Shopify growing faster than competition in Q1/2022

The Canadian ecommerce enabler Shopify has been able to grow by 21,7% on top of the very rapid growth from the year ago (+110% in Q1/2021). Shopify has been one of the biggest beneficiaries of the pandemic with a 156% revenue jump to pre-pandemic Q1/2020.

This growth has really come from the Merchant solutions side of the business where Shopify makes its money as it’s Merchants use the different services provided by Shopify such as payments, referral fees and use of third party apps.

The Subscription side of the business produces a stable growth for the business, whereas the Merchant services have for years grown significantly faster.

Growth outpacing Amazon

Shopify has been one of the companies facing significant headwinds in terms of declining share price. The investor community does not seem to believe that the growth of Shopify can keep up. However, Shopify has been growing despite the really high comparison figures. It is only understandable that the Year on Year growth figures decline when faced with 100+% growth from the previous year.

Shopify has been growing faster than the overall ecommerce market as well as Amazon growth for years. The big question for Shopify remains whether it can keep up growing faster than the competition. Shopify is still significantly smaller in GMV than Amazon and thus it will need to outpace Amazon for many years in order to truly challenge Amazon.