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Shopify's GMV from Drop Shipping
No evidence exists of data for Shopify's GMV for dropshipping is available in the public domain. However, a few data points may be used to calculate a high-end estimate and a portion of the overall dropshipping market. Shopify's 2019 annual report makes no mention of the term dropshipping. They relate GMV directly to Shopify Payments, of which there is ample data and information. Konstruct Digital confirms "there are no Shopify-specific data availabe" related to dropshipping's portion of GMV, while conceding "Shopify has dropshipping down to a tee and offers automated dropshipping services." There are paywall reports available detailing the dropshipping market, such as Market Watch, Grandview Research and Million Insights, that may provide the market share of Shopify's GMV for dropshipping.
Available Data
- Shopify reported for 2019 "the Shopify merchants who achieved $1M+ in gross merchandise volume (GMV) increased by 44%."
- Approximately 80% of Shopify stores are dropshipping sites.
- 2019 GMV was calculated at $61.1 billion, according to Shopify.
- Shopify's revenue for all segments for 2019 was reported at $1.58 billion.
- The dropshipping global market size was estimated to be $149.4 billion in 2020.
- BuiltWith states "Shopify has a market share of 31% in the United States for websites using ecommerce technologies."
Calculations
- Utilizing Shopify's GMV and the 80% stores statistic, a high end estimate for dropshipping is estimated at $47.62 billion, after deducting Shopify's revenue for subscription and merchant services of $1.58 billion. ($61.1B- $1.58B)*80%.
- Another possibility is utilizing the 31% market share for Shopify and the total estimated dropshipping market size. This results in an estimated dropshipping GMV of $46.31 billion. $149.4B* 31%