You understand Shopify is a giant deal. Tens of millions of retailers use it every single day. On a worldwide scale, it has grown from a fledgling Canadian startup to a behemoth amongst ecommerce platforms. However how huge is Shopify Inc., actually? On this article, we’ll full a radical evaluation of present Shopify income, statistics, and development potential to indicate the successes and challenges Shopify has skilled over time.
The purpose is to clarify the main points behind the hype, whereas additionally offering you with details about the platform that so many retailers have entrusted with their complete companies.
We have completed our greatest to maintain this submit up to date as new Shopify income, utilization, and grown statistics are available in, and we’ll proceed offering you with essentially the most up-to-date statistics potential. Maintain studying to study all about Shopify income, utilization stats, and extra!
High Information and Stats About Shopify
Though the next sections present in-depth element about Shopify income and utilization statistics, listed here are among the most necessary information and stats to achieve a deeper understanding of Shopify:
- Shopify income was $3.231 billion in 2021, displaying a rise of 86% over the previous two years.
- Whole worth of transactions processed by way of Shopify shops leapt to $79.5 billion in 2021.
- Over 1.75 hundreds of thousands retailers use Shopify as their main platform for promoting on-line.
- Over 457 million patrons got here to and shopped at Shopify shops.
- Shopify boasts over 7,000 apps in its App Retailer.
- Shopify gives over 100 themes in its Theme Retailer, together with 3-4 variants for every of these themes.
- Shopify employs and contracts over 7,000 folks.
- Three Canadians began Shopify in 2004. They launched it in Ottawa, Canada as a startup experiment after they’d beneath common transport cart experiences for snowboarding gear.
- Shopify’s ecommerce platform market share has elevated to achieve 32% in the USA. WooCommerce is the one different ecommerce platform near that market share. Shopify beats out all different rivals like Bigcommerce, Magento, Wix, and Squarespace.
- Consultants attribute a lot of Shopify’s success to its associates program, which awards associates with a median of $58 per new, paid person.
Our main supply is the Shopify Financials web page as ready by Shopify CFO Amy Shapero and Shopify President Harley Finkelstein.
Shopify Income Highlights
Shopify income hit $1.124B within the third quarter of 2021.
Mixed with first and second quarter income reviews, complete Shopify income for 2021 reached $3.231B, its highest-earning yr of all time.
In comparison with the final yr, Shopify income elevated by 57%. The truth is, the primary time Shopify noticed quarterly income over a billion {dollars} was in 2021.
Shopify has seen a constant development in income over the previous years, typically doubling its efficiency from earlier years:
- 2021: $3.2B
- 2020: $2.9B
- 2019: $1.6B
- 2018: $1.1B
- 2017: $673.3M
- 2016: $389.3M
- 2015: $205.2M
Recurring Month-to-month Shopify Income
Shopify reviews recurring income as a subset of complete income, factoring in its common subscription charges from retailers that are available in on a month-to-month foundation. They make the calculation by merely averaging the month-to-month subscription payment from the full variety of retailers at the moment utilizing its system.
The $98.8M in recurring income on the finish of Q3 in 2021 was a rise from the $82.61M in 2020. Though considerably decrease than complete income, that is a quantity that Shopify seems at to ensure constant money circulation, and to make sure development in subscribing retailers.
Here is a breakdown of month-to-month recurring Shopify income from previous years:
- 2021: $98.8M
- 2020: $82.6M
- 2019: $53.9M
- 2018: $40.9M
- 2017: $29.9M
- 2016: $18.5M
- 2015: $11.3M
Gross Merchandise Quantity
Gross merchandise quantity takes under consideration the greenback quantity of merchandise gross sales numbers for all Shopify shops. These numbers do not immediately contribute to Shopify’s full-year income (seeing the way it’s the cash that went to retailers) nevertheless it nonetheless exhibits the expansion of fee processing income and utilization from Shopify’s perspective.
