Covid-19 has disrupted the global e-commerce market in a big way. Already, the e-commerce sales were increasing, but the pandemic has accelerated the growth multiple times.
Global e-commerce sales have touched almost $5,000 billion in 2021. It is expected to reach $5.5 trillion by 2022.
The below graph by the US Department of Commerce shows the growth of e-commerce sales YOY. In the US, it was $870 billion in 2021, a 14.2% increase over the previous year and a 50% increase from 2019.
Giving a boost to the e-commerce story is the tremendous growth story of Shopify, one of the most popular e-commerce platforms in the world. Not only has it helped big organizations to tap the international market, but it has also helped small enterprises and startups to begin their online journey. Used by over 1.75 million sellers, its merchants receive roughly 460 million orders from their buyers every year.
How does Shopify fare in the U.S?
Ecommerce Platform Market Share in USA in 2022
Shopify is the market leader in the U.S. with around 32% of e-commerce stores built on it. This means that one in three shops use Shopify to sell their merchandise that varies from fashion, apparel, comics, to digital products and services.
As of now, there are 2.6 million stores in the U.S that use the Shopify platform.
The majority of the Shopify stores are located in California. It has around 64,000 stores followed by New York and Florida which are way behind with 27k and 24k stores respectively.
Distribution of Shopify stores in the U.S. based on product category
In line with the global e-commerce trends, the highest Shopify stores in the U.S sell apparel and accessories. Around 37% of the Shopify stores sell apparel and 13% sell beauty & fitness products. It is closely followed by the home & garden product category at 12%.
Shopify Stores in the U.S. by Product Category
Here are Shopify stores’ percentage-wise breakdown of various product categories in the U.S.
|Product Type||Percentage of Shopify Stores in the U.S.|
|Beauty & Fitness||12.67%|
|Home & Garden||11.66%|
|Food & Drink||6.36%|
|People & Society||4.40%|
|Arts & Entertainment||3.74%|
|Gifts & Special Events||2.85%|
|Toys & Hobbies||2.07%|
|Pets & Animals||2.05%|
|Autos & Vehicles||2.03%|
|Business & Industrial||1.78%|
It is evident here that apparel continues to have a strong demand online with more shoppers inclined to buy clothes, athleisure, beauty & fitness products from the e-commerce stores. T-shirts and nail colors are the top-selling products in the Shopify stores.
The Black Friday and Cyber Monday sales for Shopify were record-breaking with nearly $3.1 million peak sales per minute. The United States was the top-selling country with the highest sales coming from Los Angeles in this country. The average cart price during the sales reached $101.2 up from the 2020 average of $90.7. About 15% of the total holiday sales during Black Friday & Cyber Monday were cross-border sales the most popular routes being U.S-Canada, Canada-U.S, and U.K-U.S.
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Top Shopify apps in the United States
The Shopify App Store has around 6000+ apps available for merchants in its Shopify App Store. The highest installed apps across all Shopify stores in the U.S. are-
Klaviyo- Email Marketing & SMS
Printful- Print on Demand
Mailchimp- Email Marketing
Oberlo- Dropshipping App
Instafeed- Instagram Feed
Privy- Pop-Ups, Email & SM
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Dropshipping is still popular in the U.S. with many dropshippers affiliated with AliExpress. The print-on-demand business is also strong on the Shopify stores in the U.S.
Shopify revenues for 2021
Businesses using Shopify generated $175.4 billion on Shopify for 2021 up 47% from 2020. Shopify’s total revenue for 2021 was $4.6 billion which was an increase of 57% year-over-year.
A record-breaking 5.4 million new applications were filed in 2021 compared to 4.4 million in 2020. This only proves the power of online shopping and how eager businesses are to set up their shop online. The United States is the biggest benefiter of Shopify and the above statistics in this blog speak for themselves.
If you already have your store in Shopify, you can convert it into an engaging mobile app using Swipecart. Are you ready to grow your m-commerce business? If yes, we can help you.