Shopify Is Now 50% As Giant as Amazon Market

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Shopify is now almost 50% as massive as Amazon Market after surpassing $54 billion in GMV within the fourth quarter of 2021. Stated in a different way, Amazon market is barely two instances bigger than Shopify.

Sellers on Amazon transacted $390 billion price of products in 2021. Shopify retailers reached $175 billion mixed GMV. Shopify’s GMV was 45% as large as Amazon Market for the entire yr. Nonetheless, it reached an all-time excessive of 48% within the fourth quarter. Shopify retailers as a gaggle have been rising sooner than Amazon third-party sellers for the previous few years.

Amazon market was 4 instances bigger than Shopify in 2018. Shopify’s GMV that yr ($41 billion) was lower than its GMV within the fourth quarter of 2021 alone. Since then, Shopify has grown twice as quick as Amazon to scale back that to solely two instances as massive. Shopify has greater than doubled its service provider base over that point, and among the present retailers continued to develop.

All Amazon third-party sellers promote via one channel – Amazon. Shopify retailers every run their unbiased channel. Thus Amazon and Shopify are usually not comparable. E-commerce web sites existed lengthy earlier than Shopify; the importance of Shopify’s scale is the readiness of manufacturers to promote on to shoppers. That, mixed with the effectiveness of promoting on Google, Fb, and past.

Finally, Amazon and Shopify compete for entrepreneurs. That’s the premise for GMV comparisons. There’s a rising overlap between the 2, however stark variations stay. Few third-party sellers may very well be transported to Shopify and achieve success. Many Shopify retailers would seemingly fail on Amazon too. Thus the rising GMV of Amazon and Shopify is a hit of two completely different e-commerce fashions.

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Contemplating that Shopify has many alternate options like BigCommerce, WooCommerce, Magento, and others, the size of direct-to-consumer e-commerce is even larger. Amazon market just isn’t the one manner small companies can attain shoppers, regardless of Amazon’s huge e-commerce market share in key geographies. Shopify’s outcomes are the proof.