Daily Insights

Shopify Tries On a New App

By: Mackenzie Baker | May 20, 2020

E-commerce brand Shopify is launching its own app for consumers. 

Online shopping has surged since the Coronavirus pandemic, and Shopify—which runs digital stores for more than one million brands—is capitalizing on the boom with the release of its first complete shopping app. The mobile app, called Shop, will serve as a digital shopping assistant for consumers. The app includes package tracking, one-click checkout capability, and product recommendations for consumers. It’s designed as an upgrade to Shopify’s original app, Arrive, which tracked packages from the brand’s merchants. Shop is a response to changing customer preferences, namely, that they are moving more towards shopping on brand’s mobile apps instead of the mobile web. 

Shop users can customize brand recommendations, including announcements about product launches and sales. The app also allows users to set their own search filters, such as only seeing local businesses, brands that offer free returns, or shops offering free shipping or order pick-up. Finding local businesses could get Shop repeat users, as a recent study found 34% of consumers are more willing to shop locally during the pandemic. Retail apps typically suffer low retention rates, according to a Gartner report, making it necessary for Shopify to directly apply customer preferences—such as finding local brands—if it wants to build consumer loyalty. Highlighting small businesses on the app could also help small brands grow their audiences at a time when they are facing an economic fallout

Mobile shopping has risen in prominence during the pandemic as retail turns digital. The release of the Shop app could be Shopify’s ticket to innovation, allowing the brand to stand apart in an increasingly crowded mobile-commerce market.