9 ms·
Shopify is processing over $260k per minute right now
- ben_jones 10y agoSomebody in ops is shitting bricks right now. Heart goes out to you brother/sister.
- xal 10y agoThis is the production engineering pod right now: https://twitter.com/tobi/status/802160212249604096 https://twitter.com/tobi/status/802160212249604096
- moyta 10y ago0_o Why so many employees? In the context of the volume you do I don't see how you'd turn a profit with that many employees unless you get the tax credits other francophone software groups like Logivision get and more.
- kennywinker 10y agoFor context, shopify has pretty high monthly fees as well as taking a cut of sales. Last I saw they had over 200,000 shops, minimum $30/month (up to $300) means at LEAST $6 mil/month from monthly fees, plus some percentage of the 3.8 billion/quarter gross sales they process... whatever they get to keep after paying strip and the credit card companies. Even a half a percent means $19 million per quarter. So if you are a startup, growing fast, and bringing in well over $12mil/month... a lot of employees makes sense.
- sskddd 10y agoNot sure if you're joking, but if something happens that takes shopify out just 15 minutes you could pay for that entire room's annual salary.
- sxcurry 10y agoWhy all the hate on Shopify, from this and your other comment? They seem to be doing a pretty good job. Also, what does the "other francophone software groups" comment mean? Is Shopify francophone and what would that mean?
- FullMtlAlcoholc 10y agoAre you kidding? 10 minutes @ $260 K / minute would pay for everyone's salary in that room.
- curried_haskell 10y agoDo they always work in this room so close together? How can anybody concentrate like this?
- MichaelApproved 10y agoThey're up to $274k/minute. That's $16.5 million/hour. I wonder how Cyber Monday will do compared to Black Friday.
- rublev 10y ago.
- barkingcat 10y agonobody buys at the same rate as black friday all year round. doesn't extrapolate to the entire year.
- xal 10y agoWe are a public company, no guessing required. Here is the relevant press release and quote: > Gross Merchandise Volume (“GMV”) for the third quarter was $3.8 billion, an increase of 100% over the third quarter of 2015. GMV processed through Shopify Payments grew to $1.5 billion, which accounted for 39% of GMV processed in the quarter. https://press.shopify.com/releases/shopify-announces-third-quarter-2016-financial-results https://press.shopify.com/releases/shopify-announces-third-q...
- moyta 10y agoThat is really low, for context a teeny tiny ISO does $1 billion in processing volume a month, so your comparable to one of the hundreds of 2 to 4 employee ISOs out there.
- kennywinker 10y agoforgive my ignorance but in this context what does ISO stand for?
- moyta 10y agoIndependent Sales Organization [1], Shopify for example is partnered with Stripe who is an ISO. Neither push big volume so their platform costs are much higher than their competitors. [1] - https://en.wikipedia.org/wiki/Merchant_account https://en.wikipedia.org/wiki/Merchant_account
- deleted 10y ago[deleted]
- riffraff 10y agosee, you can still scale and make money with Rails in 2016, even if it's not cool anymore :)
- bdcravens 10y agoAdditionally, stores that run on Magento and WooCommerce would agree that the coolness of the language (PHP) has little to do with making money. :)
- ryanSrich 10y agoThey tried JavaScript too and went back :)
- zackya89 10y agofor context, sorry if ignorant question but what else do they write with when full scale, I thought twittter was written on rails as well
- matco11 10y agoWoa! I wonder what this chart would look like for Amazon
- xal 10y agohigher, but not much much higher. A lot of small things combine into something quite big!
- googletron 10y agolol, not true.
- deleted 10y ago[deleted]
- base 10y agoAmazon sales in 2015 were $107.01bn, so let's say they sell 1bn on Black Friday. This would be around 300 times the numbers shown.
- burke 10y agoI don't understand how you're calculating this. I think you missed a couple of zeroes? If you take that $260k/minute number and assume it's true for the whole day (clearly it won't be overnight, but bear with me), that's (260,000 * 60 * 24 =) $374M. A third of a billion, a far cry from 1/300.
- Buetol 10y agoI find this page very misleading, only the top-right counters are correct. The products are just randomly choosen from random shops as seen by the function name in the code: `fetchAndDisplayRandomProducts`. EDIT: I was wrong, see response in the comments
- bmelton 10y agoTo be fair, it wouldn't be the first time somebody took an existing function on a page and repurposed it to do something other than its original name.
