20 Popular Brands That Use Shopify
In this piece, we will look at the 20 Popular Brands That Use Shopify. In case you want to skip our detailed analysis on the E-commerce industry, and discussion over Shopify’s success story, you can go directly to 5 Popular Brands That Use Shopify.
The E-commerce Industry
The e-commerce industry has experienced remarkable growth in recent years, both globally and in the United States. Internationally, the market value surpassed $6 trillion in 2023 and is projected to reach $6.9 trillion in 2024, followed by an estimated $8.2 trillion by the end of 2026. With a current worldwide digital buyer count of 2.64 billion, the e-commerce penetration rate is expected to rise from 19% in 2022 to 25% by 2027.
As for the US market, it currently stands as the second most successful for e-commerce sales. The e-commerce penetration rate in the US has doubled between 2020 and 2023, reaching an overall rate of 35%. Major e-commerce marketplaces in the US include Amazon, eBay, Wish, Target, and Etsy. In 2023, US online sales reached $1.137 trillion, with an expected steady growth rate of at least 10% annually until 2027. Approximately 70% of Americans engage in online shopping, with the digital buyer count expected to reach 285 million by 2025.
The top e-commerce product categories in the US are consumer electronics, apparel, furniture, home decor, auto parts, and personal care products. Online shopping is growing rapidly in the recent times, and market projections foresee significant revenue growth in the coming years. Looking into 2024, trends such as AI-generated text, augmented reality, predictive analytics, personalization, self-service, same-day delivery, and improved returns management will shape the e-commerce industry as it strives to meet evolving consumer demands.
From Startup to Success: Tracing Shopify's Journey in the E-commerce World
In this rapidly changing landscape, Shopify Inc. (NYSE:SHOP), founded in 2006 in Ottawa, Canada, stands out as a user-friendly e-commerce platform that helps small businesses build and manage their online stores. With its streamlined dashboard and seamless integration with various sales channels, Shopify offers a comprehensive solution for entrepreneurs aiming to establish their brand in the digital marketplace. Merchants can create a modern online store and sell across social media platforms, blogs, websites, and other channels.
Additionally, Shopify caters to in-person selling with its built-in point-of-sale (POS) system, ensuring smooth transactions and a seamless customer experience. As a subscription-based software-as-a-service (SaaS) sales platform, Shopify provides flexibility through different store subscription plans, including a budget-friendly "Lite" plan. These plans offer a branded online store, versatile selling tools, and a range of business management features. With its competitive fees, secure technology, in-person sales integration, built-in product sourcing, and email marketing capabilities, Shopify offers immense value and unlimited growth potential. It's no wonder that many influential brands have chosen Shopify as their preferred platform. Whether starting out or ready for expansion, Shopify equips businesses with the tools needed to thrive in the world of e-commerce.
It is one of the leading E-commerce platforms globally, ranking 4th among the top 5, which is the reason why many popular brands use Shopify. It holds a significant market share of almost 11% in the global e-commerce tech market. Notably, 16% of Amazon sellers choose Shopify, highlighting its popularity among businesses.
In the USA, Shopify (NYSE:SHOP) is recognized as one of the top 5 SaaS companies and owns a 28% market share in the e-commerce platform market. The majority of Shopify stores, around 62.21%, are based in the United States, making North America its largest market. It is noted that fashion merchants heavily rely on Shopify services, with over 500,000 apparel online stores built on its e-commerce platforms, as of June 2023; the second most popular category on Shopify being home and garden, with approximately 220,000 stores.
While Shopify competes with other hosting providers like WooCommerce, a comparison indicated that although WooCommerce has a strong overall presence, it is less utilized among the top 10,000 and 100,000 most visited sites worldwide. Also, in terms of payment technologies, Shopify accounts for nearly 14% of the worldwide market of online payment processing technologies. This places Shopify in third position, trailing behind PayPal and Stripe.
Furthermore, Shopify (NYSE:SHOP) has made significant efforts to streamline its operations and reduce costs over the past year, making its future promising. These measures have proven successful, with Shopify achieving an operating income margin of 13% and a free cash flow margin of 21% in Q4 2023. Notably, 2023 Q4 marked a milestone for the company, as it recorded its highest-ever revenue and gross profit, reaching $2.1 billion and $1.1 billion, respectively. During the earnings call, CFO Jeff Hoffmeister attributed the Q4 outperformance to record-breaking sales during Black Friday and Cyber Monday, a robust holiday season, increased payment penetration, and a growing number of merchants utilizing Shopify's platform.
