James Corr

Custom stacks can lead to two very real problems: depending on custom development and increased tech debt. Combined, your pace slows and ultimately, your trade-off is innovation and growth. That’s why Mejuri went from a fully custom stack to Shopify. Before Shopify, Mejuri was on an entirely custom stack: custom ecommerce, payments service, and middleware that was built to connect their custom ecommerce site to their point of sale system [POS]. This led to a ton of challenges. They were spending too much time building and maintaining 3rd party integrations to coordinate channels, data, and functionality between systems. With limited resources and team members, the trade-off of building custom features was they were not able to address their mounting technical debt. Addressing those issues in-house, slowed down their pace of innovation making them unable to deploy features as fast as they needed to. That’s the ‘invisible’ cost component with a custom stack. You spend an inordinate amount of time building custom features at the cost of innovation. Brands can avoid that with Shopify. Shopify is a natively unified ecommerce and POS system so everything just works together really really well. It doesn’t require middleware or integrations. Your customer, order, and product data flows to both channels from a single source of truth. It’s simpler and allows you to move faster. Hear about from Mejuri yourself. Rohit Nathany, the Chief Digital Officer sat down with us to talk about the pain points they faced on a custom stack. As Rohit says, what better way to simplify than to have a unified ecommerce and POS solution? See the full interview here: https://lnkd.in/eyCSdVgf

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Just jumped off the Shopify Q3 Earnings call. If you missed it, I'll summarize: Q3 was an incredible quarter for Shopify. Here are the highlights of Q3 2024 Shopify:  1️⃣​ Financially, it was a strong quarter. - GMV was up 24% Year over Year in Q3 - the 5th consecutive quarter where GMV growth was more than 20% - Revenue accelerated to 26% - the 6th consecutive quarter where Shopify delivered 25% or greater top-line growth, excluding logistics - Gross profit grew 24% Year over Year - Our Free Cash Flow Margin expanded to 19% which means we’re delivering profitability that allows us to both grow the business and invest in the future of commerce. 2️⃣​ We’ve built the most integrated platform on the planet where everything in your business works together really really well. Shopify POS is powering more and more large, complex, multi-location merchants like legendary Canadian women's fashion retailer, Laura, which migrated over 130 stores to Shopify’s POS in Q3. We are making every part of commerce work better. This quarter we helped merchants make in-person shopping truly delightful by expanding Tap to Pay in more countries. And, we’re making it easier for our merchants to sell in new countries with our Managed Markets product, which has helped some merchants see an average global sales increase of 40%. The power of our platform is unmatched. 3️⃣ Shopify is increasingly the go-to platform of choice not just for entrepreneurship, but for all of commerce. We are making massive strides across our long-term growth drivers like B2B, international, enterprise, and offline commerce. - We had our single largest B2B GMV month ever, with it growing over 145% Year over Year. This is a trend at this point, marking 5 consecutive quarters of triple digit B2B GMV growth - International GMV continues to outpace the growth of North America accelerating to more than 30% and our international merchants grew 36% Year over Year - In Q3 alone we had 16 enterprise launches on Shopify, including brands like Hanes and On Running. The best brands like Reebok, and Victoria’s Secret and high fashion brands like FashionPhile and Off-white are all coming to Shopify. Our mission has always been the same: make commerce better for everyone and, ultimately, create more entrepreneurs across the world and help them grow bigger and faster. We are doing exactly that. We are focused on helping merchants of all sizes thrive today and in the future. It’s why you see brands come to us and never leave. Thank you to everyone on the Shopify team, our partners, and our incredible community for an exceptional quarter.

