Top 10 Global Ecommerce Categories for Explosive Growth in 2024

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Consider launching an online store that sells products you think are trending. You market your store and generate some traffic, but when customers arrive, they don't shop. Instead, they bounce and leave your site. After some troubleshooting, you realize that your merchandise is out of date. What you thought was a hot niche is a dying eCommerce category. Scenarios like this can be expected from eCommerce business owners who don't analyze their competitors before starting their online store.

One of the most critical aspects of eCommerce competitor analysis is studying eCommerce categories to uncover the most profitable niches for your business. This guide will help you identify and tap into the most lucrative eCommerce categories to achieve your goals and grow your online business. We'll explore leveraging data and trends to stay ahead of the competition.

Shophunter’s Shopify sales tracker can help you uncover invaluable data about eCommerce categories to find profitable niches to explore for your online business. With this tool, you can analyze your competitors' sales, products, and trends to gain insights to help you make informed decisions about your business.

What is an Ecommerce Business Model?

An eCommerce business model is a blueprint that explains how a company intends to make money online. More than just a description of products and services, an eCommerce model details the various processes and participants involved in a business’s online sales strategy. The most common eCommerce models include:

Business to Consumer (B2C)

Business to Business (B2B)

Business to Government (B2G)

Business to Business to Consumer (B2B2C)

Consumer to Consumer (C2C)

Consumer to Business (C2B)

1. eCommerce Business Models: Business to Consumer (B2C)

As the name implies, business-to-consumer (B2C) is when a company markets its products or services directly to end users. It is the most widely known form of commerce. You complete a B2C transaction every time you purchase food from a grocery store, eat dinner at a restaurant, watch a movie at a theater, and get a haircut. You are the end user of the products and services these companies sell. There are five different subsets of the eCommerce B2C business model:

DTC eCommerce is where manufacturers ultimately control the eCommerce strategy to sell directly to consumers without a retailer or distributor.

Online intermediaries bring sellers and consumers together and take a cut of each transaction.

Advertising-based models are when Information is given away for free, and money is made from advertising on the site.

Community-based sites profit from targeting ads to users based on their demographics and location. Facebook is a prominent example.

Fee-based models are when companies sell information or entertainment to consumers for a fee, such as Netflix or subscription-based newspapers.

In recent years, online B2C sales have increased. As a result, many traditional brick-and-mortar retailers have been incorporating digital channels to reach consumers where they shop.

This hybrid approach involves companies having a traditional brick-and-mortar presence and an online shopping platform. Many companies integrate these approaches with an omnichannel eCommerce strategy to improve the customer experience. For example, many companies now let you order your products online and pick them up at one of their local stores. Many companies also allow customers to return products they bought online to local stores to ensure a quick and easy refund or exchange.

To successfully implement the B2C eCommerce model, businesses must have an eCommerce platform that can adjust to customer needs without service delays or runaway costs.

2. eCommerce Business Models: Business to Business (B2B)

As the name implies, business-to-business (B2B) is when a company markets its products or services directly to other businesses. B2B eCommerce can be divided into two methodologies: vertical and horizontal. Vertically oriented companies sell to customers within a specific industry. With a horizontal approach, you sell to customers across many industries. Each method has pros and cons, such as industry expertise and market depth (vertical) versus wide-spread market coverage and diversification (horizontal).

Both can be lucrative pathways, but your strategy will depend on your products and customers, so consider them carefully. Historically, B2B businesses were behind their direct-to-consumer counterparts, especially regarding commerce innovation and digital sales. The problem lay in price negotiation and collaboration, as many companies were used to leveraging sales representatives as the primary revenue-generating channel. The modern B2B buyer has become tech-savvy and shares many of the same demands and buying habits as the average consumer.

Convenience, flexibility, personalization, and integrated experiences are expected in B2B commerce, and providing them is business-critical. Despite the slow adoption of digital strategies, B2B brands have focused increasingly on eCommerce to keep up with consumers. Gartner's recent report uncovered a dramatic shift with B2B digital commerce initiatives surpassing B2C. Gartner predicts that "by 2025, 75% of B2B manufacturers will sell directly to their customers via digital commerce."

