On Tuesday, Shopify (NYSE:SHOP) Technologies Inc. introduced a new service geared at large retailers. This new service will let large retailers choose the tools and services the Canadian technology giant provides and combine them with online platforms. As a result, Shopify stock surged.
The business said that it has signed up the toy manufacturer Mattel Inc. (NASDAQ:MAT) for the product and that it was aiming to get other enterprise customers it works with, such as Glossier, Coty (NYSE:COTY), Steve Madden, and Staples, on board as well.
Retailers will soon be able to select and choose components, such as checkout and other back-office services, for their already-established online enterprises via Shopify. Shopify stock is a service that lets businesses set up their online shop and website by charging a membership fee.
The cost of the service, known as Commerce Components, will vary depending on the level of customization a merchant provides and the components they want to use. Currently, the monthly membership for Shopify Plus begins at $2,000, while the essential plan cost is $29.
Shopify President Harley Finkelstein stated in an interview, “Commerce Components is basically for a new part of the market that has previously been neglected… we believe this offers us a new market to move into.”
“If you have to build it yourself, which a lot of big retailers had to do, you end up running your own tech company rather than making the product,” Finkelstein said, highlighting the growth of small brands that opted to sell directly to customers through social media or their own website. He was referring to the fact that many big retailers were forced to do this.
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