Shopify Inc. reported a 109% year-over-year increase in B2B gross merchandise volume (GMV) for the first quarter of 2025, signaling accelerating adoption of the platform among wholesalers and enterprise sellers amid global trade volatility and digital commerce transformation.
Total Q1 Shopify revenue rose 27% to $2.36 billion, outpacing analyst estimates. GMV reached $74.8 billion, up 23% year over year, with gains coming from both same-store sales and new merchant additions. The company also posted $363 million in free cash flow, maintaining a 15% free cash flow margin for the quarter.
“Merchants using Shopify are outgrowing the market, and our B2B tools are now a critical driver of that success,” said president Harley Finkelstein on the company’s earnings call. “From manufacturers to enterprise-scale retailers, more businesses are choosing Shopify as their unified commerce platform.”
In North America, 117 of the Top 2000 online retailers use Shopify as their ecommerce platform. The Top 2000 is Digital Commerce 360’s database of the largest online retailers in the region by their annual ecommerce sales. In 2024, those 117 online retailers combined for more than $9.78 billion in web sales.
Shopify B2B ecommerce growth in Q1
Shopify’s B2B momentum is backed by its expanding feature set and merchant wins. The company added major enterprise customers including VF Corp’s Dickies, Icebreaker, and JanSport brands, as well as Follett Higher Education Group, which operates more than 1,000 campus bookstores. Luxury brand conglomerate Kering Beauty, which includes labels Alexander McQueen and Balenciaga, also joined the platform.
International GMV rose 31% and now represents 15% of total GMV, with Europe leading growth at 36% year over year. Offline GMV grew 23%, driven by increased adoption of Shopify’s point-of-sale (POS) system by multi-location retailers.
Chief financial officer Jeff Hoffmeister emphasized that Shopify’s mix of B2B, international, and POS sales is creating resilience in a challenging macro environment.
“We’re seeing strength across geographies and segments,” Hoffmeister said. “The diversity of our merchant base — by size, vertical, and region — is helping insulate us from tariff shocks and economic volatility.”
The company also introduced new cross-border commerce features to help merchants navigate tariffs and duties. These include AI-driven product classification tools, duty-inclusive pricing, prepaid international shipping labels, and enhanced warehousing access through third-party logistics providers.
In the face of new U.S. tariff rules and the expiration of China’s de minimis exemption, Finkelstein said Shopify reacted within hours to update its features.
“We rolled out a buy-local filter on the Shop app in less than a week and updated duties-at-checkout functionality over a weekend,” he noted. “This is what agility looks like at scale.”
Despite missing Q1 estimates, analysts remained positive.
“Shopify’s B2B growth, global merchant expansion, and rapid innovation in response to tariffs position it well to outperform in a turbulent market,” said Samad Samana, analyst at Jefferies.
Looking ahead, Shopify expects Q2 revenue growth in the mid-20% range. The company reiterated its commitment to investing in international markets, AI tooling, and enterprise capabilities.
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