Shopify Layoffs Show The Truth Behind The Difficulties of E-Commerce

Was reading Shopify is laying off people roughly 10% of their staff, probably because a lot of people (their subscribers) realize that you can't open a website anymore and make money, no traffic, no sales, and bots don't buy in PPC- the throttle updates only
benefit mega-companies, and people just close up shop..people don't even know what they did wrong, and their sites just vanish; they find out what works on Amazon or Etsy doesn't work on your little site; those big sites get a free pass to do business, your doesn't, what's funny is Shopify is offering those laid off staff members, free subscriptions to their service should they want to try their hand at selling online, that's like your employer has to lay off staff because they sold poison food, and so to "help you out" they offer to give you the food for free should you want to eat it...I think they know well and good whats in the hotdogs..I also love that this article is indexed in 4 minutes, yet 80% of the webmasters on this site wait a week or more if at all to see their much better content indexed

This is just wholly inaccurate.

There has NEVER been a better time to be in e-commerce.

Shopify's issues have very little to do with ecom as a whole.

Like every other tech company in the world right now they've realised they're super bloated, very over valued, forecasted wildly exaggerated figured and are now cutting staff numbers. It's not got much to do with ecom in general.

As a sidenote, all these super high valued tech companies haven't even begun really cutting head count, there's alot more to come

jacksi said:

This is just wholly inaccurate.

There has NEVER been a better time to be in e-commerce.

Shopify's issues have very little to do with ecom as a whole.

Like every other tech company in the world right now they've realised they're super bloated, very over valued, forecasted wildly exaggerated figured and are now cutting staff numbers. It's not got much to do with ecom in general.

As a sidenote, all these super high valued tech companies haven't even begun really cutting head count, there's alot more to come

Click to expand...

So you are right; now is an excellent time to be in e-commerce if you are jeff Bezos or the guy that runs Etsy or a few other billion-dollar companies; it's a very, very good time for them, no oversite, no regulation, and everything SE's do play right into their interest, but talk to me about the small sites that make up the majority of their (Shopify) subscribers, the sites that get 150 hits a month and no sales for months on end, an update in May that killed millions of sites based on lack of "authority" - aka millions of bought links.

Most people are walking away from e-commerce because they see there is no hope. Sure, there is hope selling on Amazon if Amazon decides to give you business today; if not, well, better luck next time, next week, for no particular reason, they could decide just to consume or discard your entire business, oh well hope you don't need the money!

When we talk about e-commerce difficulties, we are speaking for the average experience. So while your right, you're actually talking about the players that were allowed to get big and continue to grow, not the small players that are being killed before they even have a chance and that translates into less revenue for Shopify.

KH1188 said:

So you are right; now is an excellent time to be in e-commerce if you are jeff Bezos or the guy that runs Etsy or a few other billion-dollar companies; it's a very, very good time for them, no oversite, no regulation, and everything SE's do play right into their interest, but talk to me about the small sites that make up the majority of their (Shopify) subscribers, the sites that get 150 hits a month and no sales for months on end, an update in May that killed millions of sites based on lack of "authority" - aka millions of bought links.

Most people are walking away from e-commerce because they see there is no hope. Sure, there is hope selling on Amazon if Amazon decides to give you business today; if not, well, better luck next time, next week, for no particular reason, they could decide just to consume or discard your entire business, oh well hope you don't need the money!

When we talk about e-commerce difficulties, we are speaking for the average experience. So while your right, you're actually talking about the players that were allowed to get big and continue to grow, not the small players that are being killed before they even have a chance and that translates into less revenue for Shopify.

Click to expand...

No, I'm talking about for everyone involved. Amazon captures less than 10% of global sales, to put it in perspective for you.

There has never been a better time in history to be involved in ecommerce, it has literally never been easier to make sales with an ecom business, it is also going to continue to get easier YoY for the foreseeable future.

Amazon, Etsy and the other big marketplaces are not the reason people don't succeed online, that I can assure you of.

Here Are Some Facts For You: "Amazon's Share of US eCommerce Sales Hits All-Time High of 56.7% in 2021 - Now that will diminish this year. However: Amazon will account for 39.5% of all US retail e-commerce sales in 2022, or nearly $2 in $5 spent online. Altogether, the next 14 biggest digital retailers will make up just 31.0%, with the remaining 29.5% of the ecommerce pie going to everybody else."

