Shopify’s (SHOP) – Get Report Fulfillment Network is “a full-fledged, tightly integrated fulfillment solution,” according to a KeyBanc Capital Markets analyst, who raised his price target on shares of the e-commerce software-and-services provider to $1,250 from $1,150.
Shares of the Ottawa-based company were off 1.1% to $1,054.
Analyst Josh Beck, who has an overweight rating on the stock, said the Shopify Fulfillment Network, which was launched last year, “is a full-fledged, tightly integrated fulfillment solution for Shopify merchants and includes order/inventory management solutions, branding and data controls, and access to scalable, flexible warehousing space to sell across multiple channels.”
“Following our SFN deep dive, we walk away more constructive on Shopify’s opportunity to build a new software ‘brain’ to orchestrate the fulfillment value chain,” Beck said.
Beck noted that a broad array of robotic systems has been developed to automate and optimize fulfillment across of variety of functions, such as picking, moving, and sorting, leveraging both hybrid human/robot and purely robotic operations.
Warehouse-fulfillment automation has attracted significant venture capital and corporate investment, Beck said, “leading to an impressive array of robotic systems that are automating and optimizing the fulfillment across a variety of functions.”
The analyst said that, assuming fulfillment costs represent about 15% of gross market value, he estimated that the fulfillment TAM (total addressable market) “could approach half a trillion dollars of spend in the coming years excluding China.”
Goldman Sachs on Monday initiated coverage of Shopify with an equal-weight rating and a $970 price target.
“We see Shopify continuing to expand and capitalizing on the attractive eCommerce tailwinds,” analyst Keith Weiss wrote, “and highlight a $25B ‘serviceable’ opportunity for the company driven by international expansion, continued Payments penetration, and growth within Shopify Fulfillment Network.”
With more Americans running one-person businesses than ever before, Silicon Valley is paying attention. The latest sign is the launch of Collective, a provider of back-office services for freelancers.
Collective, which launched yesterday, offers an online management dashboard providing one-stop access to banking information and third-party software like Gusto and QuickBooks; assistance with S Corp. formation, accounting, bookkeeping and tax services; and access to advisors and its entrepreneurial community.
Members pay monthly for the services, with fees starting at $199 per month. Many freelancers already use these types of services, but they generally purchase them from separate providers.
Hooman Radfar, CEO and co-founder, says Collective is a response to the “Passion Economy,” where many people are rethinking how they earn a living and gravitating toward independent work that gives them freedom, independence and work/life balance. It’s a trend, championed by early pioneers like Tim Ferriss, that’s been accelerated by the remote lifestyles the COVID-19 pandemic ushered in and that is increasingly popular among Generation Z.
In 2018 there were 28.5 million nonemployer firms—those with no payroll—in the U.S., according to the U.S. Census Bureau. They were generally made up of solo entrepreneurs but sometimes business partners or teams of co-founders. They made up the majority of the 30.2 million small businesses in the country.
“We’re seeing a huge shift in the future of work,” says Radfar. “For us, it’s about supporting that movement and finding an easy solution.”
Radfar previously co-founded and served as CEO of AddThis, which was acquired by Oracle, and is a venture partner at startup studio Expa. He was also an early investor in Uber,