Shopify outlined a partnership with Target that could scale distribution for its premier merchants as well as AI-enhanced features across its unified commerce platform.
The partnership with Target highlights how Shopify is increasingly becoming an enterprise commerce platform. In recent quarters, the company has noted that it is increasingly moving upstream.
Under the Target deal, curated Shopify merchants will expand Target Plus, the company's third-party marketplace. True Classic and Caden Lane were cited as Shopify merchants that would be available on Target Plus.
In addition, Target will be the first mass retailer to bring select Shopify merchants products into physical stores too. Harley Finkelstein, president of Shopify, said the Target deal will help its high-growth merchants expand.
The Target deal is part of Shopify's strategy to scale into larger retail accounts, B2B and other commerce markets. Finkelstein said:
"The past years show that we can cater to both start-ups and large companies. And we continue to invest in both to expand our merchant base. Our business model focuses on accelerating the success of our merchants and driving long-term value rather than short-term gains. We are a product-led company, and we will invest in those products and strategies that ultimately offer greater value for our merchants and thereby for Shopify."
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To that end, Shopify also launched its Summer '24 Edition, which includes more than 150 updates. Among the key updates:
- Shopify Markets has been revamped as a central command center that can customize buyer experiences for selling internationally, B2B expansion and tailoring in-person offers via Shopify POS (point-of-sale). With the revamp, Markets will combine views for multiple stores and workflows.
- AI commerce tools including image editing in the Shopify mobile app and editing tools across Online Store Editor and Email Editor. Shopify also outlined how its Magic feature suggests recommendations across product categories.
- Sidekick, an AI commerce assistant that provides context and guidance for products, orders and customers.
- One-tap digital receipts for in-person shopping and automatic detection on whether a product can be returned.
- A unified analytics experience across stores and categories.
