At Singulier, we partner with investor-backed companies to help scale their eCommerce brands, leveraging a variety of leading platforms such as Adobe Commerce Cloud, Salesforce Commerce Cloud, Shopify, and Magento. Through our work, we have witnessed firsthand how Shopify, with its robust features and flexibility, can support meaningful growth for online businesses. The platform has grown rapidly in recent years and as of April 2024 there are over 4.6 million live Shopify stores and GMV has increased 22% year on year1 to $67.2 billion. Recently, we had the pleasure of partnering with a luxury fragrance brand to launch their new site after a nine-month replatforming to Shopify Plus, combining Shopify’s app ecosystem with custom development to enhance the brand experience and incorporate industry-specific functionalities. 

Shopify is fast becoming the platform of choice for celebrity fragrance brands. Sabrina Carpenter, Billie Eilish, Paris Hilton, and Ariana Grande have all launched collections on Shopify. Just last month, Sabrina Carpenter unveiled her exclusive fragrance line with Scent Beauty, powered by Shopify Collective. This platform’s ability to support direct-to-consumer (D2C) models and an omnichannel experience through Shopify POS makes it a leader for brands looking to build and scale both online and offline. 

Scalable, Trusted, and Constantly Innovating 

For businesses expanding their D2C and omnichannel operations, Shopify provides notable speed to market and financial advantages. The platform enables brands to create and manage user experiences without OPEX for large internal development teams. Plus, the combination of Shopify’s product roadmap and innovation within the app marketplace enables Shopify to provide core functionality increasingly comparable to the capabilities of enterprise e-commerce software at a fraction of the software and development costs. Shopify reports a Total Cost of Ownership up to 36% better than its major competitors in a Shopify commissioned study across North America.  

One feature worth noting is Shopify’s high-converting checkout system. Studies show that Shopify outperforms its competitors by up to 36%, with an average increase in conversion rates of 15.2%. Shop Pay, their accelerated checkout option, can boost conversions by up to 50% compared to guest checkouts, and just having Shop Pay available has been shown to increase conversion rates by 5%. The benefits of Shopify’s app ecosystem and integration also benefits the checkout where further functionality can be added such as Stripe payments, through which other payment providers such as Klarna can be seamlessly integrated.  

The Fine Line Between Flexibility and Constraints 

As optimised as Shopify’s checkout system is, it’s important to understand its limits. While it’s designed to convert well, the level of customisation is somewhat restricted. Shopify Plus users do have more flexibility, with access to apps and branding customisations, but there are still limits on how far you can tailor the checkout process.

Even though Shopify is still relatively young, it brings significant benefits to many types of retailers. The platform continues to evolve, adding features like internationalisation and omnichannel solutions through Shopify POS, simplifying the management of e-commerce operations. That said, it’s important to recognise that Shopify is still growing, and its development isn’t finished. 

Take internationalisation as an example. Shopify can handle only a limited number of use cases right now. If your business requires more complex global logistics and financial structures, this may present a challenge since the platform currently supports only one financial entity. However, future updates may address these limitations. 

The Road Ahead: What Investors Should Consider 

Staying up to date with Shopify’s development plans is crucial, especially as some features are region-specific. Shopify Collective, which allows brands to collaborate and build curated marketplaces, is a promising feature but currently only available in the U.S. Similarly, Shopify Balance, a money management tool, is also limited to the U.S. at this time. While these innovations are exciting, development timelines can be unpredictable, so it’s wise to manage expectations. 

For brands that can operate within Shopify’s framework and are comfortable with some constraints in exchange for reduced development costs, the platform offers excellent value. However, if a business requires a fully customised user experience, additional custom development may be necessary. 

Shopify has also invested in a dedicated partnership and support service for VC and PE teams, showing that it is serious in growing at the enterprise level.  

The Importance of the Right Partner 

Choosing the right development partner is key when working with Shopify. While many agencies can work within Shopify’s themes and templates, only a few specialise in custom development, which is often needed for more complex or bespoke solutions. A partner with deep experience in Shopify can help maximise its strengths and mitigate any limitations. 

Final Thoughts 

Shopify presents a viable option for D2C e-commerce brands looking to scale efficiently. Its low total cost of ownership, thanks to reduced reliance on internal development resources, makes it an attractive choice. By understanding and working within its limitations, brands can unlock its full potential. 

At Singulier, we look forward to guiding our clients through successful Shopify migrations and replatforming, helping them build on the platform’s strengths to achieve sustained growth. 

¹Q2 2024 VS Q2 2023, source: Shopify earnings press release

Speak to our experts

ROB FENTON
Expert Partner, Leader of Product, UX and Brand Marketing
rob.fenton@singulier.co

LYDIA WATERS
UX and Optimisation Lead
lydia.waters@singulier.co