Shopify taps Amazon for fufillment partnership

By

Kate Dingwall

Published
Jan 8, 2017

Shopify shares have skyrocketed after the software website announced its upcoming partnership with Amazon. Shopify announced on Thursday that starting next week, Amazon will help with order fulfillment, upping Shopify’s threat to competition.

The e-commerce site acts as the back end for over 350,000 web, mobile, and brick-and-mortar businesses across the world. The web-based retailer creates software that allows small and medium-sized businesses to set up and manage an online store. The average Shopify merchant pushes $46,000 in merchandise annually.

After the Amazon integration completes, Shopify users can market their products on Amazon’s Marketplace platform, as well as use Amazon’s fulfillment to fulfill orders placed via their own platforms.

After the announcement, Shopify sales spiked 8%. Rosenblatt analyst Kirk Adams noted that the company is expected to see revenue grow 60% over the next fiscal year.

On the financial side, Shopify has not had the brightest year. The platform, which went public in May of 2016, saw its net loss widen from $9.1 million in the third quarter compared to the $4.7 loss in the year before. The company cited growing expenses as the cause of the loss.