Shopify: facts and figures

So, as I already mentioned, 444 billion dollars is the total economic activity. In 2023, Shopify’s revenue amounted to $6.6 billion. Even a bit more. Can you imagine? $6.6 billion. That is a huge company. Let’s just carefully look now at how revenues have changed since the first quarter of 2020. If you remember, the first quarter of 2020 coincided with the start of COVID. The very beginning. Especially the second and third quarters. So, at that time, revenues were about a billion dollars. Which is also quite a lot, but still. And now, over three years, we are talking about, after the pandemic’s surge, most marketplaces, not like eBay, for example, not Etsy, after that, greatly declined. But Shopify did not fall. Shopify continued its growth, from half a billion dollars to 1.7 billion in the third quarter of 2023. By the way, here’s another interesting Shopify statistic: how much they earn from subscriptions. They take $29 a month. Since 2015, when it was $111 million, up to 2023, they earned only on subscriptions $1.3 billion. I am not talking now about other forms, apps, etc. Various themes that people purchased. The market capitalization of Shopify will be approximately $94.3 billion in 2024.

‍Now let’s talk a little about Shopify usage statistics. Shopify allows its clients to manage products, process payments, track orders, and deliver items. This enables people to easily manage their entire business from a single place. That is, customer relations, responses to buyers, analytics, advertising integration, and connection with various other marketplaces and services. Everything needed for running an online business is in Shopify. As I mentioned, Shopify has 700 million consumers. That is, the stores on Shopify, which attracted these clients themselves, have 700 million customers overall. For comparison, in 2014, it was just 28 million. Notice how the number of Shopify clients grew in 2004—from 28 million to 700. So, the growth is colossal, as you see? More and more stores are conducting their economic activities through Shopify. Overall, you need to understand that as of 2023, over 2 billion people are making purchases, services, or goods online. That is a huge number of people.

‍Shopify is open in all countries, in 175 countries. An interesting statistic is that 70% of all Shopify store domains are registered in the United States. By the way, you will need to pay separately for your domain. Shopify gives you a free domain, but it will necessarily include your website’s address, with ‘myshopify’ in the URL. So, if you want to open a store on mashikamianovich.com, you will need to pay for such a domain, but generally, no matter where you host your site, it costs around $14-15 a year. And overall, of the 70% of domains from US sellers who are actually working with the US, 50% are on this. That is, 20% are opening their sites with a US domain but actually selling goods from entirely different countries. For example, here is an interesting list of the top 10 companies with their own sites on Shopify: Tesla, LVMH, Nestlé, AB InBev, Kraft Heinz, Lindt & Sprüngli, Whole Foods, Red Bull, and Hyatt Hotels.

‍By the way, here’s some interesting info you probably didn’t know: Shopify stores can be bought and sold. Did you know? That you can put your successful and well-known Shopify store, which already has a flow of clients, up for sale on a marketplace. The most popular ones are Empire Flippers and Flippa.

‍Now, perhaps it’s time to share the most interesting thing that interests you—the average income of a Shopify store. I am not talking about stores that just make some money. So, the average income, not profit, again—income—is $5583 per month, which is approximately $67,000 per year. That’s not very high. So, generally speaking, besides Tesla and Hyatt, Shopify mainly works for small enterprises.

‍Now let’s discuss the success rate of stores. As I briefly mentioned, on average, 5 to 10 percent of all stores that open are successful. After the 2019 pandemic, Shopify stores grew by 251 percent. 531 thousand or 23.6 percent of Shopify stores sell clothing. Can you imagine? Clothing is the most popular category of products. There are 2.9 million stores operating from the USA.

‍Let’s look at this data across different countries. So, the USA has 2,975,470 stores opened. In the UK, interestingly, 205 thousand. Australia ranks third with 152 thousand. Now, let’s see how this splits across regions. Look at the number of stores opening in America, Europe, Oceania, and Asia. In total, over 2.5 million stores have appeared after the pandemic.

‍Now we move to the final very interesting statistic—the categories of products that sell best on Shopify. Clothing—531 thousand, home and garden—230 thousand, health and beauty—192 thousand. These are the total stores in these categories. Jewelry and watches—almost 28 thousand stores. Fashion accessories—22 thousand. Food and drinks—16 thousand. Art—11 thousand. Sports goods—7.7 thousand. Electronics—6.8 thousand. Car parts for passenger and freight vehicles—6,230, and other products—65 thousand. You see, if your products fall into one of these categories, your chances to promote them easily through social media are much higher. There’s a reason why fashion clothing and accessories sell better online via Shopify.