Keeping track of your competitors’ average Shopify store revenue is essential for staying ahead of the curve and thriving in the e-commerce landscape.
Understanding their revenue not only helps in benchmarking but also identifies opportunities, particularly during product research.
To maximize your chances of success against Shopify competitors you need to calculate their average Shopify store revenue and have a good grasp of what the formula entails.
Try our Shopify store revenue checker formula below.
In the rest of this article, we will share the many ways in which you can use this formula to spy on your competitors’ success and eCommerce performance.
We will break down each variable included in our average Shopify store revenue formula, so you can see the exact strategies used by your competitors.
You can use our list of the best competitor spy tools, however, in this article we will use our own customer spy tool – Koala Inspector.
What’s the eCommerce revenue formula?
Calculating average revenue on Shopify is straightforward: traffic x conversion rate by niche x average product price.
For example, if a competitor has 20,000 visitors, a 5% conversion rate, and an average product price of $80, their revenue would be $80,000.
Following the formula, your competitor has:
Traffic: 20,000 Shopify visitors
Conversion rate by niche: 5%
Average product prices: $80
Traffic x Conversion rate by niche x Average product prices = $80,000 (Revenue)
What’s behind the formula of average Shopify store revenue?
Let’s look at the main elements in this Shopify eCommerce revenue formula: traffic, conversion rate by niche, and average order value.
1. Traffic
Web traffic is the number of visits a Shopify store receives and is usually called Shopify “sessions”. Understanding Shopify web traffic is important to know as it is a standard approach to evaluating the success of your competitors’ Shopify stores.
There are mainly two types of traffic on Shopify: through paid and organic methods.
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Paid Search
Paid search is a surefire way to increase Shopify store traffic, provided that the Shopify store is set up correctly with optimized loading time and a sound pricing strategy. Running Google Ads campaigns can help Shopify stores rank for relevant keywords so that customers can come across a Shopify store easily.
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Social Media Ads
Any Shopify business that’s serious about gaining traction online should be paying close attention to social media advertising strategies, considering that it’s a marketing channel that’s continuously growing and reaching customers globally.
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Organic Search
Organic search tactics refer to search engine results that are not paid for and should be used to complement paid search strategies. Some ways for a Shopify store to rank well on organic search are to look into content marketing strategies, do marketing organically on social media, and strengthen Shopify Search Engine Optimization (SEO) efforts.
2. Conversion Rate by Niche
It’s important to pay close attention to the Shopify eCommerce conversion rates by niche.
Each niche, such as cosmetics, electronics, home and garden, or pet supplies, has benchmark conversion rates. For example, according to Smartinsights.com gifts have a high conversion rate of 4.9%, while consumer electronics have a lower rate of 1.4% (Source: SmartInsights)
These insights are certainly not surprising, as gifts, which reign supreme with a 4.9% conversion rate, tend to cost less than higher ticket items like automotive (2.2%) and consumer electronic (1.4%) purchases.
This goes to show that as long as you are performing on par with competitors in your niche and industry, you have little to worry about.
Focus on increasing average Shopify store revenue, refining your customer journey, and running value-adding campaigns to build a strong loyal customer base.
Let us explore some of the top-performing niches by Shopify conversion rates.
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Gifts
As with most other niches, a successful gift eCommerce business on Shopify with high average store revenue starts with having a good understanding of what buyers want.
Some of the top gift stores on eCommerce platforms include Etsy and Brika – both of which are empowering designers to bring their best works to their stores. Every design makes for a great gift, fit for any seasonal or special occasion.
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Health & Pharmacy
EY previously reported that the future for pharmacies may very be within the eCommerce space. The shift towards an eCommerce-driven pharmaceutical industry comes as no surprise, given the onslaught of the COVID-19 pandemic. The pandemic made it necessary for pharmaceutical products to be readily bought on eCommerce websites without compromising safety and legitimacy.
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Apparel & Footwear
Love shopping online and adding versatile, stylish outfits to your wardrobe? You’re not alone. Apparel & Footwear is one of the top 3 eCommerce niches by conversion rate, a testament to how much customers around the world have embraced online shopping as a means to elevate their dress sense. Ecommerce platforms like Shopify make it easy for customers to browse millions of designs, compare them with other stores and pick the best fit for them. Plus, online shopping makes it easier to order custom outfits, get sizes that are harder to obtain in-store, and check customer reviews to find the best possible product.
Some of the top eCommerce sites, by ranking as of August 2022, include Shein, Nike, H&M, Asos, and Zara. With over 100% growth every year for the last eight years, Shein is taking the world by storm with its fast fashion designs and mass appeal.
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Sports
An enjoyable day out in the sun or an adventure-packed indoor exercise class often requires the right sportswear and fit, for maximum comfort. That’s why Sports finds itself among the top 5 eCommerce niches by conversion rate, as more shoppers turn to online stores to get their hands on sportswear and equipment. The top sports eCommerce stores include leading retailers Nike, JD, and Gymshark.
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Jewelry & Cosmetics
Every breathtaking date night outfit is enhanced with the perfect accessory and makeup to make a bold statement. That’s why Jewelry & Cosmetics rounds out the top 5 eCommerce niches by conversion rate, attracting keen visitors and converting them into buyers. The best thing about this niche? Jewelry is often seen as timeless and classic, and will never go out of style. Plus, cosmetic products are typically high in order value, which makes them the perfect addition to any Shopify eCommerce store.
3. Average product prices
It is important to find out your competitors’ Shopify average product prices as you can assess the effectiveness of the methods they use to get customers to spend more. Besides, it can inform how you select a niche for your own Shopify eCommerce store.
You can easily find this on any Shopify store with our free spy tool Koala Inspector.
Leveraging Tools to Find Average Shopify Store Revenue
To adjust your business and identify gaps, it’s essential to know your competitors’ average Shopify store revenue. However, accessing this information is challenging as store owners rarely disclose it.
This is one of the main reason we created Koala Inspector, the ultimate eCommerce spy tool that works seamlessly with competitors’ Shopify stores and provides the insights you need to find out the average Shopify store revenue of your competitors’ stores.
Koala Inspector: a must-have tool for all Shopify eCommerce sellers
If you are looking for a tool to help you find competitors’ traffic, average product prices, and to check Shopify store revenue look no further than Koala Inspector.
Our tool seamlessly integrates with Shopify stores, providing insights into competitors’ traffic and average product prices.
Koala Inspector, with over 90,000 users, offers a free plan and paid plans for more advanced features, helping you maximize eCommerce performance and revenue.
