Shopify (SHOP 1.70%) has already cemented its place as one of the world's most important commerce platforms. In 2024, the company processed more than $292 billion in gross merchandise volume (GMV) -- up 24% year over year.
But the company isn't standing still. As Shopify enters a more mature phase, the question investors should be asking is: Where does future growth come from?
Here are three strategic levers that could power Shopify's next chapter.
Image source: Getty Images.
1. Scaling take rate and ecosystem monetization
Shopify's take rate -- the share of GMV it captures as revenue -- has been rising steadily. That's partly due to a subscription price increase in 2023. But more importantly, the company has been consistently expanding its value-added services, especially in payments and financial infrastructure.
At the core of this strategy is Shop Pay, Shopify's one-click checkout product. In 2024, Shop Pay processed $181 billion in volume, or 62% of total GMV.
Shopify has layered on a growing suite of services such as installment payments, merchant cash advances, fraud prevention, and offline POS and retail payments. These products do more than generate incremental revenue -- they embed Shopify into the daily operations of its merchants. That raises switching costs, strengthens long-term retention, and, above all, improves monetization.
Beyond that, Shopify can rely on its huge and growing ecosystem to add new revenue streams. With thousands of apps available, merchants can solve almost any problem by incorporating solutions from Shopify's partners. That makes Shopify not just a website builder, but a true commerce infrastructure layer.
In other words, the more a merchant builds around Shopify, the harder it becomes to leave. Over time, this will create a huge opportunity for Shopify to capture additional revenue across tools, services, and transactions.
2. Going global
Shopify's business has historically been North America dominant. But international markets are catching up fast -- and they represent one of the company's most important growth levers moving forward.
In 2024, international revenue grew by 33%, which is higher than the groupwide revenue growth of 26%. However, despite the high growth rate, international revenue (outside of the U.S.) accounted for only 36% of the company's total revenue in the first quarter of 2025.
To capture a growing share of the international market, Shopify has focused on localizing its tools -- from region-specific payment gateways to multilingual storefronts -- without fundamentally altering the product. That's allowed the company to expand quickly without reinventing its stack. For instance, Shopify expanded Shopify payments to 16 countries, making it easier for merchants to serve customers.
In areas where the company may require additional expertise, its collaboration with Global-e Online could come in handy, especially in more complex aspects like taxation. Particularly, Shopify can leverage Global-e Online's expertise in helping major brands build their cross-border e-commerce business.
With the global retail market estimated at $32 trillion in 2023, Shopify doesn't need to dominate every market. It just needs to capture a meaningful (and growing) slice of the opportunity over time.
3. AI is a huge enabler
Shopify isn't chasing buzz with artificial intelligence (AI) -- it's embedding it directly into the merchant workflow. Through tools like Shopify Magic and Sidekick, the company is now helping merchants automate a range of activities, such as:
- Generating product descriptions
- Writing email campaigns
- Analyzing store performance
- Automating support responses
- GettingAI-powered suggestions on what to do next
These tools are integrated into Shopify's platform and thus require no technical setup. That's key since it not only helps existing merchants quickly leverage the power of AI to run their business more efficiently, but also lowers the barrier for new merchants to set up online businesses.
In other words, AI makes it easier for entrepreneurs to start, run, and grow their businesses. If Shopify can continue to innovate and introduce more useful AI tools, it's getting closer to its long-term vision of becoming a full-fledged commerce operating system, thus sustaining its growth trajectory.
What it means for investors
Shopify is no longer just a storefront builder but has evolved into a commerce infrastructure platform.
That means long-term growth will come not just from adding more merchants, but also from extracting more value per merchant -- via continuously innovating and helping merchants become successful.
With so many levers to pull, Shopify is well positioned to sustain its growth momentum in the years to come. Growth investors should keep the company on their radar.
