Global Economic Impact Study of Shopify: April 2021

Global Economic Impact Study of Shopify
April 2021
Table of Contents
1 Introduction 3
2 2021 Economic Impact Summary 7
3 Jurisdictional Analyses 15
4 Appendix 35
© Deloitte LLP and affiliated entities. Global Economic Impact Study of Shopify 2
Introduction
Introduction
2020 was a year of health, social, and economic crises. COVID-19 caused nearly 2 million deaths across the globe, which combined with
social justice events and economic crises created many more layers of hardship.1
The pandemic was especially turbulent for small businesses. Among many challenges, these firms tended to have less capital and
resources for weathering the fallout in economic demand and the costs of operating under social distancing rules. In June 2020, the
Metlife and United States Chamber of Commerce Small Business Index illustrated that confidence levels reached record lows.2
Yet there were positive trends for small business in 2020. Communities across the world launched successful ‘shop local’ campaigns. In
several countries, last year witnessed major growth in the number of new businesses formed.3
Arguably, the most impactful positive trend from 2020 was that small businesses accelerated their adoption of digital technology. A
survey conducted by Cisco Systems and International Data Corporation last June showed that over 70% of small businesses globally
noted that “COVID-19 has been a key driver for fast-tracking [the] digitization journey.”4
Looking to the future, digitalization has potential to drive entrepreneurship, empower small business, and, in turn, foster economic
growth and job creation. The economic damage of 2020 will likely linger for years to come. Small business – platformed by digital
technology – is a powerful strategy to reduce that possibility.
Note to Reader
In October 2019 Shopify released its first ever Global Economic Impact
Report. Developed in partnership with Deloitte (“we”, “us”, etc.), the study
explored impact through six underlying themes by analyzing data from
2018 and earlier. Ultimately the report was launched at the time of a
significant milestone – over 1 million businesses globally are built on
Shopify.
Shopify aims to continue quantifying its economic footprint and exploring
how it catalyzes positive changes to the global economy. Aligned to this
goal, we refreshed select findings chosen by Shopify, using 2019 and 2020
data. The purpose of this report is to present the key findings of our
analysis.
In line with our initial report, it is evident that Shopify broadens the
possibilities available for entrepreneurs and businesses. The quantifiable
impacts of economic activity and employment are substantial and have
increased each year since 2018. This finding is especially meaningful in
2020, given the very challenging macroeconomic context that businesses
were operating within globally.
Our Approach
This study models the economic impacts associated with Shopify Economic impact model framework
businesses using a customized global economic impact model. Merchant GMV, 2018
Note on Currency
Please note that all $ values presented in this study are in USD unless noted otherwise. $41.1B
Key Definitions
• Direct impacts result from the first round of expenditures.
• Indirect impacts result from the second and subsequent rounds of spending by businesses providing Merchant GMV, 2019
intermediate goods and services.
• Induced impacts result from households spending the wages earned through direct expenditures.
• Gross Merchandise Volume (“GMV”) is the “total dollar value of orders facilitated through the $61.1B
Shopify platform.”5
• Business Activity represents the gross value of goods and services produced in a jurisdiction during
a given period.
Merchant GMV, 2020
• GDP is the total unduplicated value of goods and services produced in a jurisdiction during a given
period.
• Employment represents full-time equivalent positions (FTEs). FTEs are counted according to their Customized
duration and not according to whether they were employed on a full-time or part-time basis. $119.6B
Economic
Impact Model
Key Model Details
In this study, “business activity impact”, GDP, and employment modelling of Shopify merchants and
partners is based on an input-output framework, a standard approach in economic analysis that Partner Revenues, 2020
enables a clear distinction between direct, indirect, and induced impacts. To capture the impacts of
global supply-chain activity, we added detailed bi-lateral trade data to our model. The key data sources
for our model is Organization for Economic Co-Operation and Development (OECD), including Input
$12.5B
Output database and Trade in Value Added (TiVA) database, and World Bank. Our model estimates the
gross impacts (as opposed to incremental impacts) of Shopify merchants business activity. Source of GMV and Revenue Estimates: Shopify; Deloitte Analysis
2020 Economic
Impact Summary
Through a historic economic downturn, Shopify was a platform for substantial global business growth
Along with health and social hardships, COVID-19 led to the worst global recession since the Great Depression. Between 2010 and 2019, global economic
output grew each year by an average of 2.9%. In 2020 it fell by 3.3%.6
In a year defined by social distancing, the world required digital solutions to fuel business activity. The data shows that Shopify played a key role in driving
substantial business activity growth across the globe over the course of 2020.
2020 witnessed a historic economic downfall Yet across the world, Shopify enabled economic activity Shopify also facilitated $12+ billion in partner revenues
Annual percent change in Global GDP Total business activity impact of Shopify merchants, in $ Shopify partner revenues, 2020
billions
6.0%
$307.4
3.0%
0.0%
$136.0 $12.5 Billion
$91.1
-3.0%
-6.0%
2005 2010 2015 2020 2018 2019 2020
Source: Shopify; Deloitte Analysis
Note: Includes the direct, indirect, and induced economic impacts. Please see page 6
Source: International Monetary Fund (“IMF”); Deloitte Analysis for further details and definitions. Source: Shopify; Deloitte Analysis
Shopify generated over $1 billion in impact in 24 jurisdictions in 2020
Jurisdictions with over $1 billion in business activity impact supported by Shopify merchants, in $ billions
United United Canada Australia China Germany France Japan

