Shopify Inc. reported total revenue grew 25% to $1.7 billion in its fiscal third quarter ended Sept. 30.
Meanwhile, gross merchandise volume (GMV), the total value of merchants’ products across Shopify’s systems, increased 22% to $55 billion. Gross profit also grew, increasing 36% to $901 million.
45 retailers in the Top 1000 use Shopify. The Top 1000 is Digital Commerce 360’s database of leading ecommerce retailers in North America. The 45 using Shopify account for a combined $8.30 billion in web sales annually.
In the Next 1000, 74 merchants used Shopify in 2022 and accounted for $1.05 billion in web sales. The Next 1000 ranks the largest retailers after the Top 1000 (1,001 to 2,000) by web sales.
Shopify’s AI tools
Shopify president Harley Finkelstein said in an earnings call with investors that artificial intelligence is for everyone, and its capabilities should be embedded throughout a business.
“We’ve integrated Shopify Magic, our suite of free AI-enabled features across our products and workflows, and merchants are already finding success with unblocking productivity and creativity,” he said.
Shopify Magic enables personalized pages and content generation, he said. It can help craft an About Us page in a merchant’s brand voice or tone, he said.
Changing checkout benefits Shopify earnings
Finkelstein said in the Shopify earnings call that the company launched a new one-page checkout in September. In its first two months, Finkelstein said, it has sped up buyer completion time by an average of four seconds.
In the quarter, Shop Pay facilitated $12 billion in GMV, he said. That’s a 50% year-over-year increase. Since launching in 2017, it has facilitated a cumulative $110 billion in sales.
Finkelstein also said Shopify Checkout has helped its merchant base through Checkout Extensibility, which launched in 2022. Since launch, he said, Shopify has “exponentially expanded its suite of APIs, components and capabilities. It has also seen more than 400 checkout apps in the Shopify App Store that support Checkout Extensibility.
“It is more adaptable, loads faster and converts better, he said. “Designed to handle high volumes, it is ideal for the world’s largest flash sellers like the iconic brand Supreme.”
Shopify also announced a partnership with Amazon during the quarter, giving merchants the choice to offer Buy with Prime directly within their Shopify Checkout. Finkelstein said the app will release “in Shopify’s app ecosystem in the coming weeks.”
“This new app will give U.S. based merchants who use Amazon’s fulfillment network the option to add Buy with Prime into their Shopify Checkout, and all of it will be processed by Shopify Payments,” Finkelstein said.
James Risley, research data manager and senior analyst at Digital Commerce 360, said he doesn’t think the Shopify-Amazon partnership is making all the difference, but it “is a big deal.”
“Not only does it provide Shopify with a strong name to build on in its checkout flow, but it also allows retailers to not have to pick one vendor — Amazon or Shopify — to get the payment networks of each,” Risley said.
174 retailers in the Top 1000 offer Amazon Pay, whereas 130 offer Shop Pay.
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