Shopify’s Customer Makeup
Such ownership over their own brand is a key value proposition that brings merchants onto their platform, Shopify argues. As of Dec. 31, 2019, there were 1m+ merchants on Shopify’s platform across 175 countries with 52% in the U.S, 7% in the U.K., and 6% in Canada.
Additional information on Shopify’s customers:
- Per the FY 2019 annual report, a large majority of merchant plans cost less than $50 per month.
- No single merchant represented more than 5% of total sales in a year.
- The 1m+ merchants include the 7,100 merchants on Shopify Plus, their enterprise-level solution, which includes clients like Gymshark, Nestle and Staples.
What seems evident from the customer distribution is that Shopify primarily serves small and medium businesses (SMBs). It might also be appropriate to note that the failure of their SMB merchants will not have a material impact on the company unless it happened to a large majority together.