States 1 Kingdom 2 3 4 5 6 7 8
$166.9 $22.2 $18.3 $18.1 $15.8 $7.3 $4.7 $3.9

Mexico Netherlands Spain New Hong Kong Italy Singapore India
9 10 11 Zealand 12 SAR 13 14 15 16
$3.2 $2.9 $2.3 $2.2 $2.1 $2.1 $2.0 $1.9

Ireland Denmark South Korea Switzerland Belgium Malaysia Norway Brazil
17 18 19 20 21 22 23 24
$1.7 $1.7 $1.6 $1.4 $1.2 $1.2 $1.1 $1.0

Note: Includes the direct, indirect, and induced economic impacts.
In 2020 Shopify business activity was the backbone of 3.6 million jobs
Over 250 million FTE jobs were lost globally in 2020. This translates to a decrease in hours worked that was four times greater than during the 2009
Global Financial Crisis.7
Yet, driven by growth in the number of merchants and the value of their gross merchandise volume (GMV), businesses on Shopify supported
approximately 1.5 million more jobs in 2020 than they had in 2019.
COVID-19 caused major disruptions in the labour market Nevertheless, Shopify supported job growth in 2020 As part of the supply chain for merchants, Shopify
Weekly hours worked per global population aged 15 – 64 Total FTEs supported by merchants and partners on partners supported over 200,000 FTEs
Shopify
29
~3,600,000
28
Within the 3.6M jobs supported by
27
merchants on Shopify …
200,000 + FTEs
26 ~2,100,000
25
~1,400,000 are supported by partner businesses
24
23
22
2018 2019 2020
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020

