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Christopher Daly's avatar

Shopify POS is probably the most underutilized. If you are a DTC brand and $10MM plus in GMV you should probably have a physical store. Even if it is just an outlet for expired merchandise, you can mix in prime merchandise. Nothing, and I mean nothing, can replace face to face customer relationships and how much you can learn in a 30 second checkout. And Shopify enables inventory balancing with different locations and that is key to making retail work.

But the big part is understanding that products sold in retail might come at a different cost and price point than products sold online. Retail sales carry the cost of the fixed asset of a storefront. DTC sales carry the variable cost of shipping. And it's rare that the cost of shipping per unit sold is less than the cost of a store per unit sold. The fundamental break is that the channels are the same, and they are not.

As for ERP, there still is not a good option out there, in part because ERP is about control and Shopify is about flexing to meet customers. They are often in conflict with each other. I think you are right that the backend of Shopify can do more and can be customized extensively to do more but most DTC brands are looking for simplicity, not added complexity, and extending the backend to ERP could quickly become a quagmire slowing down responsiveness to customers.

I am curious to see Shopify's future plans. If anyone can build an ERP built for flexible commerce, it's Shopify. And that might be worth exploring in the future.

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