Canada-based global e-commerce company Shopify says its merchants contributed 5 million jobs and $444 billion in global economic activity by 2021.
That is an increase of 45% compared to 2020.
Shopify merchants sold $25 billion worth of goods and services outside of their home country. Small businesses accounted for $11 billion of the $25 billion.
In the study, a small business was defined as a company that earned less than $2.5 million in gross revenue. Every dollar spent with an independent merchant has a ripple effect, which the company calls the Shopify effect.
The Shopify Effect reveals the resilience of the millions of merchants who use the platform, the entrepreneurs who are changing our world, and the global economic impact of these small and independent businesses.
Shopify says its merchants have contributed 5 million jobs to the economy
According to Shopify, the term Shopify Effect describes what happens when entrepreneurs are given the tools to succeed and when the power of the few is put in the hands of the many.
Shopify member United By Blue against the Christmas shopping crisis. After months of working to set up a store on another platform, they pulled the plug on that venture and turned to Shopify.
“Our journey to adopt Shopify began in 2013 when we were in our third month of a very expensive website built on a different platform,” said Brian Linton, founder and CEO of United By Blue. “With the holidays just around the corner, we ran out of time and money to finish it.”
“Instead of missing out on the holidays, we ditched our expensive build and switched to Shopify,” Linton said. “Within a week we had a site up and running! We have never looked back.”
Linton said that by partnering with Shopify, United By Blue could connect with customers, scale its e-commerce business and environmental mission to heights they could never have imagined. United By Blue is now a multi-million dollar company with a special focus on improving the environment – with a stated mission to remove 1 pound of waste from oceans and waterways for every product sold.
United By Blue has removed more than 3.5 million pounds of waste from global waterways, innovated new regenerative materials for their products, partnered with local governments to advocate for sustainable practices, and helped their local suppliers move from first sale to full-scale . United by Blue has added dozens of brands to their site and stores and expanded The Sustainable Marketplace with products from other brands that share the same social and environmental values.
How are calculations performed?
To get the stats, Shopify partnered with Deloitte, a global consulting firm. Deloitte calculated the global economic impact by including data on profits, labor income and tax revenues.
What the Shopify data shows
Total global economic impact of Shopify merchants: $444+ billion, up 45% from 2020.
Number of jobs supported by Shopify merchants: 5 million. Collectively, Shopify merchants would make up the largest workforce in the world. In the United States, Shopify merchants have contributed $239 billion to economic activity and supported the creation of more than 981,000 jobs. Cross-border (export) sales exceeded $25 billion.
The impact of the Shopify Partner ecosystem (which includes developers, designers, marketers, accountants, logistics providers, and other experts who help our merchants succeed): Supported 656,000 jobs and totaled $32 billion in revenue last year.
In 2021, Shopify Partners made nearly 7x more revenue than Shopify itself. This number is 45% higher than in 2020. In Europe, the Shopify effect accounted for 298,000 jobs and $47.6 billion in economic activity. In the United Kingdom, the Shopify effect accounted for 197,100 jobs and $35.1 billion in economic activity.
Additional stats:Canada: $23.8 billion in economic activity and 142,000 jobs. This level of economic activity will surpass the entire U.S. wheat flour market in 2021, a year after the boom in bread production. Australia: 154,200 jobs and $29.6 billion in economic activity. Germany: 65,100 jobs and $13.1 billion in economic activity. France: 30,600 jobs and $6.8 billion in economic activity. Italy: 16,000 jobs and $3.4 billion in economic activity. This is 2.5x the value of all virgin olive oil exported by Italy in 2020. Spain: 16,300 jobs and $3 billion in economic activity. Japan: 57,800 jobs and $6.6 billion in economic activity. India: 199,600 jobs and $3.4 billion in economic activity.
Over a decade ago, the Shopify founders started a store to sell snowboards online. None of the ecommerce solutions of the time gave them the control they needed to be successful, so they built their own.
Today, businesses of all sizes use Shopify, whether they’re selling online, in stores, or on the go. Members find it easier to start, run and grow a business. Shopify has grown from 5 people in a coffee shop to over 5,000 around the world. Millions of businesses are powered by Shopify.
Shopify builds for the long term, and that means investing in our planet, our communities, and our people. Shopify has initiatives for the Sustainability Fund and Social Impact, including choosing renewable energy, reducing and offsetting our carbon emissions, and enabling a just and sustainable future by developing products and programs to support the Shopify team and the sellers.
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