Amazon Worried about Shopify’s Growth Planning to Launch It’s Own Ecommerce Platform

Shopify witnessed a growth of 96% in GMV in the third quarter of 2020. This exponential growth caused a little bit of distress to ecommerce giant Amazon.

According to the reports of Business Insider, Jeff Bezos showed his concerns over the growth of Shopify and considering launching a rival ecommerce platform to throw a direct challenge to Shopify.

Amazon insiders told about Jeff Bezos’s recent aggressive involvement in daily Amazon functions which was absent for the last few years.

The recent involvement of Amazon’s founder is for multiple purposes including COVID-19 challenges, growing diversity in the workplace, competitive threats, and resolving counterfeits issues. However, the major reason for his recent involvement was the serious competitive threats from the ecommerce platform Shopify.

Amazon vs Shopify

Shopify is the ecommerce platform that allows anyone to set up a private eStore/website to sell products online. Whereas, Amazon is an ecommerce marketplace that allows the sellers to list the product and sell to the audience of Amazon.

Both platform seems different from each other so why does an ecommerce giant like Amazon worry about Shopify.

COVID-19 causes a huge growth in the ecommerce industry due to the global pandemic. Shopify is one of the easiest methods to set up an ecommerce store with minimal investment. It allows integration with multiple marketplaces including Amazon.

In 2020, Shopify also partnered with Walmart that will allow the Shopify sellers to list thier product directly on the Walmart marketplace.

Recently, Shopify collaborated with Tiktok that allows its seller to create a short video on the dashboard and publish it directly on Tiktok.

Shopify has now over 1 million online stores operating from 175 countries. Last year, Shopify has also introduced its fulfillment services similar to Amazon FBA that allows the US-based Shopify sellers to enjoy fast delivery services.

These Shopify partnerships and initiatives clearly delineates as a threat to Amazon.

Related Article: Is it profitable to Sell on Amazon?

Why People Prefer Shopify Over Amazon?

Shopify provides the freedom to sellers to create thier own brand with minimal investment. On other hand, Amazon sellers have to comply with policies and fees along with severe competition. Whereas, Shopify sellers earn great revenue with the help of social media marketing and influencer marketing techniques.

In addition, its integration with Amazon provides the opportunity to sellers to leverage both platforms.

Amazon Concerns

It seems next to impossible now to remove Amazon from ecommerce leadership. However, the platform with over a million online stores could not be ignored.

There is no competition in revenue between Amazon and Shopify. It’s about the changing mentality of aspiring ecommerce entrepreneurs who are giving preference to build their own brand rather than being of the world’s biggest ecommerce marketplace.

Following these concerns, Jeff Bezos, along with his executive, is planning to launch a similar service as Shopify under Amazon Web Service (AWS).

According to BI reports, the technical advisor of Amazon’s retail CEO Jeff Wilke, Yunyan Wang will run the initiative. However, some Amazon executives are not completely on board with this decision as Amazon has already did a failed attempt with Amazon Webstore five years ago.

Maybe the second time’s the charm.

So, what do you think about Amazon’s action? Tell us in the comments below.

And, if you are an aspiring entrepreneur wondering where you should sell then check out this Amazon vs Shopify post.