Note: Includes the direct, indirect, and induced economic impacts. Please see page 6
Source: ILO; Deloitte Analysis for further details and definitions. Source: Shopify; Deloitte Analysis
Shopify supported 1.7 million businesses in 2020, with 690,000+ small businesses selling
internationally
Small businesses faced the brunt of COVID-19’s economic impact, as they typically have limited access to capital and resources to navigate the crisis.
Simultaneously, in some jurisdictions 2020 witnessed major growth in the number of new start ups. So, while a number of existing small businesses were
experiencing challenges, a new class of entrepreneurs chose to build a business during the COVID-19 crisis.
Shopify played a role in supporting both groups, offering comprehensive digital business services at relatively low cost, and enabling small businesses to
enter and compete in the global market.
A positive story from 2020 was growth in new start ups Shopify continues to provide subscriptions at low cost There was a net-positive increase in the number of small
Annual business application submissions in the U.S. Monthly Shopify fees compared to average monthly businesses on Shopify selling internationally in 2020
wages in select economies Number of small businesses on Shopify selling
5,000,000 internationally
Monthly Fee, Basic Shopify 690,000 +
4,500,000 $29.0
4,000,000
Monthly Fee, Shopify $79.0 520,000 +
3,500,000
3,000,000
United Kingdom
2,500,000 370,000 +
2,000,000
Canada
1,500,000
1,000,000 Australia
500,000
0 United States
2018 2019 2020
2020
2018
2019
2016
2017
2014
2015
2011
2012
2013
2009
2010
2007
2008
2005
2006
$0 $2,000 $4,000 $6,000

Note: Small businesses are defined in this study as merchants with less than $2.5
Source: U.S. Census Bureau; Deloitte Analysis Source: Shopify; OECD; Deloitte Analysis million in annual GMV.
Cross-border trade by Shopify businesses was up by nearly 75% in 2020
In recent years there has been a decline in import-export growth. COVID-19 served to worsen this trend. April, May, and June of 2020 witnessed a severe
decline in international trade.8
Historically, Shopify has been a platform for cross-border trade. Yet in 2020 the contrast between global trends and Shopify business trends were
especially stark. Even amidst the severe macroeconomic headwinds, Shopify enabled access to new markets and significant export growth among
merchants, supporting over $20 billion in exports. Additionally, in 2020 the number of Shopify partners working internationally increased by over 50% to
approximately 23,000 .
Against global headwinds, Shopify enables exports Small business on Shopify made the majority of exports Shopify supported significant intercontinental trade
Total international trade and international trade by Value of international sales by Shopify merchants in 2020, Case Study: Sales generated by European merchants to
Shopify merchants, annual percent change in $ billions customers outside of the continent of Europe, in $ millions
80% The value of exports by 74.5% $2,844.5
Shopify merchants in
70%
60.8% 2020 was $20.1 billion
60% 53.5%
50%
82.0% $9.5
40% difference $10.6 (47.4%) $1,521.1
30% (52.6%)
$980.1
20%
10%
0%
-10%
2018 2019 2020 2018 2019 2020
Total Merchandise International Trade Growth Small Businesses Medium and Large Businesses
Shopify International Trade Growth
Note: Small businesses are defined in this study as merchants with less than $2.5
Source: World Trade Organization; Shopify; Deloitte Analysis million in annual GMV. Source: Shopify; Deloitte Analysis
Shopify continues to empower entrepreneurship in developing countries
The pandemic intensified economic challenges faced by developing countries. Fiscal strain, sustaining job growth, and extreme poverty, among other
issues, have been exacerbated by COVID-19.
The crisis has underscored the need for new channels of economic activity – such as entrepreneurship and ecommerce – to promote broader, healthier
economic growth across all geographic regions. Through 2020 Shopify helped to deliver against this goal, with GMV by merchants in developing countries
increasing by more than $2 billion compared to 2019. Additionally, during this period the number of partners in developing countries doubled from
approximately 7,500 to approximately 15,000.
COVID-19 exacerbated fiscal strain in developing countries Shopify supports billions in sales in developing markets Shopify facilitates financial flows from advanced to
Gross debt position as a percentage of GDP in developing Annual GMV generated by merchants on Shopify in developing countries
countries developing countries, in $ millions Breakdown of exports by Shopify merchants in developing
70%
$7,000 countries
$90.4 M
60% $5,794.1
$6,000
50%
$5,000
40% $4,000
$3,370.7
Income from advanced $3,423.4 M
30% $3,000 countries used to pay (97.4%)
$1,879.7
for goods and services
20% $2,000 in developing countries
10% $1,000
0% $0
2000 2005 2010 2015 2020 2018 2019 2020
Exports to Advanced Countries Exports to Developing Countries

