by Alex Ho

目錄

Shopify Intro

Shopify’s Business Model

Subscrption Solutions Revenue : Merchant Solution Revenue = 28% : 72% (as of 2022 Q2)

(In 2014, the ratio was around 7:3)

Subscription Solutions Revenue (訂閱解決方案 )

• Merchants have to pay monthly subscription fees in order to use Shopify’s system
• Various subscription plans
  • Basic:
    • $29/month
    • Merchant can use this “cheapest option” to start the business, but it will be expensive when adding on more features
  • Shopify:
    • $79 per month
    • Majority of Shopify’s users are using this option
  • Shopify Plus
    • $299 per month
  • Shopify Plus
    • At least $2000 per month
    • Aiming at corporate customers
• When Shopify acquires more merchants, they get more revenue from the Subscription Solutions

Merchant Solutions Revenue (商家解決方案)

• It means the commissions that Shopify charges from merchant’s transactions including following items:
  1. Shopify Payments
     1. A service that allows merchants to accepts credit cards payment (both online and offline)
     2. Merchant pays payment processing fees to Shopify
     3. Around two thirds of Shopify customers activated the Shopify Payment
     4. This accounts for majority portion in the Merchant Solutions Revenue
  2. Transaction Fee
     1. Commission based on the transaction order value.
     2. Commission rate
        1. Ranging from 0%-2%. (Amazon charges around 10%)
        2. Such commission rate is lower for customers who adopts the higher monthly subscription fee.
  3. Shopify Capital
     1. Shopify provides working capital for merchants.
     2. Shopify release loan to the merchants
  4. Shopify POS (Hardware)
     1. POS device at the store front
  5. Shopify Fulfillment Network
     1. Shopify provides several shopping partners for merchants to choose from.
  6. Shopify Markets
     1. Tools for merchants to manage the international sales
     2. https://help.shopify.com/zh-TW/manual/markets
  7. Shop Pay Installments