A Case Study on Shopify 

Shopify, a Canadian firm, was introduced as an out-of-the-box solution for small and medium-sized businesses who want to introduce their e-commerce stores. The company has conquered the market of e-commerce and disrupted enterprises beyond only retail 16 years after the date of establishment. 

The winning strategy of the company can be assessed by using Scott Galloway’s T-Algorithm Framework. 

A short history of Shopify 

Shopify was originally a solution to an issue encountered by the founders. The original Shopify was a store called Snowdevil. Later Shopify turned out to be a platform for building e-commerce stores. The company was set up in 2044 for selling third-party snowboards online. The founders got frustrated at the shortage of available software in the early 2000s to introduce their E-commerce snowboard shop. The founders took the responsibility into their hands and introduced Snow Devil through a Shopify bare one platform. 

Initially, at the beginning, the company got a huge response in comparison with the Snow Dev e-commerce store. The founders chose to shelf Snoedevil and concentrate on helping other traders who are pursuing e-commerce. The company was launched officially in 2006. 

From then on, the company has developed within a short time. 

What is the business model of Shopify?

There are two ways through which Shopify earns money. They are as follows: 

  • Subscription model

There are three subscription plans Basic Shopify, Shopify, and Advanced Shopify. Consumers may choose any one subscription plan as per their wish. 

The company also provides another interesting plan Shopify Plus. This subscription plan is designed for the biggest businesses that have higher volume sales. The cost of Shopify Plus may vary by consumer. 

  • Merchant Solutions

Along with the different features, every subscription plan claims different payment processing fees. They are credit card rates, referral fees, transaction fees, and point-of-sale fees.

The company properly made a sustainable software-as-a-service business model on subscription-free and income development on customer transaction value.

What is the Marketing Mix of Shopify?

There are 4Ps of the market in the marketing blend of Shopify. They are given below: 

  1. Product
  2. Price
  3. Place
  4. Promotion 

We have given the aspects of the four marketing mixes in detail and in what way the company utilizes them. 

Product Mix of Shopify

Shopify is a business medium that cares about any size of business be it offline, online, or on social media. The company not only enables us to sell things but also assists us to develop our company. The company may offer services for the following items: 

  • Digital derivatives
  • Physical Products
  • Assistance and Consultations
  • Ticketed ventures
  • Memberships
  • Rentals
  • Categories and Lessons

The company introduced a flexible app in 2010 and offered merchants an outstanding way to operate online sales. The company disclosed the primary platform redesign in 2013, named Shopify 2 which filled in more than 60 new characteristics. 

 Pricing Mix of Shopify

Shopify initially provides 14 days of complimentary assistance for their buyers and provides their consumers full authority to make a website. The company offers a choice that in case the consumers want to publicize their website after 14 days they can do so. In this way, they grab the attention of more consumers. 

After using the trial version, in case the consumer likes to carry on their website the company offers services for a little amount of pricing. 

 Place Mix of Shopify

Shopify is a global brand. That is why it may provide every trader in the globe to sell their products everywhere in the universe. The company provides its assistance to even undersized merchandisers to big enterprises. Thousands of businessmen in 175 nations rely on this platform. 

Promotion Mix of Shopify

Shipley follows the strategy given below for expanding their outlets and also developing their customer connection. 

  • Develop our Merchants’ Revenue
  • Thrive our Base of Merchants
  • Continuous Innovation and Expansion of our Platform 
  • Continue to Expand our Partner Programs
  • Continue to Grow and Develop their Ecosystem
  • Continue to Build for the Long-term

Who is the Target Audience of Shopify? 

The target audience is nothing but a batch of people who are curious about your derivative or may purchase your derivative shortly. The target audience of Shopify is as follows: 

  • They mark every merchandiser developing their websites.
  • It assists all income parties through various subscription strategies.
  • Segmentation of assistance they provide from enterprise to merchandiser. 
  • They targeted buyers by building eCommerce websites on their own. 
  • They let their buyers sell their derivatives to everyone on the planet and there is no geographic condition. 

What are the Marketing Techniques of Shopify? 

A commerce technique is the legislation of a complete scheme on how the business will promote its derivatives to its target audience. The different marketing procedures used by Shopify for boosting their derivatives are given below: 

  • The company has not appointed any brand ambassador for promoting its products. The company gives the instrument for e-commerce to small merchants for promoting their business. The company constructed a great ecosystem in 2009 when it introduced the Application programming interface(API) platform and application. E-commerce is a great platform that always wants to give customers an outstanding shopping experience. 
  • The company launched a flexible app in 2010 named Shopify Mobike which enables merchants to view their online stores, raise client information, and complete orders through their mobile phones. Most people have smartphones now. So, this boosted online sales. Shopify was able to reach the top of success due to it. 
  • Shopify introduced Build A business competition for selling e-trade. In this competition, the sellers have to continue a store for more than eight months. They are their shares to motivate the sellers. An agency could hit a maximum of $100,000 and get mentorship from VIP business persons. 
  • Shopify allowed over 11,300 stores and earned more than $125 million in sales in 2011 from the stores. The company wants to make its business strong and open a segment for expert help. Hence it introduced Shopify Experts which advises the less powerful sellers. 
  • The company found that there was a 61% development in new stores in 2011-12. They had 18,200 shops and the sales grew more than 2.2x. They managed to earn $2.75 million from all stores. 
  • The company declared in 2013 that they will redesign the platform and name it Shopify 2 which will contain 60 new aspects. 
  • The company reworked the app in 2014 for housing offline sales. 
  • The company introduced Buy Buttons in 2015 for promoting content from any website. It did not want to remain stagnant as an e-trade storefront. Sellers may upload buy buttons to the websites that are created by using Squarespace, WordPress, and Tumblr. 
  • The company integrated with Facebook Messenger for incorporating the personalized bonding of offline business in 2016. In this way, sellers will be able to talk to the buyers about orders and give them real-time providers in a personal medium. 
  • The company closed the distance between online and offline sales by introducing Shopify QR codes. The buyers get a trial code and make payments and buy the product instantly. 
  • The company also encourages buyers through social media platforms. They advertised their business through YouTube. 
  • The company also uses Facebook and Instagram for promoting its website. They used a concept known as Reciprocity theory to promote their website. 


We have given everything we should know about Shopify. There is no need to declare that Shopify is the best medium in the eCommerce enterprise and utilizes different commerce techniques to stay on top.

With the help of this case study, you will be able to earn more wisdom about the commerce policy of Shopify. If you want to know more you may visit My Assignment Writing Help


  •  How is Shopify so successful?

Besides creating the product as involuntary as possible, the business also assembled straightforward manuals and comprehensive FAQ pages to aid users trade online. This enabled fresh merchants to trade more and provided almost anyone the proficiency to be a Shopify user. But Lütke and Weinand saw chances for an even larger market.

  • What makes Shopify distinct?

Flexibility and reliability make Shopify distinct. They are important qualities that enable Dhioify businesses to level up easily with contained costs in collation with other CMS, and with a form that is continuously updating and inviting with time. 

  • Which country is using Shopify?

The biggest market of Shopify is the U.S.A. Second biggest is The United Kingdom. The Custom Theme of Shopify is the most used Shopify theme of all time with 12,752 stores utilizing it now.

Leave a Reply

Your email address will not be published. Required fields are marked *