Source: IMF; World Bank Income Classifications; Deloitte Analysis
Note: Low-income countries, as defined by World Bank Income Classifications, are not
included in this time series. Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis
Shopify deepened its positive impact on Canada in 2020
Shopify has grown to become Canada’s largest company by market capitalization. Yet its contribution on Canada’s economy extends further than just
shareholder value creation.
Through the company’s R&D investment, Shopify helps to advance the country’s evolution towards digital, high-value-added services. And, there are
entrepreneurs across Canada – in commercial centers and elsewhere – using Shopify to bring their business ideas to market, generate GMV, support jobs,
and create tax revenues.
Shopify has made its mark as a Canadian firm Shopify supports innovation through R&D expenditures
Largest Canadian firms by market capitalization, in $ billions Annual Shopify R&D as a share of Canada’s professional scientific, and technical service
Sector’s R&D
$180.0 100%
6.2%
$160.0 9.0%
Shopify 13.3%
$140.0 90%
$120.0
In 2020 Shopify
$100.0 80% invested $552.1 million
in R&D
$80.0
70%
$60.0
$40.0
60%
$20.0
$0.0
Largest 10th 50%
Company Largest 2018 2019 2020
Company Other PST Services Companies Shopify
Source: companiesmarketcap.com; Deloitte Analysis

Note: Data reflects April 13, 2021 Source: Statistics Canada; Shopify; Deloitte Analysis
Jurisdictional
Analyses
© Deloitte LLP and affiliated entities. Global Global

Economic
Economic
ImpactImpact
Study of
Study
Shopify
of Shopify
- 2021 15
Introduction to Jurisdictional Analyses
Shopify generates economic contributions in individual jurisdictions worldwide. This report explores the following 17 jurisdictions across four continents.
The Americas Europe

• Canada • France
• Mexico • Germany
• United States • Italy
• Netherlands
• Spain
• Sweden
• United Kingdom
Asia Oceania
• China • Australia
• Hong Kong SAR • New Zealand
• India
• Japan
• Singapore
In 2020 Shopify merchants across the world supported significant employment
Total FTEs supported by Shopify merchants in 2020, by jurisdiction
5K – 100K Jobs 100K – 300K Jobs United States, 714,000 + jobs

800,000
On average, this level of jobs is roughly equivalent to On average, this level of jobs On average, this level of jobs is
700,000 100 large sized businesses is roughly equivalent to 300 roughly equivalent to nearly
large sized businesses 1,500 large sized businesses.
600,000
Additionally, if U.S. employees
supported by Shopify all lived in
500,000
one city, it would be a top 20 city
in the U.S. by population size10
400,000
300,000
200,000
100,000

Note: Large sized businesses are estimated as businesses with 500 employees, a standard definition in major economies such as the U.S.
Americas | Canada
In 2020, Canadian merchants supported a significant impact to the economy In 2020, Canadian merchants made $2.0 billion in exports
Business Activity Impact GDP Impact Jobs Impact
$18.3Bn $8.2Bn 123,000+ $2.0Bn in

Exports
Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis
In 2020, Canadian merchants outpaced export growth by 94.8% 3,900+ Canadian partners supported merchants on Shopify
Annual percent change in exports

100.0%
82.3%
80.0%
60.0%
40.0%
38.4% 35.3% 3,900+
20.0% 7.1% partners
0.0%
-0.9%
-20.0% -12.5%
2018 2019 2020
Canadian Shopify Merchant Exports Total Canadian Merchandise Exports
Source: Shopify; Deloitte Analysis; World Trade Organization Source: Shopify; Deloitte Analysis
Americas | Mexico
In 2020, Mexican merchants supported a significant impact to the economy In 2020, Mexican merchants made $17.6 million in exports
$3.2Bn $1.6Bn 64,000+ $17.6M

in Exports
In 2020, Mexican merchants outpaced export growth by 138.3% 900+ Mexican partners supported merchants on Shopify

