Last Updated | November 22, 2021
Creating an online store sounds appealing, however, with the brutal competition in the industry, it’s definitely not a walk in the park. In an age where all businesses are going digital, there are various challenges that entrepreneurs need to overcome in order to penetrate the market and build up a successful online store; but then what business is easy to start?
In fact, if we are to compare starting an online business with a physical one, online businesses have a higher chance of success. The various marketing and sales tools, along with powerful analytical features and viable & affordable platforms like Shopify to create online stores; makes an online business a much better business proposition as compared to brick and mortar stores. And that might be the reason we see hundreds of stores popping up all over the internet each day.
Nonetheless, since you are here, you must be looking for some definite answers for your anxieties about opening a Shopify store and if it’s actually worth venturing?
Well, we don’t disappoint you because here we will be taking you through the entire stats of why you may or may not want to start a Shopify store. We will be looking at some of the most successful Shopify Stores, just to inspire you a little more, as well as, look at how to make money on Shopify.
So, without wasting any time, let’s dive in and see what we have in here for you:
What percentage of Shopify stores are successful?
Before we start discussing all the glittering elements of venturing into a Shopify store, we thought to discuss some of the downsides of it (don’t worry we will be discussing the reasons for failure as well).
At present, over 800,000 merchants are selling their products or services using Shopify, with hundreds and thousands of new stores opening each year. However, very few of these stores are able to scale the business on the right footings and get profitable.
Now, if we are to look at the stats for the percentage of Shopify stores that become successful, the numbers aren’t much encouraging. On average only 5% to 8% of Shopify stores are able to reach their full potential and earn big money, whereas, the majority of the others either continue to haggle around for their place or shutdown.
Honestly, you should be a little worried; just not about the high percentage of failures but rather to learn the reasons why these businesses fail.
Below are some of the most common reasons why the majority of Shopify businesses aren’t successful to make it big (make sure you stay away from these mistakes, and you will be on your track to succeed massively).
Wrong Dropshipping Niche
The key to success in any business lies in your ability to identify your niche and it becomes even more important when we are talking about online businesses. Honestly, the majority of entrepreneurs seem to be in a hurry to get started and end up utterly failing to understand the right niche for their stores.
The key to success in online business is to identify the right niche, and for that, you would have to invest time to research. Don’t jump on every trending niches, which is one of the biggest reasons majority of Shopify stores aren’t successful. Invest your time to compare various niches and identify the best-suited one. We aren’t going to suggest any particular niche, because it differs considerably; thereby, we leave it up to you to research the best-suited niche for your business.
Bad Product Choices
Even if you are able to choose the right niche, it’s won’t seal your successful Shopify store until you choose the right products for the store. Going with the stream won’t serve you any purpose because there will be hundreds and thousands of other stores offering similar products and competing in such a domain will get you nowhere. The right way is to choose products with a WOW factor. Again, you will need to complete your groundwork to research the best customer-centric products, which they will be willing to buy.
Imagine, you are looking for online flower delivery, you land on a website through a search engine query and finds that the store has very low-resolution imagery, absurd fonts, and no description for their products. Will you buy from the store, definitely not!
Well, the design and aesthetics of your store will define your success rate. You need to have that intriguing attractiveness to your store that compels users to trust you and make a purchase. For that, you need to work on store design, content, and products. Make sure you are able to convey the complete story to the users, as well as, offer them the highest quality images of the products with a detailed description.
Low retention rate
Another reason why most Shopify stores aren’t successful is because of low retention rates. In order to scale your business, you need to build a loyal customer base, and that may only happen if you work your way effectively towards branding. Remember, more than the products, it’s the user experience that will compel customers to return. If you are able to offer customers a seamless, and interactive shopping experience, which includes responding to customers timely and delivering products as promised, they will surely remember your brand and order again.
Shipping is a key aspect for all online businesses and also one of the biggest Shopify Store killers. When you list any products with shipping time make sure you are able to keep your words. Often entrepreneurs put up unrealistic shipping times or even forget to delist a product that’s no longer available which leads to a missed deadline and an utter elimination of store reputation for customers.
