Tim Cook visited SHOP

From that link on the Shopify page.

Shopify is extending its partner network to include 3D/AR/VR services in the future for merchants to bring these experiences into their own apps using Shopify SDK.

Thus, it sounds like Shopify is working to integrate 3D/AR/VR capabilities into their online store platform(s).

<<<I don’t think Tinker’s concern is valid.>>>

There is a difference between low quality consumers (they are all the same quality as long as they can pay, and they are not competing against each. In fact the more volume you can sell the better the economy of scales).

This differs to a platform that hosts more and more and more undifferentiated merchants, selling the same products. The more such merchants the more they compete against each other the more profit tends to zero.

There is a big difference between the two. Note I am talking about undifferentiated.

It is the same problem that EBay had. Only so many merchants were viable in the marketplace in the end if they were undifferentiated.

So yes, my concern is valid. It is something Shopify will need to address, if the drop shippers will continue to be a material part of the business. But like most businesses with good management, they will manage the issue. And it won’t matter at all if they can become the market leader in Shopify Plus type business. It does matter a lot if they do not.

Tinker

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Since this Tim Cook visit is likely associated with use of AR in the shopping experience…one could choose to infer that Tobi and Shopify are focusing more on the higher value merchants that will be using the Shopify platform.

I don’t see undifferentiated drop-shippers as having the means/ability to include AR/VR as part of their online shopping platforms. Bigger merchants (Shopify Plus, for example), might very well have use for integrating AR/VR into their online shopping experience(s).

So in the end we agree! I said:

Shopify clearly has two tiers of clients, fewer big quality ones and lots of low quality ones which is quite normal in any power law distribution. As long as you are perfectly aware of the difference and take it into account in your business process it should not be a problem.

Pretty much he same as

So yes, my concern is valid. It is something Shopify will need to address, if the drop shippers will continue to be a material part of the business. But like most businesses with good management, they will manage the issue. And it won’t matter at all if they can become the market leader in Shopify Plus type business. It does matter a lot if they do not.

Denny Schlesinger

Yes, agree we do!

Also that AR stuff is darn cool :sunglasses:

Well, AR is why Tim Cook paid a visit.

Tinker

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More on the meeting between the two CEOs.

Tim Cook’s visit to Shopify all about augmented reality, as Apple CEO praises ‘profound’ emerging technology

Apple CEO Tim Cook took in a demonstration of Canadian e-commerce platform Shopify’s augmented reality capabilities during a visit to Toronto, while touting his company’s investment in the emerging technology.

“I believe that AR is the most profound technology of the future,” Cook said in an interview. “It amplifies human performance. It amplifies humans, not substitutes, and doesn’t isolate. I’m a huge believer in it.”

http://business.financialpost.com/technology/apple-ceo-tim-c…

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During his visit to Shopify’s Toronto office, he watched three AR-specific demonstrations that the company said it is developing for its more than 500,000 merchants

Was hoping he would say for our more than 750,000 merchants…by now :joy:

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More insights posted yesterday about Tim Cook’s visit on this thread
https://twitter.com/robjama/status/957047161274777600

“But what really blew his mind was the AR meets VR demo that @pushmatrix showcased. His exact words were “now THIS is cool”! Huge shoutout to our interactive team - they’ve been putting in work for years! This is just the beginning!”

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His exact words were “now THIS is cool”!

This just means there’s a reasonable chance that Shopify people will appear on stage at the Apple Developers Conference. This is nice, and not bad for Shopify, but it’s nothing like a partnership. Apple’s relationship with a company like Shopify is to provide technology to support them.

This is no big deal.

-IGU-
(long AAPL and SHOP, way long TSLA)