This article provides you with all the key facts and statistics you need about Shopify Inc.
Important Facts About Shopify
Shopify is a cloud-based SaaS all-in-one solution widely known for providing users with the tools to help them set up an online store. The platform lets users build and run their online stores.
Shopify provides merchants with features and tools that cover all aspects of running a business.
Globally, more than 1.75 million businesses use Shopify.
According to Statista, Shopify commands 10% of the global eCommerce platform market.
Shopify boasts a workforce of more than 7,000 people.
Shopify’s growth is very rapid, with merchants spread across 175 countries. The platform surpassed one million merchants in October 2019.
Over 7,000 applications are available on the Shopify Appstore to help businesses offer customized solutions to their customers.
More than one billion orders have been processed on Shopify, with more than 135 billion in total sales. In 2021 alone, Shopify processed $79.5 billion in order value.
Shopify puts its total revenue at $2.5 billion in the first half of 2022.
It is estimated that Shopify merchants will have more than 500 million buyers in 2022.
$85 is the average order value on Shopify, stats according to littledata.io show.
Over 100 free and premium themes are available in the Shopify Theme Store.
Shopify’s shares are the second largest in the e-commerce platforms category after those of Amazon.
In June 2020, spending on Shopify overtook that on eBay for the first time. This resulted from the Covid 19 pandemic forcing retailers and consumers to look at online solutions.
It is believed by the Shopify market research that Shopify alone contributed some $319 Billion in Global Economic Activity and helped the retail and sale industry.
Shopify is the 10th leading company according to its valuation in the Canadian market.
Shopify accounted for over 24% of the total sales in the E-commerce sector in 2020, during the pandemic.
According to 2019 statistics, Shopify merchants were said to grow their revenue by at least 50%, when the industry average growth rate was only 21%. This striking difference in revenue generation for online merchants was one of the biggest reasons why many more sellers joined.
At present, Shopify is known as the third-largest E-commerce platform in the USA.
Facts state that November is the most profitable time for online sellers on Shopify, while December is said to be the time with the least number of sales.
Apparels are the highest category of sold products on Shopify, but T-shirts among the apparel category are the most sold individual product on this platform.
Some of the most successful Shopify sites are owned by three big giants of the world. They are Budweiser, Tesla, and Red Bull.
Shopify launched its first IPO in May 2015.
Shopify managed to raise a whopping $131 million in its first IPO in 2015. Over the years their share prices have been said to increase by over 2,750%.
Who owns Shopify?
In 2004, Tobias Lutke, Scott Lake, and Daniel Weinand began selling snowboarding equipment online through their store, Snowdevil. All the existing e-commerce stores did not appeal to their business model. They had little to zero room for customization and did not look appealing. Lutke, a computer programmer, decided to build an e-commerce platform of their own. Snowdevil was launched on the platform two months later.
Shopify was launched two years later, in 2006, as the host platform for Snowdevil. In April 2015, an initial public offering for the company was filed on the New York Stock Exchange and the Toronto Stock Exchange.
Sixteen years later, in 2022, Shopify is a publicly traded company owned by its shareholders and managed by a board of directors. Tobias Lütke is the CEO of the company.
The core founder and CEO of Shopify, Tobias Lütke, whose personal worth is estimated by Forbes at $3.3 billion, owns more than 6% of the company. Lütke enjoys 40% voting power in the company through a non-transferable ‘founder share’ structure that Shopify shareholders agreed upon at the company’s annual general meeting on 7 June 2022.
What is Shopify’s current revenue?
Shopify Inc. reported its earnings for the second quarter and six months that ended June 30, 2022. Revenue reported by the eCommerce platform was $5.002 billion compared to $4.612 billion one year ago.
The Shopify merchants’ have a total global economic impact of over $444 billion, a 45% increase from 2020. In 2021, Shopify Partners earned nearly 7x more revenue than Shopify itself.
Previous Shopify revenue statistics
- The revenue generated by Shopify increased about 7 times between 2015 – 2019.
- Shopify double its revenue between 2019 – 2020. Which was partially initiated because of the pandemic.
- Merchant solutions generated ⅔ of the revenue in Shopify in 2020. Subscriptions only generated ⅓ of the revenue. To date, the data remains quite similar.
