![Today we will be diving into Shopify. We cover the revenue model of Shopify's different business units by using Apple as a guide, how it monetizes different derivatives of merchant success, and Shopify's philosophy, culture, and role in global commerce.<br /> <br /> To help us break down Shopify, I'm joined by co-host Zack Fuss and our guest Alex Danco, who works on the Money team at Shopify.<br /> <br /> For the full show notes, transcript, and links to mentioned content, check out the episode page here: https://www.joincolossus.com/episodes/85946038/danco-shopify-the-e-commerce-on-ramp<br /> -----<br /> This episode is brought to you by Tegus. We created Business Breakdowns to uncover the lessons and frameworks behind every business, and that's what makes Tegus our perfect launch partner. Much of the foundational prep for these episodes starts with research on the Tegus platform. <br /> <br /> With Tegus, you can learn everything you’d want to know about a company in an on-demand digital platform. Investors share their expert calls, allowing others to instantly access more than 15,000 calls on Coinbase, Hinge Health, Farfetch, or almost any company of interest. All you have to do is log in. If you're ready to go deeper on any company and you appreciate the value of primary research, head to tegus.co/breakdowns for a free trial.<br /> <br /> -----<br /> Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.<br /> <br /> Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.<br /> <br /> Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss<br /> <br /> Show Notes<br /> [00:00:00] - Introduction<br /> [00:03:03] - [First question] - What Shopify is as a product<br /> [00:04:58] - Product pillar 1: Core[00:06:58] - Product pillar 2: Merchant services[00:09:02] - Product pillar 3: Ecosystem<br /> [00:11:04] - Product pillar 4: Shop<br /> [00:13:08] - The evolution of commerce with the rise of the internet<br /> [00:20:01] - Differences between high and low-trust commerce<br /> [00:24:48] - The role of friction and trust in stakeholder variety<br /> [00:29:18] - Overview of all four product pillars’ business models<br /> [00:32:10] - Shopify App Store<br /> [00:33:16] - How Shopify competes and partners with their competitors<br /> [00:35:53] - Shop Pay expands to Facebook and Instagram<br /> [00:37:49] - Key areas where Shopify will continue to grow across their product pillars<br /> [00:41:52] - Affirm, Klarna, Afterpay<br /> [00:42:56] - Potential pitfalls of having such a high self-imposed quality bar <br /> [00:44:12] - Conway’s law[00:44:12] - Aggregators versus platforms<br /> [00:52:35] - Unique marketing aspects for Shopify’s sales and marketing with their subscription model <br /> [00:55:37] - Shopify: A StarCraft Inspired Business Strategy<br /><br />Powered by Adori. https://adorilabs.com, #AdoriLabs <br /><br />#businessbreakdowns #shopify](https://media.thebusinessprofessor.com/wp-content/plugins/youtube-feed-pro/img/placeholder.png)
Today we will be diving into Shopify. We cover the revenue model of Shopify’s different business units by using Apple as a guide, how it monetizes different derivatives of merchant success, and Shopify’s philosophy, culture, and role in global commerce.
To help us break down Shopify, I’m joined by co-host Zack Fuss and our guest Alex Danco, who works on the Money team at Shopify.
Show Notes
[00:00:00] – Introduction
[00:03:03] – [First question] – What Shopify is as a product
[00:04:58] – Product pillar 1: Core[00:06:58] – Product pillar 2: Merchant services[00:09:02] – Product pillar 3: Ecosystem
[00:11:04] – Product pillar 4: Shop
[00:13:08] – The evolution of commerce with the rise of the internet
[00:20:01] – Differences between high and low-trust commerce
[00:24:48] – The role of friction and trust in stakeholder variety
[00:29:18] – Overview of all four product pillars’ business models
[00:32:10] – Shopify App Store
[00:33:16] – How Shopify competes and partners with their competitors
[00:35:53] – Shop Pay expands to Facebook and Instagram
[00:37:49] – Key areas where Shopify will continue to grow across their product pillars
[00:41:52] – Affirm, Klarna, Afterpay
[00:42:56] – Potential pitfalls of having such a high self-imposed quality bar
[00:44:12] – Conway’s law[00:44:12] – Aggregators versus platforms
[00:52:35] – Unique marketing aspects for Shopify’s sales and marketing with their subscription model
[00:55:37] – Shopify: A StarCraft Inspired Business Strategy