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Shopify's stock is getting crushed. But I think the market misunderstands their opportunity. This is my belief about what Shopify's future really is... At the core of the eCommerce business model is the ability to produce a set of units at a clear cost and sell them at a higher cost. That sounds simple but it's actually incredibly complex. One of the core issues that creates complexity is that understanding the actual marginal value of a sale requires data clarity that does not exist for most brands. Even inside of some of the largest companies in our space, COGS and inventory is tracked in a complex web of spreadsheets, PDF invoices and even text messages. Your inventory can often be comprised of units purchased at different prices, from different orders, spanning years of time. Systems to manage availability, purchasing and costs aren't connected to revenue reporting or media planning in any clear fashion. A huge piece of this is because every silo of the organization has a different "home base" Finance might be in quickbooks Operations in fulfill and marketing in a BI tool. They are likely not integrated in any meaningful way and would feel foreign to a user from a different department. This builds language barriers into your organization. So what is the solution? It's Shopify. Shopify's future is, in my opinion, way way way less about the storefront and more about the backend enablement. I think the front end purchasing is going to get disinter-mediated across tons of different locations (Meta shops, tik tok shops, fermat style shops, retail, marketplace etc. etc). websites are an archaic idea But what that means is that the MOST valuable thing a brand will need is a centralized business management system for handling inventory, finance, reporting and planning across a more complex web of distribution. You can already see this in the next way of apps that are being built for the platform. The first wave was all the website plugin stuff... cart upsell, email capture, The now wave is operations. A perfect example is https://lnkd.in/gQb7xe3G (Not a paid promotion). They are brilliantly building a native inventoryOS into your Shopify dash. As former CEO of Chubbies, Kyle Hency, understands the core problem an apparel business needs to solve. And the key is to BRING IT TOGETHER within the home base of the other data in the organization. I think you will see Shopify's next acquisition be something like Finaloop that adds a finance layer to the system as well. We are moving to a world that goes in reverse order of the previous generation... Cash flow > balance sheet > P&L > Sales Dash and until the tools are automated and connected brands will struggle to enable this change. There is no more important problem to solve than this... And Shopify is positioned to do it!

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What Does Shopify's Peel Analytics Acquisition Mean? If you missed it, Shopify made another acquisition in the last few months that is just starting to get some light shed on it. The company is called Peel Analytics, and it fits the mold of many of Shopify's smaller acquisition - it is a capability that it wishes to see in its platform. In short, the capabilities reflect a larger shift in DTC. From customer file growth to customer file optimization and activation. Here are some of the capabilities I expect to come to Shopify as a result of this acquisition (based on analysis of Peel's case studies): * Filtering out any messy or junk data in-platform rather than off-platform * Creating segmented audiences group (repeat purchasers, SKU and region filters), which then interface with Klaviyo and Attentive. * Cohort reporting out of the box, in particular with regards to behavior of customers acquired via influencer discounts. * Customizable reports including LTV calculations, CAC, LTV to CAC, returning orders and customers * "Frequently purchased together" and other types of product reporting based on market basket analysis. * Some subscriber reporting that previously you may have only been able to get in subscription platforms themselves. While Klaviyo is building a CDP, I expect that Shopify feels these Audience features will be a standard part of DTC going forward, and so should not erode much from where Klaviyo is headed. First, Shopify's Shop Cash offers have recently become "Shop Campaigns" and no doubt this acquisition is part of the reason for that. Also the elevation of Customers as a key concept within Shopify seems like one of their plans. Similar to the way Shopify has wanted to be the home of all checkouts and orders, I expect Shopify has started to feel that customer segmentation and analysis should happen on-platform rather off. Who is to worry? I don't think many companies have too much to worry about generally. On the other hand, some reporting-centric companies like Daasity and Triplewhale will likely have to move further up-market to continue to compete. The "Shopify reporting" space has gotten over-crowded in the last few years which is likely one of Shopify's signals that the base platform needed upgrades. I do think some of the lower-end subscription platforms could end up in the crosshairs also. How might this shape Shopify's Platform? I don't expect this solution to do so much for mid and upper-level Shopify Plus customers, but it could give Shopify a few more reporting capabilities to add to base tiers, and it's possible that more customizable reporting could become a Plus or even an full Enterprise feature. It's also not hard to imagine a Shopify where future Enterprise users may separately for a Data or Reporting module.