Moving on to some technical aspects, even if you have sorted out everything mentioned above exceptionally well, you still won’t get anywhere if you aren’t able to optimize your Shopify store for conversion. There are various Booster Themes available with Shopify Store that may help you get a conversion-optimized store.
Lack of Marketing
Last but not least, you definitely need marketing to keep up the sales, right? Well, there are innumerous digital platforms that may serve your marketing needs aptly. Social media platforms for one are the best choice for entrepreneurs to start spreading the words for the business. Other marketing channels may include Paid marketing and content marketing. The key is to choose the right platforms where customers are looking for your products/services.
What big companies use Shopify?
Well, there might be a relatively small percentage of successful stores on Shopify but that doesn’t mean there are no success stories. In fact, some of the biggest international brands are present on Shopify making fortunes. Below we have listed some of the most successful Shopify stores, just as a means to inspire you.
BulletProof is a premium food and drinks supplement business, with the slogan of enabling people to bring out the best version of themselves. The brand offer products which enable people to think, perform, and live better using their products which are scientifically researched, as well as, made using ancient knowledge. The environmentally conscious brand has built a strong customer base with intelligent marketing tactics making millions in annual turnover.
Hasbro is one of the leading toy retailers with millions of dollars in annual turnover. The company chooses Shopify as their digital platform, where they have been able to generate high traction with amazing design and aesthetically pleasing elements.
- THE ECONOMIST
The Economist is one of the leading News Publishers with a great readership and respect for its strongly opinionated insights on politics, business, tech, and finance. The News Publisher maintains its strong online presence on the Shopify store, where customers are able to find printed and audiobooks from the Economist. You can also find shopify partners for a diverse assortment of web store and seamless functioning.
Heinz needs no introduction. It’s a 150 years old premium food giant that has chosen Shopify as the preferred platform to sell directly to customers.
Do we need to say something about it? Well, the world’s leading News Broadcasting service also chose Shopify as their preferred platform to reach directly to customers.
How do I succeed in Shopify?
Well, now that we have some of the most successful Shopify stores, who have chosen Shopify as their preferred Shopify web development platform for reaching out to customers, we can safely assume that the platform certainly got all the right elements required to succeed in the online industry.
But, you must be thinking, how to make money on Shopify, right?
Don’t worry we got you covered here. Below, we have come up with detailed steps that will help you successfully start an online store and gain traction.
So, let’s see how to make money on Shopify…
Just like in any brick and mortar model, before you launch your business you would like to cover certain actions to ensure maximum projection and impact for the launch, right?
Here’re are some pre-launch preparation you should be taken;
– Secure your audience
It’s important to choose and secure your target audience way before launching. In fact, choosing the target audience is one of the first steps you need to take when you decide to venture into an online store. Make sure you are able to not only identify the target audience but also identify the right platforms where they are looking for your products/services.
– Jumpstart your outreach:
As your store gets into the design and development stage, you need to start collecting relevant email addresses, as well as, start building the media list. Remember, the key to success for any online store depends on a comprehensive and tactical marketing strategy. Look out for any referral marketing program, which may give you some buzz, alternatively turn to traditional advertising, as well as, digital marketing to build up the pre-launch hype. Not to forget, put up a “Coming Soon” banner on your store.
Before you launch your Shopify store, you need to make sure it’s in pristine condition and that every aspect is sorted completely. Store optimization may include all the steps that will help build your brand, and enable customers to connect with your store.
– Multi-platform usability:
More than 50% of all online transactions are made using mobile devices, which is sufficient to highlight the importance of responsive websites. Before you launch the store, make sure you perform multi-platform usability testing for the site to ensure your store appears equally attractive and functional on all mobile devices including smartphones and tablets.
– Ensure security:
While online transactions have become much secure over the past decade, it’s still important for online sellers to take all safety precautions to ensure the safety and security of not just the financial but personal data as well. According to stats, customers feel safe to buy from stores with SSL certification, as well as, the logo of security companies being displayed.
– Intuitive navigation:
Online customers are always looking for a user-friendly interface, where they are able to search and navigate to the product/service they are looking for without having to go through tons of other pages. Thereby, when you say, how to make money on Shopify, you need to keep a simple and intuitive interface, so customers may navigate to the desired pages easily and purchase what they are looking for.
