eCommerce Strategy Consultant - Rick Watson - RMW Commerce Consulting

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Shop Day Shows Shopify's Trying to Learn to Become a Retailer

The Shop App Dilemma: Balancing Loyalty Program and Brand Discovery Engine

Pop quiz. What do you call a collection of independent brands in one location, with its own loyalty program and branding independent of the merchants in the program?

If you guessed "Marketplace"” you would be wrong because this most definitely is not a marketplace! The closest term I would give you is a part-"brand discovery engine" part-Shopify loyalty program.

The reason I don't call Shop App a brand loyalty program is there are already many of these in the Shopify App Store. It is a brand loyalty program if you consider Shopify that brand, however.

In short, Shop App is desperately trying to not become a marketplace, while at the same time becoming impactful to merchants. It's still too early to tell if it will achieve either of these aims, but the experiments continue.


Exploring Shop Day: An Alpha Test for Shop App's Impact and Reach

Shop Day means:

Shopify asks its merchants to share links to Shop Cash on socials. It mentions Monday Swimwear, Trixie Cosmetics, Mr Beast, and "dozens of others"”

I went on the Twitter, Instagram and TikTok accounts of Monday, Trixie, and Mr Beast and didn't see any mentions of Shop Cash.

Maybe I'm not hip enough to get the cash.

Some thoughts:

  • Despite being a press release, this was essentially an alpha test, as far as I can tell.

  • I can really not find it on socials. Which is the only thing that would attract new customers to Shop App (which would be the goal right?)

So new customers can't find it.

  • I can’t think of worse timing. Friday during Summer, the weekend after Memorial Day? What is the shopping event?

  • The branding and promotion of Shop Cash on this special day was extremely light, even within the Shop App itself.

I expected a "takeover banner" when I logged into Shop App. There was none, just a collection at the top. Even on the Shop Day page within the Shop App (after I found it) does not give me much reason to care about Shop Cash.

* When I do learn about Shop Cash, I learn my points expire, which I guess is motivating in some way? I still have to spend some money to get these points as a discount, and I need to find items that I care about?

I'm not sure about the curation assortment.


The Buyer's Perspective: The Potential Marketplace Direction for Shop App

Look, if Shopify is going to make this work, it needs to think like a buyer.

Which ultimately, will lead it to a marketplace direction. Buyers love shopping at marketplaces, which has been proven across every geography.

Otherwise, brands will be left wondering why couldn't I do this through my own loyalty program?

Why would I promote a loyalty program through my media that allows my own buyers to shop at other stores?

Happy Birthday? More wood to chop here.


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