- Shopify’s half of the recurring monthly revenue comes from the Shopify Plus subscription.
- In 2021, the merchant share revenue reached around $2 billion, which was a major landmark for the brand.
- In 2020, Shopify managed to make more than $269.40 million in only monthly recurring revenues.
- Global statistics say that the average revenue generated by each customer on Shopify is around $72.
- Asia and Latin American countries bring in the least amount of revenue to the Shopify platform and account for only 11.2% of the total revenue.
- Middle East, Africa, and Europe account for around 15.5% of their total revenue.
- North American users generate 71% of the total Shopify revenue and also account for the highest number of users in the market.
How much is Shopify stock worth?
Shopify stocks are currently trading at $29.75 on the New York Stock Exchange and $40.54 on the Toronto Stock Exchange.
Shopify opened its IPO on 20 May 2015 and closed on 27 May 2015.
Shopify’s current market capitalization is 37.57 billion, according to google finance.
How many Shopify stores are there in 2022?
Statistics from BuiltWith show that there are 3,934,893 live Shopify websites as of 2022. The site estimates that since beginning operations 16 years ago, Shopify has had close to 6 million online stores.
Starting in 2020, Shopify stores grew by over 200%, with 201% growth recorded between March 2020 and January 2022.
The table below highlights some growth numbers for Shopify in recent years:
|Year||Number of Shopify Merchants|
What percentage of websites are built in Shopify?
Shopify takes the second position as the largest e-commerce platform provider in the top one million sites globally. The platform dominates a 19% share of these, increasing to 22% when Shopify Plus sites are included in the calculation. Shopify’s competitor, Woocommerce, wins the top overall, owning 25% of this profitable market.
Shopify ranks fourth for the total global market share of all e-commerce sites at 10%. 29% of all the hosted e-commerce sites in the US are built using Shopify, 3 points ahead of Squarespace, which represents 23%.
What country uses Shopify the most?
Currently, Shopify is available globally for companies in 175 countries.
According to The Motley Fool, Shopify’s stores in the US generated more than 10% of all US eCommerce sales made in 2021.
The United States represents the biggest market for Shopify, occupying a whopping 66.8% share. The top five markets for Shopify include the United States (2.6 million stores), the United Kingdom (165,052 stores), Australia (112,019 stores), Canada (the home of Shopify has 98,280), and Germany (87,761 stores).
Of the 9.2 million e-commerce websites in the U.S., 28.51% use Shopify, representing 2.6 million websites. Most of these stores are based in California, with over 70,000 businesses preferring Shopify as their go-to e-commerce platform. Then there is New York and Florida, coming in second and third place, with approximately 31,000 and 27,000 Shopify customers, respectively.
Shopify is dominant in the U.S. e-commerce market, but it struggles to make its presence felt in other countries in the rest of the world. China is the most significant player in the global e-commerce market, accounting for 52.1% of retail e-commerce sales worldwide. These statistics prove that the retail e-commerce space is more critical than in the United States, and not all of it uses Shopify. Increasing Shopify’s market share in other regions would push the company’s growth further.
Shopify entered into a strategic partnership with JD.com 2022, a top online retailer in China and a significant competitor of alibaba.com. This relationship will see some of Shopify’s US and international businesses start cross-border e-commerce with Chinese consumers within a 4-week set-up time rather than the standard 12-month period for foreign companies in China.
Information from Shopify’s Annual Year-in-Review report shows that more merchants globally launched and started promoting their businesses on Shopify in 2021 than ever before.
Most of the new merchants came from North America (55%), but Shopify reports that their mix of merchants outside North America increased. It was noted that these merchants grew their sales faster than those located in North America.
Shopify global statistics and facts
- In Germany, Shopify has a market share of 3.9%.
- In Denmark, more than 15% of their online stores and E-commerce sellers use the Shopify platform to sell their products.
- Shopify has a market share of about 13% in the UK.
- In the UAE, about 4% of online and E-commerce businesses use Shopify.
- 4% of online sellers in the Australian region use Shopify, but it is said that their competitor, the WooCommerce checkout has a better outreach in this part of the world.