150.0% 129.0%
100.0%
55.0%
50.0%
40.8% 900+
10.1% 2.2% partners
0.0%
-9.3%
-50.0%
2018 2019 2020
Mexican Shopify Merchant Exports Total Mexican Merchandise Exports
Americas | United States
In 2020, U.S. merchants supported a significant impact to the economy In 2020, U.S. merchants made $4.8 billion in exports
$166.9Bn $79.2Bn 714,000+ $4.8Bn

in Exports
In 2020, U.S. merchants outpaced export growth by 71.3% 18,000+ U.S. partners supported merchants on Shopify

80.0%
58.4%
60.0%
36.7%
40.0% 27.0%
18,000+
20.0% 7.6%
partners
0.0%
-1.3%
-20.0% -12.9%
2018 2019 2020
U.S. Shopify Merchant Exports Total U.S. Merchandise Exports

Asia | China
In 2020, Chinese merchants supported a significant impact to the economy In 2020, Chinese merchants made $2.7 billion in exports
$15.8Bn $6.3Bn 296,000+ $2.7Bn

in Exports
In 2020, Chinese merchants outpaced export growth by 60.6% 500+ Chinese partners supported merchants on Shopify

600.0%
501.4%
500.0%
400.0%
300.0% 500+
173.3%
200.0% partners
100.0% 64.3%
9.9% 0.5% 3.7%
0.0%
2018 2019 2020
Chinese Shopify Merchant Exports Total Chinese Merchandise Exports

Asia | Hong Kong SAR
In 2020, merchants in Hong Kong SAR supported a significant impact to the In 2020, Hong Kong SAR merchants made $1.3 billion in exports
economy
$2.1Bn $0.9Bn 44,000+ $1.3Bn

in Exports
In 2020, merchants in Hong Kong SAR outpaced export growth by 64.6% 300+ Hong Kong SAR partners supported merchants on Shopify

120.0% 102.9%
100.0%
80.0% 67.2%
59.5%
60.0%
300+
40.0%
20.0% 3.4% 2.6%
partners
0.0%
-20.0% -5.9%
2018 2019 2020
Hong Kong SAR Shopify Merchant Exports Total Hong Kong SAR Merchandise Exports
Asia | India
In 2020, Indian merchants supported a significant impact to the economy In 2020, Indian merchants made $70.1 million in exports
$1.9Bn $0.9Bn 149,000+ $70.1M

in Exports
In 2020, Indian merchants outpaced export growth by 74.1% 2,500+ Indian partners supported merchants on Shopify

80.0%
59.2%
60.0% 51.0%
42.2%
40.0%
2,500+
20.0% 8.5%
partners
0.0%
-0.1%
-20.0% -14.8%
2018 2019 2020
Indian Shopify Merchant Exports Total Indian Merchandise Exports

Asia | Japan
In 2020, Japanese merchants supported a significant impact to the economy In 2020, Japanese merchants made $85.8 million in exports
$3.9Bn $1.9Bn 40,000+ $85.8M

in Exports
In 2020, Japanese merchants outpaced export growth by 96.8% 900+ Japanese partners supported merchants on Shopify

100.0% 87.7%
80.0%
60.0% 43.0% 46.7%
40.0% 900+
20.0% 5.7% partners
0.0%
-20.0% -4.4% -9.1%
2018 2019 2020
Japanese Shopify Merchant Exports Total Japanese Merchandise Exports

Asia | Singapore
In 2020, merchants in Singapore supported a significant impact to the economy In 2020, Singapore merchants made $514.9 million in exports
$2.0Bn $0.9Bn 36,000+ $514.9M

in Exports
In 2020, merchants in Singapore outpaced export growth by 114.6% 500+ Singapore partners supported merchants on Shopify