Before delving into our list of 20 Popular Brands that Use Shopify, let’s first take a look at the current happenings within the e-commerce industry’, specifically looking at two giants: Amazon.com, Inc. (NasdaqGS:AMZN) and Alibaba Group Holding Limited (NYSE:BABA).
Amazon.com, Inc. (Nasdaq:AMZN)
In the fourth quarter of 2023 ending 31 December, Amazon.com, Inc. (NASDAQ:AMZN) achieved significant growth in net sales. Sales increased by 14% to reach $170.0 billion compared to the same quarter in 2022. The North America segment experienced a 13% boost in sales, reaching $105.5 billion in the 2023 quarter; international sales also saw substantial growth, increasing by 17% to $40.2 billion. This is on the back of the holiday season during which Amazon.com, Inc. (NASDAQ:AMZN) held a record-breaking Black Friday and Cyber Monday event, with customers worldwide purchasing over 1 billion items and enjoying substantial savings. These results signify Amazon's strong customer engagement and growth across multiple business segments.
Alibaba Group Holding Limited (NYSE:BABA)
Alibaba is a prominent e-commerce company with a growth strategy revolving around prioritizing users, establishing an ecosystem that fosters growth for brands and merchants, and driving technology-driven innovation.
It reported revenue of US$36,669 million for 2023 quarter ending 31 December, representing a 5% year-over-year increase. However, income from operations saw a significant decline of 36% year-over-year, to US$3,171 million. This decrease was primarily due to impairment of intangible assets and goodwill related to Sun Art and Youku. Net income also declined by 77% year-over-year, reaching US$1,509 million in the same quarter, mainly attributed to mark-to-market changes in equity investments and the decrease in income from operations mentioned earlier.
A portfolio manager analyzing the B2B e-commerce trends of the company on a tablet.
Methodology
To compile our list of the Top 20 Popular Brands That Use Shopify, we conducted extensive research on the internet. We carefully analyzed multiple sources and identified the brands that appeared most frequently. After selecting these 20 brands that appeared most frequently across the internet, we evaluated their popularity using various metrics such as ratings, revenue, and the number of physical and online outlets. However, we focused primarily on their social media presence, particularly their Instagram following, to determine their popularity. Based on the number of dedicated Instagram followers, we ranked these brands accordingly.
By using this methodology, we aim to present a comprehensive and insightful list of the Top 20 Popular Brands That Use Shopify based on their Instagram fan following.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
20 Popular Brands That Use Shopify
20. Teen Vogue
Number of followers: 4.3m
The 20th on our list of Popular Brands That Use Shopify is Teen Vogue, which is an American online publication, keeping its audience informed with the latest news and updates in fashion, beauty, celebrity style, and more. To enhance the reader's experience, Teen Vogue utilizes Shopify as its e-commerce platform. Through this platform, they offer a range of products related to their content, including clothing, accessories, books, and subscriptions.
19. BBC
Number of followers: 5.3m
The BBC is a trusted global news broadcaster, delivering accurate and impartial news worldwide. They also provide dropshipping services through BBC Dropshipping on Shopify. This one-stop platform allows users to start an e-commerce business with a limited budget. The services offered include product sourcing, transparent records of details and payments, assistance from account managers, responsive customer service, and support in building client brands.
18. Skims
Number of followers: 5.7m
Skims, the coveted shapewear brand founded by Kim Kardashian, is among the thriving businesses on the Shopify Plus platform. It is not the only Kardashian-related brand utilizing this platform, as many other celebrities also rely on Shopify Plus to power their businesses.
17. Skkn by Kim
Number of followers: 6.0m
The Shopify site of Kim Kardashian West captures attention with striking header photos showcasing collaborations and collections. The layout seamlessly transitions to the product listings, which feature bold imagery and capitalized titles, providing a clear presentation. It serves as an excellent showcase of Shopify's top-selling capabilities. While Kim Kardashian and her brand contribute significantly to the success, it's worth noting Shopify's remarkable ability to manage high-demand situations, with items often selling out within minutes.
16. Jeffree Star Cosmetics
Number of followers: 6.1m
Jeffree Star, a prominent social media personality, operates a highly influential beauty and makeup-focused YouTube channel with a subscriber base of over 15 million. Like many other prominent figures in the beauty industry, Jeffree Star also has his own line of cosmetics and fashion. To purchase products from Jeffree Star Cosmetics, customers can visit his Shopify store.