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This is Harley Finkelstein. He's the president of Shopify, the platform I've admired and used for over a decade. In this video, Harley is proudly talking about the Q3 results and how Shopify is growing, has had a 20% increase in quarter over quarter for the past 5 quarters... And then I stopped listening. Sure, I'm happy for them and it's a great platform, but they're not listening to their merchants. I say this because it's almost unanimous among merchants that their customer support has declined for the last 2 years. You used to be able to hop on a chat with a "guru" (yes, that's what their CSRs were called back in the day) and they actually enoyed helping you figure out an issue. Now, you have to jump through hoops, bypass an AI chat-bot that doesn't have all the answers to get a CSR in the chat that barely knows what e-commerce is. Shopify, much like Google, has lost track of the reason people fell in love with their brand. They're all for profits now. They used to care about their users. Don't get me wrong, the platform is absolutely amazing, rock solid and user friendly, no doubt about that. I hope I get reminders from friends and loyal clients about why I'm in business: I care about people and their dreams of building a healthy business. Yes, I need to put food on the table, so I can't do it for free, but people and results first. Thanks for listening to my TED talk.

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I have a confession... I love Shopify's new free theme Trade. That's counterintuitive right? My company makes premium themes for Shopify that cost money. Trade is my competition, but I keep coming back to it. Sure, it's missing some stuff. The nav isn't the best, it's not got all the sexy animations or cart features of other themes but it knows who it wants to be. It is a B2B theme. Arguably, the first purpose built B2B theme. The native quantity rules? Elegant. The built in quick order form for product variants? Effortless. It is clear that Shopify is pushing hard into this segment and it is laying down the gauntlet. Competition is good, thank you Shopify.

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Just opened a package from Harley Finkelstein and the Shopify team and was surprised at how heavy it was. Shopify, the platform that powers our website sent us this Milestone for processing our 1,000,000-th order. It’s an arbitrary number that carries some heft, and to those who are thinking about starting out on their own it might sound impossible. The advice I’d share from my personal 3+ year grind to our millionth order is don’t spend a second thinking about those as goals. Instead focus on blowing away your first customer, then your 10th and then your 100th and before you know it you’ll be further along than you even expected. It’s like building a brick wall, if you focus on how many bricks it’s going to take to build it, it might seem so daunting that you never start. Lay the first brick perfectly, then the first row, then move up, and before you know it the wall is built, brick by brick. Thank you to Shopify for enabling us to ship a million orders to the construction workers and tradespeople all across the US who literally build our country. Brick by brick, LFG.

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The tragic misunderstanding of Unified Commerce… Shopify has been pushing their unified commerce strategy for multiple good reasons. From my perspective, this strategy makes a lot of sense as they are: 1. Ensuring their products integrate seamlessly. This means that Shopify Markets, Shopify B2B, and retail communicate effortlessly together. This has been a massive process and won’t end anytime soon. 2. Recognizing that Shopify hasn’t been just an ecommerce platform for SMBs for years. These days, some of our customers start by using Shopify's B2B product or even just their Retail with Shopify POS. The world has changed dramatically. So, what’s the issue then? Let me explain. A delicate group of old-school retail gurus are somehow offended by the term "unified commerce." They claim to have been doing unified commerce long before Shopify started to talk about the topic. Fair point, but they miss the essence of Shopify's unified commerce offering. It’s akin to reading the headline without understanding the full story. Another group comprises competing platforms that claim to have been unified commerce solutions since 2015 or earlier. However, in my humble opinion, they are simply afraid of Shopify’s product roadmap. After being in the digital commerce business for over 15 years, I can say that very few have successfully integrated online and offline retail. Not to mention B2B added on top of all of this. Commerce is hard, but Shopify is going for it big time. #shopify #unifiedcommerce #commerce #ecommerce #woolman #enterprise

