Shopify’s explosive growth shows life for ecommerce outside Amazon

There are many out there who would have you believe that ecommerce in the USA is all about Amazon these days. For sure Bezos’ giant has a big piece of the pie, but there’s still lots of life in the niches outside the Amazon mainstream if you know where to look.

Evidently Shopify’s customers are pretty good at finding those niches – and Shopify is pretty good at finding them. It just released it’s Q4 2017 report and the numbers are off the charts, smashing pretty much all Wall Street analyst consensus estimates:

  • Gross merchandise volume (total revenue of all merchants using Shopify) grew 65% y-o-y during the quarter, reaching $9.1B.
  • Subscription solutions revenue grew 67% to $93.3M
  • Merchant solutions revenue grew 74% to $129M
  • Shopify now estimates revenue for Q1 2018 will come in at between $198M – $202M, and full year 2018 revenue between $970M – $990M.

As of right now, Shopify’s stock is down though, by around 1.5%. Perhaps some people are never happy. On the other hand, valuation might have something to do with it – after all the market cap is currently 13x estimated annual revenue for this year, which is undoubtedly steep.

Financial considerations aside, the message for ecommerce sellers is loud and clear – you still have a future if you can figure out something which Amazon doesn’t do too well. It may not make you into the next trillion dollar company, but all indications are that you can make yourself very comfortable indeed.


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