A new report by software solutions provider Katana Cloud Inventory analyses the current e-commerce performance of Shopify merchants and the challenges they face.

Shopify is a proprietary e-commerce platform for online stores and retail point-of-sale systems.

The survey of more than 100 small and medium-sized businesses (SMBs) in the US and Canada revealed that 98% of respondents have difficulty aligning inventory and production with changing consumer demand.

Additionally, to offset a significant rise in material costs, 80% of SMBs have had to increase prices and 53% have looked for lower cost materials. In fact, the report revealed that 26% of Shopify merchants were forced to reduce their staff in a last-ditch effort to counteract inflation.

To overcome current challenges, 73% of SMBs are leveraging technology to mitigate cost pressures and increase efficiency.

While 77% of SMBs expect their e-commerce sales to increase by the end of this year, respondents are struggling to understand how much product to make and where to store it.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to the report, 66% of SMBs stated that producing and storing inventory is their largest expense. Additionally, 83% of merchants reported significant operational challenges and difficulties keeping inventory, manufacturing, and accounting data synchronised.

Managing outdated business systems (64%) and aligning inventory with demand (60%) were also stated as major challenges. This is alongside the issue of inventory shrink through theft.

When asked about focus areas for 2024, the most common responses were e-commerce transformation (32%) and inventory management (32%), followed closely by technology adoption (30%).

A staggering 94% of SMBs intend to increase their spend on SaaS technology and 97% plan to incorporate AI into their business operations this year.