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How did we help nearly triple installs for a Shopify app client in 1 year? First you have to have the proper foundation for growth. When we started in early 23'; our focus was on brand and defining our acquisition strategy. These are time consuming processes & don't always = immediate growth. We also realized that we were missing some depth in the way of onboarding flows to help with TTV (time to value); so we got setup with ActiveCampaign & built out the API to sync with a variety of feature / time based actions that timed with emails. This is also built out by plan type (we have 3). Once we had some of these elements in place; we looked at acquisition strategies. - SEO for Shopify apps is $$ as you the app listing page is where the transactions occur; so even though driving traffic to webpage is important; conversion rate can be less than ideal; so we employed a tactic of reaching to blogs / publications that were doing lists & aggregating info on our sector; and building relationships with them to list our site via affiliate program / backlink to our app store. So instead of spending $$$ on SEO we focused on relationships & being where the searches were already occurring. - Dialing in our paid strategy. We initially started with Google, Shopify App Store, Meta, LinkedIn & Reddit for paid channels. We were spending about 45% of our budget in App Store; with rest spread b/t other channels. LinkedIn was honestly a bust; just too expensive for a <$100 a month SaaS tool & many of our ICP (ecomm biz owners) did not seem to be as active on the platform as we hoped. After spending 2 quarters analyzing CAC, CAC payback period, & trial to conversion rate; we realized that Google wasn't as attractive as a channel as it looked on paper. It also took finding a 3rd party tool App Store Analytics to help tease this out as we weren't initially able to follow source data all the way through install given Shopify App store guardrails. With Google; were getting a lot of installs / clicks; but those customers weren't sticking around & many weren't even converting to paid. So we dialed back our Google spend & reinvested that in hiring a more focused Shopify ad expert (Omer Linhard) & really focusing our efforts on that area. We were able to reduce our CPI (cost per install) by 40-50% & slowly scale spend up to closer to 75% of our ad budget. We ran cold layers on Reddit & Meta; but attribution wasn't ideal; so we paused Meta & left Reddit on as a retargeting layer. - We started a partner program. This now basically runs itself on <$250 a month. We have an outbound campaign setup, a link on our website & we have a Slack channel. We net b/t 10-15 new clients per month through this channel at essentially a $0 CAC. We pay the affiliates 20% of the contract value for 1st 12 months; & we're finding that the affiliates are sharing it amongst themselves; so we're adding b/t 5-10 new affiliates each month. Currently this is generating almost 3K in MRR.

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Shopify is reimagining analytics. The new Analytics experience will be faster, more flexible, and more intuitive, so you can track the metrics that matter most. You can create new reports from scratch and use any combination of metrics, making it a lot easier to analyze your data. You can resize, add, or remove metrics to create a personalized dashboard with the data you care about. You’ll be able to discover deeper insights into your store’s performance in real-time and get a complete picture of your business. Making data-driven business decisions just got a lot easier. And it’s all within the Shopify admin.  https://lnkd.in/e-wK2dMM

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Learn how we scaled this Shopify client from $15K/m Nov 2023 to $148K in organic search revenue for the past 30 days... A year ago, they did $15K in November, had never crossed $20K in organic, and struggled to scale past $200K in monthly revenue. Fast-forward a year, and they have exceeded $1M in total revenue in the last 30 days. SEO has had a transformative effect on the brand's ability to scale. Here is how we did it: 1. Posted 5 new blog posts monthly (with links to product pages and collections). 2. Built new collections to capture long-tail traffic with optimized content and internal links. 3. Optimized product listings for long-tail searches. 4. Monthly SEO workflows: Track new content and re-optimize for new keywords. Use GSC data to maximize the traffic potential of every important page. 5. We implemented our link-building system within their company. We create manual outreach campaigns where we scrape their keywords and reach out to sites ranking for these keywords to land high-quality links. 6. We answered journalist queries about things they are experts at and landed links from high-authority publications. 7. We found high-authority publications and paid for listings or co-authored articles (advertorial). We then built links to these articles that helped them rank, driving a ton of authority and traffic to the brand. 8. Made sure to resolve conflicts when different pages rank for the same term or react to pages that would not rank. 9. Made sure the site was technically solid. 10. We were consistent and did the right things repeatedly until things started to rank. That's it. SEO is simple, but it is important to do the right things and be consistent.