120.0% 107.4%
100.0%
80.0%
60.0%
33.5% 500+
40.0%
20.0% 10.6% partners
0.0%
-20.0% -0.8% -5.4% -7.2%
2018 2019 2020
Singapore Shopify Merchant Exports Total Singapore Merchandise Exports

Europe | France
In 2020, French merchants supported a significant impact to the economy In 2020, French merchants made $484.7 million in exports
$4.7Bn $2.1Bn 23,000+ $484.7M

in Exports
In 2020, French merchants outpaced export growth by 91.9% 3,000+ French partners supported merchants on Shopify

200.0%
156.3%
150.0%
100.0% 77.4%
67.8%
3,000+
50.0%
8.8% partners
0.0%
-1.9% -14.5%
-50.0%
2018 2019 2020
French Shopify Merchant Exports Total French Merchandise Exports

Europe | Germany
In 2020, German merchants supported a significant impact to the economy In 2020, German merchants made $530.2 million in exports
$7.3Bn $3.4Bn 42,000+ $530.2M

in Exports
In 2020, German merchants outpaced export growth by 157.0% 1,300+ German partners supported merchants on Shopify

200.0%
149.7%
150.0%
93.4% 95.4%
100.0%
1,300+
50.0%
7.8% partners
0.0%
-4.6% -7.3%
-50.0%
2018 2019 2020
German Shopify Merchant Exports Total German Merchandise Exports

Europe | Italy
In 2020, Italian merchants supported a significant impact to the economy In 2020, Italian merchants made $143.2 million in exports
$2.1Bn $0.9Bn 10,000+ $143.2M

in Exports
In 2020, Italian merchants outpaced export growth by 110.8% 900+ Italian partners supported merchants on Shopify

140.0%
115.4%
120.0% 103.1%
100.0%
80.0%
60.0% 39.3% 900+
40.0%
20.0% 8.3% partners
0.0%
-20.0% -2.1% -7.7%
2018 2019 2020
Italian Shopify Merchant Exports Total Italian Merchandise Exports

Europe | Netherlands
In 2020, merchants in Netherland supported a significant impact to the economy In 2020, merchants in The Netherlands made $525.9 million in exports
$2.9Bn $1.2Bn 11,000+ $525.9M

in Exports
In 2020, merchants in The Netherlands outpaced export growth by 170.8% 700+ partners in The Netherlands supported merchants on Shopify

200.0% 166.0%
150.0%
100.0% 84.2% 78.4%

700+
50.0%
11.4% partners
0.0%
-2.5% -4.8%
-50.0%
2018 2019 2020
Netherlands Shopify Merchant Exports Total Netherlands Merchandise Exports

Europe | Spain
In 2020, Spanish merchants supported a significant impact to the economy In 2020, Spanish merchants made $298.5 million in exports
$2.3Bn $1.0Bn 13,000+ $298.5M

in Exports
In 2020, Spanish merchants outpaced export growth by 108.2% 800+ Spanish partners supported merchants on Shopify

120.0% 100.1%
100.0%
80.0%
60.0%
800+
40.0% 24.2%
20.0% 8.5% 9.9% partners
0.0%
-20.0% -3.7% -8.1%
2018 2019 2020
Spanish Shopify Merchant Exports Total Spanish Merchandise Exports

Europe | Sweden
In 2020, Swedish merchants supported a significant impact to the economy In 2020, Swedish merchants made $114.3 million in exports
$0.9Bn $0.5Bn 4,000+ $114.3M

in Exports
In 2020, Swedish merchants outpaced export growth by 82.4% 200+ Swedish partners supported merchants on Shopify

100.0%
79.3%
80.0% 64.7%
60.0%
40.0% 30.9% 200+
20.0% 8.5% partners
0.0%
-3.3% -3.1%
-20.0%
2018 2019 2020
Swedish Shopify Merchant Exports Total Swedish Merchandise Exports

