Amazon vs Shopify (The corporate marketplace vs local merchants)

In this simple chart I plot the price of two assets: Amazon and Shopify. I am looking at their percentage performance over the last year. Sometimes a simple chart like this is all you need. Who is performing best on a 1-year basis? The market is very competitive and companies are always vying for market share. The battle between Amazon and Shopify is one to watch because, in my view, it says a lot about the economy and consumer preferences.

Amazon is the big corporate power player. They are the marketplace of all marketplaces. Amazon even competes with their sellers.

Shopify helps any business build their own local marketplace or store front. It seems small businesses and startups go the route of Shopify. They build their own website and sell from there. Rather then going to Amazon, giving up a cut, and possibly being copied or competed with.

Amazon vs. Shopify has been a battle that deserves more attention. It is key to the future of ecommerce.

And so I share this chart because, perhaps over the coming years, we may be witnessing a shift from the large corporate aggregators to a more diverse and spread out ecosystem. Will Shopify continue to outperform Amazon? Will Amazon ever build a competing product?

This has huge ramifications for the entire market as Amazon is one of the world's largest companies and integrated through out ETFs and other leading assets. Additionally, while Amazon's Web Services are a huge component of its business, the competition increases fast. Google, Microsft, and many others all want a piece.

I will have this simple chart up for some time. Curious to hear your thoughts.