Shopify Inc. : Start Selling Anywhere

  • Author(s):  Vidushi Pandey

The case describes the journey of the popular software-as-a-service (SAAS) platform - Shopify Inc. Shopify is a Business-to-Business (B2B) SAAS platform that allows small businesses to easily develop a direct-to-customer (D2C) webstore without needing much technical knowledge. While Shopify initially started as a conventional SAAS tool that provided a set of templates and functionalities to the users, they eventually pivoted to a platform model. In their platform business model, they allow web developers to create and list custom plug-ins that the sellers can use for different functionalities such as store analytics, marketing, inventory management etc. Sellers can pick and choose these plug-ins and customize their webstore without needing any technical expertise of web development. Shopify provides the underlying platform infrastructure to sellers on which the webstore can be developed and customized. The company has a subscription + commission revenue model where the commission percent gradually decreases as the total sales of the sellers increases. To developers it charges a commission of the downloads they get of their plug-ins. Though Shopify started with small entrepreneurs as their target customers, off late many big brands also identified the power of D2C and their SAS tools. Today many brands like Tesla and Pepsi use Shopify’s tools for their webstores. Shopify has been adding various new services designed to cater to the various kinds of customers they now have in addition to targeting new customers such as social media influencers. The case presents the journey of Shopify from a SAAS tool to a platform and presents strategic dilemmas for their future growth directions.

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Teaching Note
  • Document Length: 10
  • Text Length: 6
  • Publication Date: 07-08-2025
  • Area: Information Systems
  • Product #: IIMKTC25026

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