Home Business News Shopify Struggles as Online Retail Stagnates

Shopify Struggles as Online Retail Stagnates

Shopify Struggles as Online Retail Stagnates

Shopify only added 71,000 new merchants in the first half of 2022, which puts it on pace to add just 142,000 new merchants this year. These numbers are a far cry from 2020 and 2021 when the online shopping platform added 680,000 and 314,000 merchants respectively. Globally, the number of merchants using the platform has plateaued slightly below 2 million. The overall stagnation of Shopify’s growth can be attributed mostly to the decline in online shopping. 

In a reversal of pandemic-era trends, many brick-and-mortar retailers are experiencing immense growth while online retailers struggle. Costco is one of the physical retailers that has benefitted from consumers focusing on necessities and bulk deals. Over a 48-year week-to-date period, Costco’s net sales increased by 16.4 percent to $205.19 billion. This is a continuing growth trend for the company, which has had a strong resurgence over the tail end of 2021 and the beginning of 2022.  

In other news, Beats has announced its new Beats x Kim initiative with Kim Kardashian to devise a custom version of the Beats Fit Pro in three unobtrusive skin color options: Moon, Dune and Earth. These custom earbuds, which no one asked for but people will inevitably buy, are set to go on sale on August 16th for $200.


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