- More than 8% of the total online stores in the Netherlands, Norway, and Luxemburg use Shopify to sell.
- Only 5% of E-commerce stores in Sweden use the Shopify platform.
- About every 1 in 9 online sellers use Shopify in Belgium.
- Shopify has a very little market share in Spain it lies at only 2.7%, which is very less compared to its competitors.
- Shopify has over 16 office spaces across the world and in different countries.
- Shopify has one single offline store in the world, it is located in Los Angeles.
- On average, Shopify is said to gain 62 million loyal customers every year. This number may go up and down from time to time, but the average remains pretty close to the above-mentioned figure.
- Shopify supports over 20 languages to help encourage its global growth.
- According to global statistics, more than 52% of Shopify users are said to be women.
Which companies use Shopify?
Companies of all sizes have chosen to promote their businesses on Shopify- from small, designer, and global brands to established household brands. Some renowned companies that use Shopify include Tesla, Netflix, Nestle, and Red Bull.
Here is the list of the top 20 most popular brands globally that use Shopify according to influencermarketinghub.com:
- Kylie Cosmetics
- KKW Beauty
- Rebecca Minkoff
- Victoria Beckham Beauty
- Red Bull
- Whole Foods Market
- Anheuser-Busch InBev
- Penguin Books
Some offbeat brands which use Shopify to expand
Here is a list of small and offbeat brands whose sales skyrocketed when they started using Shopify. This list was sourced and curated from convertful.com
- Fashion Nova – They now have a monthly footfall and site visit of over 15.65M. They started out small, but after expanding their reach and using Shopify to grow their business, they grew manyfold. Now their reach has increased so much that they were known as Google’s most frequent fashion website in 2018.
- MVMT – This is an online shopping website that now gets over 1.222M monthly visits after they started to use Shopify.
- Culture Kings – They have a monthly outreach of 739,574 after showcasing on Shopify.
- Bodega – This site has a monthly reach of 553,727 with Shopify.
- Chubbies – Their monthly reach has touched 386,748 with Shopify.
- ColourPop – Their monthly reach is now 4.374M.
- Overtone – They have monthly visits of 561,066.
- Headphone Zone – Has reached a monthly visit of 559,280 people.
- Altitude Sports – Their average monthly reach is 803,111 with Shopify.
- Bulletproof – Their monthly site visits are a whopping 3.920M after using Shopify.
How many buyers does Shopify have?
According to demandsage.com, nearly 458 million consumers purchased from a Shopify store in 2020 alone.
Here is an overview of the numbers of customers on Shopify year on year:
What category is the most popular on Shopify?
Shopify stores are home to a variety of products.
Clothing & Apparel is the most popular category on Shopify, with more than 75,500 Shopify stores selling clothing.
Particularly, t-shirts and tops clinch the prize for best-selling items on the Shopify platform.
In the UK, clothing & apparel comprise 27.5% of Shopify stores, which is also the most common category for that country. In second place is the home and garden products category at 14.9% of all UK Shopify stores and the third position goes to beauty and fitness products (11.5%).
How many daily active users does Shopify have?
On average, Shopify has about 2.1 million daily active users. This number can slightly go up or down depending on the day and other factors, but it proves that quite a considerable number are browsing through and purchasing from stores on Shopify every single day.
It is also interesting to note that more than 79% of traffic to Shopify stores comes from mobile devices alone. Due to their mobile and user-friendly interface, their mobile device users are soaring in numbers. In 2014, mobile users of the Shopify platform were only a mere 40%. The numbers have increased by nearly 40% over the last 8 years. So, the developers and marketers at Shopify insist that all stores on their platform should become mobile-friendly to get more traffic.
What percentage of Shopify stores receive recurring customers?
More than 50% of Shopify stores see customers purchase one or more items from their store. Moreover, over 62 million buyers have bought items from the same store on Shopify twice, making up over 14% of the total buyers.
These statistics concern not just a particular business and its reputation but also how Shopify makes online shopping easy for merchants and customers.
It is worth noting that the average shopper buys 3.8 times from the same store.
Is Shopify profitable?
The answer is most definitely. The Covid-19 pandemic fast-tracked the shift to e-commerce and introduced many opportunities for online merchants, both big and small, to earn revenue online.
