Read on Twitter
1/ Many insightful pods with @tobi over the past ~year, but especially loved this ep w/ @reidhoffman
https://mastersofscale.com/tobi-lutke-be-a-platform/
We">https://mastersofscale.com/tobi-lutk... spend much time at @GreylockVC looking at both networks & the infrastructure-layer of commerce. Few reflections...
https://mastersofscale.com/tobi-lutke-be-a-platform/
We">https://mastersofscale.com/tobi-lutk... spend much time at @GreylockVC looking at both networks & the infrastructure-layer of commerce. Few reflections...
2/ Tobi & Reid understand Platforms better than most
Gates: When economic value of everyone on the system > value of co that created the system, you have a platform
In 2018, Shopify did $1.1b rev, while platform partners generated $2b (and its 1m merchants do $60b+ in sales)
Gates: When economic value of everyone on the system > value of co that created the system, you have a platform
In 2018, Shopify did $1.1b rev, while platform partners generated $2b (and its 1m merchants do $60b+ in sales)
3/ SHOP is unique in its attitude toward platform partners. They build for 80% common needs in commerce, and embrace robust dev ecosystem for last 20%
A fully-integrated approach would limit size of pie for all. SHOP is playing long game, putting small things together to act big
A fully-integrated approach would limit size of pie for all. SHOP is playing long game, putting small things together to act big
4/ Can be easy to dismiss these 3P apps as high churn (& low ACV), but as @benthompson eloquently states, this churn is a feature (not bug) of removing friction to entrepeneurship
SHOP remains mission-driven here, while running Plus as separate unit to mitigate pot’l neg effects
SHOP remains mission-driven here, while running Plus as separate unit to mitigate pot’l neg effects
5/ It’s also notable how Tobi applies eng mindset to biz problems
Ex: optimizing for (long-term) economics of building team. In SV, access to & retention of top talent would make SHOP difficult to scale. Basing in Ottawa was deliberate & calculated decision to establish an edge
Ex: optimizing for (long-term) economics of building team. In SV, access to & retention of top talent would make SHOP difficult to scale. Basing in Ottawa was deliberate & calculated decision to establish an edge
6/ Relatedly, Tobi talks about SV systematically underestimating commerce
Pendulum has swung in some areas, but it’s still v early days in commerce, both as standalone biz model & expansion vector
Platforms & software will accelerate e-com’s expansion from 14% of total retail
Pendulum has swung in some areas, but it’s still v early days in commerce, both as standalone biz model & expansion vector
Platforms & software will accelerate e-com’s expansion from 14% of total retail
7/ Articulating commerce as Relationship v Transaction is 
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At SFIX, core competency was deeply understanding client desires & continually improving client<>merch match
Req’d building proprietary datasets & capabilities that also helped optimize acq efforts for retention/value
At SFIX, core competency was deeply understanding client desires & continually improving client<>merch match
Req’d building proprietary datasets & capabilities that also helped optimize acq efforts for retention/value
8/ Relatedly, SHOP sits on tremendous oppty to leverage x-merchant data to help merchants generate efficiencies across acq & ret (eg traffic gen via lookalikes, co-mktg p’ships, shared logistics, etc)
Maintaining Platform-first attitude while expanding will be impt & challenging
Maintaining Platform-first attitude while expanding will be impt & challenging
9/ The Shopify community is a special one, and one of the core benefits of building a platform — faster feedback loops — is v much alive & well btwn Shopify<>partners<>merchants<>customers. Tech is being built at each of these intersections to make those loops stronger & faster
10/ Each interview w/ @Tobi leaves me struck at how kind, principled, thoughtful, and refreshingly human he is as CEO.
And the conversation with a fellow in @reidhoffman who meets him on all those fronts is well worth the listen!
And the conversation with a fellow in @reidhoffman who meets him on all those fronts is well worth the listen!
