Shopify, the most popular eCommerce platform, was founded in 2006 by three Canadians. Today, it has more than 1.75 million sellers worldwide. Shopify is a start-up that allows anyone to sell physical goods and digital content through eCommerce quickly.
- The revenue growth is expected to be about 10 per cent.
- With over $2.10 billion in revenue in 2021, it dominates the eCommerce sector.
The more you read about e-commerce, the more you learn about online business. You’ll see that Shopify has just passed the buyer number. With over 453 million active monthly buyers, it is the largest e-commerce marketplace globally. They’re unique and far above expectations.
Shopify is an e-commerce platform that can help a new business start-up quickly and easily. This blog will guide you through facts about Shopify, Gross merchandise volume to provide a clear picture of Shopify revenue in 2022.
- 75 million merchants sell using the Shopify platform
- Shopify has over 76 million active merchants who sell products on their site.
- Shopify processed $79.5 billion in order value in 2021.
- Shopify’s revenue as of June 2021 is $2.10 billion.
- The Shopify App Store contains 7,000
- Shopify merchants had a total of 457 million buyers in 2020.
- Seven thousand employees and contractors work at Shopify.
- Shopify’s revenue increased to $ 2.331 billion last year, up from $ 3.878 billion.
- The majority of the domain (69.67%) are registered in the United States.
- Facts About ShopifyAccording to the Global Ecommerce Benchmarking Report, more than half (50%) of eCommerce merchants who use Shopify are generating over $1 million annually.
Shopify generated $988.6 million in revenue during Q1 and $1.11 billion in revenue during Q2, totaling $2.10 billion in revenue for 2021 alone. This is an increase of 57% year over year. Additionally, Q2 2021 was the first quarter that Shopify achieved a billion-dollar quarter.
Shopify’s annual revenue has increased 6.5x from 2016 to 2020.
Here’s a table with complete data on Shopify revenue since 2012:
|2021 (Q1+Q2)||$2.10 billion|
Source: Shopify store
This means it’s a general fact that Shopify will track where its revenue is coming from by looking at its merchants’ locations.
In 2020, Shopify generated $ 2.15 billion from sales from sellers located in North America, with 3.3% of that revenue coming from sellers in Canada. It is quite different in Asia compared to North America, where Shopify generated $780 million in regional revenue.
Shopify is a platform that generates revenue from many different regions, such as Europe, the Middle East, and Africa (EMEA), Asia Pacific, Australia, and China (APAC). The most important one is LATAM.
Shopify Monthly Revenue
Shopify calculates monthly revenue by following simple metrics.
There are three main metrics you need to know. The first is your average subscription fee. It’s the average rate that the merchants charge customers. The monthly revenue in 2020 is higher than in 2019, increasing. By 2021, it will be $98.8 million.
According to the latest information from Shopify, the company’s merchant solutions revenue came from various sources, including payment processing fees. Referral fees, advertising revenue, and sales of point of sale (POS) hardware are other sources of revenue in this segment.
Shopify’s merchant services business generated $668 million in Q1 and $ 2.2 million in Q2 of 2020, representing 3.93 per cent of total revenue. The company has grown dramatically in the last few years, driven by its ability to make the platform easy to use, scale, and grow.
Last year, Shopify’s merchant solutions revenue increased 2.16x. We’ve charted Shopify’s merchant solutions revenues since 2012:
|2012||$4.51 million (19.02%)|
|2013||$11.91 million (23.7%)|
|2014||$38.35 million (36.52%)|
|2015||$93.25 million (45.44%)|
|2016||$200.72 million (51.56%)|
|2017||$363.27 million (53.95%)|
|2018||$608.23 million (56.54%)|
|2019||$933.93 million (59.35%)|
|2020||$2.02 billion (68.99%)|
|2021 (Q1+Q2)||$1.45 billion (68.93%)|
Source: Shopify store
Subscription is a growing segment of Shopify’s business. It makes up 13 per cent of Shopify’s revenue. In the category of the sale of apps, themes, and domains, there are subscription fees for platforms and Point-Of-Sale Pro fees. As the company has reported in Q2 (Q1 was $324 million), subscription revenue is now $654.9 million. It accounts for $31.06% of the total company revenue, which means it’s rising by $70% compared to last year.
Here’s a table showing Shopify subscription solutions revenues since 2012:
|2012||$19.2 million (80.98%)|
|2013||$38.34 million (76.3%)|
|2014||$66.67 million (63.48%)|
|2015||$111.98 million (54.56%)|
|2016||$188.61 million (48.44%)|
|2017||$310.03 million (46.05%)|
|2018||$465 million (43.46%)|
|2019||$642.24 million (40.65%)|
|2020||$908.76 million (31.01%)|
|2021 (Q1+Q2)||$654.9 million (31.06%)|
Source: Shopify store.
The above data and numbers of Shopify revenues indicate rapid growth over the years. Due to the increasing demand for eCommerce businesses globally, Shopify revenues have been impacted by the COVID-19 pandemic.
