How Canadian Shopify weaves ai ‘Magic’ to attract merchants
By Deborah Mary Sofia
(Reuters) – Heather Perry placed a bold bet before last year’s Holiday Rush. We switched to Shopify all e-commerce operations of family-owned roasting and clutch coffee.
The 42-year-old SME CEO in Southern California has made its way into an artificial intelligence-based service for Canadian companies that automates daily tasks such as generating discounts and product descriptions, their improved customization tools and a wider app suite. I was attracted to it.
“Are you running your business from scratch during the holiday season? I can’t imagine,” Perry, who moved to Shopify in July, told Reuters.
“Shopify can make very quick changes. Honestly, I can’t imagine doing it manually.” She named the platform she was on before she shifted. I refused to do so.
Perry is one of the hundreds of merchants who have moved to Shopify to build an online store and manage their retail business, according to data from interviews with sellers at internet analytics firm Builtwith and Reuters.
The company’s AI suite, Shopify Magic, is reshaping the e-commerce landscape by equipping small businesses with automation tools exclusively for retailers, and driving growth in a challenging retail environment. Masu.
Shopify generates revenue primarily from subscription fees and reduced transactions on the platform. Its revenue is expected to be one-sixth fastest growth when it reported 27.3% (fastest growth in six quarters) on Tuesday, according to data compiled by LSEG.
Growth is faster than industry growth. Emarketer estimates that global e-commerce sales rose 8.4% to $6.091 trillion in 2024. In comparison, according to LSEG, Shopify’s revenue is expected to rise 24.6% over the same period.
The move is also to place Shopify on a stiffer scaffold after slowing down after the pandemic. Four quarter revenues skyrocketed over 90% during the Covid-19 lockdown as homebound consumers gathered for online shopping. Growth has skyrocketed as restrictions eased.
Now the number of shops is climbing again. The data built shows that the number of stores registered on Shopify increased by 20% in the July-September quarter. This is an important planning period for businesses.
Oppenheimer analyst Ken Wong said Shopify is “attracting a large number of sellers” and is approaching growth in the Covid era.
“Game Changer”
The company’s subscription plans range from $39 per month for base packages to $2,000 for enterprise-centric Shopify Plus. All plans come with Shopify Magic features that automate tasks such as generating images, creating product descriptions, tracking sales, and setting discounts.