Bold Business Logo

Bold Leader Spotlight: Tobias Lutke, Founder and CEO of Shopify

What does a bold leader look like? Does a bold leader have to be a highly visible public figure like Elon Musk? Or can boldness in leadership be subtle in nature? For many, the name Tobias Lutke (Tobi Lutke for short) may not sound familiar. But in a little over a decade, Lutke, and his Canadian e-commerce company Shopify have achieved a level of success few ever realize. From Shopify’s inception in 2006 to now, Tobi Lutke has seen his company grow dramatically, go public, and replace Amazon as chief merchant service provider. This year, Shopify is expected to generate over $1 billion in revenue.

Despite these accomplishments, Lutke’s low profile might make him seem less than bold. But then, you should never judge an ebook purchased via digital retail platform by its cover.

For his results-driven nature, championing of change, and empowering of others, Lutke is every bit the Bold Leader.

cartoon of tobias lutke, founder and ceo of shopify
CEO and founder Tobias Lutke of Shopify may not dwell in the spotlight, but his bold leadership style has enabled Shopify to grow dramatically.

Tobias Lutke’s Need to Achieve

Shopify, like many companies today, evolved out of the need for a solution. Tobi Lutke had recently become disenchanted with his lifelong passion for programming. After relocating from Germany to Ottawa, Lutke and a partner decided to sell snowboards. There was only one issue… the e-commerce platform they needed was lacking. Lutke’s vision required a platform that delivered results, so he set out to design one himself. And thus, Shopify was born.

Today, the Shopify CEO continues to demand high quality in all aspects of the company. As a result, Shopify’s e-commerce suite is now utilized by about 600,000 businesses, with over $72 billion in total sales reported. His persistent focus on excellence is a major reason why Shopify has succeeded. If a problem appears, Lutke does not rest until it is resolved. His drive for exacting results is a major part of Lutke’s bold leadership.

“What I’m trying to create is an environment where almost everyone around me feels uncomfortable all the time, because I’m dragging them into the next box.” – Tobias Lutke

Tobi Lutke A True Champion of Change

Lutke is all about challenging the status quo. The Shopify CEO did this when he developed his own e-commerce platform. And he continues to demand it of those around him today. At Shopify,  Lutke not only anticipates change but embraces it. He believes that creativity and solutions best arise from dynamic environments. Thus, by encouraging risk-taking and embracing failures as opportunities, the Shopify CEO creates a true culture of innovation.

But Lutke not only encourages change through new pursuits, he also does so through diversity. In fact, because Shopify was “young” in age, Lutke sought to specifically diversify the company. For example, when Ottawa’s IBM office was closing, the Shopify CEO placed a recruitment booth outside IBM for new hires. This commitment to diversity is another example of Lutke’s bold leadership style.

Empowering Others for Success

Tobi Lutke might not be your stereotypical, flamboyant leader of a billion-dollar company. But he does know how to get the most out of others. The Shopify CEO has unique talents for empowering others to stretch themselves beyond their comfort level and achieve new heights. And he not only talks the talk but also walks the walk, serving as an ideal role model for others. Those who work at Shopify simply want to excel under Lutke’s leadership.

“When we start new interns in our R&D team, we make sure that within their first week they actually make a change to Shopify that impacts our customers. Minutes after they send the code over, it’s going to be in front of a hundred million shoppers. And it just blows people’s minds, because that’s the kind of personal impact they want to have in the company.” – Tobias Lutke

In part, Lutke exudes authenticity and honesty in his feedback, which naturally creates strong team-building capacities. The Shopify CEO also believes that a happy work culture creates greater employee engagement and better company results. In fact, Lutke hired Daniel Weinand specifically to serve as Chief Culture and Design Officer.  With proper guidance, feedback, and support, Lutke effectively aligns Shopify goals with personal goals of his employees.

These bold leadership traits drive not only engagement and satisfaction, but efficiency and innovation as well.

A Bold Leadership Mix of Humility and Vision

Tobi Lutke has always been a visionary. Certainly, the Shopify CEO had foreseen small businesses’ need to have e-commerce options. As a bold leader, he has also pursued visionary pursuits in employee engagement and performance results. And today, Lutke is applying the same visionary considerations in areas future developments in the e-commerce world. Robotics, 3-D printing and new mobile technologies are just a few of the areas where Shopify might advance next.

“Sometimes it feels like he is going a few years into the future and is coming back with positive information and sharing it with us.” –  Daniel Weinand, Chief Culture and Design Officer, Shopify

Despite his inherent genius as a programmer and business leader,  Lutke remains humble. Many have been amazed at the Shopify CEO’s ability to make them feel like an equal in the room.

This leadership trait is another reason why Lutke effectively engages and empower others so well. And it is also this trait that causes some to underestimate his bold leadership capacity. But by close examination, it is perfectly clear that Lutke is among one of the boldest leaders around today.