- danso 10y agoThe two hard problems in computer science strike again ;)
- bnmrrs 10y agoHey! The products actually are recently sold by merchants who opted in to be featured! We populate the first 5 and then new ones come down through the websocket connection
- eruditely 10y agoYou guys should make that clear, wouldn't want that information to spread. This seems like a great start up to learn from, I wonder how they carved out an ecosystem from under amazon and such. Seems awesome.
- jonny_eh 10y agoShopify is no longer a startup, they're a public traded company on the NYSE: https://www.google.com/finance?cid=990038606551779 https://www.google.com/finance?cid=990038606551779
- cryptoz 10y agoBeing publicly traded doesn't automatically mean you're not a startup. Startup = growth, and there are plenty of other things aside from stock price or employee count to look at. For example, Tesla was public when they just made a single car model, but now Tesla is an energy company and expecting rapid, multi-year exponential growth from new markets. That kind of search for product market fit and growth from a company is much more of a startup attribute than anything else, and looking at how a company plans to grow is a much better indicator of how we should use 'startup' than "is it public or private". http://www.paulgraham.com/growth.html http://www.paulgraham.com/growth.html
- claudiug 10y agoshopify is still written in rails? :)
- richardlblair 10y agoAbsolutely!
- claudiug 10y agothis is really nice. For all the news that you hear about ruby and rails, that is slow, that is bad, that everyone leave the language. I found it really nice. I do follow and see all the video conf regarding ruby, and I do hope that next year, jruby will be 3 times faster, and jruby+truffle will be able to run normal ruby gems. As for ruby 3, to be 3 times faster, for that we wait and hope
- joering2 10y agoI'm sorry to be this guy, but what a simple checkout store that Shopify is (nothing wrong with that) has to do with ability to scale and add more servers? Whether this was written in PHP, .NET or Ruby.
- noir_lord 10y agoWhat an arrogant comment, "simple checkout store", yes if they where doing it for one customer perhaps but they are handling inventory, sales, displaying products, theming, delivery, invoicing and payment processing for thousands of clients and millions of customers... "simple checkout store" - brilliant.
- le-mark 10y agoHa! Shard on shopId. ECommerce can be hard, but there's nothing special about what you descibe!
- 10y ago
- hendzen 10y agoDid you guys talk to your legal department before going live with this? As Shopify is a public company, showing sales/revenue stats like this in real time might be in violation of SEC regulation FD if you did not alert all your investors. EDIT: Actually, since they are a Canadian company they are exempt [0] from regulation FD. Interesting! [0] - https://www.sec.gov/Archives/edgar/data/1594805/000119312515129273/d863202df1.htm https://www.sec.gov/Archives/edgar/data/1594805/000119312515...
- cpmsmith 10y agoLooks like it’s been up for at least a year[1], so I expect they’ve thought about that. [1] https://news.ycombinator.com/item?id=10637715 https://news.ycombinator.com/item?id=10637715
- moyta 10y agoYou'd think it'd perform better, on my i5 with 16GB of ram its laggy as can be. Edit: Keep the downvotes up, but having this site eat a full core is a bit ridiculous. Similar sites are much more performant.
- dwoot 10y agoWorks smoothly for me - i5 and 16 gigs of RAM.
- wut42 10y agoDoesn't for me. i5 and 24 gigs of RAM.
- SCdF 10y agoAny examples of similar sites? It smashes a core of my laptop (i7 / 16GB) as well, but every site I've been to that looks like this (3D realtime) does the same thing, so I'm used to it.
- 10y ago
- dangerboysteve 10y agoDoes this include POS sales?
- knes 10y agoIs this actual realtime data or estimations updated once in a while and incremented on the client? Either way, looks neat (and some crazy numbers)
- bnmrrs 10y agoActually real time streaming over a web socket.
- deleted 10y ago[deleted]
- siculars 10y agoAmazing. They need some outreach in Africa and South America.
- gaving 10y agoNeat D3 based globe component, don't suppose the source is anywhere?
- starik36 10y agoI'd like to know as well. Cool ASCII art in the Console.
- amree 10y agoAre they using actioncable for this?
- rvdm 10y agoAs someone who has dedicated the last few years of his life building a dev / design shop around Shopify, seeing these kind of numbers makes me very happy. Looks like we placed our bet on the right horse. imho xal / Tobi should get far more recognition for what he built. Shopify is really quite remarkable and in a league of its own. Curious if they'll ever beat Amazon / Alibaba volume.
- mh8h 10y agoAmazon sold 426 items per second Christmas 2013. Their average order value in 2012 was around $47. Assuming the average value to be the same, it works out to around $1.2m per minute.