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Your Shopify product catalog wasn't built for targeted acquisition. But that shouldn't hold you back, here's how you can take back control without touching the backend of Shopify or messing with the main site 👇 With FERMÀT you can create a PDP specific to each ad, persona or value prop by: 📸 Customizing visuals, descriptions, product titles, and reviews ➕ Combining similar products as if they are variants 📲 Controlling exactly which variants to display and/or default With this extra control over the experience, you can match the post-click to the context that drove the click. If you have an ad that hits on the benefits of your supplement for deeper sleep, customize the PDP to speak SPECIFICALLY to that benefit. I've seen brands get an 80% lift in conversion by matching the merchandising of products to the context of the ad. The best part? It's not difficult to do and doesn't impact your inventory, fulfillment or other established processes. 👀 Your customer sees the products you create 📦 Your systems see the existing product in Shopify Get all the details here - https://lnkd.in/gh6BY42b

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Your Shopify site needs more than curb appeal. Like a mullet, it needs a "party in the back-end." 👇 Let me explain: Shopify says they're "2.4x faster" than other platforms. But is it enough for advanced retailers? What happens when you include: → Advanced features most large retailers need → Third-party scripts Harry Finkelstein is right when he said: "That's a BIG deal when speed = sales." Milliseconds do matter. But for 8-figure+ DTC shops, Shopify's basics aren't enough. Even some of Shopify's native features hurt speed. 1. Consent tracking  2. Dynamic checkout carts These are two of the top reasons for low INP scores. That's where Nostra comes in. We love Shopify. It's why we build exclusively for it. But our focus? Helping larger brands level up their site speed. So you don't have to touch code. Or sacrifice your UX. P.S. Join me and Nihar Kulkarni from ROSWELL this Weds for Shopify CRO tips powering 75+ stores with $250 million in GMV: https://hubs.ly/Q02C6s1d0

