Founded in 2006 by three Canadians, Shopify has become the most popular eCommerce platform, with over 1.75 million sellers globally. By the way, Shopify was a start-up experiment at first. But with each passing year, revenue started to increase, and now, with over $6.651 billion in 2023, it is ruling the eCommerce segments like no other.
Not only in revenue, but recently, Shopify surpassed the number of buyers. With more than 457 million buyers annually, it has witnessed immense growth in merchandise segments.
Well, those are astounding numbers and far beyond expectations. This blog will provide a clear picture of Shopify’s revenue in 2024 by providing in-depth facts about its gross merchandise volume.
Table of Contents
Shopify Key Factors
From a start-up to the most in-demand eCommerce platform solution, Shopify has emerged as the prime revenue source for millions of merchants worldwide. To understand it from the inside out, let’s dive into some interesting facts about Shopify in the following content section.
General Statistics
- Shopify was founded in 2006 by three Canadians as an eCommerce platform to solve the issue of poor online shopping experiences for snowboarding equipment.
- Over 7 million websites have used Shopify. Currently, 4,806,002 live stores and an additional 1,894,271 sites have historically used Shopify.
- Shopify is a platform that is being used in over 175 countries worldwide.
- The Shopify app store offers over 8,000 applications across different categories to help businesses customize their online stores.
- The Shopify Theme Store provides a wide range of over 160 free and premium themes.
- Over 2 million merchants have created and are hosting their online stores using the Shopify platform.
- Shopify currently employs more than 10,000 individuals who work on the platform.
- Shopify merchants can access a network of over 780 Shopify experts.
- The Shopify platform can support up to 20 different languages.
- According to recent statistics, Shopify holds 28% of the total eCommerce market share in the United States.
- As of January 2023, Shopify’s market capitalization is estimated at $51.49 billion.
- Around 80% of Shopify’s website traffic and 70% of orders are generated through mobile devices.
Shopify Financial Statistics (Post Covid)
In September 2022, Shopify held $4.9 billion in cash. The cash equivalents and marketable securities are down from $7.8 billion in December 2021.
- Shopify’s monthly recurring revenue (MRR) for the same month was $107 million, representing an 8% YoY growth.
- During the spring of 2022, the average revenue that each Shopify customer earned per shopper was $92.
- During Q3 2022, Shopify generated $1.4 billion in revenue, showing a 22% YoY growth. The company’s three-year revenue CAGR is 52%.
- Subscription Solutions revenue rose by 12% YoY to $376.3M due to growth in MRR.
- Gross Merchandise Volume (GMV) rose by 11% to $46.2 billion, up by $4.4 billion compared to Q3 2021.
- Gross Payments Volume (GPV) boosts to $25.0 billion, accounting for 54% of GMV processed in Q4 compared to 49% in Q3.
- Merchant Solutions’ revenue increased by 26% to $989.9 million, mainly due to the growth in GMV.
Adjusted gross profit was up 11% to $681.8 million compared to the previous year. The Compound Annual Growth Rate, or CAGR, of adjusted gross profit over three years was 46%.
( source – https://www.marketplacepulse.com)
Shopify Market Share
The eCommerce market is projected to hit $6.3 trillion this year and rise to $8.1 trillion by 2026.
- Shopify is most widely used in the United States, with 2.8 million users. It also has significant user bases in the U.K. (185,000), Australia (131,000), and Canada (105,000).
- Shopify is the fastest-growing online store builder. As of September 2021, It claimed the largest eCommerce software market in the United States, with around 29% of websites utilizing eCommerce technology.
- Shopify holds a 19% market share as the second-largest provider of e-commerce platforms for the top one million websites.
- Shopify is ranked as the third-largest retailer for eCommerce sales in the U.S. (4.4%), with Amazon (9.1%), eBay (6.5%), Apple (3.9%), and Walmart taking the first five positions.
Shopify’s market cap is $51.49 billion, making it the 308th most valuable company globally.
Shopify Usage & Traffic Statistics
As of January 2024, Shopify has over 4.8 million users.
According to Google Trends, Shopify is the most popularly searched eCommerce solution.
Shopify receives the highest traffic from the United States (34.61%), followed by the United Kingdom (5.34%) and Canada (4.46%).
By the end of last year, Shopify recorded approximately 70 million visits.
The top traffic sources to Shopify in the last month were direct traffic (45.86%), search (28.84%), referrals (20.48%), social media (2.29%), email (1.62%), and display (0.91%).
The biggest brands using Shopify are:
- Tesla
- Sephora
- Nestle
- Gymshark
- Redbull
- Budweiser
- Pepsi
- Netflix
- Kylie Cosmetics
- Color Pop
- Penguin Books U.K., and more.
Shopify Revenue Highlights
In the last three years’ quarter reports, Shopify came from $500 million to $1.714 billion in revenue from 2020 to 2023. This is by far the highest revenue generated by Shopify.
( source – ycharts.com)
Shopify Conversion Rates
Based on the data from September 2022, the average conversion rate for Shopify stores stands at 1.4%.
The top 20% of Shopify’s eCommerce stores achieve a more than 3.2% conversion rate.
Among successful Shopify stores, the top 10% have an average conversion rate of 4.7%.
The average conversion rate of Shopify stores on mobile is 1.2%. However, Shopify stores’ top 10% and 20% have 2.7% and 3.9% mobile device conversion rates, respectively.
Global eCommerce Statistics
- ECommerce retail sales are forecasted to reach $6.51 trillion by 2023, with eCommerce websites accounting for 22.3% of total retail sales.
- The U.S. eCommerce market was valued at $905 billion in 2022 and is expected to exceed $1.11 trillion this year.
- In 2021, global retail eCommerce sales amounted to $5.2 trillion. This number is projected to reach $8.1 trillion by 2026.
- Research and reports show that most consumers, around 81%, tend to research online before purchasing.
It’s predicted that by the end of 2025, mobile commerce will reach $620.97 billion. Nearly 50% of all online shopping transactions will be carried out using mobile devices.
Get Started with Shopify Today!
Shopify has become the go-to eCommerce platform for millions of merchants worldwide. In the digital era, partnering with a Shopify company is valuable for app design, development, maintenance, and marketing analysis, ultimately leading to improved app performance.
Since 2012, Metizsoft Solutions has become the top Shopify partner with a portfolio of international and domestic Shopify App Solutions. We have the source and hands-on experience in advanced tools to create the best Shopify app relevant to your eCommerce business model.
Hire Shopify Experts today to stay ahead in the eCommerce landscape!
