BigCommerce makes money in two different ways.
- Income from subscription solutions, which is largely comprised of platform subscription fees.
- Revenue from partners and services. When merchants integrate into their marketplace, partner income comes from their technological application ecosystem.
But how Big-commerce grew so big?
Focused on retention-
Big-commerce enabled customer success through product excellence and service quality. Aligned the product roadmap with the features and enhancements to drive customer growth
They made sure they are having industry-leading customer retention rates, net promoter scores, service levels, and same-store sales growth
Acquired enterprise customers-
Through the Enterprise plan Big-commerce generates approximately half of their ARR. Plus the large enterprise customers exhibit low churn and net revenue retention greater than 100%.
Expanded into new segments-
They expanded to new and emerging segments to attract more customers like Headless commerce, B2B, and Large enterprise businesses. This helped them grow bigger and get customers from different segments
Customer referrals from the partner ecosystem
Instead of competing with the competitors, Big-commerce took the advantage of their competitors. Their strategy was to partner – not compete – with the ecosystem. Plus partners even paid them a revenue share on their gross sales to the joint customers.
By this customers also benefit from the best-of-breed offerings of their partners and the flexibility to choose.
How Big-commerce is different from Shopify?
Shopify has its limitations for growing mid-market and Enterprise businesses whereas Big-commerce is often the right choice for businesses in this size range.
Also, BigCommerce is better suited for mid-market to enterprise businesses. Why? Its robust API allows larger, growing businesses to develop custom integrations and functionality.
BigCommerce provides features built to align with SEO best practices with full control over URLs, title tags, header tags, and metadata on the other than Shopify lack that feature.
While I am long on Shopify, I was pleasantly surprised to see how far BigCommerce has come.
I guess a rising tide lifts all boats!