Below ARE some predictions for you to consider:
- The eCommerce business will experience new heights in revenue, subscription, and point of sales (POS) numbers in the future, even though they have experienced significant growth.
- By looking at the usage and demand of Shopify amongst users, I predict that the company will hire an enormous number of engineers to make the Shopify platform very easy to use.
- Many more merchants will join the Shopify merchants solution committee in the next quarter,
- a positive sign that these merchants realize that they are better off having Shopify handle their e-commerce sales instead. As the end of the year draws nearer, Shopify’s sales are steadily growing.
- It will be able to continue this upward trajectory until February without any interruptions.
- They plan to attract/hold more merchants, merchants currently using their platform, and growing product offerings by increasing the flexibility and offering additional opportunities for existing merchants.
Apps Available in The Shopify Store:
- The number of Shopify apps is quite staggering. There are over 7,000 apps available on the Shopify App Store, not to mention the thousands more available in other app stores.
- This was the latest number. It spans twelve different categories.
- As 2015 came to an end, the number of apps was around 350 000, increasing to more than 3 200 now available for your use.
- According to Shopify, in 2015, there were 677 apps for Shopify.
The Number of Shopify Sites
Globally, over 3.76 million live websites are operating on the Shopify platforms. 66.67% of Shopify sites are registered in the United States only.
The United Kingdom and Australia are in second and third place for the highest numbers of Shopify websites. The numbers are a clear sign of Shopify merchants operating in those regions.
- United States:5 million
- United Kingdom: 153k
- Netherlands: 33k
- Italy: 25k
Shopify plus sites users regions wise:
- United States:5k
- United Kingdom:600+
- Australia: 400+
- France: 100+
- Netherlands: 60+
- New Zealand: 50+
- Denmark: 40+
- Spain: 40+
Do people work at Shopify?
Shopify has 7,000 employees and contractors. The company has increased its employee count by 40% over the past year.
Shopify has hired an additional 4,000 new employees and contractors since 2017.
the number of employees and contractors at Shopify since 2013:
Source: Shopify store
How do I understand my store’s revenue and expenses?
Understanding and calculating revenues
Revenue is what a company earns by selling goods or services. Businesses tend to pay more attention to this single item than any other. It determines how well their businesses are doing.
Many businesses spend a lot of time focusing on their revenue compared to other items in an income statement, but their revenue is not their total income. In this situation, the total income of Pat’s business is the revenue plus the gains. She sells products in her store, and she also has an affiliate program where other companies can sign up to become affiliates.
The other businesses make a commission when people purchase their products through her site. Let’s see how the two items affect the income of Pat’s business. This is not a high-profit business, but it has very high growth potential. It requires just one good idea to go viral, making it possible for a small business to become very large quickly.
Understanding and calculating expenses
Every business has expenses, and they’re categorized into five different types:
- administrative costs,
- overhead expenses,
- sales and marketing costs,
- advertising expenses,
- and fixed expenses.
If you want to know how much money to set aside for your business, your expenses are simply the cost of running your business.
- “cost of goods”, means the cost of making a product, including what we pay our suppliers for their materials and labor.
- “distribution costs or selling expenses”, we mean the amount we pay to ship our products and pay for insurance on those shipments.
- “administrative expenses”, we mean the time we spend running our business: payroll, legal fees, etc.
- The other expenses include unpredictable ones like tax penalties and repair expenses.
- The income tax that is owed for a specific period.
How do I optimize my business revenue and costs?
- Use Google analytics to grow up your business
- Pay attention to your material
- , polish your employees’ skills
- adopt a digital marketing strategy
the future looks bright for Shopify. The company is poised to continue growing its global presence while expanding its suite of products and services. Shopify will face stiff competition from more established players like Amazon and eBay in the coming years. However, the company has proven to compete in a crowded space. If Shopify continues to grow, it will be an attractive option for entrepreneurs looking to build their e-commerce stores.
In conclusion, The data shows that Shopify will continue to grow healthy in the next five years. By 2022, Shopify will have more than $2 billion in annual revenue. This growth will be driven by increased platform adoption and new product offerings.
1.What does Shopify do?
Shopify is an e-commerce platform that allows users to build a website quickly. It also allows them to sell products online.
2.How many people use Shopify?
Shopify is used by more than 5 million merchants in over 100 countries.
3.How much money does Shopify make?
Shopify makes about $1 billion in annual revenue.
4.What is the future of Shopify?
The future of Shopify is looking good. The company has been on a growth trajectory since it was founded in
5.What is the best thing about Shopify?
The best thing about Shopify is that it’s easy to get started. You can build your website with Shopify without having to hire a developer.
6. What’s the worst thing about Shopify?
The worst thing about Shopify is that it’s expensive. The platform is relatively expensive, and it doesn’t come cheap.
7. What advice do you have for someone thinking about using Shopify?
The best advice I can give you is to use Shopify. It is easiest to use and set up a Shopify store.
8. What’s one thing you wish people knew about Shopify?
One thing people don’t know about Shopify is that it’s an e-commerce platform, not a social media platform.
Read More: Shopify stores for sale