Shopify launches new subscription product to lure big retail clients

Shoppers Stop

03/01/2023 14:00

Jan 3 (Reuters) - Shopify Technologies Inc  SHOP.N  on
Tuesday launched a new service aimed at big retailers that will
allow them to select tools and services the Canadian tech giant
offers and integrate it with their own online platform.
    The company said it had signed up toymaker Mattel Inc
 MAT.O  for the product, and was looking to bring other
enterprise clients it works with, such as Glossier, Coty
 COTY.N , Steve Madden and Staples, onboard.
    Shopify, which helps businesses set up their online store
and website for a subscription fee, will allow retailers to pick
and choose components, such as checkout and other back-office
services, for their existing online businesses.
    The pricing for the service, called Commerce Components,
will depend on the retailer's customization and components they
choose to use. Currently, subscription for Shopify Plus starts
at $2,000 a month and basic costs of $29.
    "Commerce Components is fundamentally for a new segment of
the market that has historically been underserved... we think
this give us a new market to go into," Shopify President Harley
Finkelstein said in an interview.
    "If you have to build it yourself, which a lot of big
retailers had to, you end up running your own tech company as
opposed to making the product," Finkelstein said, highlighting
the growth of small brands that opted to sell directly to
customers through social media or their own website.
 (Reporting by Nivedita Balu in Bengaluru; Editing by Shilpi
Majumdar)
 ((Nivedita.Balu@thomsonreuters.com; Twitter: @niveditabalu;))