Shopify Inc (US) (NYSE: SHOP) is having a relatively strong start to the trading session this morning after announcing a partnership with eBay Inc (NASDAQ: EBAY). As we would expect, excited investors started to send the stock toward the top when news of the partnership broke. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:56), SHOP is trading at $95.79 per share after a gain of $1.11 per share (1.17%) thus far today.
SHOP Enters Partnership With EBAY
As mentioned above, Shopify is having a strong day after announcing that it is expanding its multichannel commerce platform with the help of a partnership with eBay. In a press release, the company said that SHOP merchants will be able to sell their products on eBay directly from their SHOP account as a result of the deal reached with EBAY. As a result, Shopify Merchants will have the ability to automatically sync inventory information like product titles, descriptions, item specifications, price, and quantity from their account to eBay.
This is incredibly strong news. After all, eBay boasts 169 million active buyers, an audience that SHOP is excited to get in front of. Of course, this benefits eBay as well. After all, due to the agreement, buyers on eBay will now have a larger selection thanks to hundreds of thousands of SHOP merchants. In a statement, Satish Kanwar, VP of Products at Shopify, had the following to offer:
“Shopify is the industry leader when it comes to multi-channel commerce, and we look to partner with the best and biggest platforms to bring new sales opportunities to our merchants... The eBay channel has the potential to introduce our merchants to eBay's millions of buyers, exposing merchants to a massive number of new sales opportunities.”
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SHOP. In particular, we're interested in seeing how the partnership with eBay expands revenue and profits. We'll continue to follow the story closely and bring the news to you as it breaks!
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