In this video, I will be making the case that Wix (WIX 4.06%) is a better buy than Shopify and explain why Wix is much more than e-commerce.
What is Wix?
Wix helps you set up your website, online store, blog -- basically your digital presence. The main competitors are not just e-commerce websites such as Shopify and Amazon but also social media channels such as Twitter, Instagram, and Facebook. Because let's face it, do you really need a website if you're an influencer or freelancer?
But if you're a small business or a business, the answer is yes.
Business and creative solutions
Wix users pay a subscription fee for access to creative solutions, the tools for creating and managing websites. This accounts for 79.2% of 2020 revenue.
Business solutions revenue comes from Wix's marketing and CRM app (Ascend), reselling G-Suite products, creating and managing Facebook ad campaigns, and Wix Payments. Wix Payments was launched in 2019 and has grown to more than $50M in revenues in 2020 (very small compared to Shopify).
Wix is not fully focused on e-commerce because that market is being won by Amazon and Shopify. Wix is focusing on everything else that goes digital. Not every online business is e-commerce.
*Stock prices used were the closing prices of April 23, 2021. The video was published on April 23, 2021.