Briefing

Pandemic e-commerce boosts growth for Shopify’s logistics service

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The Shopify Fulfillment Network’s volumes rose by two and a half times in the first quarter of 2020, according to director of product Thomas Epting. (The Wall Street Journal)

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Talking point: The firm brought in about US$714 million in revenue between April and June, a 97 per cent year-over-year jump, while new-store additions rose 71 per cent over the previous quarter. As merchants sign up for additional services like shipping or cash advances, the company will earn an increasing share of the total value of shoppers’ orders, or take rate. “The launch of the Shopify Fulfillment Network (SFN), expansion of Shopify Capital, and other new merchant solutions is likely to help increase Shopify’s take rate for merchant solutions revenue,” predicted RBC Dominion Securities analyst Paul Treiber in a July note for investors. Shopify’s take rate has risen almost every reporting period since the company went public in May 2015, hitting 1.72 per cent in the second quarter of 2020.