If you lack tech skill, no code knowledge, Shopify becomes the most preferred eCommerce platform.
The entrepreneurial rush without code knowledge, makes it a possibility by Shopify.
Naming these two researches, Gary Dushnitsky and Bryan Stroube. These were from London Business School. They published an article in November 2021 issue of Business Venturing Insights. It was regarding low-code entrepreneurship. Where the entrepreneurs would focus on the business rather than the technical aspects. More to say, a store made by using pre-designed templates or a drag and drop add-on and app integration through a simple installation process, makes it a no-code entrepreneurship.
How No-code platform became popular?
Back in 2010, there were around 418 ecommerce startups in the United States. They used venture capital to fund that fueled their business growth. Pitchbook, was one of the major venture capital and became a good source to identify the population in eCommerce business.
The analysis targeted some of the widely used tools that was used for low-code seekers. And it was found that Shopify was the most preferred one. It came out to be a powerful technology that has all the business functions, including payment, marketing, shipping, customer engagement, etc. And above all, the features involve low to no-code for non-techies. As a result, it reduced the cost of launching an eCommerce business as no technical skills were necessary.
Did eCommerce Entrepreneurs see a growth in their business with Shopify?
Gymshark, Redbull, Hyatt Hotels Corp, etc. are some of the business giants that established their website in Shopify.
First, the ecommerce sector is is an entrepreneur hub that identifies profitable business opportunities. Although they may not have technical expertise.
Second, as all ecommerce businesses need a user interface or the front end. The data on the technologies and tools are used to run the websites with the backend infrastructure such as database, server, security, etc.
Third, the sector is large in terms of financial value. Funding and business profits are all a part of it. One such example of funding is venture funding that we discussed above.
Shopify vs. Non-Shopify Platform Owners:
There was a study for finding the difference between start-ups and that used Shopify platform and those without. The find difference is in human resources. Those who established their store in Shopify employed 5 full-time employees during the first year of their business. While the non-Shopify startups employed 7 employees for the first year of their business.
Next when we talk about the financial resources, the startup groups who used Shopify as their platform, they needed 76% in the first round of their funding. Where as the non-Shopify startups needed 86% of funding in their first year of business.
Now, the next comparison. The Shopify -based startups had smaller rise in investments than other eCommerce startups. The primary reason that the Shopify-based startups has less to spend is lee to no-code shop launch. As a result, that does not require these store to have much of the technical resources to hire.
Final Words:
These years start-ups want fewer financial and human resources to start an online business. Therefore, Shopify-based start-ups easily scale up while having significantly lower valuations and fewer employees.
