Market appears to use Shopify's checkout which a great as it means there is a partnership there. Who knows, maybe Shopify buys Market down the road.
The site on the other hand, appears to not use Shopify and like you said, built from the ground up. IF this is true, what it means like Rory said on the earnings call, some vendors likely won't need their existing website since they'll have one with Market. This is where it gets really interesting. Shopify sells websites. But if you no longer need a website because you have a Market site, Verb now 'competes' with Shopify. Shopify likely not going to cry about it because they get a fee of 2.4% - 2.9% + $0.30 per checkout.
On the beta Market website, it did say "*Credit card transaction fees (2.6% of total sales plus 30-cents) will also be charged on each transaction." This is on top of the Sales Commission Paid so it doesn't eat into Verb's commission.
But wait, there is more...
Now if the vendor no longer has a website on Shopify which would save them $ and only used the site on Market so they are only maintaining one. Then Verb will get a Sales Commission on everything sold on that site whether during a live event or after 24x365. On the beta site, it was 5%, about 1/2 of what the commission was during a live event.
What will be the commission on the production site? Who knows, but as soon at the market starts understanding Market's cost model, then I believe it will have a very positive effect on the share price as investors and analysts can start crunching some numbers.
From the earnings call...
"As I predicted, and as I now see playing out during the current soft launch, I believe that not only will MARKET be an additional distribution channel for countless brands and retailers, among others, but it will likely become the sole distribution outlet for many, where vendor storefronts on MARKET will replace their own websites.
I foresee creators looking for greater control of their content and influencers looking for better monetization opportunities and more direct engagement with their fans and followers coming to MARKET and opting to build their base of followers on MARKET over YouTube and other social media platforms. I foresee more and more manufacturers coming to MARKET, looking to adopt a new D2C, direct-to-consumer strategy to increase margins and profitability. MARKET offers all of that and more."
The site on the other hand, appears to not use Shopify and like you said, built from the ground up. IF this is true, what it means like Rory said on the earnings call, some vendors likely won't need their existing website since they'll have one with Market. This is where it gets really interesting. Shopify sells websites. But if you no longer need a website because you have a Market site, Verb now 'competes' with Shopify. Shopify likely not going to cry about it because they get a fee of 2.4% - 2.9% + $0.30 per checkout.
On the beta Market website, it did say "*Credit card transaction fees (2.6% of total sales plus 30-cents) will also be charged on each transaction." This is on top of the Sales Commission Paid so it doesn't eat into Verb's commission.
But wait, there is more...
Now if the vendor no longer has a website on Shopify which would save them $ and only used the site on Market so they are only maintaining one. Then Verb will get a Sales Commission on everything sold on that site whether during a live event or after 24x365. On the beta site, it was 5%, about 1/2 of what the commission was during a live event.
What will be the commission on the production site? Who knows, but as soon at the market starts understanding Market's cost model, then I believe it will have a very positive effect on the share price as investors and analysts can start crunching some numbers.
From the earnings call...
"As I predicted, and as I now see playing out during the current soft launch, I believe that not only will MARKET be an additional distribution channel for countless brands and retailers, among others, but it will likely become the sole distribution outlet for many, where vendor storefronts on MARKET will replace their own websites.
I foresee creators looking for greater control of their content and influencers looking for better monetization opportunities and more direct engagement with their fans and followers coming to MARKET and opting to build their base of followers on MARKET over YouTube and other social media platforms. I foresee more and more manufacturers coming to MARKET, looking to adopt a new D2C, direct-to-consumer strategy to increase margins and profitability. MARKET offers all of that and more."
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