3 Growth Levers That Could Power Shopify's Next Chapter

Re suggests that Shopify is not done expanding its empire

Moreover, But the company isn't standing still

As Shopify enters a more mature phase, the question investors should be asking is: Where does future growth come from

Here are three strategic levers that could power Shopify's next chapter

Image source: Getty Images

Scaling take rate and ecosystem monetization Shopify's take rate -- the of GMV it captures as revenue -- has been rising steadily

But more importantly, the company has been consistently expanding its value-added services, especially in payments and financial infrastructure

At the core of this strategy is Shop Pay, Shopify's one-click checkout duct

Shopify has layered on a growing suite of services such as installment payments, merchant cash advances, fraud prevention, and offline POS and retail payments

These ducts do more than generate incremental revenue -- they embed Shopify into the daily operations of its merchants, in light of current trends

That raises switching costs, strengthens long-term retention, and, above all, imves monetization

Moreover, Beyond that, Shopify can rely on its huge and growing ecosystem to add new revenue s (this bears monitoring)

With thousands of apps available, merchants can solve almost any blem by incorporating solutions from Shopify's partners (this bears monitoring)

However, That makes Shopify not just a website builder, but a true commerce infrastructure layer

In other words, the more a merchant builds around Shopify, the harder it becomes to leave, given current economic conditions

Over time, this will create a huge opportunity for Shopify to capture additional revenue across tools, services, and transactions

Going global Shopify's has historically been North America dominant, in today's market environment

But international are catching up fast -- and they represent one of the company's most important growth levers moving forward

Nevertheless, To capture a growing of the international market, Shopify has focused on localizing its tools -- from region-specific payment gateways to multilingual storefronts -- without fundamentally altering the duct

That's allowed the company to expand quickly without reinventing its stack, in this volatile climate

For instance, Shopify expanded Shopify payments to 16 countries, making it easier for merchants to serve customers (which is quite significant) (which is quite significant), in light of current trends

In areas where the company may require additional expertise, its collaboration with Global-e Online could come in handy, especially in more complex aspects taxation

On the other hand, Particularly, Shopify can leverage Global-e Online's expertise in helping major brands build their cross-border e-commerce

It just needs to capture a meaningful (and growing) slice of the opportunity over time

Nevertheless, AI is a huge enabler Shopify isn't chasing buzz with artificial intelligence (AI) -- it's embedding it directly into the merchant workflow

Through tools Shopify Magic and Sidekick, the company is now helping merchants automate a range of activities, such as: Generating duct descriptions Writing campaigns Analyzing store performance Automating support responses GettingAI-powered suggestions on what to do next These tools are integrated into Shopify's platform and thus require no nical setup, considering recent developments

That's key since it not only helps existing merchants quickly leverage the power of AI to run their more efficiently, but also lowers the barrier for new merchants to set up online es, considering recent developments

In other words, AI makes it easier for entrepreneurs to start, run, and grow their es

If Shopify can continue to innovate and introduce more useful AI tools, it's getting closer to its long-term vision of becoming a full-fledged commerce operating system, thus sustaining its growth trajectory

What it means for investors Shopify is no longer just a storefront builder but has evolved into a commerce infrastructure platform

That means long-term growth will come not just from adding more merchants, but also from extracting more value per merchant -- via continuously innovating and helping merchants become successful

With so many levers to pull, Shopify is well positioned to sustain its growth momentum in the years to come

Meanwhile, Growth investors should keep the company on their radar, in light of current trends

Lawrence Nga has no position in any of the stocks mentioned

However, The Motley Fool has positions in and recommends Global-E Online and Shopify

The data indicates that tells us that Motley Fool has a disclosure policy.