Shopify Experience Losses Despite Revenue Being Higher Than Expected

According to the head of Shopify Inc. based in Canada, a team ups with other huge internet companies will be the cause for e-commerce to evolve into the next level. Tobias Lutke, CEO of Shopify, used the term “federated commerce” and how it will help Shopify expand into a wider network available for entrepreneurs from various fields spanning pop-up shops and smartphone application developers.

Lutke divulged that the e-commerce market is entering a more complicated age wherein there is a call for one platform that will make it possible for merchants to log in and do whatever they need in connection with their business such as marketing, payments, metrics and shipping. He also revealed how Shopify is considered as the first ever created operating system that served the market of federated commerce. The statement was released the same day that Shopify made public the sales forecast for this year’s third quarter. Much to the analysts’ surprise, the company has exceeded the figure expected.

Shopify reports their figure in US dollars and announced their revenue that amounted to $52.8 million with a 93 per cent increase considering year-over-year data. Analysts, on the other hand, made a forecast for the company revenue at only $47.6 million. Despite beating the expectations of the experts, the company is still experiencing some losses in the quarter which totaled $4.7 million or equivalent to a six cents decrease in every share.

The main headquarter of the online store builder is located in Ottawa. In a recent announcement, Shopify revealed that they are partnering with other huge online companies including Facebook, Amazon and Twitter. In light of the recent partnership, there are now visible “buy now” buttons which can be seen on Twitter while there is an added “shop” section for the Facebook Pages. Another deal was made by Shopify with Amazon which will enable their merchants to use the payment system of Amazon as well as its warehouses.

For delivery, Shopify partnered with Uber to make it possible to have an option for same-day delivery in three of the cities in the United States.