A major focus for Shopify has been ensuring its merchants are equipped to reach consumers wherever they are, Shopify President Harley Finkelstein noted Tuesday (Nov. 12) during the company’s third-quarter earnings call. By streamlining the shopping experience, Shopify officials want to connect its platform to key touchpoints across the digital landscape, including YouTube, TikTok, Roblox and Instagram.
The company’s goal is clear, Finkelstein said: make it easier for merchants to engage with new audiences, regardless of where consumers search or shop. This strategy is reflected in Shopify’s continued investment in artificial intelligence (AI), which is enhancing everything from the merchant experience to customer discovery.
“We want to create new ways for merchants to engage and drive authentic connections with customers,” Finkelstein said in the call. “The idea here is to make sure where every surface area where consumers want to purchase is connected to Shopify. We want to make it so every merchant on Shopify can get in front of a new audience. Shop is becoming this cultural force and search and AI make the Shop search way more relevant and compelling.”
Finkelstein noted new features, including Shopify Flow, Shopify Finance and Shop App, all which have helped elevate customer engagement for its merchants.
“Entrepreneurship and commerce is growing, and Shopify is capturing that momentum,” he added. “Enterprise brands from all segments (including industrial, hardware and automotive) are making the move to Shopify. This stickiness and trust in our platform is what truly sets us apart.”
Shopify reported a 26% increase in revenue for the third quarter to $2.16 billion while gross merchandise volume (GMV) rose 24% to $69.7 billion. Net income doubled to $344 million from $173 million for the same period last year.
“These results demonstrate the durability of our business, our multiple avenues for growth and continued discipline of balancing both future growth investment and operational leverage,” Chief Financial Officer Jeff Hoffmeister told analysts.
As more larger companies in various verticals seek partnerships with Shopify, Finkelstein noted a common theme.
“Across the board, they’re looking for a unified commerce system,” he said. “What we’re seeing is these larger companies want to collapse those tabs from eight to one. We have all these new on-ramps into Shopify, along with our total cost of ownership. Our transparent pricing allows them to understand exactly what they’re getting.”
This move toward unification reflects larger changes in the retail industry where businesses are seeking platforms that can integrate multiple functions — sales, inventory management, customer service and more — into a single, streamlined experience, Finkelstein said.
To meet these needs, Shopify has been rolling out a variety of AI-powered tools aimed at simplifying the operations of merchants and improving their engagement strategies. A key addition is Shopify Sidekick, an AI assistant aimed at helping merchants run their businesses more efficiently. Sidekick uses AI to offer insights into customer behavior, generate reports and assist with tasks like setting up discounts or creating customer segments. The tool is designed to make the platform more intuitive, saving merchants time on routine tasks and allowing them to focus on growing their businesses.
According to the PYMNTS Intelligence report, “What Generative AI Has in Store for the Retail Industry,” found that 92% of companies use AI-driven personalization to drive growth. Additionally, 77% of business leaders rank generative AI as the most impactful emerging technology.
Sidekick is just one of the many AI tools Shopify offers its merchants, Finkelstein noted. More recently, Coveo partnered with Shopify to enhance the platform’s ability to improve customer engagement through AI-driven solutions. Through this collaboration, Shopify merchants gain access to Coveo’s AI technology for personalized search and product recommendations, helping to optimize the customer journey and streamline store operations.
“Every department is using AI to get more efficient and productive,” Finkelstein said. “From a merchant perspective, we build AI tools to make their jobs easier. We elevate the future of commerce with AI and it’s happening everywhere where consumers are looking for products. We have to be there when consumers shift their buying preferences and search processes. We’re creating an important ecosystem. Modern brands need modern commerce architecture, along with this speed to market and this commitment to unified commerce. I truly believe this is the best version of Shopify yet.
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