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#18 - Shopify Stock Soars 🚀🤑
ChaChing without Cookies. Amazon pauses Global Expansion. Shein expansion to UK & Europe. Sephora F*cked up. Shopify’s Q3 Earnings Report.
The Q3 is well behind us and we’re all sprinting towards the end of the year. Maybe you’re now celebrating some record results like Shopify, or licking your expansion wounds as Amazon. Whatever’s the case, make sure you read all these insights so you’re prepared to anything the market throws at you in 2024. Advice of the week: don’t screw up like Sephora just did 😅
5 - ChaChing without Cookies
ChaChing is a media platform that revolutionises digital advertising by prioritising conversions, offering cashback to customers, and addressing the changing online privacy landscape. Their commitment to giving up to 90% of the acquisition cost back to customers and a minimum cashback of 15% makes them customer-centric. In a world where online privacy concerns are growing and third-party cookies are on the way out, ChaChing's innovative approach could revolutionise online advertising, offering better returns and improved customer loyalty. It's a significant development to watch.
4 - Amazon pauses Global Expansion
Amazon had plans to launch marketplaces in Chile, Colombia, Nigeria, and South Africa in early 2023 but didn't do so. This marks the first year since 2016 that Amazon didn't launch a new marketplace, with the last one being in Belgium in October 2022. However, Amazon is set to launch in South Africa in early 2024 and has already started recruiting sellers for this marketplace. While Amazon's expansion in countries like Brazil, Mexico, and Australia has been successful, the company is cautious about entering smaller and competitive markets, which has limited the growth of some of its newer marketplaces. Amazon's international expansion is a long-term strategy, and it aims to establish a presence in 25 of the world's 50 largest economies. Despite challenges, it hopes to replicate success stories like its rapid growth in Australia after its 2017 launch.
3 - Shein expansion to UK & Europe
Chinese online fashion retailer Shein has expanded its portfolio by acquiring the British fashion brand Missguided, with undisclosed financial details. Shein secured the intellectual property and trademarks of Missguided, while the real estate and employees remain with Frasers Group, which acquired Missguided just a year ago for 23.5 million euros. Shein's Chairman, Donald Tang, expressed the intention to rejuvenate Missguided's brand and capitalize on its unique personality, aiming for global growth through Shein's on-demand production and e-commerce expertise. This acquisition allows Shein to tap into Missguided's young target audience, expand its market presence in Europe and the UK, and signifies a strategic move towards global expansion for the Chinese platform.
2 - Sephora F*cked up
Sephora's highly anticipated Savings Event faced technical issues during its early access for top-tier loyalty shoppers, leaving many frustrated. The website and app experienced high traffic, and customers were directed to a virtual waiting room. The use of this "queue" system likely prevented a complete site crash, but it resulted in a less than ideal user experience. Tech experts suggest that creating a better landing page and utilizing reliable e-commerce platforms like Shopify could enhance the shopping experience. Sephora, a custom site, reportedly invested between $20 million and $30 million in its platform 🤦♂️💸.
1 - Shopify’s Q3 Earnings Report
In the third quarter, Shopify demonstrated progress as a global commerce leader, focusing on empowering its merchants with innovative product solutions. Financial highlights include a 25% increase in total revenue and a 30% year-over-year growth after adjusting for logistics business sales impact. Gross profit saw a 36% growth, and operating income was $122 million, a significant improvement from the previous year. Shopify's strategic moves involved launching new plans, expanding POS systems, and optimizing the checkout process. They also solidified partnerships and received recognition for their innovative approach. As Shopify continues its growth journey, it aims to offer better tools and profitability for its merchants. See the full report here.
Performance is King
This article compares Liquid and headless ecommerce architecture in terms of web performance. Shopify's Liquid platform excels in real-world performance, with a high Core Web Vitals passing rate. Large merchants achieve strong performance using Liquid. Headless architecture can be fast but often falls short in practice. Common server-side rendering frameworks like Next.js and Nuxt.js exhibit lower Core Web Vitals passing rates compared to Liquid. Hydrogen is recommended for headless setups to achieve better web performance.
The data comes from reliable sources like the HTTP Archive and Chrome User Experience Report (CrUX), providing insights into real user experiences and performance.
Entrepreneurial Journeys of Developers
Ilias Haddad has just launch one of the most interesting podcasts of this year for Ecommerce developers. What can you expect from it? Interviews with engineers and technical minded people about their entrepreneurial paths and valuable personal experiences. Tune in for regular episodes and glean insights from these tech-savvy entrepreneurs.