- cstejerean 10y agoIf the average order value is $47, for the average item value to also be $47 it would imply the average order size is one item. That seems highly unlikely.
- patmcguire 10y agoWhen I saw the live stream, the first question I asked myself was: I wonder if they're filtering pornographic products and sex toys from that feed? The answer is no.
- justin_vanw 10y agoHate to rain on this (TBH I don't): Shopify has raised (per Crunchbase) about $122M in funding. At the current rate, they will see $374M in GMV on their best day of the year. Shopify has between 1K and 5K employees (again Crunchbase). Let's make the most conservative analysis and assume 1K. If they are paid $20 per hour (low estimate I think), that is $41M in employment costs per year. With taxes, office rent, healthcare, etc, lets just lowball again and call it $50M/yr for all the people costs. Again I think this is a huge underestimate if the crunchbase number is accurate. Lets assume no marketing, hosting or other costs of any kind. The internet claims 100k stores use shopify. Lets assume they all pay for the standard tier plan, and pay month to month. That is $79 * 100k = 7.9M per month in revenue. Again, huge over estimate, since I would guess 95% of the customers use the cheapest tier, and the largest companies most likely negotiate better than advertised fees. Finally lets assume their BEST day is only about twice as good as their average day. This is probably overestimating their revenue by about 10x, at least. That would mean they are bringing in well under $47.4M in gross revenue, on over $50M in fixed costs. So in other words, even if black friday were half the days in the year, they still would lose substantial money. This is after 12 years of business. It's unlikely they will ever turn a profit. If they were going to experience some kind of exponential growth to defeat this analysis, 12 years of the fastest growth in the internet have already gone by, so it seems unlikely going forward.
- dragonzooord 10y agoShopify is a public company. You don't need to speculate on their revenue or expenses, you can just look it up. They earned $99.6 million in Q3. They expect revenues in the range of $379 million to $381 million for 2016. And they are still losing money, although getting close to break even. Their market cap is 3.86B, so 10 times revenue, so the market is expecting them to continue to grow rapidly. https://investors.shopify.com/events/Events-Presentations/default.aspx#section_news https://investors.shopify.com/events/Events-Presentations/de...
- justin_vanw 10y agoHey, you're right! https://www.google.com/finance?q=NYSE%3ASHOP&fstype=ii&ei=IEI5WOmYJMb9sAHUo7SQBA https://www.google.com/finance?q=NYSE%3ASHOP&fstype=ii&ei=IE... Revenue growth with corresponding increases in costs and expenses. NOT getting closer to profitability, in fact operating losses are increasing in proportion to revenue (almost a linear relationship in every quarter and year in the reports). Again, this is a failing business. 12 years in and no profit, profit not within reach, costs growing in lockstep with revenues. EDIT: So I was curious how they had such high revenues when clearly subscription fees can't account for it. Found this in the financial statement: "We principally generate merchant solutions revenues from payment processing fees from Shopify Payments. Shopify Payments is a fully integrated payment processing service that allows our merchants to accept and process payment cards online and offline. As a result of the launch of Shopify Payments in August 2013, we have seen significant growth in the revenues generated from our merchant solutions. In addition to payment processing fees from Shopify Payments, we also generate merchant solutions revenue from transaction fees, Shopify Shipping, Shopify Capital, referral fees from partners, and sales of point-of-sale ("POS") hardware. Our merchant solutions revenues are directionally correlated with the level of GMV that our merchants process through our platform. Merchant solutions revenues increased from $34.5 million in the six months ended June 30, 2015 , to $77.0 million in the six months ended June 30, 2016 , representing an increase of 123.4%" So they are counting CC processing fees towards revenues. I suspect that CC payment processing fees shopify pays are approximately equal to what they are charging, so this is just a revenue game where they charge 3% to customers, pay almost 3% to the CC companies, and book revenue that can never be profitable. EDIT2: So found the cashflow in the statement. They charged $76M for these fees, and paid out $56M. Not bad actually! However, that $20M in net is still much lower than the costs to generate the business, $56M just in marketing.
- skaplun 10y agoUX orgasm, very powerful with very few elements
- westiseast 10y agoNot to piss on anyone's parade, but for comparison, Alibaba (Tmall and Taobao, via their own Alipay platform) did about 50bn RMB of sales in the first 2.5hrs of this years 11.11 sales festival. That's roughly US$50m a minute. In the first hour of the promotion they did about 2/3rds of that volume, which is insane.
- herbst 10y ago"Rails doesnt scale" mimimi