December 14, 2010
By the ZippyCart Shopping Cart Reviews Content Team
Shopify is known for being one of the easiest to use ecommerce solutions on the market, and their software now powers over 10,000 online stores with more merchants joining every day. Yesterday it was announced that Shopify raised $7 million in Series A funding from Bessemer Venture Partners, FirstMark Capital and Felicis Ventures. There have not been many major investments like this in ecommerce platform companies over the last year, and hopefully this is a sign of good things to come for the niche. Now that Shopify has secured the funding, we wanted to learn more about their plans for future growth in 2011. Harley Finkelstein, Director of Legal & Business Development for Shopify was nice enough to give ZippyCart some feedback about how Shopify will evolve with this influx of money, which we summarized below:
One of the unique aspects about Shopify is that they offer merchants an app store, which allows them to add additional functionality to their online store. This is a great venue for app developers to earn money, while providing merchants with coveted tools and services to improve their business. The funding will allow Shopify to further their app store efforts by partnering with app developers and companies that provide the biggest value-add for Shopify users. They do not have a focus on any one particular app category, but the social networking apps are becoming some of the most popular among Shopify merchants.
Another area in which Shopify plans to invest is in international expansion, as they want to understand the particular needs of their users in particular geographies – and be able to provide a value rich product and experience given their domestic requirements. Shopify is always looking to improve their product, so it makes sense that a portion of the funding will be used to recruit more talent in 2011, specifically in the development side of the business.
Recently Shopify started a Guru program initiative, where Shopify Guru’s work closely with merchants to improve their business. The Guru’s are well versed in the intricacies of building an online shop using Shopify, and they are extremely knowledgeable about trends and best practices on how to run a successful online store. Shopify has already seen a number of their customers utilize the program in an effort to build better shops and sell more products. This looks to be an effort that will continue going strong in 2011.
All in all, the $7 million in Series A funding will be a big boost for Shopify, and allow them to improve their ecommerce software so that more merchants will be attracted to use their solution and power their online store.