On the finish of 2021, Shopify reported $121.3 billion in gross merchandise quantity, that means that Shopify facilitated that sum of money in transactions for retailers. That is a rise from $119.6 in 2020, though not as massive of a soar as they noticed from 2019 to 2020 (the place they noticed a 40% enhance).
The most recent quarter (not the whole yr) had a GMV of $41.8B.
Whole gross merchandise quantity from earlier years embody:
- 2021: $1.13B
- 2020: $119.6B
- 2019: $61.1B
- 2018: $41.1B
- 2017: $26.3B
- 2016: $15.4B
- 2015: $7.7B
Regional Shopify Income
Shopify tracks the place its income comes from by service provider areas. It is a pretty basic look into regional income, contemplating they solely give attention to continents, and so they already know that a lot of the income comes from North America (primarily the USA).
Shopify will get 73% of its income from North America, the place 56% of its retailers are situated.
Different income comes from the next:
- EMEA (Europe, Center East, and Africa): 16% of its income
- APAC (Asia Pacific, Australia, and China): 10% of its income
- LATAM (Latin America): 1% of its income
The latest reporting tells us the income breakdowns from every area:
- North America: $2.2B
- EMEA: $454.3M
- APAC: $292.2M
- Latin America: $36.1M
Shopify Income for Subscription Options
Shopify income for “subscription options” contains any subscription charges like platform subscription charges, themes, apps, domains, and POS Professional charges. It is a particular breakdown of revenues in order that buyers can determine how Shopify makes its cash.
Shopify reported $336.3M in Q3 of 2021 for subscription options, together with a complete of $654.9M for the earlier two quarters mixed, making a grand complete of $991.2M in income for 2021 within the subscription options class.
That is a rise in subscription options revenues in comparison with the previous yr, and a transparent signal that this sector of Shopify’s enterprise has grown over time:
- 2021: $991.2M
- 2020: $908.7M
- 2019: $642.2M
- 2018: $465M
- 2017: $310M
- 2016: $188.6M
- 2015: $111.9M
Shopify Income for Service provider Options
With Shopify Funds, Shopify offers fee processing providers for a lot of of its retailers, which the corporate lumps into the “service provider options” class when reporting its revenues. The service provider options income additionally contains promoting income, referral charges, and its level of sale {hardware} gross sales. Basically, this brings collectively its income from providers that are not recurring however nonetheless help retailers.
Surprisingly, the service provider options class makes up for about 68.9% of Shopify’s complete income, most definitely because of the fixed influx of fee processing charges. The overall income from service provider options in 2021 was $2.287B.
The ultimate quarterly report from Q3 in 2021 was 787.5 million.
Very like revenues from the subscription options class, the service provider options quantity has elevated over time:
Advertisment ⓘ
- 2021: $2.287B
- 2020: $2.02B
- 2019: $933.9M
- 2018: $608.2M
- 2017: $363.3M
- 2016: $200.7M
- 2015: $93.25M
The Future Outlook of Shopify Income and Progress
In its latest reviews, Shopify has said that it expects to proceed its development into future years, however at a slower fee when in comparison with 2020. The COVID pandemic and varied different components pushed revenues a lot larger throughout that point interval, and issues are leveling out.
Listed below are some notes from Shopify concerning the longer term:
- They count on fast development in gross revenue {dollars} within the close to future as they rent extra engineers, broaden into extra business expertise, and enhance on advertising and marketing.
- Adjusted working earnings for 2021 is predicted to be larger than 2020.
- The fourth quarter typically contributes the very best stage of income all year long, and Shopify expects that pattern to proceed.
- Shopify tasks that income development within the subscriptions options class to thrive because of extra world retailers becoming a member of the Shopify platform.
- They count on development charges (from a proportion perspective) of service provider and subscriptions options sooner or later to match one another nearer than the upper numbers they noticed in 2020, which noticed larger numbers because of the surge in on-line (and offline) entrepreneurs from the COVID pandemic. The yr of 2020 was an outlier, and so they do not count on this to repeat.
