The global e-commerce platform, Shopify, with its home base in Canada had a stellar fourth quarter. Revenue was up 99% and gross merchandise volume increased 109%.
Shopify now says that they have over 243,000 merchants using their platform, mostly small and medium-sized businesses, and they sold a lot during the last quarter of 2015.
- Over the holiday season our merchants collectively sold almost 3 billion dollars worth of products, a huge increase from the year before. We are also seeing our merchants use Shopify to sell on multiple new sales channels like mobile and social, said Tobi Lütke, founder and CEO of Shopify.
For the full year the total revenue was $205 million, a 95% increase from 2014. Revenue from subscriptions increased 68% while revenue from "merchant solutions" grew 143%.
Selling on Social Is Increasing
Shopify was among the first e-commerce providers to add the ability to sell over social media platforms like Facebook, Pinterest and Twitter. This is still said to be a small portion of transactions but 25% of Shopify merchants have enabled social media selling.
- Many of our efforts in 2015, such as adding multiple new sales channels to a single integrated back office, were driven by our simple goal of helping merchants become more successful, said Russ Jones, Shopify's CFO.
The outlook for 2016 is a revenue of $320-330 million, for the full year, and Tobi Lütke believes this is just the beginning.
- We believe that multichannel, cloud commerce is an industry-wide shift that is still in its infancy, said Tobi Lütke.