Executive Briefing
The Shopify-Facebook collision course
Also: NYC retail is back! Target’s genius branding move. And Cometeer’s new in-store pilot.
By Dan Frommer on Tuesday, March 1, 2022 at 1:00 pm
As the Covid-19 pandemic accelerated e-commerce spending, two companies that benefited the most were Shopify, whose software powers a large proportion of online storefronts, and Facebook, whose targeted ads have long been a key marketing tool for e-commerce merchants.
The companies have mostly existed as symbiotic partners: Shopify store owners have been among the first to be able to easily display their products on Facebook and Instagram, which have massive audiences. And Facebook has integrated Shop Pay, Shopify’s delightfully smooth payments service, as a built-in option for merchants with shops on its properties. Making it easier for people to shop and buy — driving more transactions through Shopify, and advertising through Facebook — has been mutually beneficial.
Looking ahead, though, I expect increasing friction between the companies.
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