The Netccentric Ltd (ASX: NCL) share price is flying higher today as the company announced an affiliation with global company, Shopify Inc (NYSE: SHOP).
Shares in the small-cap Australian company are currently trading up 2.17% at 24 cents.
Netccentric is a communication services company that develops software and programming platforms to engage with digital advertising. While it operates globally, the company primarily targets southeast Asian markets.
Image source: Getty Images
What happened
Today the Netccentric subsidiary, Nuffnang Live Commerce, completed an integration with Canadian e-commerce giant Shopify. The partnership will allow almost 2 million Shopify merchants to sell their products via its live video streaming application.
The integration will likely enable Netccentric to increase its merchant base, consequentially driving possible revenue opportunities for the company through transaction and subscription fees. Moreover, Shopify merchants could also gain the ability to select products from the Shopify catalogue and directly sell through live streaming.
With a market capitalisation of $138.69 billion, Shopify would be the second-largest company on the All Ordinaries Index (ASX: XAO) if it were listed. The Canadian company operates across 175 countries and generated $2.93 billion in revenue in 2020.
How it works
Netccentric says the platform helps merchants convert social media comments into sales through an automated livestream selling process. A user can comment "+1" or "+2" on a post relating to an item, and the goodwill is immediately added into a virtual shopping cart.
The platform was developed so that both merchants and retailers can take advantage of the rising social commerce industry.
Management comments
Netccentric executive chair Ganesh Kumar Bangah welcomed the news, saying:
After a sustained period of platform development in 2020, we are now exposing Nuffnang Live Commerce to as many merchants, brands and businesses as quickly as possible.
With the Nuffnang Live Commerce Shopify integration, we are making it easier for merchants on the Shopify platform to leverage live social video selling in a way that is quick to get started with an easy and seamless integration
About the Netccentric share price
The Netccentric share price has gained an astounding 235% this year, most of the increase coming in March. At its current share price, the company has a market capitalisation of $65 million.
