Shopify Sees Future Where ‘Retail Happens Everywhere’

Shopify Inc. reported Thursday (Oct. 28) it has doubled its cumulative gross merchandise value (GMV) in the past 16 months to $400 billion as the company remains focused on simplifying commerce for merchants.

“It took 15 years for our merchants to get to $200 billion in cumulative GMV, and just 16 months to double that to $400 billion,” Shopify President Harley Finkelstein said in the company’s third-quarter earnings report, which covers the three-month period that ended Sept. 30.

“It is clear that entrepreneurs are embracing a future in which retail happens everywhere,” he added. “Shopify is making it easier for more merchants worldwide to build direct and authentic relationships with their customers, in creative ways that work best for them.”

Shopify’s total Q3 revenue was $1.12 billion, up 46% from the same time in 2020. Merchant solutions jumped 51% from 2020 to $787.5 million, riding the GMV growth, while subscription services saw a 37% jump to $336.2 million on the back of increased memberships. Monthly recurring revenue through Q3 was $98.8 million, up 33% from one year earlier.

“The strength of Shopify’s flywheel was on display within the more normalized spending environment we saw this past quarter, as more merchants used more of our platform to start and grow their businesses,” Shopify CFO Amy Shapero said in the company announcement. “We remain focused on simplifying commerce for our merchants so they can take full advantage of what digital makes possible and reimagine retail.”

During the quarter, Shopify introduced Shopify Markets to enhance cross-border commerce and debuted no-fee money management platform Shopify Balance as well as TikTok Shopping. The company also is building the Shopify Fulfillment Network, adding product bundling, regional tax settings and tracking inbound transfer shipments of inventory.

Related: Shopify to Help Spotify Artists Sell Their Merch

Earlier this month, Shopify and Spotify launched a new Spotify channel that allows artists on the music streaming platform to engage with listeners and to market products that “expand beyond traditional merch,” Shopify said on its website.

Shopify says the partnership will give artists the freedom to go beyond music and traditional merchandise to create a “fully realized business.”