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🚀 Shopify'𝐬 𝐒𝐮𝐦𝐦𝐞𝐫 ’24 𝐄𝐝𝐢𝐭𝐢𝐨𝐧: Over 150 Updates! As I have many clients on Shopify, I'm most excited about these updates: 🌍 𝐄𝐱𝐩𝐚𝐧𝐝 𝐢𝐧𝐭𝐨 𝐍𝐞𝐰 𝐌𝐚𝐫𝐤𝐞𝐭𝐬: Markets central command center allows customization for international selling, B2B, and in-person sales with Shopify POS—all in one location: - 𝑼𝒏𝒊𝒇𝒊𝒆𝒅 𝑫𝒂𝒔𝒉𝒃𝒐𝒂𝒓𝒅: Manage all your markets from a single dashboard, streamlining your workflow and reducing complexity. - 𝑻𝒂𝒊𝒍𝒐𝒓𝒆𝒅 𝑩𝒖𝒚𝒆𝒓 𝑬𝒙𝒑𝒆𝒓𝒊𝒆𝒏𝒄𝒆𝒔: Customize the shopping experience for different regions, ensuring a localized feel for each market. - 𝑺𝒆𝒂𝒎𝒍𝒆𝒔𝒔 𝑬𝒙𝒑𝒂𝒏𝒔𝒊𝒐𝒏: Easily create new markets, apply custom settings, and launch without navigating multiple stores or workflows. - 𝑩2𝑩 𝑺𝒕𝒐𝒓𝒆 𝑪𝒖𝒔𝒕𝒐𝒎𝒊𝒛𝒂𝒕𝒊𝒐𝒏: Create multiple B2B markets, each with unique catalogs and storefront theme customization with no coding required. 🤖 𝐀𝐈 𝐁𝐮𝐢𝐥𝐭 𝐟𝐨𝐫 𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐞:  - 𝑴𝒆𝒅𝒊𝒂 𝑬𝒅𝒊𝒕𝒐𝒓: Enhanced AI image editing now available across all admin tools and the Shopify mobile app. - 𝑨𝑰-𝒑𝒐𝒘𝒆𝒓𝒆𝒅 𝑷𝒓𝒐𝒅𝒖𝒄𝒕 𝑪𝒓𝒆𝒂𝒕𝒊𝒐𝒏: Magic recommends intelligent product attributes, minimizing errors and optimizing listings. - 𝑺𝒖𝒈𝒈𝒆𝒔𝒕𝒆𝒅 𝑹𝒆𝒑𝒍𝒊𝒆𝒔: Real-time AI-generated responses for customer chats in Shopify Inbox. - 𝑺𝒊𝒅𝒆𝒌𝒊𝒄𝒌: Early access to AI-enabled commerce assistant offering personalized guidance and insights. 📊 𝐔𝐧𝐢𝐟𝐢𝐞𝐝 𝐀𝐧𝐚𝐥𝐲𝐭𝐢𝐜𝐬: Completely rebuilt for smarter, faster, and more intuitive data exploration: - 𝑹𝒆𝒂𝒍-𝒕𝒊𝒎𝒆 𝑫𝒂𝒕𝒂 𝑰𝒏𝒔𝒊𝒈𝒉𝒕𝒔: Access real-time snapshots of your business performance, helping you make timely decisions. - 𝑨𝒅𝒗𝒂𝒏𝒄𝒆𝒅 𝑪𝒐𝒓𝒓𝒆𝒍𝒂𝒕𝒊𝒐𝒏 𝑪𝒂𝒑𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔: Discover patterns and correlations between different data points, such as location-based sales trends. - 𝑪𝒖𝒔𝒕𝒐𝒎𝒊𝒛𝒂𝒃𝒍𝒆 𝑫𝒂𝒕𝒂 𝑽𝒊𝒆𝒘𝒔: Tailor your analytics dashboard to focus on the metrics that matter most to your business. 🛒 𝐁2𝐁 𝐄𝐧𝐡𝐚𝐧𝐜𝐞𝐦𝐞𝐧𝐭s:  - 𝑪𝒐𝒍𝒍𝒆𝒄𝒕 𝑫𝒆𝒑𝒐𝒔𝒊𝒕𝒔 𝒂𝒕 𝑪𝒉𝒆𝒄𝒌𝒐𝒖𝒕: Require percentage-based deposits at checkout, configured for each B2B customer. - 𝑵𝒂𝒕𝒊𝒗𝒆 𝑺𝒕𝒐𝒓𝒆 𝑪𝒓𝒆𝒅𝒊𝒕 𝑺𝒖𝒑𝒑𝒐𝒓𝒕: Issue store credit to customers directly in admin, view balances and transaction history, and enable customers to spend their credit at checkout—crucial for omni-retailers. - 𝑺𝒖𝒑𝒑𝒐𝒓𝒕 𝒇𝒐𝒓 𝑴𝒂𝒏𝒖𝒂𝒍 𝑩2𝑩 𝑷𝒂𝒚𝒎𝒆𝒏𝒕 𝑴𝒆𝒕𝒉𝒐𝒅𝒔: Offer options for bank transfers, wire transfers, and checks. - 𝑯𝒆𝒂𝒅𝒍𝒆𝒔𝒔 𝑩2𝑩 𝑺𝒕𝒐𝒓𝒆𝒇𝒓𝒐𝒏𝒕𝒔: Leverage Storefront API and Customer Account API to build custom B2B storefronts. Has anyone tried these features yet? Anything else that's a standout that I might have missed? #EmerceConsulting #ShopifyUpdates #EcommerceInnovation #AIinRetail #RetailTrends #DataDrivenDecisions

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Shopify’s recent acquisition of the Peel Insights team has made waves across the industry. This move (https://lnkd.in/g3NuaiiG), as discussed by Rick Watson, has sparked conversations about Shopify’s interests in entering the reporting space, and what that could mean for others, including Daasity. As the CEO of Daasity, I personally see this development as an exciting opportunity - I believe it will drive more companies towards a data-driven future, especially in an increasingly complex business landscape. Additionally, the perception that Daasity is just a reporting tool is outdated - we’ve evolved far beyond that. Fundamentally, Daasity is a Composable Data Platform, as outlined by AZ16 (article in the comments). We enable consumer brands to build their own data infrastructure or leverage our expertise to build and manage it for you. What makes Daasity a composable CDP? 🔗 You can independently use our extractors, specifically built for consumer brands  📦 You can load data into BigQuery, Redshift, or Snowflake, and have read/write access to your data 📊 You can leverage our transform code to use our pre-built data models for analytics like attribution, LTV, product affinity, or leverage our transformation code as a starting point to write your own 🎯 You can push your data back into your marketing platforms to enhance your acquisition and retention marketing And that’s just the tip of the iceberg. With our recent acquisition of Red Fox Analytics that now empowers brands to pull in syndicated data like Nielsen, Spin, and non-syndicated retail data like Whole Foods, Costco, Target and more. Today, Daasity acts as the centralized hub where digital and retail data converge for comprehensive sales, marketing, and inventory insights. Whether you prefer to leverage your in-house talent or entrusting our services team, Daasity’s composable nature empowers you to build your ideal data solution That’s what Daasity is and it’s certainly not just a reporting tool. Shopify Peel Insights #analytics #shopify

