Shopify Inc's (NYSE: SHOP) core purpose 10 years ago was figuring out how to build a "beautiful, scalable" online store and today Shopify helps these same companies grow their business beyond theicore website, COO Harley Finkelstein said on CNBC's "Mad Money."
Finkelstein On Leveraging Economies Of Scale
Shopify's platform helped create hundreds of thousands of unique online stores, but if combined together into one, it would rank as the second-largest online U.S. retailer, Finkelstein said.
This would give Shopify "incredible economies of scale" to go out and negotiate new tools and services for its members.
Shopify Payments was among the first new services offered as an example, giving business owners the opportunity to offer credit card transactions at low rates, the executive said.
After that, the company launched a small business loan initiative called Shopify Capital.
Now the company is introducing Shopify Balance, an in-house business and banking account to better address a void left by banks that mostly underserved smaller businesses, he said.
Shopify Balance 'Further Levels The Playing Field'
Shopify Balance gives business owners immediate access to "critical money management tools" to better manage cash flow and have easier access to their cash, the COO said.
"That's really our next merchant solution that we think further levels the playing field so that small businesses can compete because so many can't," Finkelstein said.
Shopify has been working with Facebook, Inc. (NASDAQ: FB) to help small businesses gain exposure to the social media platform "since the beginning" of Facebook's plans to enter the e-commerce space, the exec said.
The relationship recently culminated in a new initiative called Facebook Shops that gives merchants the ability to create customizable stores specifically designed for Facebook and Instagram.
"The partnership really shows the tech industry can come together to help small businesses at a very critical time," Finkelstein said. "But that is one more place where small businesses can connect with consumers and they can make more sales."
The stock was down 1.04% at $727.58 at the time of publication Friday.
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Photo courtesy of Shopify.
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