3. eCommerce Business Models: Business to Government (B2G)

Business to government (B2G) occurs when a company markets its products and services directly to a government agency, such as a local, county, state, or federal agency. An example of a B2G relationship is when an ammunition manufacturer sells ammunition to the US Army. An example of a local B2G relationship is when a private engineering company sells its engineering services to a county government to develop a new water and sewer system for the community. In B2G, companies typically bid on projects when governments announce requests for proposals (RFPs).

Interacting with government agencies differs significantly from working with other businesses or consumers. Due to dealing with bureaucracies, business deals tend to move much slower than in different sectors. eCommerce companies can bid on government contracts, the same as other companies. Unlike many B2C transactions, however, many government agencies will not go directly to an eCommerce website and place an order.

Governments are more likely to place orders directly and quickly if the cost is low and the service is uncomplicated. An example of B2G eCommerce would be if a local government agency places an order directly from an online store for a part to repair a piece of equipment.

4. eCommerce Business Models: Business to Business to Consumer (B2B2C)

In B2B2C eCommerce, one business sells products, services, or goods to another company. The receiving business then sells to a consumer. An example of a B2B2C arrangement is when a wholesale distributor sells merchandise to retail stores that then sell the merchandise to consumers. The B2B2C model comprises three actors: the first business (the business of product origin), an intermediary, and the end user or consumer.

The B2B2C model can be used in several different ways in eCommerce. For example, a company could partner with another company to promote its products and services, giving the partner a commission for each sale.

The primary advantage of the B2B2C business model for eCommerce companies is the acquisition of new customers. This is an important consideration for new eCommerce companies that need a way to grow their customer base rapidly.

5. eCommerce Business Models: Consumer to Business (C2B)

Typically, commerce strategies are framed from the business’s perspective. However, models that start with consumers, including the consumer-to-business (C2B) model, are gaining popularity. In the C2B eCommerce business model, individuals sell goods and services directly to companies. A typical example is websites that allow individuals, such as contractors or freelancers, to share work or services they’re skilled in. Businesses often submit a request or bid for that person’s time and pay the person through that platform.

One of the most recognizable examples of a C2B business is Upwork, a freelancing platform that connects organizations directly with talent. Called a “marketplace for work,” Upwork allows businesses to find and source project support, from software development and content creation to UX design and financial needs such as bookkeeping or filing tax returns.

A newer C2B eCommerce example is that of influencer marketing platforms such as Upfluence or GRIN. Similar to Upwork, both platforms connect businesses with individuals selling services. However, in this case, people are ultimately selling the ability to expand a brand's reach and visibility through promotion across their social media networks.

6. eCommerce Business Models: Consumer to Consumer (C2C)

Another eCommerce business model is consumer-to-consumer (C2C). The rise of digital commerce has turbocharged C2C, with companies such as eBay, Craigslist, and Esty offering notable C2C eCommerce marketplaces.

In C2C eCommerce, consumers sell goods or services directly to other consumers. Third-party websites or marketplaces that facilitate transactions on behalf of buyers and sellers most often make this possible.

These eCommerce marketplaces allow smaller businesses or hobbyists to sell their products at prices without maintaining an online storefront.

Selecting the Best Ecommerce Business Model

What Are You Selling? Physical Products, Digital Goods, or Services?

When starting an eCommerce business, your first order of business is deciding what you want to sell. You have a few options: physical products, digital goods, or services. Physical products are the most commonly sold commodity in eCommerce stores and often achieve the highest sales.

From car parts to novels to electronics and gadgets, your entry into the online market won’t be difficult if you know what product you want to build. As the world moves further into a digital marketplace, selling digital goods and products has always been challenging. Because of the nature of digital goods, what you can sell and how much of it you sell are determined almost entirely by your business. Want to sell an eBook? A web design? If you’re not infringing on copyrights, the world is your oyster.

Another result of the broader move into the digital marketplace is how much easier selling services has become. Before online marketplaces, selling services typically occurred through newspaper ads or word of mouth. Now, service-based businesses can create their websites to market themselves. Furthermore, the popularity of marketplaces such as Facebook Marketplace, Etsy, and Amazon allows for accessible advertisement avenues. It takes just a few clicks to find a group looking for just the kind of services you may offer.

Who Is Your Customer?

