Shopify - Market Analysis
To find 10-15 examples of successful Shopify stores and five (5) examples of unsuccessful Shopify stores. Include a mix of single-product, multi-product, dropshipping, and non-dropshipping examples. For each store, identify what they are doing right or wrong. In addition, provide 5-10 statistics on ecommerce and/or Shopify growth. Also provide relevant insights and any recent/emerging trends occurring among Shopify stores. Insights should related specifically to 1) whether single-product or multi-product stores are more successful, and 2) what the most successful stores are doing to source product content. Trends should specifically address 1) what the industry is projected to look like in the future and 2) how brands are positioning themselves to meet the market. Provide information about the buying habits of Gen Z as they relate to Shopify stores and ecommerce, as well as information about what types of content convert best on Shopify, using quantitative data wherever possible. Research will be used to create blog content for a website.
During this initial hour of research, we were able to find ecommerce and shopify growth statistics, insight into Gen Z's online buying habits, and examples of high-converting products on Shopify. Our findings indicate that there is an abundance of information available related to Shopify and the ecommerce market.
Ecommerce and Shopify Growth Statistics
- Shopify's annual revenue is expected to reach $7.5 billion by 2024, growing at a rate of nearly 50% per year. Its anticipated revenue for 2019 is $1.5 billion.
- As of 2020, more than a million merchants worldwide use Shopify to sell their products online.
- In 2019, the ten largest e-commerce markets were: 1) China ($740 billion), 2) United States ($561 billion), 3) United Kingdom ($93 billion), 4) Japan ($87 billion), 5) Germany ($77 billion), 6) South Korea ($69 billion), 7) France ($55 billion), 8) Canada ($44 billion), 9) Russia ($19 billion), and 10) Brazil ($16 billion).
- Between 2018 and 2023, the following major ecommerce markets are expected to grow substantially:
- The Asia-Pacific region is expected to experience the most significant growth moving forward. By 2023, it will account for $1.4 trillion worth of the global ecommerce market. To put this in perspective, the rest of the world combined is expected to account for $1.3 trillion worth of the market by 2023.
- WooCommerce and Magnento are Shopify's biggest competitors, though Facebook, Square, and Microsoft are all slated to launch competing products in the near future. However, Shopify maintains a competitive advantage because it is "easy to get started on its platform and can scale as business grows."
Gen Z Online Buying Habits
- Gen Z has a global spending power of $143 billion, and their favorite brands include Vans, Adidas, and Nike.
- This generation responds well to digital engagement tools like polls, surveys, and comment sections. They are also motivated by influencer marketing.
- A 2018 poll found that 72% of Gen Z shoppers respond best to advertising that uses humor.
- Members of Gen Z spend an average of 8.7% of their income online. This is nearly double what Millennials spend online, which is roughly 5.33% of their income.
- Another survey found that 40% of Gen Z males would prefer to "buy everything online," while only 33% of Gen Z females responded in suit.
Best Content for Conversion
- Trending Shopify products in 2020 are shapewear, pet grooming supplies, athleisure clothing, bathroom stools, pet beds, smartwatches, minimalist jewelry, dish racks, safety shoes, and posture correctors.
Proposed next steps:
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We recommend continued research to build a list of 10-15 successful and 5-7 unsuccessful Shopify stores. For each store, we could provide 1) a brief (1-2 sentence) description, 2) a link to its store page, 3) a summary of its product offerings, and 4) an analysis of what it is doing right and/or wrong (3-5 sentences). We could define "successful" or "unsuccessful" in terms of revenue/sales, conversion rates, and/or media consensus. Our scope could be global.
We could also provide 2-3 recent or emerging trends occurring among Shopify stores. These trends could relate specifically to what the industry is projected to look like in the future and how brands are positioning themselves to meet the market. For each trend, we could 1) describe what it is, 2) explain what is driving it, and 3) provide 2-3 examples of Shopify stores that are using it. In addition, we could provide 3-5 insights related to the Shopify and/or ecommerce market. These would specifically address whether single-product or multi-product stores are more successful and what the most successful stores are doing to source product content. For each insight, we could 1) describe what it is, 2) explain why it is relevant (why we chose it), and 3) provide 2-3 pieces of quantitative or qualitative data to illustrate it. Our scope could be global.