Last year was a big year for e-commerce service provider Shopify Inc (NYSE:SHOP). SHOP stock finished 2017 with triple-digit gains, and if the first month of 2018 is anything to go by, this year looks like it will be another big one.

Over the past 30 days, Shopify stock has made its way 23% higher and although the company hasn’t yet turned a profit, there are a lot of reasons to put the stock on your shopping list.

Favorable Trends for SHOP

There’s no denying that e-commerce has been on a roll over the past few years. The trail of brick-and-mortar casualties that online shopping has left in its wake speaks for itself. However, while many investors might assume that e-commerce is old news, the industry actually has a huge amount of growth potential.

As fellow InvestorPlace contributor Luke Lango pointed out, SHOP stock is riding a retail wave that is growing steadily each year. E-commerce sales have grown about 15% per year pretty consistently. Yet despite its growing popularity, online shopping only accounts for about 9% of the United States’ total retail sales.

Not only that, but Shopify is likely to see tailwinds from the impressive economic performance in the U.S. lately. The firm caters to small- and medium-sized businesses. And a healthy economy is a huge factor in whether or not small businesses have money to spend on services like Shopify.

New and Improved SHOP

Another big reason to like SHOP stock is the fact that the company is constantly innovating to make sure its business remains relevant in the fast-paced world of e-commerce. The firm rolled out a new card reader that can be used with both older magnetic credit cards as well as new chip-and-pin models. That’s useful for small businesses that sell their goods both online and at smaller craft and trade shows.

Shopify has also been working to improve its service to up the number of sales merchants get online. The firm spent 2017 improving its payment processing and introducing Shopify Pay. This new feature not only reduced checkout times significantly, but increased returning customers’ conversion rates by nearly 20%.

Keeping its service at the top of the class is important. Shopify makes a lot of its money through referrals and new sign-ups. In order to attract and keep new customers, the firm has to ensure that it’s not being outdone by competitors.

SHOP’s Growing Capabilities

Shopify came under fire last year when analysts at Citron questioned the company’s referral network and if the stock was actually worth its triple-digit price tag. While Shopifty dismissed the negativity and the share price came out unscathed, it’s worth wondering whether the firm’s aggressive growth among small- and medium-sized businesses can continue.

However, Shopify doesn’t just make money when new customers sign up — and those parts of its revenue are gaining momentum.

For one, Shopify does well when its merchants do well. In addition to subscription fees, SHOP collects a small fee for every sale one of its customers makes. That transaction fee actually makes up a pretty major part of the firm’s revenue as well. The past four quarters have seen merchant solutions revenue make up more than half of the firm’s total revenue.

Also, the company isn’t just targeting small businesses anymore. Shopify Plus is the company’s highest-tier offering which targets larger businesses and can cost as much as $40,000 per month to use. What’s even more interesting from an investment standpoint is that Shopify Plus generates about 20% of the firm’s monthly subscription revenue. Already Shopify has signed on several big names, including Red Bull and Arby’s.

Bottom Line on SHOP

SHOP stock has already enjoyed monumental gains over the past year. But when you look at the firm’s massive growth potential, that growth looks like it’s just the beginning.

As a relatively new company in a quickly developing space, SHOP makes for a great long-term investment. With nothing but growth on the horizon within the e-commerce space and Shopify’s business looking solid, investors should consider adding SHOP to their portfolios.

As of this writing Laura Hoy did not hold a position in any of the aforementioned securities.