The Appeal and Growth Potential of Shopify! How It Differentiates Itself from Amazon

Hello, tuna(@miyakojimalife_) (^^)

Today’s topic is U.S. stocks.

Oh, right—that’s the company to go to for music, isn’t it?

That’s Shopify for you—it makes you pause for a moment♪

I think this is a stock that investors who primarily trade U.S. stocks are familiar with, but

This company may be unfamiliar to those who are new to the stock market.

This year, due to the global COVID-19 pandemic, online shopping has grown, but

The main sources were e-commerce platforms such as Amazon and Rakuten.

Shopify is a company that is making an impact on Amazon, Rakuten, and others

It’s attracting particular attention this year.

I am not an expert; I hope you’ll enjoy this as a personal introduction to some of my favorite spots.

Shopify is a company that does this kind of thing

Shopify is a Canadian company that primarily provides a platform to assist with the development and operation of e-commerce sites.

Even if you don’t list your items on Amazon in the U.S. or Rakuten in Japan,

What helps us sell our own products on our own website is

It will be on Shopify.

You’re probably thinking, “Why don’t they just do that themselves?” but

Set up your own server and

When it comes to maintenance and management as well,

It requires a fair amount of both people and money.

The advantage of Shopify is that with a subscription (you know, the one where you pay a certain amount each month),

It’s that easy to set up an e-commerce site.

It also supports multiple languages, multiple currencies, and international shipping.

Since it accepts credit cards, PayPal, and Google Pay,

It is also well-suited for cross-border e-commerce (sales to overseas markets).

The reason it has been adopted by over 1 million shops in 175 countries and grown to a market size of 10 trillion yen is

This may be due to its convenience, the needs of the times, and the COVID-19 pandemic.

Major companies using Shopify

Some well-known companies that use Shopify include the following:

All of them are world-famous brands.

Since these brands are well-known,

You can attract customers based solely on your own brand strength, without relying on Amazon’s ability to drive traffic.

Additionally, the benefits of using Shopify for these businesses are

We believe that managing customer information across physical stores and e-commerce sites is also a major factor.

When selling on marketplaces such as Amazon, it is not possible to centrally manage customer information, so

I don’t know what products sold to which customer segments.

Louis Vuitton, Disney, Nike, Workman, and others

Saying, “We won’t open a store on Amazon,” is

While there may be financial incentives such as commission fees, the reasons mentioned above are also possible.

Conversely, products and companies that are difficult to differentiate are

It is expected that we will continue to use e-commerce platforms such as Amazon and Rakuten in the future.

It looks like the trend toward separation of living arrangements will continue.

Shopify’s Growth in Performance

Shopify’s performance continues to grow steadily this year as well.

Although this is in English, the sections highlighted in yellow have the following meanings:

Total Revenue = Net Profit

Operating Income = 営業利益

Diluted Normalized EPS = Diluted EPS

Amounts are displayed in units of 1 million dollars.

(Quoted from REUTERS)

Since the company does not pay dividends, its ability to invest in capital expenditures is one of its strengths.

When investing, the goal is to generate capital gains (profits from the difference in stock prices when buying and selling).

Given that total assets are also growing steadily, one can sense the company’s growth potential.

(Quoted from REUTERS)

You can view Rakuten Securities’ annual financial reports as well, but when looking at quarterly financial results,

Reuters and Google Finance are useful resources.

Shopify’s stock price has been on the rise this year, partly due to increased attention during the COVID-19 pandemic.

For someone like me, who tends to do better by going against the grain,

It’s a bit difficult to buy right now.

(Quoted from Rakuten Securities)

Companies such as BASE (4477), which saw its stock price surge sharply in Japan this year, and others

These are companies with similar business models.

People who love homes and interior design can build a great house in no time, can’t they?

It’s a name that tends to make you think, “Hmm…”

That’s not right ( ;∀;)

But let’s get back to the topic at hand

Including a business partnership with Walmart (WMT), a major U.S. supermarket chain, and other initiatives

Shopify, as a competitor to Amazon, will continue to be one to watch.

I hope this article helps someone have fun with stocks♪

Thank you for watching until the end*ᴗ ᴗ)⁾⁾