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Shopify merchant growth plateaus according to new research

By Rachel Douglass

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Business

Image: Shopify

Businesses could be moving away from Shopify’s platform after being impacted by rising costs and a decrease in consumer spending, according to research carried out by YipitData.

The report, which was shared through Reuters, found that the e-commerce platform had only added 71,000 global merchants in the first half of 2022, a far cry from the 680,000 added in 2020 and 314,000 in 2021.

It comes as a decline in online shopping impacted the Canadian company’s yearly earnings, resulting in it cutting jobs.

In a statement to Reuters, YipitData analysts said: “Unless Shopify adds roughly twice as many merchants in the second half of 2022 as the first half, we estimate they could be on pace for the lowest net merchant additions in a year since at least 2018.”

The analysts continued to note that the slowdown was particularly prominent among merchants that were not Plus subscribers, many of which are smaller size businesses that are often subject to inflation and rising interest rates.

However, the report added that this could also impact Plus merchant numbers, Shopify’s main gross merchandise volume driver, as many of those subscriptions come from upgrades.

E-commerce
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