He is certainly one bold leader worth keeping your eye on.

Shopify: The E-Commerce Giant That Keeps Beating the Odds

In business, it’s sometimes hard for the little guy to win. Larger companies often enjoy greater margins and can leverage greater revenues to more easily access capital. But that is where Shopify e-commerce solutions provide smaller companies with an advantage. By choosing the Shopify marketplace, companies gain access to an array of e-commerce tools. In fact, these tools are making bold impacts in commerce today throughout the globe. And at the same time, Shopify keeps shocking the business world with its incredible success. What’s the secret? For Shopify, it may be an ability to adapt to perhaps the most rapidly changing environment commerce has ever known.

Bold Beginnings – Filling a Void

Shopify e-commerce tools were the brainchild of its CEO and founder, Tobias “Tobi” Lutke. The genius programmer had become burned-out dealing with limited programming languages in the financial industry. So Lutke decided he would take a stab at retail and sell snowboards. There was only one problem.

None of the e-commerce suites were very good.

Frustrated, Lutke set out to design a more effective e-commerce system. From this, Shopify e-commerce solutions were born.

With minimal funds, Shopify was officially launched in 2006 with operations based in Ottawa. The initial revenues were a measly $8,000 a month at the time. But by 2008, Shopify marketplace revenues had climbed to $60,000 a month. Ever since Shopify e-commerce has been on a steep uphill trajectory. In 2010, Lutke was able to raise $22 million in Series A and B venture capital funding. Then in 2013, Shopify e-commerce solutions received $100 million in Series C funding. The company went public in 2015 with its IPO, and today it generates more than $1 billion in revenues. And there appears to be no end in sight.

A Look at the Shopify Marketplace 

Shopify e-commerce sites provide merchants with plug-in, omnichannel retail services. That means companies, both small and large, can leverage the Shopify marketplace to boost their sales at a nominal cost. Online, mobile and point-of-sale locations are all supported by Shopify’s platform. Likewise, the Shopify e-commerce suite provides customizable store templates, marketing tools, sales analytics, and inventory management capabilities. And most recently, Shopify opened its own brick-and-mortar store in Los Angeles to further serve its merchant customers.

How has Shopify been received? Today, the Shopify marketplace serves over 600,000 businesses in 175 countries. Participating merchants now sell a gross merchandising volume in excess of $9.1 billion. Over the last few years, Shopify’s growth has exceeded 50 percent annually in revenues. This year, Shopify’s e-commerce solutions are expected to generate more than $250 million in revenue per quarter. And from 2016 to 2017, Shopify’s stock price increased nearly fourfold in value.

Not bad for an e-commerce platform designed to simply boost the sale of snowboards.

Challenges and Struggles Along the Way

One measure of a truly bold business is its capacity to deal with adversity. But Lutke relishes adversity to help foster Shopify e-commerce innovations.

In fact, risk-taking and creative exploration are encouraged among Shopify employees. Lutke created “Hack Days” where Spotify employees pursue their own innovations. As a result, the Spotify e-commerce suite is constantly evolving to accommodate customer needs and maintain a dynamic climate.

This dynamic climate includes recent competitions with other e-commerce players like Amazon, Google Play, and others. By promoting a strong culture of engagement and change mentality, Shopify is able to continually adapt.

Most recently, the Shopify e-commerce business has faced financial adversity. Since July, the company’s all-time high stock value dropped 28 percent. Lower than expected quarterly revenues accounted for this, as did other external factors. Specifically, the potential for rising postal rates with China as part of ongoing trade wars has left some investors concerned.

Likewise, competitive pressures from commercial giants like Amazon and Google are making others cautious about the future of the Shopify marketplace.

But if history is any indication, Shopify will overcome these challenges just like it has dozens of others. In fact, the company is already rebounding. Its 3rd Quarter 2018 revenues shot up 58% to $270.1M as subscription revenue rose 46% and merchant solutions revenue increased 68%. The company’s gross merchandise value was up 55% to $10.0B and it projects full-year revenue to be $1.06B vs. $1.03B consensus.

Bold Opportunities to Excel

For Shopify e-commerce sites, keeping an eye on the future is an inherent part of its competitive strategy. Lutke may be one of the most visionary leaders today. Because of this, nearly half of Shopify’s current workforce is in research and development.

Specific research areas being pursued include augmented reality and virtual reality apps. These apps will allow merchants to provide 3D images of products for sale on a variety of mobile platforms.

Shopify is also constantly looking to exploit new opportunities. For one, Shopify e-commerce sites will soon be offered in additional non-English languages for international merchants.

The company has also gained significant momentum recently serving Canada’s legalized cannabis industry.

Shopify may face rising competition in the e-commerce arena. But don’t count them out. This is one bold business that not only beats the odds but seems to thrive in the most competitive business environment.

How can we help?

Bold Business Insights
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.