Shopify’s plan to grow Shop Day so that it can compete with rival Amazon’s Prime Day might come true. The results of the inaugural Shop Day give hope to Shopify executives to make it one of the top online shopping days of the year.
Shopify is promoting Shop app as the one-stop solution and go-to app for all their shopping requirements, irrespective of whether it is online or in-store. Meanwhile, it is also facing tough competition from Amazon not only on mobile shopping but also convenience front. Lately, Amazon allowed online retailers to use the “Buy with Prime” option on their sites. This will enable Prime Members to avail of Prime shipping benefits even when they are not shopping from Amazon.
Shop Cash represents the next evolution of Shop, connecting independent brands to more shoppers, and rewarding those shoppers for being loyal fans.
Harley Finkelstein, President, Shopify
About Shop App
The Shop App was launched in 2020, primarily as a means to track packages. However, in 2023, Shopify decides to expand its uses both for merchants and customers. The e-commerce giant offered promotions and incentives to popularise the use of its app and Shop Pay, the payment platform.
Shopify announced its first Shop Day to be held on June 2 and launched Shop Cash. For those unversed, it is a loyalty program that provides shoppers with one percent cash back on purchases done via Shop Pay. Consumers can keep those cash-back credits on the Shop app and then use them for future purchases. As it was the inaugural Shop Day, merchants also gave extra incentives like price deals or extra Shop Cash.
Shopify’s Expenses on Shop Day
According to a report published on Forbes, Shopify refused to reveal the amount spent in the app on Shop Day. However according to a company spokesperson, on Shop Day, the app recorded its highest first-time buyer. The app also surpassed the record of offers redeemed by users. It was five times higher than the daily average.
The one percent Shop Cash credit is basically the money Shopify while processing Shop Pay transactions. On Shop Day 2023, the tech giant decided to give away over $1 million in Shop Cash.
The response to the first Shop Day was “overwhelming”, said Shopify’s Vice President of Product, Shop and Merchant Services, Carl Rivera, said in an interview, as quoted by Forbes.
“We could not have expected it to go the way it did. Sales in the app exceeded Black Friday-Cyber Monday sales made with the app by 30 percent. We want to become the most amazing way to shop from your phone, based on the insight that shopping from your phone happens everywhere, whether you go to an online store, to a social network, or even a retail store,” Rivera said.
“Your phone is the one consistent part of every shopping experience,” he added.
Tool for the Merchant
The Shop app was initially designed as a tool, especially for Shopify merchants. It would help them to engage in mobile commerce without creating their own mobile app. Now, the company is focused on increasing the usefulness of the app for consumers. It aims at providing merchants access to new customers, and help merchants transform them into loyal buyers.
Shopify President Harley Finkelstein called the launch of Shop Cash, a “coming of age moment” for Shop Cash, e-commerce and his company. “It’s become an incredible app that allows shoppers to discover great brands, check out with one tap, and track orders in real-time,” he said in a statement.
“Shop Cash represents the next evolution of Shop, connecting independent brands to more shoppers, and rewarding those shoppers for being loyal fans,” Finkelstein added.
On Twitter, Finkelstein explained how the company’s new product aims to “make commerce better for everyone”. “Today is Shopify’s birthday (aka SHOP DAY). 17 years ago, we launched Shopify to make commerce better for everyone. Today we power millions of businesses. To celebrate our birthday we’re giving away $1 million in Shop Cash,” he wrote.
Shopify’s Priority
During a conference call with analysts to discuss the first quarter results of Shopify released in May, Finkelstein said that the company prioritises Shop App for now. It aims at updating and expanding the app. He also emphasised that Shopify announced some of the biggest updates to the app in February. “Shop gives merchants an out-of-the-box mobile storefront,” Finkelstein said.
As per Shopify data, users of the app are likely to spend more and buy again. Statistics also said that around 35 percent of orders on the app are repeat orders. To support its claim, Shopify cited research from “one of the Big 3 consulting firms,” noting that “Shop Pay can lift conversion by as much as 50% compared to guest checkout, outpacing other accelerated checkouts by as much as 15 percent”.
Shopify believes the app will successfully attract merchants as the app allow them to build a distinctive store presence. It also enables merchants to establish and maintain their first-party relationship with shoppers which is not the case with Amazon or Walmart, as they control the relationship.
Shopify wants consumers to consider the Shop app as the one-stop destination where they can get curated, customised offers and suggestions. It will also allow them to keep track of all their online shopping in one place. As per Rivera, whenever customers will use Shop Pay, they will be able to receive alerts or updates from the brand during discounts or when the price of an item drops. “It becomes this 360, end-to-end marketing suite for our merchants to engage a buyer and build a relationship with that buyer over time,” Rivera said.
Endorsements
Merchant partners like MrBeast and Monday Swimwear helped Shopify host its inaugural Shop Day. They shared custom links across their social media channels. “Shoppers can redeem Shop Cash by clicking on those links and spending directly in the Shop app. Their Shop Cash can be redeemed for up to 30 days once it’s been claimed. Every day is a good day to shop from independent brands in the Shop app, but Shop Day is even better!,” stated Shopify.
“Even better, to celebrate Shop Day, hundreds of brands are running exclusive Shop Cash offers. Through Shop Cash offers, shoppers will find incentives to explore new brands and can boost their Shop Cash by 2x, 5x, and 10x. The more they spend, the more they earn. It’s a win-win for everyone,” it added. Shopify hopes to repeat Shop Day annually. This year it was held on the 17th birthday of Shopify.