"There has never been a better time in history to be involved in e-Commerce, it has literally never been easier to make sales with an econ business, it is also going to continue to get easier " YoY" - (this is not a word) for the foreseeable future." -

That's millions of sites collecting roughly a little more than 1/4 of the pie; that's your Shopify SAAS - A percent of a percent. User retention rates are abysmal, and that is not because "There has never been a better time in history to be involved in e-Commerce, it has literally never been easier to make sales with an econ business" "77% of customers churn off before reaching their first anniversary" and why is that? Is that because

"There has never been a better time in history to be involved in e-Commerce, it has literally never been easier to make sales with an econ business, it is also going to continue to get easier "

So if it's so easy, why are almost 80% of users dropping off?

The numbers are obvious. Globally, global markets are different; they are not Global - Global Markets in E-Com Are Local; Amazon doesn't even sell in many countries. You must live in Saudi Arabia or Turkey, where you can rank a million pages with AI 200-word articles.

That doesn't work in the US. Or, Just maybe, you are a Shopify employee, and your slogan is empty nonsense, just like many tech CEOs in saying any opposition to Monopoly is "misguided" that's tech babble for trying to delay and confuse. See, in the real world, we don't play those nerd games. We play for real. There is no VC funding by using bot ads to fake our way to a second and third funding round by showing false growth. This is about stacking our chips and clips for real. See, you seem to think just saying anything is enough, and someone will believe that. They won't.

KH1188 said:

Here Are Some Facts For You: "Amazon's Share of US eCommerce Sales Hits All-Time High of 56.7% in 2021 - Now that will diminish this year. However: Amazon will account for 39.5% of all US retail e-commerce sales in 2022, or nearly $2 in $5 spent online. Altogether, the next 14 biggest digital retailers will make up just 31.0%, with the remaining 29.5% of the ecommerce pie going to everybody else."

Click to expand...

I wasn't expecting so much heat but ok.

The US Ecom market alone will hit $1T this year most likely. Large companies having a 70% market share isn't really a problem. There's $300B left unaccounted for by any large retailer.

That's more unaccounted for market share than is available in total for most other 1st world countries, globally.

The available market share left for independent retailers is significantly more than the TOTAL ecom value in MOST other 1st world countries (it's 300% larger than the total ecommerce market in the UK). Really sit and think about that for a second.

KH1188 said:

That doesn't work in the US. Or, Just maybe, you are a Shopify employee, and your slogan is empty nonsense, just like many tech CEOs in saying any opposition to Monopoly is "misguided" that's tech babble for trying to delay and confuse. See, in the real world, we don't play those nerd games. We play for real. There is no VC funding by using bot ads to fake our way to a second and third funding round by showing false growth. This is about stacking our chips and clips for real. See, you seem to think just saying anything is enough, and someone will believe that. They won't.

Click to expand...

I get that your super heated. As I stated previously though, Amazon aren't the reason you're not doing well online. Its a tough gig for sure, but there is an absolutely huge market up for grabs and blaming other companies for your lack of success is not only misguided but also not constructive.

I mean, I don't even get this thread atall and I think it's super misguided. You're effectively saying that online sales is getting more difficult, which is categorically untrue. Maybe in a super micro scope it's slightly more difficult versus peak covid, but on a macro level (which as a store owner should be the only thing you're worrying about) its gotten easier and YoY for the past 20 years.

I didn't mean to "trigger" you with facts and data on the truth of selling online and the difficulties small sellers face with those big scary numbers and figures. Nor the facts and figures of Shopify retention rates and their decline. I can understand that this is all very upsetting for you, and I am sorry you have taken it personally and feel that global industry facts and figures are misguided. Those pesky little figures and facts getting in the way of things. I know who does like those facts and figures, though. The DOJ - the department of justice, that's right. They like them very much.

