2021 Next 1000 Report
Online small- and medium-sized businesses, or SMBs, grew web sales 20.8% year over year in 2020, higher than any of the past five years. Just shy of the Top 1000, these ecommerce merchants ranked Nos. 1,001 to 2,000 have annual online sales between $1 million and $32 million.
The coronavirus pandemic is one of the top reasons for the larger-than-usual growth for the Next 1000. The pandemic caused major shifts in what types of products shoppers wanted, how they purchased those products and the types of retailers they bought from. These trends are reflected in the Next 1000. For example, merchants selling in the toys/hobby category increased online sales 36.6% year over year in 2020.
While a collective 20.8% year over year growth may seem like exceptional news for small and medium-sized online retailers, the growth is less impressive when benchmarking against the broader ecommerce market and larger online retailers. For example, Digital Commerce’s 360 Top 1000 online retailers grew their collective web sales dramatically in 2020, at 44.5% year over year.
The 2021 Next 1000 Report includes a ranking of North America’s SMBs by their web sales and digs into some of the reasons why smaller merchants didn’t grow as fast as their larger peers in the Top 1000. Online SMBs faced many challenges in 2020 that continue in 2021 including inventory shortages, increased labor and supply costs and disrupted supply chains.
View the table of contents for full details on what’s included in the report.