According to Statista, in 2020, total retail e-commerce sales worldwide were 4.28 trillion US dollars, and e-retail revenues are anticipated to grow to 5.4 trillion US dollars in 2022.
A beginner on the platform can earn as much as $10,000 in two months with Shopify’s drop shipping.
Shopify offers merchants all the tools they may need to run a successful online store, which saves much time that would otherwise have been spent finding additional tools for your email or marketing automation.
Shopify provides every merchant with an online store, a way to process payments, shipping management tools, marketing resources, training materials, 24/7 customer support, and so much more.
Getting started on Shopify is straightforward.
How does Shopify make money?
The Shopify platform makes money in two ways. They charge subscription fees for their monthly or yearly packages. Second, the merchants are set for their customers’ eCommerce features and services such as hardware sales, commissions from its application, themes, and Exchange marketplace, domain sales, email marketing, investments, and logistics services.
The company also allows independent developers to offer additional tools on top of Shopify’s existing ecosystem.
Shopify’s total revenue from subscriptions accounts for 28% of its overall revenue. In the second quarter of 2022, subscription revenue was recorded at $366.4 million, an increase of 10% from 2021.
More than two-thirds of Shopify’s revenue which represents 72% of the overall earnings, came from transaction fees, payment processing fees, and other merchant services. This revenue avenue brought in $928.6 million in the second quarter of 2022, representing an 18% increase from the previous year.
How many people work for Shopify?
According to Shopify’s website, the company currently has over 10,000 employees on its payroll. This represents a massive increase in its staff since 2019 by more than 3000 new employees.
Shopify also boasts a vast indirect partner base of more than 700,000 people that work for the company. Developers who build applications to solve problems for merchants, designers who create stores that bring brands to life, marketers, photographers, logistics providers, and accountants make up the Shopify partners.
Approximately 5 million jobs have been created by Shopify by the year ending June 2022, both directly and indirectly. This is a 45% increase from the year ending June 2021. The largest workforce on earth would be made up of Shopify merchants.
In the United States, Shopify merchants have, in total, contributed $239 billion in economic activity and contributed to the creation of more than 981,000 jobs.
As per statistics from smallbiztrends, the Shopify Effect accounts for more than 298,000 jobs and close to $47.6 billion in economic activity in Europe.
The Shopify Effect currently accounts for a record 197,100 jobs and $35.1 billion in economic activity in the United Kingdom.
What is Shopify’s market share?
Shopify is a significant player in the eCommerce market. Global eCommerce trade is estimated at $5.5 trillion, expected to jump to $7.4 billion by the end of 2025.
17.9% of all commerce is eCommerce, which is expected to grow to 24.5% by 2025.
According to BuiltWith, as of June 2022, 25.5% (or 255,577) of the top 1 million live websites worldwide were e-commerce websites. Of these websites, 20% are powered by Shopify, second only to WooCommerce, which takes up 25% of this lucrative industry.
Below is a breakdown of the top websites worldwide (according to traffic) that use Shopify:
- 400 out of the top 10,000 websites
- 2,548 out of the top 100,000 websites
- 20,422 out of the top 1 million websites
What is the conversion rate for Shopify stores?
As per Littledata’s February 2022 data, 1.8% is the average conversion rate for Shopify stores on the marketplace.
At 4.29%, email marketing has the highest conversion rate for Shopify stores. The organic search traffic conversion rate is second at 3.04 %, direct conversions third at 2.93 %, and 1.81% for social.
In the recent past, Shop Pay increased conversion rates for businesses due to its sped-up and easy checkout process.
It is worth noting that 3D product images significantly impact overall conversion rates. As much as 250% conversion can be increased by using 3D images that showcase different sides of products.
When a Shopify store’s conversion rate is recorded at more than 3.7%, this business is among the best 20% of Shopify stores. A business with more than a 5.2% conversion rate shows that this company is in the best 10% of stores.
Alternatively, if the conversion rate of a Shopify store falls below 0,5%, it is among the worst 20% stores in the marketplace. Similarly, less than a 0.1% conversion rate means that this business is one of the poorly-performing stores on the platform.
What is the success rate for Shopify stores?