Who are you looking to serve? Consider your customers' expectations when purchasing the new product you plan to sell. You’re most likely to succeed if you understand their behaviors and habits and find ways to improve them or save money. To accomplish this, you’ll need to look for pain points in how things are currently done at your company. This is an opportunity for innovators to carve out a space to improve customer relations and overall satisfaction.

What Are You Capable Of?

What do you know better than anyone else? Build around your existing strengths and the pieces that are energizing to you. Be realistic about what elements you can do yourself and what you need help with. Uncovering your limitations can be challenging, but it will help you make better long-term decisions.

What Is Best for Your Product?

Depending on your product, different models will serve you better than others. For example, if you manufacture your products, consider wholesaling or subscriptions to help cover production costs and break even more quickly. If you are a distributor of other people’s products, you’ll want to invest more heavily into direct marketing and strategies to grow your customer base.

What Is Your Positioning?

You understand what makes your product better, but will consumers? Evaluate your competition and make sure it’s clear why your product is the best choice. Are you competing on price? Selection? Convenience? Your unique value should be clear from your back-end processes, warehousing, marketing, and your website’s shopping experience.

What is ShopHunter?

ShopHunter's Shopify sales tracker offers a unique tool for ecom founders, particularly those in the Shopify ecosystem. At its core is a custom algorithm that estimates sales for both entire stores and specific products, helping users quickly validate product potential. The platform goes beyond basic sales tracking, featuring an ad spy tool that monitors advertising activity across stores.

This combination lets users spot trending products and successful marketing strategies early on. Whether you're a dropshipper, a Shopify store owner, or someone looking to enter the eCommerce space, ShopHunter aims to streamline product research and reduce the risk of investing in low-performing items. Sign up for a free trial (no credit card required) to our Shopify sales tracker tool to find your next eCom opportunity or to level up your current eCommerce store by learning from your competitors.

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1. Electronics: The Unstoppable E-Commerce Juggernaut

Electronics leads the pack of eCommerce categories, with a forecasted spend of $922.5 billion in 2024. This colossal figure represents a significant 20.3% of global eCommerce sales. The strength of this category lies in its broad product range, from smartphones and other essential devices to niche items like drones and smart home gadgets. Electronics has consistently attracted consumer interest, regardless of economic fluctuations. Even during periods of recession, shoppers prioritize purchasing the latest tech products to replace older devices.

2. Fashion and Apparel: The Ever-Evolving Ecommerce Category

Fashion and apparel rank second among the top online shopping categories. This year, consumers are expected to spend $760 billion on fashion-related products. The rise of fashion dropshipping has made it easier for entrepreneurs to launch online clothing stores, while established clothing brands are finding new opportunities for collaboration. Fashion’s rapid pace of change also drives continual consumer interest. Each season brings new styles and trends, prompting shoppers to refresh their wardrobes regularly.

3. Food: A Household Necessity

With expected sales reaching $460.1 billion, food is a consistently popular eCommerce shopping category. The convenience of online grocery shopping and the rise of delivery apps have transformed how consumers shop for food. In particular, the COVID-19 pandemic accelerated eCommerce adoption in this category, as many households turned to online shopping for food products to avoid exposure to the virus.

4. Beverages: A Taste for Ecommerce

Beverages rank fourth on the list of top shopping categories online, with expected revenues of $248.7 billion. The popularity of craft beer, tea, and premium coffee shows a consumer trend toward unique and high-quality drinks. The appeal of specialty drinks also extends to eCommerce, where shoppers can find more products and hard-to-find ingredients than at local retail stores.

5. DIY and Hardware: Home Improvement for the Online Age

DIY and hardware products are also popular online purchases. Consumers are forecast to spend $220.2 billion on home-improvement items. The convenience of comparing products, reading reviews, and having heavy items delivered is a significant advantage of online shopping in this category.

6. Furniture: The New Ecommerce Frontier

Furniture ranks closely behind DIY and hardware, with a projected revenue of $220.1 billion. The rise of direct-to-consumer brands continues to disrupt the industry. By cutting out the middleman, mattress companies, home furnishing suppliers, and luxury designers can offer high-quality products at lower prices, making online furniture shopping an increasingly attractive option for consumers.

7. Media: The Digital Content Revolution

Media ranks seventh on the list, with a projected revenue of $193.9 billion.

