Press center
Logistics query
Please enter the number:
Freight encyclopedia
Can Amazon break half of the market? Can Shopify break the industry landscape?
2019-12-23 View: 2873
eMarketer predicts that by 2019, Amazon will occupy nearly half of the US retail e-commerce market. However, the research agency did not include Shopify among the top ten companies that are expected to enter the US retail e-commerce market. Still, the company is currently touted as Amazon's main competitor. Amazon shares are up 21.93% so far this year, and Shopify is up 159.06%.
How Shopify upgraded its offensive
On September 10, Shopify announced plans to acquire robot execution company 6 River Systems for $ 450 million. The company expects the transaction to close in the fourth quarter. According to Shopify's press release, the company does not expect the transaction to have a material impact on revenue in 2019. However, the company expects additional spending of $ 25 million in 2019. The company also expects that by 2020, 6 River Systems will create $ 30 million in value.
The acquisition could be part of Shopify's $ 1 billion investment to strengthen its US fulfillment network plan. The company's acquisition of 6 River Systems may allow it to compete directly with Amazon Robotics in the US e-commerce space.
Shopify makes its presence felt in 2019
Analysts and investors are beginning to notice that Shopify is a potential competitor Amazon faces after it announced its fourth-quarter results in February. Shopify's strong business performance underpins its performance, exceeding consensus revenue and non-GAAP earnings per share expectations. The stock rose further after the first quarter results were announced in April. The company's quarterly revenue was $ 10.37 million higher than market estimates and non-GAAP estimates were $ 0.14 higher.
In May of this year, Shopify acquired Handshake, a company engaged in wholesale B2B (business-to-business) procurement. The move shows that the company is increasingly focusing on US B2B e-commerce opportunities. In June of this year, the company announced its entry into the logistics space in the US e-commerce sector and launched an extensive fulfillment network.
Amazon is aggressively strengthening its e-commerce business
On September 9, the NBC Business Channel reported that Amazon plans to add 30,000 full-time and part-time jobs to its corporate, technology, and customer execution departments. According to MWPVL International, as of September, Amazon had 971 active facilities worldwide. Of these, 426 are in the United States. These facilities include distribution centers, replenishment centers, return centers, pantry / fresh food distribution centers, Prime Now centers, airport centers, distribution stations, inbound and outbound sorting centers, and Whole Foods retail distribution centers.
In June, Amazon announced plans to further expand its air cargo network by leasing more Boeing 737-800 aircraft. The company plans to operate 70 freighters by 2021. Read Amazon has just added 15 aircraft to Amazon Air.
Amazon Prime members' change from two-day shipping to one-day shipping has attracted great interest from analysts and investors.
On September 5, CNBC reported that Amazon was testing a new feature to help customers identify newly launched products. The company is also evaluating another feature, the Top Brand badge, to help customers identify products from well-known brands. Badges promise to improve customers' overall shopping experience.
What analysts think of Amazon and Shopify
Analysts are closely watching the e-commerce businesses of Amazon and Shopify. On September 3, RBC Capital Markets reiterated Amazon's "outperform" rating and raised its target price from $ 2,200 to $ 2,600. The company attributed this increase to the expected commercial success of its one-day delivery service.
On September 9, CNBC reported that R.W.Baird raised Shopify's target price from $ 370 to $ 410. Analysts expect the company to become the second best-selling e-commerce company in North America. The analyst also expects that by the end of 2019, more than 1 million merchants will use the Shopify platform. In this case, Shopify will replace eBay as Amazon's stronger competitor.
On August 27th, Rosenblatt analyst Mark Zgutowicz reiterated Shopify's "Buy" rating and raised its target price from $ 410 to $ 481. He attributed this increase to the expected fulfillment revenue stream of the Shopify fulfillment network.
How Shopify upgraded its offensive
On September 10, Shopify announced plans to acquire robot execution company 6 River Systems for $ 450 million. The company expects the transaction to close in the fourth quarter. According to Shopify's press release, the company does not expect the transaction to have a material impact on revenue in 2019. However, the company expects additional spending of $ 25 million in 2019. The company also expects that by 2020, 6 River Systems will create $ 30 million in value.
The acquisition could be part of Shopify's $ 1 billion investment to strengthen its US fulfillment network plan. The company's acquisition of 6 River Systems may allow it to compete directly with Amazon Robotics in the US e-commerce space.
Shopify makes its presence felt in 2019
Analysts and investors are beginning to notice that Shopify is a potential competitor Amazon faces after it announced its fourth-quarter results in February. Shopify's strong business performance underpins its performance, exceeding consensus revenue and non-GAAP earnings per share expectations. The stock rose further after the first quarter results were announced in April. The company's quarterly revenue was $ 10.37 million higher than market estimates and non-GAAP estimates were $ 0.14 higher.
In May of this year, Shopify acquired Handshake, a company engaged in wholesale B2B (business-to-business) procurement. The move shows that the company is increasingly focusing on US B2B e-commerce opportunities. In June of this year, the company announced its entry into the logistics space in the US e-commerce sector and launched an extensive fulfillment network.
Amazon is aggressively strengthening its e-commerce business
On September 9, the NBC Business Channel reported that Amazon plans to add 30,000 full-time and part-time jobs to its corporate, technology, and customer execution departments. According to MWPVL International, as of September, Amazon had 971 active facilities worldwide. Of these, 426 are in the United States. These facilities include distribution centers, replenishment centers, return centers, pantry / fresh food distribution centers, Prime Now centers, airport centers, distribution stations, inbound and outbound sorting centers, and Whole Foods retail distribution centers.
In June, Amazon announced plans to further expand its air cargo network by leasing more Boeing 737-800 aircraft. The company plans to operate 70 freighters by 2021. Read Amazon has just added 15 aircraft to Amazon Air.
Amazon Prime members' change from two-day shipping to one-day shipping has attracted great interest from analysts and investors.
On September 5, CNBC reported that Amazon was testing a new feature to help customers identify newly launched products. The company is also evaluating another feature, the Top Brand badge, to help customers identify products from well-known brands. Badges promise to improve customers' overall shopping experience.
What analysts think of Amazon and Shopify
Analysts are closely watching the e-commerce businesses of Amazon and Shopify. On September 3, RBC Capital Markets reiterated Amazon's "outperform" rating and raised its target price from $ 2,200 to $ 2,600. The company attributed this increase to the expected commercial success of its one-day delivery service.
On September 9, CNBC reported that R.W.Baird raised Shopify's target price from $ 370 to $ 410. Analysts expect the company to become the second best-selling e-commerce company in North America. The analyst also expects that by the end of 2019, more than 1 million merchants will use the Shopify platform. In this case, Shopify will replace eBay as Amazon's stronger competitor.
On August 27th, Rosenblatt analyst Mark Zgutowicz reiterated Shopify's "Buy" rating and raised its target price from $ 410 to $ 481. He attributed this increase to the expected fulfillment revenue stream of the Shopify fulfillment network.