers on their platforms after the pandemic, bolstering their long-term performances. Want to read more stories like this one? Here's how to get access: Business Insider Intelligence analyzes the payments and commerce industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more. >> Check if your company has BII Enterprise membership access Sign up for the Payments & Commerce Pro, Business Insider Intelligence's expert email newsletter keeping you up-to-date on the people, technologies, trends, and companies shaping the future of consumerism, delivered to your inbox 6x a week. >> Get Started Explore related topics in more depth. >> Visit Our Report Store Current subscribers can log in to read the briefing here. Join the conversation about this story »