Although Shopify’s foray into bricks-and-mortar business is in its foundation stage, it is anticipated that it is going to be a big venture. Previously, this reputed e-commerce giant introduced a point-of-service app, which allowed the merchants with actual stores process sales through an iPad.
As Shopify gets ready on growing bricks-and-mortar market, Adam McNamara, the vice-president of product development at Shopify has said, unlike most businesses which still prefer more traditional technology such as computer terminals for POS applications, Shopify is signing up hundreds of clients a day for its new service. He further said that it is a huge opportunity for them as he estimated about 30 to 35 per cent of Shopify’s 100,000 online customers also has a physical presence.
Shopify has already revised the rates it charges on credit card transactions through the POS system. The old rates were 2.9 per cent plus a 30-cent fee on every transaction. The new rates range from 2.15 to 2.7 per cent, indicating the company has waived the 30-cent fee. This is to be noted that the announced rates are in the lower range than their biggest competitor Square, which charges a standard 2.75 per cent on each transaction.
Shopify charges a monthly subscription fee ranging from $49 to $199 a month which is not the practice with Square. But according to Mr. McNamara, Shopify offers a much broader spectrum of services than its competitor. It includes all the tools customers need to set up an online store. Mr. McNamara has magnified Shopify’s vision by highlighting that it has always been a platform where you come to build a business. Taking payment therefore is only making a very small aspect of that.
Mr. McNamara did not forget to mention, the fee structure was never ever reset to compete with Square as it was not needed. The huge volume of sales generated by its POS system has allowed Shopify to negotiate better rates with banks. He also claimed that the financial benefits they are gaining are only being passed of to the merchants in the form of cost saving measures with a business goal of another level.
Presently, Shopify is planning to launch a mobile device which they did on April last. The product was a card reader that allows iPhones to be used for point-of-sale transactions in Canada. Mr. McNamara is very confident that very soon, a situation will come when the minute the customers will come to Shopify they will going to get everything they need to successfully run a business. It will cover all the consumers everywhere including online, off-line and in store.