Shopify's Difficult, OK #shorts

Shopify's Difficult, OK? #shorts

The reason we're focused on Shopify is that we are targeting the discovery segment of direct-to-consumer (DTC). Unlike "they who must not be named" famously focused on Amazon, which is very intent-based, Shopify offers a different proposition. While it was initially driven by multiple arbitrages, building in the Shopify space is inherently more challenging. In Shopify, you have to own supply chain, customer support, and customer acquisition—all aspects that Amazon abstracts away from running your business. However, pulling this off successfully in the Shopify ecosystem offers much more value.

Secondly, our operational strategy sets us apart. Approximately 40% of our open store team consists of technical engineers, data scientists, and data analysts. This is very unique in the aggregator space. We need to build a platform of internal tools that allow specialized operators to have ten times the leverage they would otherwise be able to have. Without this, we'd end up in a scenario similar to the Amazon aggregator space, where they acquired 250 businesses on Amazon but had 1,200 employees to do so.

Keywords

Shopify
Direct-to-consumer (DTC)
Discovery segment
Supply chain
Customer support
Customer acquisition
Technical engineers
Data scientists
Data analysts
Aggregator space
Internal tools
Leverage

FAQ

Q: Why are you focused on Shopify instead of Amazon?
A: We are targeting the discovery segment of direct-to-consumer businesses, which Shopify allows us to tap into more effectively than Amazon. Amazon is very intent-based and abstracts many operational aspects of running a business, whereas Shopify offers more control and value if leveraged successfully.

Q: What makes operating in the Shopify space more challenging?
A: In the Shopify ecosystem, you have to manage your own supply chain, customer support, and customer acquisition, unlike Amazon, which takes care of these aspects.

Q: How does your company differentiate itself in the aggregator space?
A: About 40% of our team consists of technical engineers, data scientists, and data analysts, which is unique. We focus on building internal tools that give specialized operators ten times the leverage they would otherwise have.

Q: Can you provide an example comparing your strategy with Amazon aggregators?
A: Amazon aggregators might acquire 250 businesses but require 1,200 employees to manage them. With our focus on technology and data analytics, we aim to achieve much higher efficiency and leverage with a smaller team.