Gumroad vs Shopify: Difference and Comparison

E-Commerce and Online Platforms are very popular terms nowadays. E-Commerce means selling products or buying products via the Internet.

Key Takeaways

1. Gumroad is a platform that allows creators to sell digital products directly to consumers, while Shopify is an e-commerce platform that enables businesses to create and manage online stores.
2. Gumroad focuses on creators and artists, while Shopify caters to businesses of all sizes.
3. Gumroad charges a lower transaction fee than Shopify but has fewer features.

Gumroad vs Shopify

The difference between Gumroad and Shopify is that Gumroad provides a platform for all the creators and artists who want to sell their products to earn money. While Shopify is a platform for retailers and shopkeepers who can sell their products to customers, and the company provide them with security, payment options etc. Gumroad was started in the year 2011 by Sachin Khanna and Sahil Lavingia. In contrast, Shopify was started in the year 2006 by Tobias Lutke.

Gumroad is a company that is known for digital distribution, self-publishing etc. Its motive is to provide facilities to all the creators, artists, writers etc., a platform to sell their products.

Shopify is a multinational company based in Ottawa, Canada. It is an e-commerce company that sells its product globally.

Comparison Table

Parameters of Comparison	Gumroad	Shopify
Founder	It was founded by Sahil Lavingia in 2011.	It was founded by Tobias Lutke in 2006.
Headquarters	It is situated in San Francisco, USA.	It is situated in Ottawa, Canada.
Industry	It deals with music, films, digital distribution, self-publishing, and e-commerce.	It is an e-commerce industry.
Revenue	It has a revenue of almost $9.2 million.	It has a revenue of almost $2.93 billion.
No. of Employees	It has just 33 employees in the company.	It has 7000+ employees in the company.

What is Gumroad?

Gumroad was designed and created in only 1 week by its founder Sahil Lavingia.

The idea of making a company like Gumroad came to Sahil’s mind when he saw that back in 2010-11, there was no medium or platform through which any single creator, artist, designer, author etc., could sell their products easily and conveniently.  

Gumroad uses the plug-and-play technique, which means that it is a single computer bus without any physical configuration. It offers file hosting and delivery, payment processing, communications tools and consumption experiences, and marketing for various services. 

They are Bon Jovi, Eminem, Garth Brooks, Girl Talk, Ryan Leslie, Sara Bareilles, Wiz Khalifa, David Banner, and Sam Hyde. Publishing Books is one of the largest fortes of Gumroad.

It is a very small company with only 33 employees. But they try to cater needs of every customer. Gumroad’s support system is very good.

What is Shopify?

Shopify was earlier started as an online store for selling snowboarding equipment under the name SnowDevil. Then, its founder, Tobias Lutke, changed its name to Shopify in June 2006.

In 2010, they launched their mobile application on the app store, allowing sellers and store owners to monitor and manage them. Shopify became one of the fastest-growing companies in Canada.

Shopify runs globally, expanding its root to 175 countries. It has 1.58 million websites running on Shopify platforms. It has more than 7000 employees.

Main Differences Between Gumroad and Shopify

1. Gumroad is a small company with a revenue of almost $9.2 million. Shopify has a revenue of almost $2.93 billion and fastest-growing company.
2. Gumroad has just 33 employees in the company and focuses on every client. Shopify has 7000+ employees in the company and works in about 175 countries.

References

1. https://link.springer.com/chapter/10.1007/978-1-4842-2829-6_5
2. https://link.springer.com/chapter/10.1007/978-1-4842-2829-6_7