Europe | United Kingdom
In 2020, U.K. merchants supported a significant impact to the economy In 2020, U.K. merchants made $2.6 billion in exports
$22.2Bn $10.5Bn 112,000+ $2.6Bn

in Exports
In 2020, U.K. merchants outpaced export growth by 104.7% 4,500+ U.K. partners supported merchants on Shopify

100.0% 90.5%
80.0%
60.4%
60.0%
40.2%
40.0% 4,500+
20.0% 10.3%
partners
0.0%
-20.0% -3.4%
-14.1%
2018 2019 2020
U.K. Shopify Merchant Exports Total U.K. Merchandise Exports

Oceania | Australia
In 2020, Australian merchants supported a significant impact to the economy In 2020, Australian merchants made $1.3 billion in exports
$18.1Bn $7.8Bn 98,000+ $1.3Bn

in Exports
In 2020, Australian merchants outpaced export growth by 101.3% 2,900+ Australian partners supported merchants on Shopify

93.6%
100.0%
80.0%
54.8% 56.8%
60.0%
40.0% 2,900+
20.0% 11.2%
5.4% partners
0.0%
-20.0% -7.6%
2018 2019 2020
Australian Shopify Merchant Exports Total Australian Merchandise Exports

Oceania | New Zealand
In 2020, merchants in New Zealand supported a significant impact to the economy In 2020, New Zealand merchants made $231.4 million in exports
$2.2Bn $0.9Bn 13,000+ $231.4M

in Exports
In 2020, New Zealand merchants outpaced export growth by 114.4% 700+ New Zealand partners supported merchants on Shopify

112.9%
120.0%
100.0%
80.0% 64.7%
60.0%
32.3% 700+
40.0%
20.0% 4.2% partners
0.0%
-0.4% -1.6%
-20.0%
2018 2019 2020
New Zealand Shopify Merchant Exports Total New Zealand Merchandise Exports
Appendix
© Deloitte LLP and affiliated entities. Global Global

Economic
Economic
ImpactImpact
Study of
Study
Shopify
of Shopify
- 2021 35
The coverage of analysis includes an aggregate view of Shopify’s global merchant, partner and
operational activity
At the outset of conducting this study, Shopify and Deloitte confirmed key metrics that to be analyzed, as detailed below.
Key Metrics Analyzed
1 Global economic activity from merchant businesses on Shopify 10 Export growth of businesses on Shopify
2 Merchant business GDP impact results by jurisdiction 11 Revenue generated by developing nations
3 FTE’s supported by business on Shopify 12 Exports from developing countries
4 FTE’s supported by partner businesses on Shopify 13 Number of partners in developing countries and working internationally
14 Number of countries with partners that work internationally (i.e. referred

5 Revenue generated by Shopify’s partner ecosystem merchants from a foreign jurisdiction)
6 Sales generated by European merchants to those outside of Europe 15 Revenues from Canadian merchants outside of 6 major centers
7 Number of small businesses on Shopify 16 Revenues from Canadian merchants inside the 6 major centers
8 International sales generated by small businesses on Shopify 17 Online sales growth of businesses on Shopify
9 Share of international sales generated by small businesses on Shopify 18 Share of R&D spend in Canada (and spending increase)
Endnotes
1. Source: World Health Organization (WHO)

