Shopify: The Globally Most Used Shop Software Is Growing High in Q2 2024

Shopify's 2024 Growth: Key Insights

• Top Shop Software Provider: ECDB proprietary data shows that 12.7% of global online stores use Shopify, which is the highest rate compared to other providers.

• Second Quarter Shows Growth: Shopify saw growth across the board in every business segment, increasing quarterly revenue by 25% year-over-year.

• Active Store Numbers and Social Media: Around 2.4 million online stores used Shopify in the first quarter of 2024 and 48.5% of them use Instagram.

Shopify is a Software as a Service (SaaS) provider that helps businesses set up an online store, manage sales, marketing and payments. By outsourcing all of these services, businesses can simplify their day-to-day operations and reduce complexity. 

Its most recent earnings report reveals Shopify is high in demand and successful in its field. 

Here is what this is all about.

Shopify Is the Leading Software Provider for Global eCommerce Businesses

For online stores around the world, Shopify is the number one shop software provider. According to our proprietary ECDB data, Shopify is used by approximately 12.7% of the world's online stores. Magento is the second most used with 8.8%.

Shopify’s success is further evidenced by its most recent earnings report, in which the company reported strong growth across the board, resulting in a 15% increase in its share price.

Second Quarter Earnings Report in 2024

Shopify reported that its quarterly revenue has increased to more than US$2 billion, which represents a 25% year-over-year growth. Its GMV has increased by 22% to US$67.2 billion in Q2 2024. 

In terms of regional focus, Shopify’s global segment is outperforming the U.S., with a total growth of 27% worldwide and 32% in Europe. Shop Pay, the platform’s payment option at checkout, saw a 45% year-over-year increase in activity. 

Even Shopify’s offline business is growing rapidly. Its offline sales have grown by 27%. Offline sales include Shopify helping stores set up a physical point of sale (POS), including hardware and setup. 

Shopify’s B2B (business-to-business) segment is also on a growth path.

Around 2.4 Million Active Shopify Stores

The number of online stores actively using Shopify is also on an upward trajectory. While there has been a slower growth period between 2021 and 2022, the pace has picked up again in 2023 and 2024.

In 2019, there were approximately 800,000 online stores using Shopify. In the years following the pandemic, that number doubled, reaching 1.6 million in 2022. By 2024, the number of active stores will have reached 2.4 million.

Instagram Is the Most Used Platform by Shopify Stores

Beyond their presence on Shopify, online stores can promote their platform image on social media to gain consumer recognition and market their product or service. Which social media sites take the lead in 2024?

• Meta platforms dominate: Instagram is used by 48.5% of active Shopify stores in 2024, followed by Facebook with 33.2%. 

• The mid range: In third place, but well behind the top two, is YouTube, with 11.3% of Shopify stores using it. TikTok follows with 10.4%, while 8.1% and 7.9% use Twitter or Pinterest, respectively. LinkedIn is used by only 4.9% of Shopify stores. 

• The lower end of the spectrum: At around 1% are WhatsApp (1.4%), Facebook Group (0.9%), Snapchat (0.3%) or Yelp (0.1%).

There clearly is a connection between social media and shop software, given that one creates visibility while the other manages the eCommerce selling process. With a rise in social commerce, the connection may deepen in the years to come.

Shopify’s Growth in 2024: Wrap-Up

Shopify is a leading shop software provider, so its growth is indicative of a market shift toward reducing complexity and helping even smaller players set up shop in a straightforward manner. The coming years are sure to generate higher revenues for these companies, which is why it is an important sector to watch.

Sources: Shopify – StoreLeads