Shopify is moving into an untapped $6 trillion ecommerce market as it delves further into B2B sales.
The ecommerce platform is doing so by integrating more B2B tools into the Shopify Plus Platform, the company’s premium platform.
The significant move could help keep Shopify attract bigger and more lucrative brands to its platform as it continues battling it out with Amazon for market shares.
Specifics weren’t disclosed by the company however more information will be coming soon according to the company.
“As the opportunity of digital commerce continues to evolve, we’re seeing more and more DTC brands expand into B2B,” Shopify managing director Shimona Mehta said during the Commerce+ event.
“For some, B2B expansion is a response to explosive growth and demand from retailers. And for others, it’s a proactive recognition of huge untapped potential and a smart way of breaking into new markets and new distribution channels.”
Traditionally, Shopify empowers merchants to sell products directly to consumers, however a B2B move would be “significant,” Guggenheim Securities analyst Ken Wong told Business Insider.
“It just pairs along well with the fact that they have been moving upmarket,” Wong added.
“It’s going to be less of the mom-and-pop stores in your local neighborhood that are pushing coffee or t-shirts or whatnot, and it’s definitely going to be more of these larger brands that are potentially going to sell to other businesses.”
By the end of last year, Shopify had over 1.7 million merchants, generating $119.6 billion in annual gross merchandise volume (GMV) on its’ platform.
The company hopes that by adding more B2B functionalities to Shopify Plus, it will convince more merchant so subscribe to the premium version of its software.
The basic subscription package tiers are priced at $29, $79 and $299 repespectively per month, however Shopify Plus starts at $2,000 per month.
A merchant that pays for Shopify Plus receives access to perks including lower transaction fees and custom checkouts.
Companies that are subscribed to the premium package include Allbirds, Heinz and Steve Madden.