Shopify Revenue Declined For Some Verticals This Season, Study Finds

Shopify revenue declined during the holidays in the food, beverage and wellness categories, according to research by Ampla Technologies.  

Food revenue fell as a percentage of total revenue: from 12.57% to -9.58% YoY.

"This speaks to to the diversification of brands within that category to non-Shopify channels, such as marketplaces, wholesale, and owned retail," says Mike Grillo, vice president of marketing at Ample.

Similarly, non-alcoholic beverage sales fell to a 16.3-minus 14.7% ratio. Wellness dropped to 28.8%, out of 33.35%.

Meanwhile, TikTok placed third in percentage of total ad spend, fluctuating between 3% and 9%. But the 3% result was in November 2022, when Facebook rebounded to account for more than 80% of total spend for its highest level of 2022.  

In other findings, Ampla reports that: 

  • Brands generated 18% more revenue from existing customers YoY. 
  • Marketers passed savings along, the average ranging from 20% to 22%
  • Overall revenue jumped by 12% during the season, along with a 14% hike in total orders
Ampla reported on its own customers in the banking and  retail/CPG/Food&Bev verticals.

Looking forward, Ampla predicts:

  • Financial products and services are increasingly being placed directly at the doorstep of the consumer, a concept known as “embedded finance.” This can make an otherwise disjointed user journey seamless, Ampla says.
  • Given the general tightening of wallets, retail and ecommerce businesses will look to shorter term solutions to bridge the monetary gap between paying for inventory and selling it. 
  • Consumers have to manage a disparate set of providers for very niche tech needs, thanks to "the almost ubiquitous availability of capital in Silicon Valley over the last decade and the proliferation of startups looking to serve specific customer needs."

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