- Progress within the service provider options class can be pushed by GMV development from new retailers becoming a member of up, current retailers, together with rising product choices like Shopify Transport and Shopify Capital.
Shopify Site visitors and Utilization Statistics
This part takes under consideration metrics for market share, visitors, and utilization.
Shopify Market Share
We are able to calculate market share in a number of methods, so it is dependent upon how we have a look at it. One methodology is by factoring in gross merchandise quantity and evaluating Shopify retailers to retailers promoting on different marketplaces. This makes it seem to be Shopify is a market in itself, which is not completely true, however it’s a viable metric contemplating many retailers solely promote on locations like Amazon and eBay.
From {the marketplace} gross merchandise quantity perspective, Shopify shops within the US take up 8.6% of the whole market share.
Here is the place that stacks up:
- Amazon: 39%
- Shopify: 8.6%
- Walmart: 5.8%
- eBay: 4.9%
- Apple: 3.5%
One other means of market share is by analyzing the preferred commerce platforms utilized by on-line retailers. From that vantage level, Shopify has not too long ago surpassed WooCommerce to grow to be to hottest ecommerce platform within the US:
- Shopify: 32%
- WooCommerce: 22%
- Wix Shops: 14%
- Squarespace Add To Cart: 11%
- Ecwid: 5%
- Different: 16%
Supply: Oberlo
Variety of Shopify Websites
69.67% of Shopify websites are registered in the USA. On a worldwide scale, over 3.76 million stay web sites at the moment function on the Shopify ecommerce platform.
The UK and Australia sit within the #2 and #3 spots for essentially the most Shopify utilization, at 153k and 99k websites, respectively. So, as you possibly can see, Shopify finds most of its market share by catering to US retailers.
Retailers situated within the following international locations make up the very best focus of Shopify-created web sites:
- United States: 2.5 million
- United Kingdom: 153k
- Australia: 99k
- Canada: 91k
- Germany: 76k
- France: 58k
- Brazil: 43k
- Netherlands: 33k
- India: 31k
- Italy: 25k
Shopify Plus (the enterprise model of Shopify), then again, has a a lot smaller world attain. That is partially as a result of most small and medium-sized on-line shops do not require Shopify Plus, but additionally as a result of Shopify Plus is a newer addition to the Shopify product lineup. Shopify Plus powers over 6,000 stay web sites, most of that are in the USA.
Here is the breakdown for prime international locations with stay Shopify Plus websites:
- United States: 5.5k
- United Kingdom: 600+
- Canada: 400+
- Australia: 400+
- Germany: 100+
- France: 100+
- Netherlands: 60+
- New Zealand: 50+
- Denmark: 40+
- Spain: 40+
Variety of Shopify Retailers
Shopify reviews having 1.749 million retailers, including over 680 thousand retailers from the unprecedented development of 2020.
High revenue-generating websites utilizing Shopify as their ecommerce platform embody The Mattress Bathtub and Past Kitchen Retailer with over $7.2M in yearly income, Chipotle Farmers Market with $3.2M in income, and the Code Academy Store with $2.6M per yr. Different prime contenders embody the Carnival Cruise Line Merch Store, the Thought Catalog Retailer, and The Factors Man Store.
High income producing websites utilizing Shopify Plus embody Nokia’s India Cell Store with over $27M in annual income, Taylor Swift’s web site with over $2.7M per yr, and the Chronicle Increased Schooling retailer with $7.1M+ in yearly income.
Regional Shopify Retailers
Shopify calls 175 international locations house, seeing as how retailers from all of those international locations use Shopify in a roundabout way. 50% of these retailers are from the US, accounting for over 874K retailers.
The Europe, Center East, and Africa area boasts 25% of all retailers at 437K sellers. The Asia Pacific, Australia, and China area touts 15% of all Shopify retailers at 262K sellers. Canada has a decrease quantity, which is shocking contemplating they based Shopify in Canada. Canadian retailers account for six% of the full service provider depend at 104K sellers, whereas Latin America is on the backside of the listing with 69.9K sellers (4%).
