Shopify says ecommerce spend has “reset at a higher level” and will continue to grow throughout the year despite the worldwide easing of lockdown restrictions.
Shopify, which now provides the ecommerce platform for nearly 2 million retailers, made the predictions as it reported its first ever $1 billion quarter.
The Canadian tech giant said retailers using its platform saw sales rise by 40 per cent to $42.2 billion over the second quarter, coming ahead of Wall Street estimates and quashing fears that a widespread return to highstreets would dampen ecommerce spending.
While this was a slower pace than the record-breaking growth of 110 per cent seen in the same period a year earlier, Shopify said it expects revenues to continue to grow “rapidly” throughout the rest of 2021.
“We do believe (ecommerce spending) has reset at a higher level and is now just growing at a more normalised level,” Shopify’s finance chief Amy Shapero said.
Shapero added that in the UK, where lockdown restrictions have significantly reduced over the past quarter, online retail spend actually grew above average.
Shopify’s net income also more than tripled to $101 million compared to the same period a year earlier, not taking into account staggering gains from equity investments in firms like Stripe and Affirm.
The quarter also saw Shopify secure major deals to expand the potential reach of its retailers.
In May, Google announced that over 1.7 million merchants using Shopify’s platform will now be able to sell products more easily on Google search, Maps and YouTube, while launching the integration of Shopify’s payment function Shop Pay as an option for consumers.
These new functionalities will allow retailers to sell directly through Google Maps, list product availability and rating in it Shopping tab, while the search giant says it is experimenting with allowing shoppers to purchase directly from YouTube and in its Image search tab.