Shopify Inc Launches New Tool, Enables Direct-to-Consumer Commerce

Shopify president, Harley Finkelstein, their business wants to move from direct to consumer sales to being "connected to consumers", .(photo: twitter @harleyf)

JAKARTA - Shopify Inc, has launched a new tool to help its merchants sell to other businesses and on the Twitter platform. This is being done by the Canadian tech giant in an attempt to shore up sales to counter the post-pandemic trade slowdown, particularly in online shopping.

More than 100 new tools were launched on Wednesday, June 22, including those to support its plans to drive business-to-business commerce, for shoppers to connect their crypto wallets to stores and Apple's "Tap to Pay" feature on iPhones.

Shopify, which helps businesses set up their online stores, made big profits during the last pandemic as global brands and mom-and-pop stores alike turned to online selling directly to consumers when their stores closed.

Commerce is evolving and @Shopify is at the forefront of that change. While D2C is about connecting brands 1-to-1 with consumers, C2C is about activating endless pathways to connect with consumers. More on how we are building in this new era👇https://t.co/DxNBbOkIpz pic.twitter.com/DzXH8zjHQG

— Harley Finkelstein (@harleyf) June 22, 2022

However, with the economy reopening, investors are starting to question Shopify's future. This sends the company's shares down 76% this year and wipes out most of their profits made during the pandemic.

According to Shopify President Harley Finkelstein, their business wants to move from direct-to-consumer sales to "connection to consumers", which makes it easier for people to shop through social media platforms and pay using their mobile phones.

Finkelstein states, this is Shopify's answer to the slowdown that extends to the wholesale market, a much bigger avenue than direct-to-consumer sales because there are "billions of untapped revenue",

"This is the next phase of retail ... In many ways, shopping has become an option with your wallet to support the brand ... And that's what I think connects with consumers," said Finkelstein, as quoted by Reuters.

The post-pandemic world also presented new challenges for Amazon, Shopify's biggest rival, as it suffered heavy losses after building more warehouses than was needed during the boom.

In a podcast earlier this month, longtime Shopify investor, Mawer Investment Management, Vijay Viswanathan, said he would sell their stake in Shopify, due to fears of slowing growth and competition.

"The internet is getting busier... It's becoming increasingly difficult to justify judgments," he said.