8. Beauty and Personal Care: The Ecommerce Growth Champion

Beauty and personal care items are expected to generate $169.6 billion in revenue. Brands that can offer a new ingredient, price point, or niche skin care product often thrive in this category.

9. Tobacco Products: The Ecommerce Evolution

Tobacco products are projected to bring in $116.6 billion over this year. The availability of cigarette alternatives like e-cigarettes and vapes shows how this traditional industry is evolving in response to online consumer preferences and regulatory challenges.

10. Toys and Hobbies: The Lasting Appeal of Play

Toys and hobby items round out the list, with a projected revenue of $89.8 billion. The demand for toys and hobby items online is sustained by educational toys, collector’s items, and craft activities.

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Top Ecommerce Categories in the US

Fashion Reigns Supreme Among US Ecommerce Categories

Though many shoppers have returned to brick-and-mortar stores, online shopping remains as popular as ever. In 2024, fashion is the top-earning category among US shoppers, with an expected annual revenue of 162.9 billion. Apparel and accessories, including shoes, bags, and jewelry, fall under this category.

Shoppers will spend 108.7 billion on apparel and accessories alone this year. Revenue from this eCommerce category has grown significantly since the onset of the pandemic and is projected to keep climbing as consumers increasingly favor online shopping for their fashion purchases.

Food Ecommerce Continues to Flourish

Food comes second among eCommerce categories, with a projected revenue of 125.6 billion. Growth in this category has accelerated in the years following the pandemic as grocery shoppers continue to embrace the convenience of online shopping. 2024 food sales will likely generate 24.1 percent growth compared to 2023. This category includes both perishable and non-perishable items. As consumers continue to look for ways to save money amid inflation, online sales of food and groceries will remain strong.

Electronics Ecommerce Revenue Holds Steady

Electronics is third in revenue behind food, forecast to hit 120.1 billion in 2024. As one of the most popular online shopping categories, electronics sales significantly declined during 2022 as many households had already purchased new devices to help them navigate the pandemic. Revenue has since stabilized, and growth for 2024 is projected at 18.1 percent.

Beverages Are a Highly Lucrative Ecommerce Category

Beverages, including both alcoholic and non-alcoholic drinks, are expected to generate 111.6 billion in revenue in 2024. Like food, the beverages category saw significant growth during the pandemic as consumers discovered the convenience of ordering drinks online. While growth has slowed, the beverage eCommerce category remains popular, with current revenue growth projected at 18.9 percent.

DIY and Hardware Stores Items Rank Fifth

With a projected revenue of 108.6 billion, DIY and hardware store items rank fifth among eCommerce categories for 2024. As one of the most popular online shopping categories, sales for this category skyrocketed during the pandemic as homeowners took on new home improvement projects while spending more time at home. Though growth has slowed, the category is expected to see a healthy revenue increase of 17.1 percent in 2024.

Furniture Ecommerce Revenue Is On the Rise

Furniture revenue is projected to be 74.5 billion in 2024. The pandemic fueled significant growth in this category as consumers invested in new home furnishings to create more comfortable living spaces for working and learning from home. After a slowdown in sales in 2022, the furniture eCommerce category is expected to grow by 17 percent in 2024.

Media Sales Are Sluggish

Media sales are projected at 37.7 billion in 2024. Sales for this category have declined recently as more consumers turn to subscription services instead of purchasing individual media items. As a result, eCommerce revenue growth for media is expected to be flat for 2024.

Beauty and Personal Care Items Are Expected to Generate 28.4 Billion

Beauty and personal care items are expected to generate 28.4 billion in revenue in 2024. Both online shoppers and eCommerce businesses have fully recovered from the pandemic. The beauty industry has been thriving in recent years, with a particular focus on skincare. Growth for the eCommerce segment of this category is projected at 10.4 percent for 2024.

Toys and Hobby Items Are Projected to Bring in 21.2 Billion

Toys and hobby items are projected to bring in 21.2 billion in 2024. While this category has seen steady growth over the years, recent revenue increases can be attributed to the post-pandemic surge in sales for collectibles and hobby items. Ecommerce revenue for this category is expected to grow by 8.5 percent in 2024.

Luxury Goods Round Out the List with Projected Revenues of 14.9 Billion

Luxury goods round out the list with projected revenues of 14.9 billion in 2024. The pandemic accelerated the shift to online shopping for luxury items as high-income earners sought ways to avoid crowded stores. Despite economic uncertainty, luxury goods sales have remained strong online and offline.

