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Shopify Business is Shifting its Business Model

Shopify’s business has shifted from a “SaaS model” to a “commission-based one”. Shopify is increasingly driving revenue from its Merchant Solutions — or the fees generated from ongoing sales via payment processing, shipping, etc. — over its Subscription Solutions or platform fees. According to US analysts, Shopify wants to compete with Amazon more effectively, but Amazon’s recent announcement that it will let third-party merchants offer Prime benefits like free shipping will put even more pressure on Shopify to keep merchants in its ecosystem.

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