How Does Shopify Profit Off You?
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Yes, the title is a bit harsh, but we’ll explain 🙂
Let’s start from the beginning …
Who or What is Shopify?
Shopify is that shortcut that allows you to start selling your products in just one day without needing programming knowledge. It’s as easy as creating a profile on Facebook or Instagram.
Well, it does take a bit longer (since you need to upload products and content), but for the first impression and comparison, it’s close enough.
Shopify is an online platform where you:
register,
select the look of your online store,
enter your texts, images, and other content,
input prices and stock status,
add payment options,
... and start selling.
You can think of it as renting a store in a shopping mall. Meaning, you rent an empty online shop, pay for it monthly, and furnish it as you like.
Who Typically Uses Shopify?
The average users are:
👍 startup entrepreneurs,
👍 small business owners,
👍 dropshipping merchants
(due to its easy integration with dropshipping suppliers like Oberlo, Spocket, Printful),
👍 creators and artists
(because it allows for selling digital products like music, e-books, and art prints),
👍 those selling through multiple channels
(due to integrations with Amazon, eBay, Facebook, and Instagram),
👍 as well as established, larger brands and companies
(e.g., GymShark, Kylie Cosmetics, Taylor Swift Official Store).
Shopify Advantages:
✅ easy and quick setup,
✅ low initial costs,
✅ fast store setup (in just a few hours),
✅ large selection of ready-made store templates,
✅ various payment methods (including Shopify Payments),
✅ numerous plugins to extend your store’s capabilities and increase sales opportunities,
✅ support and help (24/7 support and extensive knowledge base).
Shopify Disadvantages:
❌ Higher costs: the basic monthly fee (starting at 32€) + add-ons and apps can quickly become expensive. You can check their pricing on their website.
❌ Transaction fees: with every product sold, a certain percentage goes to Shopify. More details can be found on their website.
❌ Dependence on apps: many functionalities require additional apps, which means higher monthly costs.
❌ Customization limitations: pre-made templates have customization constraints; more refined designs come at a cost. Some advanced features aren’t available without coding, and programmers are expensive.
❌ Fewer advanced SEO settings compared to other platforms (limited URL editing, limited customization of meta descriptions and H1/H2 tags).
❌ Complex upgrades: when a business grows quickly, the old platform may not support higher traffic and demands. Migrating to a new, more robust platform is challenging, as all data needs to be transferred, errors can occur, and the store might be temporarily inaccessible, leading to lost sales and higher costs.
Shopify is easy to start with, but be cautious, as costs can escalate quickly with each additional app or customization. This means that the base price can increase significantly if you want to add special features like advanced discounts or comprehensive analytics.
Before deciding, check what is included in the price, so you don’t end up paying more than you expected.
When Do You Outgrow Shopify?
You start with a few products, and everything goes smoothly.
Then your online store starts growing - more products, more customers, more orders. Here, your first frustrations might begin.
The main signs that it might be time to move away from Shopify are:
👎 when you need something that Shopify doesn’t offer
(e.g., unique order processing, more complex inventory management, special promotional campaigns, custom user experience ...),
👎 when you have a high volume of orders and rapid traffic growth
(Shopify’s commission system and processing fees can significantly reduce your margin/profit),
👎 when you’re paying a high price for additional apps/plugins,
👎 when you need advanced SEO and technical settings or advanced optimization,
👎 when you need a more customized design and user experience
(and can’t find what you need among the ready-made templates),
👎 when you want to connect with other systems (such as ERP or more advanced CRM systems - requiring extensive adjustments or not being able to connect at all).
Conclusion
Whether you’re just starting or already have a successful online store, it’s important to choose a solution that will grow with your business. Think a step ahead and envision what this step means for you.
We can help you make a decision and advise which platform is right for you. If you already have a Shopify store, we can upgrade it or build a fully customized solution.
Send us a message to schedule a meeting where we can sit together and find the best solution for your needs.
Book Your Time for a Brainstorming Session with the Programming Pros
Where are you on your business timeline? What’s your current state? What do you need now, and what will you need in the future? Save time by avoiding endless options and let us know your needs, and we’ll quickly pinpoint the main solution.