Importance of Knowing the Top Ecommerce Categories

Manage Operations More Effectively

Understanding eCommerce categories and their trends helps you streamline operations. Instead of aimlessly running your business, you can plan and execute your activities to help you serve popular segments. This way, you manage your operations in an optimized and targeted manner while avoiding redundant activities that slow down your business's progress.

Organize Inventory with Popular Items

Once you determine the most popular online shopping categories, you can populate your inventory with relevant products and services. In addition to optimizing your spending, this also allows you to obtain or offer only those solutions with a higher chance of selling than many other options.

Increase Consistent Income

When you organize your operational activities and inventory to serve popular markets, you can cut back on unnecessary expenditures. At the same time, it can improve your overall income and profits through consistent sales of your goods or services.

Reduce Financial Risks

By being mindful of your shopping categories list, you can also decrease your expenses on inventory that doesn’t have many chances to move or services that don’t significantly appeal to your audience. This also optimizes my marketing spend and lets me invest only in solutions that have a high ROI.

Connect with the Target Audience

Whether you are establishing your online business or revamping your existing operations, knowing about popular eCommerce categories allows you to serve specific groups of consumers. Once you mold your services to cater to this target audience, you can master the aspects of conversions and customer retention.

Establish Business Presence

By focusing on a specific niche of goods or services, businesses can increase their chances for success. You can also reap the rewards of this approach by establishing your status as a specialized provider in your field. This goes a long way towards ensuring your online business reaches the heights you aspire to achieve.

Scale the Business

Once you put together the factors of high ROI and optimal audience outreach, they lead to an ideal environment for growth in almost every sector. This enables you to scale your online business in a viable, sustainable, and trouble-free manner. As a result, you can quickly achieve your short-term and long-term goals to expand your operations.

What is ShopHunter?

ShopHunter's Shopify sales tracker offers a unique tool for ecom founders, particularly those in the Shopify ecosystem. At its core, it is a custom algorithm that estimates sales for entire stores and specific products, helping users quickly validate product potential. The platform goes beyond basic sales tracking, featuring an ad spy tool that monitors advertising activity across stores.

Top 5 Delivery Frameworks for Your eCommerce Business

1. Drop Shipping: The Hands-Off Approach to Order Fulfillment

Drop shipping is an order fulfillment method in which a business’s products are stocked, packaged, and shipped by a third-party supplier. With drop shipping businesses, the team that stands up the storefront doesn’t have to worry about managing inventory, stocking warehouses, or handling shipping. Instead, they can focus on their front-end customer experience and building their customer network.

One of the most significant caveats to this approach that you need to consider is that your business will have no control over the supply chain. If products arrive damaged or late, or the quality is lower than expected, it will reflect poorly on your brand. While the onus is on the drop shipper to deliver, you’re the one who is in direct contact with the end consumer and ultimately responsible for handling support requests and managing the relationship.

2. Subscription Services: Predictable Revenue and Happy Customers

With a subscription model, you commit to continue sending your products to customers over an extended period at consistent, predetermined intervals. There are different types of subscriptions, such as product discovery or unlimited services, so pricing, billing, and account management will depend on your business, your products, and your customer’s consumption behaviors. Take ButcherBox, for example.

ButcherBox is a subscription company that sends consumers fresh, organic meat and seafood products monthly. Customers can choose from a list of curated boxes or customize their own, and they can choose from different box sizes that will send higher or lower quantities of food. Food is a category of consumer goods that performs well with subscriptions, fashion, beauty, or even pet products.

3. Wholesaling: The B2B Fulfillment Strategy

Businesses that leverage wholesaling manage all parts of delivery aside from the manufacturing of the product. With wholesaling, you order goods directly from the supplier and are responsible for warehousing, inventory management, stocking, tracking customer orders, and shipping. Wholesale eCommerce is most common in B2B but can be leveraged as part of a B2C eCommerce strategy.

4. Private Labeling: Creating Your Products

In private labeling, a business hires a third-party manufacturer to create products based on unique ideas and designs. This saves the company from building a factory and manufacturing its products while giving it exclusive rights to sell its goods. Once the goods are manufactured, the manufacturer can ship them directly to the customer, to an online marketplace, or back to the business for you to handle. Initial costs can vary, so private labeling is best for brands with resources and specific product designs or ideas.

