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Shopify made duties calculation available at checkout in February for all merchants. By the end of March, the number of merchants actively using that feature nearly doubled since January, said president Harley Finkelstein on the software provider's Q1 earnings call with investors.

Shopify Inc. grew both revenue and gross merchandise value (GMV) in its fiscal Q1, which ended March 31.

Q1 2025 marked the seventh consecutive quarter in which Shopify revenue and GMV both increased at least 20%. At the same time, it also marked the eighth straight quarter in which the software and ecommerce platform provider’s revenue grew 25% or more, according to chief financial officer Jeff Hoffmeister.

Shopify’s U.S. ecommerce GMV has reached double the rate of the country’s overall ecommerce growth for the past five quarters, Hoffmeister told investors on the company’s Q1 earnings call.

“Another demonstration of our success is that every quarterly cohort, other than one, over the past 10 years has outpaced U.S. ecommerce since joining Shopify,” Hoffmeister said. “Within Europe, we are outperforming the market by an even wider margin, and even higher multiples of ecommerce growth. We’ve seen robust, greater-than-30% GMV growth now for eight consecutive quarters, with that strength being broad-based across countries and merchant sizes.”

In North America, 117 of the Top 2000 online retailers use Shopify as their ecommerce platform. The Top 2000 is Digital Commerce 360’s database of the largest online retailers in the region by their annual ecommerce sales. In 2024, those 117 online retailers combined for more than $9.78 billion in web sales.

Shopify updates software to account for tariffs

In an ever-changing tariff situation, Shopify has added new tools for its merchants to navigate cross-border trade. It improved its managed markets product, allowing merchants to achieve compliance within hours if countries announce new duties.

Shopify made duties calculation available at checkout in February for all merchants. By the end of March, the number of merchants actively using that feature nearly doubled since January, said president Harley Finkelstein on the software provider’s Q1 earnings call with investors.

“Later this month, we’ll introduce duty-inclusive pricing, allowing merchants to set international prices that include duties in the product price,” Finkelstein told investors. “This ensures transparent pricing from the start and helps customers avoid surprise fees at checkout.”

And in the days before its earnings call, he said, Shopify launched TariffGuide.ai, an artificial intelligence (AI) tool that provides duty rates based on a product description and the country of origin.

“Sourcing the right products from the right country can mean the difference between a 0% and a 15% duty rate or higher and tariffguide.ai allows merchants to do this in minutes, not days,” Finkelstein said.

It’s also “simplifying international shipping for merchants by enabling them to purchase prepaid shipping labels, known as delivered duty paid or DDP, directly from our platform,” he added.

Additionally, it has expanded its network of third-party logistics (3PL) providers through the Shopify Fulfillment Network app. That enables merchants to access more local warehouses for fulfillment.

To make it easier to buy locally, Shopify has added a feature to its Shop app that allows buyers to filter products by country.

Shopify revenue and GMV Q1

In Q1, Shopify GMV grew to $74.75 billion, while its revenue increased to $2.36 billion. Those figures grew year over year from about $60.86 billion and $1.86 billion, respectively, in Q1 2024.

Shopify’s monthly recurring revenue increased to $182 million, from $151 million the year before. Meanwhile, Shopify operating income more than doubled to $203 million, from $86 million the prior Q1.

Shopify revenue increased 27%. Merchant solutions revenue grew 29%, to about $1.07 billion, from $904 million the prior Q1. Its other revenue stream, subscription solutions, increased 21%, to $123 million in Q1 2025 from $95 million the year before.

Meanwhile, offline GMV grew 23% in Q1 and B2B GMV grew 109%.

Additionally, international Shopify GMV grew 31%. In Europe, specifically, Shopify GMV grew 36% in Q1 as a result of both same-store sales growth and new merchant acquisition, Hoffmeister said. Same-store sales growth accounted for a larger share of growth, he added.

Payments GMV penetration hit 64%, as the company launched Shopify Payments in 16 new markets during Q1, Finkelstein said. Shopify Payments now supports merchants in a total of 39 countries.

Meanwhile, Shop Pay GMV grew 57% year over year in Q1, processing more than $22 billion in GMV. Also in Q1, the Shop App grew its GMV 94% year over year.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s update on Shopify revenue and GMV.

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