Last week eBay Inc. (NASDAQ: EBAY) and Shopify (NYSE: SHOP, TSX: SHOP) announced a new partnership, creating a new sales channel to expand merchant reach. In the fall of 2017, Shopify merchants will be able to list and sell their products on eBay directly from their Shopify accounts, giving them access to more than 169 million active eBay buyers. eBay also benefits with its shoppers getting additional products from Shopify merchants. The platform will first be available to merchants selling in the United States with the U.S. dollar as their currency.
With the eBay integration, Shopify merchants can immediately sync inventory information including product title and description, item details, price and quantify from Shopify to eBay. Merchants will be able to fulfill orders and read messages from both platforms from one dashboard. Using the eBay sales channel, Shopify merchants get create a fully customizable website, online store and blog, accept credit cards instantly with Shopify
“eBay is focused on delivering the best choice and selection of inventory to buyers across the globe,” said Bob Kupbens, VP of Global Trust & Seller Experience, eBay in the announcement. “This new integration with Shopify will bring even more great products to eBay buyers, while offering Shopify merchants the ability to seamlessly drive their business and brand at scale by tapping into our vibrant marketplace.”
The eBay channel is the latest in a line of Shopify sales channels that include Amazon, BuzzFeed, Facebook, Pinterest and Messenger. Channels like eBay work through Shopify’s Sales Channel Platform which integrates any site, app or platform to add commerce. According to the announcement, more than 60 percent of their merchants sell their products in two or more sales channels.
Shopify is the industry leader when it comes to multi-channel commerce, and we look to partner with the best and biggest platforms to bring new sales opportunities to our merchants,” said Satish Kanwar, VP of Product, Shopify in the announcement. “The eBay channel has the potential to introduce our merchants to eBay’s millions of buyers, exposing merchants to a massive number of new sales opportunities.”
Shopify currently supports more than 400,000 businesses in 175 countries including Tesla, Red Bull, Nestle and GE. It has more than 1,000,000 active users and more than $34 billion in products have been sold on Shopify. In 2016, eBay enabled $84 billion of gross merchandise volume from its sellers.
As The Motley Fool points out, Shopify has found a way to partner with its competitors including big e-commerce players like Amazon and eBay. Shopify has made it easy for merchants to create an online storefront by supporting them with a variety of tools, including payment processing, websites and blogs, gift cards, discount codes, reports and other tools with affordable subscription pricing, starting at $29 a month for the Basic Shopify package up to $299 a month for the Advanced Shopify package.
With Subscription Solutions representing 48.7 percent of total revenue (for the three months ended March 31, 2017), it is beneficial for Shopify to keep its merchants happy. Giving merchants more sales channels is one way to retain their business, says The Motley Fool.
Shopify has been operating in the red for a while, but in its first quarter earnings report, it showed big increases including monthly recurring revenue of $20.7 million, a 62 percent increase year-over-year. Gross Merchandise Volume was $4.8 billion, an 81 percent increase, and gross profit was $72.2 million, an 80 percent increase. The company still posted a first quarter net loss of $13.6 million, or $0.15 per share, but it is moving the needle in the right direction. Partnering with companies like, eBay, is mutually beneficial and will hopefully help stimulate additional growth.