Variety of Customers Who Purchase from Shopify Shops
Do you ever surprise how many individuals truly go to and store at Shopify shops?
In keeping with Shopify, 457 hundreds of thousands folks went to the shops and made a purchase order. This was in 2020, displaying a rise of 52.33% in shopper spending from the earlier yr.
Shopify patrons from 2019 counted 300 million. They noticed 216 million in 2018 and 163 million in 2017.
Variety of Apps and Themes on Shopify
Shopify hasn’t grown its Theme Retailer that a lot, however somewhat they give attention to curating a group of high quality themes with a number of fashion variants. Basically, Shopify has maintained a listing of 100 themes that they replace yearly. Lots of the themes have two or three fashion variants which can be drastically completely different from the unique design, so we might argue that Shopify truly gives about 300 theme designs.
As for the App Retailer, this grows frequently. The Shopify App Retailer has 7,000 apps out there for retailers to obtain and use on their shops. There are 12 most important classes with dozens of different subcategories. What’s fascinating is that the Shopify App Retailer practically doubled its depend from 2019 to 2020. They solely had 3,700 apps in 2019.
Wanting again, the Shopify App Retailer contained 900 apps in 2015, 1,400 apps in 2016, 2,300 apps in 2017, and a pair of,500 apps in 2018.
How Many Folks Does Shopify Make use of?
Shopify states that it plans to proceed hiring new builders, engineers, advertising and marketing associates, and contractors to broaden upon its present enterprise. Method again in 2013, Shopify had 334 staff. That grew to virtually 3,000 as soon as 2017 got here round and 5,000 in 2019.
As of the latest knowledge, Shopify employs about 7,000 folks. This contains each staff and contractors.
Shopify Enterprise Developments
Shopify income reviews do not solely have charts, numbers, and stats about usership and income development. Additionally they discuss the latest enterprise developments which have helped result in income development. This contains not too long ago launched merchandise, new enterprise partnerships, options, and even notable charity occasions.
Listed below are among the most up-to-date Shopify enterprise developments that issue into the general Shopify income reviews:
- Shopify created and launched a platform known as Shopify Markets, which helps all of its retailers faucet into cross-border buyer relationships. Basically, it offers a tailor-made expertise for brand new markets if a service provider, per say, needs to make a web site only for Germans, or one with Italian content material. All Shopify Markets web sites get consolidated in a single unified view on the Shopify dashboard.
- Shopify rolled out its TikTok checkout characteristic, permitting retailers to hyperlink a TikTok account then hyperlink again from TikTok posts to their on-line retailer.
- Shopify launched a Spotify channel for artists who need to hyperlink their Spotify accounts with a retailer.
- Shopify prolonged extra beneficiant phrases to app builders following 2021.
- They expanded the Shopify Transport operations to the UK.
- Shopify opened a brick-and-mortar retailer of its personal in New York Metropolis, giving Shopify retailers a hands-on expertise to study Shopify merchandise, {hardware}, software program options, and extra.
- Shopify Capital elevated its lending program to mortgage out about $393.6 million to retailers.
- Shopify launched a very revamped POS Professional software program with the Android system.
- Shopify rolled out its new Shopify Steadiness product, which is a cash administration resolution for retailers. It provides retailers a unified dashboard for accessing their money, whereas additionally offering a card for spending and rewards to make use of that card for enterprise functions.
- The Shopify Success Community noticed a major quantity of development with additions like product bundling, the monitoring of inbound switch shipments, and regional tax settings.
- Shopify made waves with its World ERP Program, which provides ERP companions extra entry to the app retailer and direct integrations. Basically, it lets bigger corporations like Oracle NetSuite, Microsoft, and Acumatica develop and combine their very own options to merge into the Shopify ecosystem. That is primarily to assist out high-volume retailers that need to enhance their management of information and workflows every day.
When you have any questions on Shopify income, web earnings, or wish to make some mentions about different Shopify statistics you have discovered, tell us within the remark part beneath!
