Shopify merchants were this week notified of a platform-wide update mandating that all customer data collected by third-parties on the merchant’s behalf be sent back to Shopify. Beginning immediately, checkout and payment processing information must go through Shopify unless otherwise authorized in writing, and developers will no longer be able to create multiple platforms offering the same services. Shopify is allowing a 60-day window to enact the above updates.
In SaaS news, Chargebee has partnered with Softrax to create internal subscription billing solutions for SaaS businesses following a new accounting policy dubbed ASC 606, which will impact the way SaaS businesses determine the amount and timing of revenue recognition. ASC 606 leads to adjustments in accounting practice for upfront and contingent fees, usage-based pricing, distinct performance obligations, discounts and more. Integrating Chargebee and Softrax’s solutions allows business owners to use revenue automation software as applied to subscription sales..
In e-commerce news this week, Amazon recently terminated an agreement with store owners which required sellers to sell products at lower prices on Amazon than anywhere else. Long-regarded as anti-competitive in nature, the policy has been investigated by several countries including Germany and Great Britain but was not found to be in violation of trust laws. This policy adjustment comes at the same time that Amazon announced it will be closing all 87 of its pop up stores in the United States, with concurrent plans to open dozens of grocery stores across the country.
Featured in SaaS business listings this week we have a $2M B2B affiliate marketing platform, with 12 years of operational history making the business one of the oldest, largest, and most reputable businesses in the niche, strong historical financial performance, with the business generating c.$5M in gross revenue over last five years, steady traffic with over 1M sessions and 5.2M page views throughout the past year, revenues diversified across numerous profitable monetization channels and highly trained and professional team transitioning with the business post-sale. If you are interested in this business, please follow the link to request a prospectus..
In events news, Founder Thomas Smale will be attending Prosper for Amazon Sellers next week, where he will be meeting with several clients and attendees. Make sure to set up a meeting with Thomas if you will be in Las Vegas next Monday or Tuesday!
Finally, LTV Conf has added several new speakers to the lineup, including Greg Smith, Chief Investment Officer at Business Development Bank Canada, YCombinator alum Einar Vollset and Chargebee’s own Germain Brion who scaled the company’s Sales Success team. There are only a few early bird tickets left so don’t wait to purchase. Discounts are offered to bigger groups, so make sure to bring your team, and use code FEINTERNATIONAL10 at checkout for an extra 10% off. Up to 300 invited SaaS Founders, Executives and Investors from private and public companies will be in attendance making this the perfect place to learn and make new connections.
Continue reading below for more on Shopify’s merchant updates, Chargebee’s integration with Softrax plus a bonus story on Facebook’s Head of Product resigning.
- Over 12 years of operational history, making the business one of the oldest, largest, and most reputable businesses in the niche
- Strong historical financial performance, with the business generating c.$5M in gross revenue over last five years
- Steady traffic with over 1M sessions and 5.2M page views throughout the past year
- Revenues diversified across numerous profitable monetization channels
- Highly trained and professional team transitioning with the business post-sale
Yearly net profit: $642,000
Asking price: $1,978,000
- Impressive revenue CMGR of c.22% over the past year
- Robust c.67K keyword profile with backlinks from authoritative sites allowing for a dominant organic search presence
- c.1,500 posts to-date with a c.77% growth in user sessions in the LTM
- Lean and scalable cost structure driving high net margin of c.82% in the LTM
- Low owner involvement creating plenty of time to invest in growth
Yearly net profit: $157,000
Asking price: $350,000
- Over a decade of operational history leading to strong supplier relationships, creating a clear competitive advantage
- High-quality customized product offering sourced from regional artisanal suppliers
- Proven market demand and customer loyalty, with up to c.33% of revenues generated from repeat clients in the L12M
- Robust c.9,000 keywords profile with backlinks from authoritative sites allowing it to rank high for organic search
Yearly net profit: $54,000
Asking price: $154,000
In The News…
Shopify Updates Customer Data Mandate for Merchants
Shopify has announced several recent updates that will apply to all partners beginning March 13, 2019.
Published on the Shopify blog is the update which notes that partners are now restricted from prompting merchants to leave the Shopify platform. Development stores will only be allowed to be used to process test orders and are not intended to replace to a paid Shopify plan. Any data involving a merchant’s customers collected by a partner on behalf of the merchant (not including Sensitive Personal Information), must be communicated to Shopify “via the Shopify APIs Customer resource if the partner is building or operating a Public Application (as defined in the API Terms)”. All checkout and payment processing for Public Applications must be transmitted through Shopify checkout. Other updates involve developers no longer being allowed to create
For a complete list of the updates, visit the Shopify blog.
Chargebee Integrates with Softrax
Chargebee, a leader in SaaS subscription management and recurring billing solutions, has partnered with Softrax, a revenue management software leader, giving subscription business owners access to Softrax’s Revenue Manager solution for revenue recognition under the ASC 605, 606 and IFRS 15 standards.
More than 8,500 businesses use Chargebee’s subscription management solution to handle billing, payments, subscriptions and invoicing services. Meanwhile, Softrax’s technology seamlessly augments ERP and financial systems to support existing and forthcoming revenue guidance, while reducing operating expenses and giving businesses clear visibility into their business performance.
Integrating Chargebee and Softrax’s solutions allows business owners to access the power of Softrax’s revenue automation software as applied to subscription sales.
Facebook Head of Product Resigns
Head of Product at Facebook Chris Cox announced that, after 13 years at the company, he will resign.
Cox was assigned to head up WhatsApp, Facebook and Messenger integrations within Facebook after serving as Chief Product Officer within the company. As one of Facebook’s first 15 engineers, Cox was involved in early development of the NewsFeed. It has been suggested that Cox’s resignation is indicative of divided perspectives regarding the role data plays in social media use by the public.
In a statement, Cox noted that it is the company’s “greatest responsibility” to understand the impact of social media on society.