Shopify overtakes eBay on sales as it swings to profit
SPENDING on Shopify, a Canadian ecommerce company, surpassed eBay for the first time as consumers chose to shop online amid the pandemic.
The New York-listed shopping platform saw revenues surge 97pc to $713m (£550m), beating the Wall Street’s consensus forecasts of $500m.
Shopify said its gross merchandise volume – the amount of products it ships – increased to more than $30bn, up 119pc, in the last three months compared to last year. The Ottawa-based company also secured a profit of $36m, against a loss in the previous year.
Shares in Shopify were 6pc higher in New York. It is up around 160pc so far this year, meaning its market capitalisation is $123bn, three times larger than eBay. Shares in eBay fell 2pc.
Shopify allows more than one million companies to build and run online stores. Its clients include the Royal Botanic Gardens at Kew. Despite its growth, Shopify declined to provide any guidance for the next three months amid uncertainty over the impact of the coronavirus pandemic.