Data from Shopify shows that 81% of their merchants are still active and realizing profits after two years.
This proves there is much potential with Shopify. It is worth noting, however, that not all Shopify stores are thriving.
The success rate of a Shopify store depends on many factors, such as niche, product, marketing strategy, and availability of mobile applications, among other significant determinants.
How many people use Shopify Plus?
Shopify Plus is dedicated to enterprise users. It is only available to merchants with revenues between $1 million and $500 million. The premium version has a variety of improvements that are meant to entice top sellers on the platform.
According to data from Builtwith, Shopify Plus stores form 3% of the top one million global internet sites.
As of June 2022, 26,344 domains are registered on Shopify Plus. Out of these, 17,562 are distinct merchants. (Shopify Plus enables merchants to have stores on multiple domains).
From 2021 to 2022, a 31% increase in Shopify Plus users was recorded. Moreover, in Q1 2022, Shopify Plus contributed $31.8 million (or 30%) of Shopify’s monthly recurring revenue, up from 26% recorded in the previous year.
Merchants on the Shopify Plus subscription account for most of the company’s gross merchant volume revenue ($175.4 billion in 2021).
How many Shopify apps are available?
There are more than 8000 applications available in the Shopify application store. Three thousand three hundred new apps have recently been added since 2019. The Shopify Appstore has free and premium plugins that help merchants improve and expand their businesses.
87% of all the merchants on Shopify use the platform’s applications in their businesses.
Shopify’s applications allow merchants to offer customized shopping experiences to their customers. Some applications handle checking out, shipping, bookkeeping, marketing, sales, and social media strategies.
According to the latest Shopify statistics, the average merchant uses six applications.
Shopify has acquired various strategic technological businesses to make the platform run smoother, make it more manageable, and help maintain and grow its market share. These acquisitions have also helped the company to remain relevant in this ever-changing digital era. Notable acquisitions by Shopify include:
|Acquisition||Month Year of Acquisition|
|1. Select Start Studios||February 2012|
|2. Jet Cooper||August 2013|
|3. Kit||April 2016|
|4. Boltmade||October 2016|
|5. Tiny Hearts||December 2016|
|6. Oberlo||May 2017|
|7. Handshake||May 2019|
|8. 6 River Systems||September 2019|
|9. Primer||June 2021|
|10. Dovetale||April 2022|
|11. Deliverr||May 2022|
The most recent and significant acquisition is Deliverr, a logistics company. With this acquisition worth $2.1 billion, Shopify hopes to enable its merchants to compete with Amazon prime’s next-day delivery service by merging it with the Shopify Fulfillment Network.
More Interesting Facts About Shopify
The company’s headquarters are in Ottawa, Canada.
The eCommerce platform raised $131 million in its initial public offer.
The 2008 financial crisis devastated many people, but it became one of the major accelerators of Shopify’s growth. Hundreds of people, who lost their jobs, decided to become entrepreneurs and launched their eCommerce stores on Shopify.
Kylie and Kriss Jenner have been using the Shopify Plus platform since 2014 to fuel their famous cosmetics brand Kylie Cosmetics.
British songstress Adele also uses Shopify for her merchandise store.
According to Statista, Global eCommerce sales are worth about 4.9 trillion US dollars. Predictions over the next few years state that the eCommerce market will be worth 7.4 trillion dollars by 2025.
Ecommerce is growing more popular all over the world. In 2020 alone, 80% of consumers finished an eCommerce purchase, with almost 90% of customers in Asia and South America contributing to online shopping.
Per Shopify sources, for every $1 of the revenue made on the platform, merchants using the platform earn $40.82.
In only two months, Tobias Lütke developed the code for the Snowdevil online store.
Out of the more than 175 countries with Shopify Merchants, Kyrgyzstan, Turks, and Djibouti hold the record for the fewest number of Shopify stores, with five or fewer Shopify stores each.
Shopify has had notable partnerships with other eCommerce stakeholders, such as Facebook, TikTok, Alibaba, and Walmart, to promote merchant sales and platform growth.
Shopify statistics and facts during the COVID-19 pandemic
The pandemic helped boost the e-commerce industry many folds. Shopify gained and changed a lot during this time. Let us learn more.
