The closure of Tictail, formerly an online marketplace for both shoppers and designers, followed its acquisition by Shopify in November 2018. Both Shopify and Tictail did not publicly disclose the acquisition until Shopify users began receiving emails regarding it.
The Swedish publication Breakit was the first to report on Shopify’s acquisition of Tictail following an email sent to Tictail users. The email contained the news and instructions on the next steps to transfer their stores from Tictail to Shopify, indicating that users could make the switch to Shopify until April 1, 2019.
The chief editor of Tech.eu perceives the acquisition as not being well-received by the founders and investors of Tictail due to the absence of public disclosure, including financial details. He remarked, “It certainly appears to be a hastily arranged sale.” This assessment likely holds true.
Nevertheless, Tictail has now been completely shut down. Should you visit its home page, the title indicates, “We are now part of Shopify,” redirecting you to Shopify’s homepage. Below this message, they express their gratitude for the trust placed in the Tictail ecosystem over the past 7 years.
Happy Tictail Team (Image taken from Tictail.com official website homepage)
According to a Shopify spokesperson, they do not comment on individual acquisitions but make these acquisitions to enhance the user experience on Shopify. Some of Shopify’s noteworthy acquisitions include Boltmade, Kit, and Return Magic. However, the acquisition of Tictail is likely the largest of them all.
For those unfamiliar with Tictail, it was a remarkable startup, described as “the Tumblr of e-commerce” by Wired magazine in 2012. It was also listed among “Europe’s 100 Hottest Startups.” Since its inception in 2012, it immediately achieved success and secured a substantial $32M USD investment in 2014-15. It was admired by both artists and shoppers, with artists building their brands through their designs, and shoppers enjoying the latest in clothing, home decor, and more.
Tictail offered various payment options, integrating its payment system with PayPal, VISA, Mastercard, American Express, iDeal, Apple Pay, and more. Tictail’s management left no stone unturned in their efforts to improve every aspect, which explains why Shopify sought to acquire Tictail, recognizing its potential. Tictail sellers hailed from 140 countries, particularly Sweden, Germany, France, and the UK.
Related Story: The Complete Story of IOffer Shutdown And Counterfeiting
Lets look into the history of this Swedish startup. Tictail was established by Carl Waldekranz, Siavash Ghorbani, Birk Nilsson, and Kaj Drobin in 2011 in Stockholm, Sweden. It was developed as a self-serve e-commerce ecosystem to empower designers to monetize their talent by featuring their art on clothing and home decor items, and earning from their sales. The concept of having designer clothing, home decor, etc. was well-received by shoppers.
In 2013, third-party individuals were allowed to create Tictail apps, which were available for purchase to add additional functionality. In 2014, Tictail also launched its first iPhone app to attract more users. In 2015, Tictail became the first marketplace to allow brands to create an online store directly from their mobile phones. Consequently, the founders of Tictail were honored with the “Masters of Mobile” award by Decoded Fashion. In 2016, Tictail opened its first brick and mortar store in New York City, featuring numerous brands.
This is where Shopify stepped in and acquired Tictail in 2018 to bolster its ecosystem.
Following the news of the acquisition, Tictail users were considerably disheartened and began exploring alternatives such as Etsy, Storenvy, and BigCartel. An ex-seller from Tictail lamented that they now had to pay nearly $27 for a shop that was once entirely free. While users of Tictail had to pay a 10% commission fee on sales, the shop itself was free.
To facilitate a seamless transition, Tictail offered its premium users “Shopify theme customization assistance” for up to an hour if they switched to Shopify. Additionally, Shopify extended its basic plan for free for 6 months to Tictail users. Some users reported not receiving the 6-month free basic plan on Shopify, possibly because the offer was exclusively presented to longtime Tictail users. The promotion has now expired, however.
One thing is certain: Shopify has emerged as one of the most dominant e-commerce platforms online. The acquisition of Tictail has reinforced this position, enabling Shopify to explore digital commerce more deeply than ever. On the contrary, loyal Tictail users are considerably disappointed with the acquisition. It remains to be seen whether Tictail users will opt to switch to Shopify or seek alternatives such as Etsy, among others.
