Shopify and The Key Decision for Business-in-a-Box Platforms

But it’s not just ecommerce. Venture capitalist Nikhil Basu Trivedi recently wrote about Business-in-a-Box Platforms (BiaB), including but not limited to Shopify, that “enable new businesses to be started, managed, and grown using their products.” These BiaB companies all take a set of products someone would need to start a business in a particular... See more

Aggregators make it dramatically simpler and cheaper for suppliers to reach customers (which is why suppliers work so hard to be on their platform). This increases the types of new businesses that can be created by virtue of the aggregators existing (YouTube creators, Amazon merchants, small publications, etc.); regulators should take care to prese... See more

One of the most important companies in making both of the non-Amazon value-chains work is Shopify, which is a platform, not an Aggregator. Google and Facebook may collect the customers, but it is Shopify (and WooCommerce, its open-source competitor) that provides the infrastructure for merchants to actually sell things online.

The result is a meta-market: because founders know what playbook their competition is running, they end up positioning themselves against moves their competitors will make in three years. Let’s say I run a newsletter software company, similar to Substack or Beehiiv. Since each company has a unique starting point, we’ll each have relative strengths.... See more

A subtext to last week’s article, Tech’s Two Philosophies, was the idea that there is a difference between Aggregators and Platforms; this was the key section:It is no accident that Apple and Microsoft, the two “bicycle of the mind” companies, were founded only a year apart, and for decades had broadly similar business models: sure, Microsoft licen... See more

Substack has the potential to serve as the tool that captures and monetizes professional journalism in ways that were unforeseen before the advent of publications like Stratechery. But if Substack chooses to become more than a Shopify-like solution for the re-platforming of local news, they may find that the real long-term value of their platform l... See more

The business model follows from these fundamental differences: a platform provider has no room for ads, because the primary function of a platform is provide a stage for the applications that users actually need to shine. Aggregators, on the other hand, particularly Google and Facebook, deal in information, and ads are simply another type of

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