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Is Shopify's Stock a Buy After its Recent Earnings? Shares of the cloud-based commerce platform, Shopify, are trading higher this morning following the company’s upbeat earnings results. Their strong performance was driven by growth in subscription solutions revenue, which rose from $444 million to $563 million year over year, thanks to more merchants signing up and the increase in pricing on its subscription plans. The company also enjoyed more fees from a metric called "gross payment volume," which measures the total value of orders processed through the payment platform. The increase in revenue helped the company surpass its net income expectations, reflecting significant growth from the same quarter last year when they reported a loss of $1.3 billion. This quarter’s net income came in at $170 million, or 13 cents a share, beating the 8-cent estimates but declining from last quarter’s 26 cents. Nonetheless, Shopify investors found the earnings report to be a positive signal, largely because of the company’s rosy outlook. The company expects its next quarter to grow by about 20-25% from last year, which isn’t magnificent, but it is notable considering the uncertain economic environment. Overall Numbers: Looking at Shopify’s fundamentals as a whole, the company’s current valuation of $85 billion is particularly high compared to its annual revenue of $7.19 billion (2023). Although Shopify’s performance and its ability to beat expectations are impressive, the company needs to continue boosting revenue significantly in the years to come in order to justify its valuation; otherwise, a correction might be due. Net income will also remain a big focus for investors, especially for a technology-based company like Shopify. Technology companies are often forgiven for posting negative net income in the early years of their life, but Shopify is now a seasoned name that should bring more consistency to satisfy investors.

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One commonality among the new Shopify merchants we start working with is: Overspending and non-utilized technology products. It’s shocking to see so many SaaS products that were installed and forgotten about or paid for and not utilized. Everyone is trying to reduce overhead. Auditing your tech stack should be a high-priority and something done yearly, at least. You’d be surprised what you find. If it’s not producing a measurable ROI, or supporting better customer experience, chances are it should be cut or consolidated. Chances are there’s a SaaS product that will bundle features, cutting down from 3 to 1 products. - Email & SMS - Search and merchandising - AB Testing & Personalization The audit program we run at Avex E-commerce basically pays for itself by reducing consolidation of tech products, removing non-utilized SaaS, and improving page speed. “Audits” get a bad rap because typically they’re just sales tools and filled with fluff. But when they focus on CRO, UX, codebase, SEO, and tech stack consolidation (like ours does), audits can bring a ton of value. —- DM me to learn more about our audit program or visit: http://avexdesigns.com #shopify #ecommerce

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DTC is a graveyard. Shopify has ~4M active merchants of which only ~100-200k are making any meaningful revenue. This is because majority of the new brands and stores being set-up are dead on arrival. At Monk, I've interacted with over 200 brand owners and operators over the last couple of years and also seen merchants using the app grow/stay steady/decline month and month and there's a clear pattern. It boils down to 2 things: 1. Category/niche Some categories are objectively worse than orders to build a DTC business in due to competition, limited TAM or poor margin structure. Choosing the right category has a massive impact on your odds of success 2. Product differentiation Most brands that fail have an undifferentiated product in a competitive niche with no clear advantages. There needs to be a very strong reason to buy from your website specifically - this is your differentiation, something that the buyer cannot get in marketplaces like Amazon or on other brands. Spending a large about of time trying to answer the 'why' of your product will set you apart from the hoards of brands that don't scale.

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