Average Revenue of Shopify Stores

With ecommerce businesses expanding rapidly each year, Shopify holds a significant share of this market evolution.

It enables millions of Shopify merchants with minimal technical expertise to set up and start selling directly to consumers through their online store.

As a result, online sales have surged, allowing small and medium-sized businesses to compete on a global scale.

In addition to being an intuitive ecommerce platform, Shopify is known for its extensive app store.

Shopify merchants can install an application to enhance their online store’s functionality, automate processes, and much more.

Calculating a single, definitive number for your potential income is difficult because it varies on a vast circle of factors such as product offerings, prices, and market environments.

To get started, let's take a quick look at these insights that will help you estimate this crucial metric.

To put this into perspective in terms of average monthly revenue, we’re looking at $5,583.

Another crucial factor affecting revenue generation is the profit margin. After accounting for all expenses, this revenue percentage is vital for determining actual earnings.

The average profit margin for online stores is about 10%, with the best-performing stores achieving up to 20% and the lower-performing ones around 5%.

Research indicates that the top 1% of Shopify stores account for 80% of the platform's total revenue.

Due to their higher product values and larger customer base, some niches often see a higher average order value.

Here are some of the niches with the highest revenue distribution:

• Electronics

• Fashion

• Cosmetics

However, if you target a specific customer segment you might experience lower average revenue but can benefit from higher profit margins because of specialized products and lack of competitors.

The subscription model provides recurring subscriptions to your products, often offering them at a discounted price compared to individual purchases.

Here are 5 factors that affect your average Shopify store revenue:

Offering high-quality products and implementing well-defined pricing strategies that consider costs, competition, and market value is crucial for maximizing your profit margins.

A strong brand identity and effective marketing campaigns can drive traffic, enhance brand awareness, and ultimately boost your revenue.

Providing exceptional customer service, a user-friendly website, and efficient order fulfillment processes play crucial roles in enhancing your customers' satisfaction and boosting conversion rates.

Optimize your inventory management, minimize fulfillment costs, and leverage data analytics to drive efficiency.

Partner with reliable logistics providers to ensure your operations run smoothly.

Selling successfully on Shopify requires several components to work together seamlessly.

Optimizing your own Shopify store offers numerous benefits, including the potential for significant growth and success.

By focusing on these key factors, you can significantly improve the average revenue of Shopify stores.

Think of your Shopify store as you would a physical store.

Just as your customers appreciate a clean, organized store with excellent customer service at the checkout, they expect the same experience online.

To ensure this, think of investing in expert Shopify assistance.

Whether you need help enhancing the visual appeal of your website, improving its speed, or adding custom features not available through existing apps, seek out an expert with extensive experience in the Shopify industry.

Invest in a comprehensive marketing strategy such as leveraging social media channels, search engine optimization, and implementing loyalty programs.

Continuously improve your product, requesting feedback from your customers.

Providing quality products that meet or exceed customer expectations will lead to loyal customers and word-of-mouth referrals, attracting new customers.

Let’s take a look at some Shopify statistics you might want to know as a Shopify merchant.

One of the most impressive statistics is that Shopify generated $7 billion in revenue during 2023.

This figure has grown by more than $5 billion since 2015 growing steadily over time.

Shopify has made a significant impact on the global economy, contributing $444 billion in global economic activity thus far.

This number is expected to rise as more companies use Shopify to manage their online storefronts.

Over the past few years, Shopify's stock price has seen substantial growth. It climbed from $10.10 in December 2017 to $64.60 in July 2023.

In 2020 and 2021, through the COVID-19 pandemic, the Shopify stock price surged, reaching a high of $152.48 per share in August 2021.

Shopify stores have an average returning customer rate of around 27%.

This rate varies among stores, some of which experience significantly higher or lower rates depending on their unique circumstances.

Shopify Plus is available to Shopify merchants with revenues between $1 million and $500 million

Shopify Plus offers a variety of enhancements attractive to top sellers.

As of 2024, over 48,426 businesses across 175 countries use Shopify Plus.

Mobile traffic accounts for 24.77% of all visits to Shopify stores.

This is why ensuring your store is optimized for mobile devices is the heart of the matter.

By June 2023, fashion businesses led as the most significant Shopify users, with over 500,000 online apparel stores.

The home and garden sector follows closely, with around 220,000 stores using Shopify's services.

Despite being available in only 23 countries, 1.8 million Shopify merchants use Shopify Payments.

In 2022, the average revenue per Shopify customer was $72.

Stores earning $226 per customer were among the top 10% of best-performing stores using the platform and stores earning below $33 - the bottom 10%

Since 2020, the Shopify app count has grown by 2.17x and is now 13,000.

While each month, app developers publish new and new Shopify apps, some of the apps discontinue.

An average Shopify app developer earns $93,000 annually.

The bottom 6% of developers earn between $43,000 and $56,000, while top-performing developers earn between $173,000 and $186,000.

Over 2 million merchants utilize the Shopify platform, supporting 4.61 million active online stores across more than 175 countries globally.

The United States stands as the leading country for Shopify merchants, with 57.69% of the domains registered there.

The United Kingdom and Australia follow closely behind.

Considering migrating to Shopify? Check out our migration process.

For enterprise clients, Shopify has a dedicated plan called Shopify Plus. It starts from $2,500 per month.

50,556 live websites use Shopify Plus. 55.8% of Shopify Plus customers are based in the United States.

Here’s a breakdown of Shopify Plus users by country:

Source: BuiltWith

Calculate ARPU by dividing your store's monthly revenue by the number of customers who made transactions within that month.

Even though there isn't a definite answer to how much you need to start a Shopify store, you can technically use a free Shopify theme and subscribe to the Basic Shopify Plan ($29/month).

Some additional costs may be the domain registration, apps, and marketing expenses.

Read more about Shopify Statistics and The History of Shopify.