5. White Labeling: Selling Existing Products Under Your Brand

With white labeling, you brand and sell a product under your name and logo, but it’s manufactured and purchased from a third-party distributor. White labeling is common in the fashion and health industries, particularly with cosmetics, essential oils, and companies that sell CBD online. It can boost your brand visibility, keep you from manufacturing your products, and allow me to take advantage of the distributor's knowledge and expertise.

How to Use Ecommerce Trends for Your Business

Stay Ahead of the Game: How to Track and Analyze Ecommerce Trends

Online businesses can stay relevant by keeping up with the top trends. Adjusting your product catalog based on consumer demand may save money and build stronger brand recognition. Here’s how to make the most of product popularity data:

Experiment with Growing Sectors

Many businesses succeed by optimizing their online store for a particular product category. This allows them to offer an expert service to a target audience. At the same time, businesses can be limited by the size of their niche audience. One way to expand beyond a product niche is to offer trending products through an additional sales channel, such as online selling sites.

Marketplaces like Etsy and eBay can be beneficial when a business wants to experiment with a growing sector without compromising its brand or website optimization. For instance, a company known for its curated selection of craft products may want to expand by offering a range of handmade items created by the local community. The business can test a new market without overhauling its website by listing these products on a platform like Etsy.

Understanding market demands through product research is crucial for businesses to align their product offerings. For example, a company might use tools such as Google Trends to identify popular home fitness products and then source or create similar products to meet the demand in this growing sector.

Personalize the Shopping Experience

Personalization is another way to attract attention when competing within a top product category. Businesses can use consumer data to understand shopper preferences and personalize the shopping experience. Personalized marketing and store design can be achieved through targeted email campaigns or customized product recommendations based on a customer’s browsing and purchase history. Loyalty programs also encourage repeat purchases. Even addressing a customer by name can enhance the shopping experience and build stronger customer relationships.

Social commerce has become increasingly significant in the eCommerce sector. In 2023, sales through social networks accounted for an estimated 18.5 percent of total online sales, which is expected to continue growing in the coming years. As Gen Z and Gen Alpha increase their buying power, businesses are adapting their strategies to reach these consumers on social media, where they spend as much as four hours daily.

This involves embracing social selling, which includes publishing posts about products and setting up storefronts on social media platforms. Who has grown a liking for this channel? The term "social commerce" is gaining traction worldwide. In 2024, global revenues generated through social media platforms were forecast to reach nearly 700 billion U.S. dollars, an increase of roughly 23 percent compared to the previous year.

However, some countries have embraced this sales channel more vigorously than others. Thailand, Colombia, and China are leading the way in social shopping. In 2023, approximately nine out of ten internet users in these countries purchased through social networks.

The Future of Shopping is Live

Live commerce has grown in popularity in recent years. Its prevalence is expected to increase as companies increasingly utilize live-streaming technologies for promotional and marketing purposes. Digital shoppers benefit from live commerce because it offers attractive discounts, inspiration, and ideas.

In 2022, Facebook was the leading social network platform where internet users purchased products during live-streaming events. As with social commerce, Asian countries have paved the way for this highly interactive shopping experience. In 2023, over seven in ten consumers engaged in live shopping in China, India, Thailand, and the United Arab Emirates.

Social media doesn’t just influence the top online shopping categories; it’s a significant sales channel in its own right. From 2025, sales made via social media are expected to represent at least 20% of total eCommerce sales.

ShopHunter's Shopify sales tracker offers a unique tool for ecom founders, particularly those in the Shopify ecosystem. At its core, it is a custom algorithm that estimates sales for both entire stores and specific products, helping users quickly validate product potential.

The platform goes beyond basic sales tracking, featuring an ad spy tool that monitors advertising activity across stores. This combination lets users spot trending products and successful marketing strategies early on. Whether you're a dropshipper, a Shopify store owner, or someone looking to enter the eCommerce space, ShopHunter aims to streamline product research and reduce the risk of investing in low-performing items.

Sign up for a free trial (no credit card required) of our Shopify sales tracker tool to find your next eCom opportunity or to level up your current eCommerce store by learning from your competitors.