EY enters global alliance with Shopify
EY yesterday announced a global alliance with Shopify, the Ottawa-headquartered e-commerce platform company.
The alliance combines Shopify’s user-friendly and rapidly deployable platform with EY’s integration capabilities across front-end customer experience and back-end systems including ERP, CRM, inventory management, and financial reporting.
The EY-Shopify alliance – which was founded in Canada – will have a two-pronged focus: the first area is EY e-commerce system integration for large companies, while the second focus area is helping clients sell regulated products such as pharmaceuticals and alcoholic beverages. The latter will leverage EY’s global capabilities in compliance, tax, trade, and managed services.
“The alliance with Shopify will provide a broad range of transformational services that help merchants comply with the complex regulatory landscape and build new operating models that deliver seamless, sustainable customer experiences. I am excited to see this partnership unlock opportunities for clients that allow them to grow at scale while creating long-term value for all stakeholders," said Jad Shimaly, CEO and chair of EY Canada.
EY and Shopify will train an initial cohort of 500 global technical professionals who will play a key role in servicing clients through the alliance. The partners will also establish "EY wavespace x Shopify" centres that help clients create improved customer experiences and solutions, chart the future of e-commerce, and unlock new markets for regulated products.
“Modern enterprises operate in a complex environment where scale, speed, and flexibility are needed to drive growth. We are excited to work with EY teams to bring the performance, customization, and commerce expertise that our merchants know and love to more large enterprises around the world," said Harley Finkelstein, president of Shopify.
Driven by a pandemic-derived bubble of new clients, Shopify shares rose to a peak of approximately $214 in November 2021. Shares have since fallen to $43.51 as of November 7 as investors have reckoned with the idea that the e-commerce boom of the pandemic era was not sustainable.
Shopify also has a specific issue with high customer churn. According to an October report from The Globe & Mail, the average store that opened on Shopify in 2021 lasted just 143 days – down from 220 days in 2019. Shopify’s customer survival rate is substantially lower than its rivals, according to the Globe’s data.
In a bid to cut costs, the e-commerce firm in July laid off 1,000 employees, mostly in the support function. Business Insider this week reported Shopify has been replacing laid off staff with outsourced customer service representatives based in the Philippines.