I think what you should mean is that it is easier than ever before to sell online, and I agree. Shopify, WordPress, and a number of other e-commerce platforms have made it much easier than ever to bring products to online buyers, and these systems are better than ever before. So your right about that. Even five years ago, the SAAS products available were antiquated compared to the number of available systems and platforms available now, but is it easier for those subscribers that are small sellers, especially Shopify stores subscribers, to build sustaining businesses? Well, according to DATA, no, in fact, it's more difficult than ever before. Now, if you have data other than global macroeconomic proforma not related to Shopify that shows how much easier it is for those small sellers to grow and how Shopify user retention rates are increasing and success rates are improving, that would help your argument, but, you don't.


Cheers,

This is an absolutely mental conversation.

I think we'll just leave it at that, I really hope the Department of Justice helps you out with your ecommerce store.

jacksi said:

This is an absolutely mental conversation.

I think we'll just leave it at that, I really hope the Department of Justice helps you out with your ecommerce store.

Click to expand...

I presented Amazon's market share data, facts and figures, the percentage of their market share, and the DOJ does agree.

Not looking to them for SEO advice. Good luck with your job at Shopify!

From a comparative or 'big picture' POV, 10% of their staff is not a big deal because many tech companies are laying off.

The tech sector has been in a slump for several months, and there is no indication that things will turn around in the short term.

With that said, e-commerce is difficult.

The thing is, people who are looking into the e-commerce game only need to reverse engineer successful Shopify stores.

These stores are doing something that most Shopify players are not doing.

Once identify you those principles and apply them to your niche, you can have a fighting chance at success.

But if you're just going to follow some checklist, build your store, and roll the dice, it's anybody's guess if you would walk away with the results you came for.

Another thing I need to comment on about the Shopify layoffs is the one idea about work that people should get out of their heads.

Gone are the days when you could work at a company for 20 to 30 years.

You can't define your identity based on the company you work for because those days are gone.

We live in a wonderful age of opportunity where industries materialize as quickly as they disappear.

The same goes for the thousands upon thousands of companies associated with these industries.

Now, if you have your grandparents' and parents' mindset where you're looking for a job you can stick in for 20 or 30 years, you might develop depression, anxiety, and other mental health issues.

That is not the path to take, so it's a good idea to take a job, learn what you can learn, and focus on the skills you've accumulated.

Remember that these skills must be open-ended enough to use in various contexts because industries are rapidly changing.

That's the kind of world we live in, so jumping from job to job should be okay.

With each job, you get paid more.

You should have a lot of sense to invest a lot of your extra pay into assets that increase in value over time.

The key is to invest in yourself with each job change.

Don't look at being laid off as a life-crushing and soul-denying failure.

It is not.

Instead, it is opening doorways to opportunities.

This is true whether you're in North America, Southeast Asia, or Latin America.

It doesn't matter where you are if you have the right mindset.

With each new job, you get the opportunity to build your human capital.

Human capital is the only thing that's portable.

I'm under the impression that even Facebook aka Meta might be going through some existential crisis now.

I'm not going to say they're going belly up, but things, as they exist now, are unsustainable.

They are sitting on many unprofitable projects and companies and are just one of the many high-profile companies in that situation.

Focus on building your human capital, and this is why freelancing is awesome because, with freelancing, you get plenty of opportunities to level up.

When you decide to sign your name with the quality of your work each time you deliver a project, your value increases.

The money you make may not go up, but your skill levels go up, your commitment to quality goes up, and your dedication to self-improvement goes up.

Eventually, that pays off when opportunities come along, or new projects needing scaled-up skillsets materialize.

Human capital is the name of the game.

Forget about showing up at dinner parties and saying, "Yeah, I worked for IBM for 30 years."

Nobody will give a hoot because the world of work has changed tremendously.

Many companies say they treat you like family, which may be true.

But at the end of the day, you must treat yourself like family by being loyal to yourself and focusing on building your human capital.

Otherwise, it will be a rough road ahead.

blackbeans said:

From a comparative or 'big picture' POV, 10% of their staff is not a big deal because many tech companies are laying off.

The tech sector has been in a slump for several months, and there is no indication that things will turn around in the short term.

With that said, e-commerce is difficult.

The thing is, people who are looking into the e-commerce game only need to reverse engineer successful Shopify stores.

These stores are doing something that most Shopify players are not doing.

Once identify you those principles and apply them to your niche, you can have a fighting chance at success.

But if you're just going to follow some checklist, build your store, and roll the dice, it's anybody's guess if you would walk away with the results you came for.

