Amidst the Coronavirus Fear, will the Shopify Stock Bounce Back?
SHOPIFY AND THE CORONAVIRUS FEAR
The Shopify platform and Shopify app development are just among the many that have suffered with the Covid-19 outbreak. Given that it’s one of the up and coming and largest names in eCommerce these days, are the fears just overstated? A lot if not most industries all throughout the world have been crushed as the world awaits to see what would happen next. The market-killer here is uncertainty. However, what we are greatly aware of is that the pain is not yet over.
THE SHOPIFY WONDER
The leading commerce company in the world, Shopify provides trusted tools for starting, growing, marketing and managing all sizes of businesses. It makes commerce better for everybody with its services engineered for reliability. The platform provides a better shopping experience for customers anywhere in the world. Powering over a million businesses in more than 175 countries, it’s no wonder why it is extremely popular.
ONE OF THE MOST DESIRED ECOMMERCE PLATFORMS
Among the numerous eCommerce platforms today, Shopify is among the most desired. Take a look at its features which make it extremely popular.
- The eCommerce platform provides affordable quality services. Compared to other platforms, Shopify has a lesser monthly cost with maximum services.
- ATTRACTIVE SHOPS. A visually attractive store is paramount. Shopify provides a beautiful as well as responsive layout with hundreds of themes to choose from for customizing a store based on the owner’s requirements. There are many service providers that provide Shopify theme development.
- BUILT-IN MARKETING TOOLS. Shopify has several built-in marketing tools to lower start-up costs. It enables putting the page title, Meta titles, unique URLs, Meta description, making pages visible and invisible and a whole lot more. Additionally, Shpify is integrated into the most popular social media platforms today, namely Twitter, Pinterest and Facebook for products promotion.
- EXEMPLARY TECHNICAL SUPPORT. The platform offers exemplary technical support in the event that the website stops working or if other glitches occur. Customer care is available 24/7 to pick up calls or revert a caller to live chats.
- NO WEB HOSTING WORRIES. For startups, web hosting could be a real headache. With Shopify, you can be sure that the servers are properly and professionally maintained. The eCommerce platform pays for software maintenance, hosting and also helps handle the payment gateway, making the work seamless and very easy.
- Shopify allocates a whole lot of money for robust security and adhere to the pertinent rules and regulations. You can be assured that all security issues would be taken care of.
SHOPIFY AND THE CORONA ANXIETY AT PRESENT
It might appear that an eCommerce enterprise would be immune from the worst effects of the pandemic. However, at both ends of the value chain is the physical product which should be plucked, loaded, shipped and then delivered. In places with stringent quarantines, making an online purchase is not a guarantee that it would be delivered. Thus, Shopify and Shopify web development services took a hit.
In a rough estimate, shares are down by 30 percent from the all-time high back in February. Nevertheless, the stock is still up by about 108 percent in the last 52 weeks. Although the impact of the Covid-19 pandemic is virtually certain to be only temporary, it does not automatically imply that the duration would be short. In the long term, Shopify would do fine, but for now there would certainly be some impediments.
How long the pandemic will last? Nobody is certain for sure.
SHOPIFY SUSPENDS 2020 OUTLOOK
Shopify states that it is suspending the financial outlook for this year due to the uncertainty that stems from Covid-19. Moreover, it states that momentum during the first couple of months this year would allow it to achieve first-quarter revenue as well as adjusted operating income within or ahead of expectations. It will provide results for the period ending March 31 on May 6.
Shopify has taken steps to protect its shareholders and support merchants, including a 90-day free extended trials to enable all new standard plan signups and also merchants’ local curbside pickup and delivery. Early signs from the analysis of how the coronavirus is impacting the operations indicates that brick-and-mortar establishments are turning to online with the huge drop in foot traffic.
Shopify announced that it has terminated merchants charging unfair prices or hiking up their prices and making false claims of Covid-19-related items, such as face masks, alcohols and hand sanitizers.
SHOPIFY PARTNERS SHOW SUPPORT
It’s uplifting to see how partners of Shopify offered with no hesitation help to entrepreneurs in so many ways. Below, look at some examples of how Shopify partners are revolving to respond to the crisis at present.
- Community. The community support goes a long way during these difficult times. Partners are jumping in to help in any way they can. One great example is Kurt Elster, the founder of Ethercycle, a Shopify consultancy who helps in amplifying eCommerce brands through sharing their stories via Ethercycle’s newsletter and network.
- Education. When it comes to educational resource, Shopify partners are stepping up to equip entrepreneurs, including partners and merchants with the insights needed for long-term success. Jordan Deutsch, one of the partners and co-founder of Up at Five digital studio that makes Shopify development tutorials is offering free courses at present. With people today practicing quarantine and social distancing, he states they wanted to put their video courses for free.
- Advice and consultation. In this difficult and uncertain time, now more than ever entrepreneurs look for guidance from experts in the industry on navigating a business. This is a need that partners are positioned to respond to in a unique way. Business strategy and SEO consultations are being offered by the COO and co-founder of Shopify Agency, Venntov Rhian Beutler.
Furthermore, Up Later Than You, a Shopify design studio offers consultation services, with email subject lines in particular. As merchants double down on reengaging existing consumers as well as encourage customer loyalty, building a subject line that’s effective could help stand out among the rest.
- Store setup. The circumstances are putting pressure on a lot of entrepreneurs in the world to rethink their business plans. Many organizations are considering moving towards online business as their brick and mortar stores are being closed for health safety purposes. The founder of Shopify agency The Taproom Agency, Kelly Vaughn if offering to help brick-and-mortar establishments get up and running on the platform, even if what they could sell during this time is gift cards.
- Support for merchants and partners. As the scenario continues evolving, there would be more partner resources, guides and updated tools. Keeping tabs or monitoring the changelog and the Web Design and Development Blog continuously is important to stay updated in the weeks to come.
Shira Gray is working as a Business Development Executive at PHP Web Development Company – eTatvaSoft.com. She writes about emerging technologies. Being a tech geek, she keeps a close watch over the industry focusing on the latest technology news and gadgets.