– Customer Service
Ask yourself what is one thing that makes Amazon what it is today? That one thing is customer service. People love to buy from Amazon because they know that they are covered and that in case of any issue, the Amazon team will be there to help them out and resolve the issue ASAP. Now to put it simply, Be Like Amazon, and you will definitely reach the top cadre of online stores.
– Content Marketing
Content marketing is undoubtedly one of the most aggressive and effective forms of digital marketing. The key to success in content marketing is to keep coming up with relevant, interesting, and knowledgeable content. Consistency is the key in content marketing and stats have shown that if you are able to keep consistent in your content marketing strategy, you are sure to succeed on any digital platform.
Here’re some content marketing components you should consider;
- Video content
Why is Shopify so successful?
Shopify’s SaaS business model that enables SMEs to launch their online store with a nominal subscription fee (multiple packages for a different business model), as well as, their ability to bring in a wealth of functionalities and features to their stores make it one of the most widely used web development platform.
Best ecommerce business ideas – How to Make Money on Shopify
Now that we know the most successful Shopify stores and have seen some big names there, it can easily be said that it’s a great platform to start your online business. We have already discussed the steps to ensure you succeed in taking your business to the next level.
However, if you are still unsure of how to make money on Shopify, we have come up with some interesting Shopify store ideas you may take up with higher chances of success.
- Clothing Line
Clothing is never out of trend. There’s always a viable market for trendy and niche-specific clothing and if you have some unique designs in mind or a strong connection to a local fashion brand, you can start your clothing store on Shopify.
Why start a clothing line?
- There’s no better business model than offering products of routine use and clothing is one item which will always remain in demand
- You will be able to start selling clothes instantly, as soon as your Shopify Store is up and running
- You can continue to add clothing lines and scale your business over time without putting too much burden at the beginning
- DropShipping store
Nowadays, the DropShipping business has gotten big on the Shopify store. This is a unique business model where you don’t need any investment to purchase or store products, rather you just order a pre-order item from the right supplier and keep your commission. All the packaging, handling, and shipping of the product are taken care by the supplier.
Why choose DropShipping?
- No investment required
- No need for warehousing
- No hassle of the packaging or shipping the products
- Can be scaled at will
- Sell your art online
If you are an artist (painter, photographer, etc.) there’s a high demand for you. By putting up a Shopify Store for your artwork, you can immediately start earning big money. The platform even allows you to sell your songs as digital downloads.
Why sell your art?
- Become part of people’s lives
- Build your rapport
- Turn your passion into an income stream
There is a high demand for freelancers for Shopify web designing, Shopify app development, content marketing, and others. If you are good at any of these skills or better have a team of talented freelancers, you can start a freelancing website. Freelance is a great way to earn big money without committing to routine work life.
- Choose projects which excite you
- Work on your schedule
- Earn income from your skillset
- Build your portfolio
- Start a blog
As mentioned above, content writing is one of the most powerful and most sought after digital marketing component, and effectively blogging remains the key element of content marketing. Businesses of all sizes and shapes are looking for professional bloggers who may come up with effective and high-quality blogs, not just to rank higher on search engines but also to start branding their business. By starting your blogging store there are myriad ways you can monetize your business. You may either start taking blogging projects, or publish sponsor ads, or even start affiliate marketing.
Why start a blog?
- Unlimited growth potential
- Expand into affiliate marketing
- Long term business success model
- Enhance your writing skills
Time to resurrect your online business idea !
So, now that you know how to make money on Shopify, what are you waiting for? Even with fierce competition, there’s so much potential to tap into the online industry. The key to success is taking the right course for your Shopify Store. We hope you would have learned everything you need to succeed in the online industry, so go out there and start exploring endless opportunities waiting to be explored.
Why do Shopify stores fail the most?
Poor site optimization, wrong niche and product selection and ineffective marketing strategy are some of the reasons why most Shopify stores fail.
Is Shopify good for startup?
Shopify is a great platform for startups, given its affordable packages, as well as, advance features and functionalities. The SaaS business model offered by Shopify, enable small startups to begin with little investment and scale as their business grow.
Is Shopify really worth?
If you know how to make money on Shopify and adopt the best practices for your store, Shopify is really worth it.