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Shopify Expands Services to Large Retailers as Company Looks for Growth

For the first time, Shopify is opening up access to its infrastructure with the launch of Commerce Components by Shopify (CCS).

According to the commerce tech company, which typically services small- to mid-size businesses, its new CCS product features an all-new back-office management system designed specifically for enterprise retail.

Now larger businesses can pick and choose which Shopify components to use – anything from one-click checkout, content services, storefront search, fraud protection, tax services and more.

“We’ve always approached innovation at Shopify by anticipating what retailers need, then providing those solutions,” Harley Finkelstein, president of Shopify, said in a statement. “Commerce Components by Shopify opens our infrastructure so enterprise retailers don’t have to waste time, engineering power, and money building critical foundations Shopify has already perfected, and instead frees them up to customize, differentiate, and scale.”

According to Shopify, Mattel will be one of the first enterprise retailers to use Commerce Components, bringing its portfolio of brands to Shopify. Existing retailers on Shopify include Glossier, Coty, Steve Madden, Spanx and Staples.

Sven Gerjets, CTO of Mattel, said in a statement that Mattel first worked with Shopify when it launched its Mattel Creations project, a platform for creators to reimagine some of the company’s most iconic toys. “Creations empowered Mattel to move quickly, meet our customers where they are, and most importantly leverage Shopify’s infrastructure to scale globally,” Gerjets said. “It was hugely successful, and we’re excited to transform our brand offerings using Commerce Components.”

In October, Shopify reported total revenue of $1.4 billion for the third quarter of 2022, up 22% from the same time the prior year. Still, the company expects an adjusted operating loss for the full year, following a reported operating loss of $345.4 million, or 25% of revenue, in the quarter.

This follows a round of layoffs the company announced in July. In a letter to employees, co-founder and CEO Tobi Lütke announced the company would layoff 10% of its staff, with most of the impacted roles seen in recruiting, support and sales. Over-specialized and duplicate roles, as well as some groups that were “convenient to have but too far removed from building products” were also affected. The layoffs came as the pandemic-era online shopping boom slowed. Lütke admitted he was wrong on his projections for continued e-commerce demand.

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