From Snowboards to $160 Billion: The Shopify Origin Story

Hey, Arjun here.

Before Shopify powered millions of online stores and became one of the most valuable companies in e-commerce, it was just a tiny snowboard shop struggling to sell gear online.

The 2-Minute Hack: Build the Tools You Need When They Don’t Exist

In 2004, Tobias Lütke, a German-born programmer living in Canada, wanted to sell snowboards online with his friend Scott Lake. They named their shop “Snowdevil.”

Just one problem: the available e-commerce platforms were terrible.

As Lütke put it: “We were using this Yahoo store thing at the time. It was this click, click, click, ‘Are you sure?’, click interface, which took 15 minutes to add a product and drove me completely crazy.”

Being a programmer, Lütke decided to build a better solution himself. He leveraged Ruby on Rails, which was brand new at the time, to create a more elegant and efficient online store.

Two years later, something unexpected happened. While their snowboard shop wasn’t thriving, other online retailers began asking about the software they’d built.

Lütke and his team had a realization: the tool they’d created was more valuable than their original business.

In 2006, they pivoted completely. They shut down Snowdevil and launched Shopify: a platform designed to help anyone build an online store without technical expertise.

The first version was incredibly basic by today’s standards, but it solved a crucial problem: it made setting up an online store accessible to non-technical entrepreneurs.

Why Shopify succeeded when others failed:

1. They built for themselves first:
By creating a solution to their own pain point, they ensured it solved a real problem

2. They embraced flexibility:
The platform was designed to be customizable, adapting to different business needs

3. They lowered the technical barrier:
They made something complex (e-commerce) simple for non-technical users

4. They recognized the bigger opportunity:
They were willing to abandon their original business to pursue the larger vision

Lütke’s philosophy was simple: “I’m doing this so everyone can be an entrepreneur.”

Today, Shopify powers over 4 million online stores, from first-time founders to global brands. The company has a market cap of approximately $160 billion.

How to Apply This to Your Business

➕ Pay attention to your own friction points: Your biggest frustrations might be your best business opportunities

➕ Be willing to pivot: Sometimes the tool you build becomes more valuable than your original idea

➕ Simplify complexity for others: Create bridges that help non-experts access specialized fields

➕ Start with scrappy solutions: Shopify’s first version was basic, but it worked, perfection isn’t required to start

What business problems are you facing that need a better solution? Could building that solution become a business itself?

Hit reply and let me know. I read every email.

See you next week.

Lets doola it ⚡

Arjun

P.S. If you’re thinking of starting or scaling an e-commerce business on Shopify, we can help you set up the right business structure at doola. The foundation matters.