Shopify Acquires Handshake to Expand Into B2B Wholesale Market
Shopify quietly purchases B2B wholesale platform Handshake for under $100 million to tap into the trillion-dollar business-to-business e-commerce market.
Shopify quietly acquires Handshake, a New York-based startup that provides an e-commerce platform specifically for wholesale business transactions. The deal, valued at less than $100 million according to sources, integrates Handshake into Shopify's premium service tier known as Shopify Plus. Handshake's founder and former CEO, Glen Coates, transitions into the role of director of product at Shopify Plus to oversee the newly acquired team.
This strategic move allows Shopify to target the lucrative B2B e-commerce sector, which sees over $1 trillion in annual sales in the United States alone. Platforms like Handshake enable brands to manage their wholesale operations directly rather than relying on third-party marketplaces that charge commissions and impose restrictive rules. Handshake already boasts prominent clients such as Bugaboo, Williams-Sonoma, and Roland, giving Shopify an immediate foothold among major wholesale merchants.
The acquisition arrives at a fascinating time in the e-commerce technology landscape, occurring shortly after a public falling out between Shopify and Mailchimp. That previous dispute reveals a broader industry trend where marketing and retail platforms are actively buying e-commerce startups to build comprehensive, in-house purchasing tools. By bringing Handshake's wholesale capabilities in-house, Shopify continues its mission to make commerce better for everyone by supporting merchants across both retail and wholesale channels.