- In June 2020, when most offline stores were looking for online options to make sales Shopify spending overtook that of eBay. This was the first time in history that this happened.
- During the second quarter of the pandemic, the Shopify portal saw a rise in food, tobacco, and beverage company sales. They also saw a steep recovery in cosmetics and apparel brand sales.
- 26% of offline retail stores in all the English-speaking regions of the world saw some form of online sales and delivery through the Shopify platform. They also saw a steep rise in curbside pick-up options for offline brick-and-mortar stores during the pandemic.
- There was a drastic shift towards e-commerce and online stores during the pandemic, and Shopify benefitted highly from this change. They reported that they had an apparent 71% increase in new stores in the second half of 2020 alone. They offered a 90-day free trial option for new brands during this time of the pandemic, which is one of the biggest reasons why so many new stores joined their platform.
- During the pandemic, Shopify reported that they saw a rise in sales from stores that had never seen online sales on their platform before. The sales numbers rose by a whopping 45% from these particular stores during this period.
- Due to the pandemic-induced rise in E-commerce sales, Shopify reported that they saw a 57% increase in revenue from 2020 to 2021.
- Their revenue growth during the 2019 to 2020 period was almost about 100%.
The Shopify journey from start to a 10 billion dollar business – Facts
- Shopify started out as an online tool and that is clear from how their founder spoke and said, “At the beginning, there was no grand plan.” —Tobias Lütke
- They are now one of the biggest end-to-end E-Commerce ecosystems for the global audience.
- Shopify became popular in the initial years due to their easy to navigate, visually pleasing, faster, and simpler websites than its competitors when it set shop.
- Shopify was once just a website that helped service sellers, but now they have expanded its horizon and scope of work. Now they work with developers and the larger e-commerce community to expand the market.
- Now the Shopify site is secured with 256-bits SSL Certification and is also Level-1 PCI Compliant. This helps more customers depend on them due to their increased credibility and legal work process.
- Initially the Shopify space was a store and not an online space. The makers have said that this company never started out with a vision of any E-commerce sales, and had no plans for software development at the time.
Interesting facts about Shopify demographics and user base
- More than 1% of the millennial generation now own some amount of stocks of Shopify.
- Shopify has mentioned that more than one-third of their user base is filled with millennials.
- Global statistics have found that Shopify users in Germany need the least amount of time in making a complete purchase. They take an average of 17.5 minutes to complete a purchase of any product.
- Whereas, on the other hand, statistics have also mentioned that Japan spends the most amount of money purchasing products on Shopify. The average transaction rate of the Japanese on the Shopify platform is as high as $141.72 per transaction.
- Facebook refers one in every three social media users to Shopify stores.
- Facebook is also the top lead generator for Shopify when it comes to social media traffic. They account for more than 85% of orders.
- It is said that every month Shopify gets an average of 56.5 million unique visitors.
- More than 40% of Shopify users start using the site on their own.
- About 27.5% of Shopify users visit the platform due to referrals.
- 91% of the Shopify user base is said to be organically generated. The rest of the 9% comes from paid ads and campaigns.
- The average bounce rate of the Shopify website is said to be around 56.19%.
- Google trends has said that according to their research, Shopify is the most searched E-commerce website.
Black Friday and Cyber Monday Statistics for Shopify
- In 2020, the Black Friday sale on Shopify reached a shocking $1.5 million per minute.
- Statistics say that the average spending on the Shopify platform on Black Friday and Cyber Monday is $83 USD in the US and $96 USD in Canada.
- Global statistics have said that Shopify users managed to make $870,000 per minute in 2020 during Black Friday and Cyber Monday.
- In 2020, the number of sales per minute on Shopify was at a record high of 10,978 during the Black Friday and Cyber Monday sale time.
- Globally, around 25.5 million customers participate in using Shopify during the Black Friday and Cyber Monday sale period.
- Some of the purchases that were made on Shopify in 2018 after they launched their shipping feature even traveled 30,000 to reach their destination.
- In 2019, Shopify entrepreneurs and sellers collectively made $2.9 million during the Black Friday and Cyber Monday sale.
- During the Black Friday and Cyber Monday sale time, one in five orders in the US Shopify market come from overseas customers.