Shopify’s Tea-Time Wisdom: Why Small Businesses Should Prioritize Micro-Influencers
Last week, Shopify, a major player in e-commerce, unveiled its quarterly earnings report, revealing a recalibration in the wake of the pandemic-induced e-commerce surge. The company, representing a robust 10% of all U.S. e-commerce sales, made headlines by shedding 20% of its staff and divesting its logistics and order-fulfillment operations to Flexport.
Harley Finkelstein, Shopify’s president, explained this shift, describing it as a return to the company’s roots, focusing on its core strength — building exceptional e-commerce software. In an interview, he likened the company’s recent diversions to “side quests,” noting that these endeavors can be distracting and sometimes worth it when they set the stage for the primary quest’s success.
Interestingly, during the interview, Finkelstein, who is also an independent entrepreneur and co-founder of the loose-leaf tea side hustle Firebelly Tea, shared insights gleaned from his side business. He emphasized a key lesson for retail startups: steer clear of chasing big-name influencers on popular platforms like YouTube, Instagram, and TikTok. Instead, invest time in understanding micro-influencers across various social media channels, even on subReddits and Pinterest.
According to Finkelstein, engaging micro-influencers in niches relevant to your business demographic is not only more cost-effective but also likely to yield higher returns. In the evolving landscape of the creator economy, the traditional “Field of Dreams” model — “If you build it, they will come” — is no longer sufficient.
Finkelstein stressed that merely having a great product doesn’t guarantee success. He cautioned against the temptation to pursue endorsements from mega-influencers like MrBeast or Emma Chamberlain. While micro-influencers may have smaller followings, often numbering in the thousands, their deep connections with their audience lead to significant engagement.
His advice to small business owners is clear: for instance, if you’re in the business of selling kitchenware, focus on smaller channels with excellent engagement rather than fixating on subscriber numbers. It may require more time, but the cost-effectiveness and potentially higher return on investment make it a strategy worth pursuing.
In the ever-evolving world of e-commerce, Shopify’s pivot and Finkelstein’s insights underscore the importance of strategic recalibration and recognizing the influential power of the “micro” in the digital realm.