15. The Economist
Number of followers: 6.4m
The Economist online provides an authoritative perspective and informed opinions on global news, politics, business, finance, science, and technology. In addition to its digital content, The Economist's e-commerce store offers a selection of books in both print and audio formats, along with a variety of office supplies and diaries.
14. Gymshark
Number of followers: 6.8m
Gymshark is a popular fitness apparel and accessories brand that is based in the United Kingdom. It serves as both a manufacturer and online retailer. With a significant following of over 3 million engaged social media followers and customers from 131 different countries, Gymshark has a global reach in the fitness industry.
13. Rare Beauty by Selena Gomez
Number of followers: 7.0m
Rare Beauty by Selena Gomez, available on Shopify, aims to create a safe and inclusive environment within the beauty industry. Their makeup line is designed to make individuals feel comfortable and confident in their own skin, embracing and celebrating their unique qualities. Not only does Rare Beauty prioritize the well-being of their customers, but they also ensure that their products are vegan and cruelty-free, aligning with ethical standards.
12. Mincecraft
Number of followers: 9.4m
Minecraft, widely regarded as one of the most popular video games in history, has garnered a massive fan base worldwide. To cater to these dedicated fans, Minecraft offers a variety of merchandise on Shopify, and is placed 12th on our list of Popular Brands That Use Shopify. The selection includes an array of Minecraft-themed products, ranging from clothing items and phone cases to party supplies.
11. Tesla, Inc. (NasdaqGS:TSLA)
Number of followers: 9.7m
Tesla, Inc. (NasdaqGS:TSLA), a renowned company in the automotive and clean energy sectors, was established in 2003 by founders Elon Musk, Martin Eberhard, JB Straubel, Marc Tarpenning, and Ian Wright. With its impressive growth and substantial revenue, Tesla, Inc. (NasdaqGS:TSLA) has become one of the fastest-growing and highest-earning companies globally. To cater to Tesla enthusiasts and fans, Elon Musk launched the Tesla shop on Shopify. While the shop does not sell Tesla cars directly, it offers a wide range of assorted Tesla gadgets, including car chargers, apparel, vehicle accessories, and even Tesla Tequila.
10. New York Times
Number of followers: 17.9m
The New York Times offers its merchandise for sale through a Shopify-powered store. They provide a broad selection of product categories, including apparel, accessories, books, toys, wall art, and various other items.
9. Red Bull
Number of followers: 19.8m
Red Bull, known as the top-selling energy drink globally, relies on various marketing strategies to promote its product, and is placed 9th on our list of Popular Brands That Use Shopify. This includes advertising, event sponsorships, ownership of sports teams, celebrity endorsements, and even music through its record label, Red Bull Records. Moreover, Red Bull operates an online store where customers can find a wide selection of official Red Bull merchandise, including hats, t-shirts, backpacks, jackets, and more.
8. Fashion Nova
Number of followers: 21.5m
In 2017, Fashion Nova became extremely popular worldwide, ranking among the most searched fashion brands alongside Gucci and Chanel. Its affordability and inclusive clothing options for all sizes contributed to its global acceptance. With endorsements from influential celebrities like Kylie Jenner, Blac Chyna, and Cardi B, the brand gained further visibility. Fashion Nova's marketing strategy involves encouraging customers to share pictures of themselves wearing the brand's clothes on social media, with selected images showcased on its homepage. Notably, Fashion Nova achieved an impressive milestone of 100 million orders on Shopify in 2022.
7. Sephora
Number of followers: 22.1m
Sephora, a well-known multinational retailer, offers an extensive range of personal care and beauty products worldwide. Their product offerings include cosmetics, skincare, fragrances, nail color, body care, and more. In addition to offering over 300 beauty product brands, Sephora also sells their own private label, known as the Sephora selection, through their Shopify store.
To enhance customer experience, Sephora provides AI-powered chatbots that assist customers in finding the right products. They also offer an advanced search feature, making it easier for customers to navigate through the various product categories available.
6. Kylie Cosmetics
Number of followers: 25.2m
Number 6th on our list of Popular Brands That Use Shopify is Kylie Jenner, the popular beauty influencer from the Kardashian family, who successfully sold out her latest eyeshadow palette within just 2 minutes. With its massive social media following, including 400+ million followers on Instagram, Shopify effectively manages the huge traffic, enabling the seamless distribution of makeup products to Kylie’s dedicated fan base.
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Disclosure: None. Top 20 Popular Brands That Use Shopify is originally published on Insider Monkey.