Over 10,000 merchant customers in Los Angeles
Shopify (SHOP) is expanding in Los Angeles, one of its largest markets, with a physical store. The company intends to use its Los Angeles location to provide in-person support and training to its merchant customers in the area. The spot is also expected to function as a showroom where Shopify can introduce customers to its new products and show them how they work. The location will also have room for aspiring entrepreneurs to learn how they can transform their ideas into actual businesses or products.
Shopify products are popular in the Los Angeles market. More than 10,000 merchants use Shopify technologies across the Los Angeles area, and hundreds of them are large merchants making over $1.0 million in sales.
Alternative marketplace for Amazon sellers
Shopify is a provider of payment and logistics management software as well as services for retailers including a marketplace. As many as 17% of Amazon (AMZN) sellers have product listings on Shopify’s marketplace as well, making it a popular alternative marketplace used by Amazon sellers. Walmart (WMT) and eBay (EBAY) host 25% and 52% of Amazon sellers, respectively.
Shopify’s revenue rose 61.5% YoY (year-over-year) to $245 million in the second quarter. Amazon, Square (SQ), and PayPal (PYPL) grew their second-quarter revenues by 39.3%, 47.8%, and 23% YoY, respectively. Shopify plans to report its third-quarter results on October 25 and is expected to report revenue of $257.9 million. Revenue was $171.5 million a year ago.