Walmart Canada is exploring the cannabis business
In Canada, Shopify (SHOP) seized the pot moment. When legal cannabis for recreational use kicked off in Canada last year, many government-sponsored cannabis retailers—as well as other prominent vendors—chose to host their digital shops on Shopify’s platform for online shoppers, according to a Bloomberg report. As a result, Shopify is powering many digital cannabis shops in Canada, and now the company is looking beyond Canada to expand its cannabis business.
“Shopify is what’s powering those retail sales [of cannabis in Canada] and we think that we can do a great job helping other countries and other regions do the same thing,” CNBC recently quoted Shopify’s chief operating officer, Harley Finkelstein.
Shopify’s revenue rose 54%
More than 800,000 businesses operate digital retail stores on Shopify’s platform, according to the company’s website. Merchants that make more than $1.0 million in gross sales through Shopify’s platform increased 58% in 2018, according to a statement from the company, indicating the growing adoption of Shopify’s services by large sellers. Shopify generated $343.9 million in revenue in the fourth quarter, which ended in December, representing an increase of 54% year-over-year. Alibaba (BABA), Amazon (AMZN), and eBay (EBAY) reported revenue growth or 41%, 20%, and 6.0%, respectively, in the December quarter.