2. Source: MetLife and U.S. Chamber of Commerce
3. Source: Financial Times
4. Source: Cisco and International Data Corporation (IDC)
5. Source: Shopify
6. Source: International Monetary Fund (IMF)
7. Source: International Labour Organization (ILO)
8. Source: World Trade Organization (WTO)
9. Source: Fortune
10. Source: United States Census Bureau
www.deloitte.ca
About Deloitte
Deloitte provides audit and assurance, consulting, financial advisory, risk advisory, tax, and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a
globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and service to address clients’ most complex business challenges. Deloitte LLP, an Ontario limited liability
partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of
which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Our global Purpose is making an impact that matters. At Deloitte Canada, that translates into building a better future by accelerating and expanding access to knowledge. We believe we can achieve this Purpose by living our shared values to
lead the way, serve with integrity, take care of each other, foster inclusion, and collaborate for measurable impact.
To learn more about how Deloitte’s approximately 312,000 professionals, over 12,000 of whom are part of the Canadian firm, please connect with us on LinkedIn, Twitter, Instagram, or Facebook.
© Deloitte LLP and affiliated entities.

Global Economic Impact Study of Shopify: April 2021

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Global Economic Impact Study of Shopify: April 2021

Uploaded by

Copyright:

Available Formats

Global Economic Impact Study of Shopify

2 2021 Economic Impact Summary 7

United United Canada Australia China Germany France Japan

$166.9 $22.2 $18.3 $18.1 $15.8 $7.3 $4.7 $3.9

$3.2 $2.9 $2.3 $2.2 $2.1 $2.1 $2.0 $1.9

$1.7 $1.7 $1.6 $1.4 $1.2 $1.2 $1.1 $1.0

Source: Shopify; Deloitte Analysis

$0 $2,000 $4,000 $6,000

Exports to Advanced Countries Exports to Developing Countries

Source: companiesmarketcap.com; Deloitte Analysis

© Deloitte LLP and affiliated entities. Global Global

The Americas Europe

Total FTEs supported by Shopify merchants in 2020, by jurisdiction

5K – 100K Jobs 100K – 300K Jobs United States, 714,000 + jobs

Source: Shopify; Deloitte Analysis

Business Activity Impact GDP Impact Jobs Impact

$18.3Bn $8.2Bn 123,000+ $2.0Bn in

Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis

Annual percent change in exports

Business Activity Impact GDP Impact Jobs Impact

$3.2Bn $1.6Bn 64,000+ $17.6M

Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis

Annual percent change in exports

Business Activity Impact GDP Impact Jobs Impact

$166.9Bn $79.2Bn 714,000+ $4.8Bn

Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis

Annual percent change in exports

U.S. Shopify Merchant Exports Total U.S. Merchandise Exports

Business Activity Impact GDP Impact Jobs Impact

$15.8Bn $6.3Bn 296,000+ $2.7Bn

Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis

Annual percent change in exports

Chinese Shopify Merchant Exports Total Chinese Merchandise Exports

$2.1Bn $0.9Bn 44,000+ $1.3Bn

Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis

Annual percent change in exports

Business Activity Impact GDP Impact Jobs Impact

$1.9Bn $0.9Bn 149,000+ $70.1M

Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis

Annual percent change in exports

Indian Shopify Merchant Exports Total Indian Merchandise Exports

Business Activity Impact GDP Impact Jobs Impact

$3.9Bn $1.9Bn 40,000+ $85.8M

Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis

Annual percent change in exports

Japanese Shopify Merchant Exports Total Japanese Merchandise Exports

Business Activity Impact GDP Impact Jobs Impact

$2.0Bn $0.9Bn 36,000+ $514.9M

Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis

Annual percent change in exports

Singapore Shopify Merchant Exports Total Singapore Merchandise Exports

Business Activity Impact GDP Impact Jobs Impact

$4.7Bn $2.1Bn 23,000+ $484.7M

Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis

Annual percent change in exports

French Shopify Merchant Exports Total French Merchandise Exports

Business Activity Impact GDP Impact Jobs Impact

$7.3Bn $3.4Bn 42,000+ $530.2M

Source: Shopify; Deloitte Analysis Source: Shopify; Deloitte Analysis

Annual percent change in exports

German Shopify Merchant Exports Total German Merchandise Exports

Business Activity Impact GDP Impact Jobs Impact

$2.1Bn $0.9Bn 10,000+ $143.2M