Another thing I need to comment on about the Shopify layoffs is the one idea about work that people should get out of their heads.

Gone are the days when you could work at a company for 20 to 30 years.

You can't define your identity based on the company you work for because those days are gone.

We live in a wonderful age of opportunity where industries materialize as quickly as they disappear.

The same goes for the thousands upon thousands of companies associated with these industries.

Now, if you have your grandparents' and parents' mindset where you're looking for a job you can stick in for 20 or 30 years, you might develop depression, anxiety, and other mental health issues.

That is not the path to take, so it's a good idea to take a job, learn what you can learn, and focus on the skills you've accumulated.

Remember that these skills must be open-ended enough to use in various contexts because industries are rapidly changing.

That's the kind of world we live in, so jumping from job to job should be okay.

With each job, you get paid more.

You should have a lot of sense to invest a lot of your extra pay into assets that increase in value over time.

The key is to invest in yourself with each job change.

Don't look at being laid off as a life-crushing and soul-denying failure.

It is not.

Instead, it is opening doorways to opportunities.

This is true whether you're in North America, Southeast Asia, or Latin America.

It doesn't matter where you are if you have the right mindset.

With each new job, you get the opportunity to build your human capital.

Human capital is the only thing that's portable.

I'm under the impression that even Facebook aka Meta might be going through some existential crisis now.

I'm not going to say they're going belly up, but things, as they exist now, are unsustainable.

They are sitting on many unprofitable projects and companies and are just one of the many high-profile companies in that situation.

Focus on building your human capital, and this is why freelancing is awesome because, with freelancing, you get plenty of opportunities to level up.

When you decide to sign your name with the quality of your work each time you deliver a project, your value increases.

The money you make may not go up, but your skill levels go up, your commitment to quality goes up, and your dedication to self-improvement goes up.

Eventually, that pays off when opportunities come along, or new projects needing scaled-up skillsets materialize.

Human capital is the name of the game.

Forget about showing up at dinner parties and saying, "Yeah, I worked for IBM for 30 years."

Nobody will give a hoot because the world of work has changed tremendously.

Many companies say they treat you like family, which may be true.

But at the end of the day, you must treat yourself like family by being loyal to yourself and focusing on building your human capital.

Otherwise, it will be a rough road ahead.

Click to expand...

An intelligent reply from someone with experience apparently

KH1188 said:

So you are right; now is an excellent time to be in e-commerce if you are jeff Bezos or the guy that runs Etsy or a few other billion-dollar companies; it's a very, very good time for them, no oversite, no regulation, and everything SE's do play right into their interest, but talk to me about the small sites that make up the majority of their (Shopify) subscribers, the sites that get 150 hits a month and no sales for months on end, an update in May that killed millions of sites based on lack of "authority" - aka millions of bought links.

Most people are walking away from e-commerce because they see there is no hope. Sure, there is hope selling on Amazon if Amazon decides to give you business today; if not, well, better luck next time, next week, for no particular reason, they could decide just to consume or discard your entire business, oh well hope you don't need the money!

When we talk about e-commerce difficulties, we are speaking for the average experience. So while your right, you're actually talking about the players that were allowed to get big and continue to grow, not the small players that are being killed before they even have a chance and that translates into less revenue for Shopify.

Click to expand...

Life is tough. Business is tougher.

Complaining about big companies putting the blame on them isn't going to help you succeed.

Small players have been getting killed since the as long as man stood up.

You either kill or be killed. If you're going to moan and cry about it being too hard, then you're going to get crushed.

There are PLENTY of people making a lot of money in every niche. Big players or not. They just made the choice not to moan, and instead figured out their business until they got an edge and grew it.

Bottom line. Complaining will get you NOWHERE. It'll only attract more crap into your life and attract other complainers who will happily drink a beer and moan about how shit and unfair life is.

Its funny how an article about Shopify Layouts and how it signals the difficulty of e-commerces comes to someone saying blaming big companies wont help you succeed and is perceived as complaining...I think most of the feedback here is misguided...read the title and then think about your reply, no one is going to hire you after reading that nonsense for SEO work...its about facts, do any of these responses have facts?

I'm halfway through reading this thread. Very good convo. You both get a cookie, mwah :*