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Anti-Amazon Shopify Takes Flight

Anti-Amazon Shopify Takes Flight

Sunday, 18 October, 2020 - 05:15
In this photo illustration the logo of Canadian e-commerce company Shopify Inc. is displayed on a smartphone on September 18, 2019 in Berlin, Germany. (Photo Illustration by Thomas Trutschel/Photothek via Getty Images)

The pandemic has forced businesses worldwide to pivot online to survive, and many have turned to Shopify, a Canadian company that has emerged as a thriving alternative to Amazon.

Founded 15 years ago in Ottawa, Shopify allows businesses to create an e-commerce site in just a few clicks. Already growing with more than one million e-stores at the end of 2019, its user base has exploded.

"The retail world that would have existed in 2030 has really been pulled back into 2020," Shopify president Harley Finkelstein said in an interview with AFP.

"It feels like Covid has permanently accelerated the growth of online commerce."

Amid a lockdown of bricks and mortar stores, online commerce has boomed this year. Consumers have grown accustomed to buying over the internet, and industry giants, led by Amazon, have seen sales rocket.

At the same time, many businesses that did not have a presence or a direct online sales channel took the plunge as the pandemic took hold.

Popular with entrepreneurs, Shopify saw the number of new stores created on its platform jump 71 percent in the second quarter compared to the previous one.

One of these new e-merchants is Tariq Al Barwani, creator of Plentea, a tea bar in Toronto that remained open in March at the start of the lockdown.

But with only a handful of customers a day, the situation quickly became untenable, forcing him to go out of business in May.

The same month, supported by a municipal program helping small businesses affected by the crisis to go digital, he opened a store on Shopify.

"It took us a week," he recalls from his living room, overlooking Lake Ontario, where he now works. "If you are used to going on the internet, it is easy to understand."

Shopify has become a resounding success far from Silicon Valley.

It was co-founded in 2006 by Tobias Lutke, a young German who'd moved to Canada for love and designed the software originally to sell snowboards over the internet.

Hailed for its simplicity, it has seen the number of stores on its platform grow from 150,000 in 2014 to over one million -- in 175 countries -- in 2019, asserting itself in the eyes of many independent merchants as an alternative to Amazon.

"For retail to thrive, it has to be in the hands of the many, not the few," Finkelstein said.

"We need to have as many retailers, as many brands, as many entrepreneurs and small businesses selling, so that we don't all look the exact same, (and) so we don't buy the exact same stuff."

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