Choosing the right app solution for your Shopify store determines whether your operations run smoothly or become a constant source of frustration. With Shopify’s transition from private apps to custom apps in January 2022, many merchants remain uncertain about which approach works best for their specific needs. This guide breaks down everything you need to know about the shopify private app transition and custom app development.
Summary
- Private apps were discontinued in January 2022 due to security concerns, replaced by custom apps with enhanced authentication
- Custom apps offer superior security through OAuth 2.0 and one-time access tokens
- Development costs vary from $5,000 to over $100,000 based on complexity
- Custom apps excel at unique workflows, proprietary integrations, and legacy system connections
- Migration from shopify private apps to custom apps requires OAuth implementation changes
What Was a Shopify Private App?
A shopify private app was a custom-built application designed specifically for individual stores, bypassing the Shopify App Store entirely. These apps allowed store owners to extend functionality without navigating Shopify’s approval process, making them faster to deploy for specific business needs.
Private apps connected directly to stores using API keys and passwords. Any admin or collaborator with proper credentials could access these tokens. While this simplified development, it created security vulnerabilities that concerned both Shopify and merchants.
Why Shopify Discontinued Private Apps
Shopify phased out shopify private apps in January 2022 for critical security reasons. The authentication system exposed sensitive store data to potential breaches. Multiple users could access API credentials simultaneously, creating unclear accountability for data access.
The transition preserved functionality while implementing stronger security measures. Custom apps replaced private apps with the same capabilities but better protection for merchant data.
Understanding Shopify Custom Apps
A custom app is a tailored application built exclusively for your Shopify store using Shopify’s APIs. Unlike public apps available in the App Store, custom apps address specific business challenges and integrate with unique workflows.
Custom apps access store data through secure authentication protocols. They automate processes, integrate with external systems, create personalized experiences, and extend Shopify’s functionality in ways generic solutions cannot match.
Core Benefits of Custom Apps
Enhanced Security Architecture
Custom apps use OAuth 2.0 authentication, requiring explicit permission before accessing data. This protocol creates clear audit trails showing who accessed information and when. One-time access tokens drastically reduce credential theft risk.
Complete Customization Control
You control every feature, integration point, and data access permission. This ensures the app aligns with your business vision, security requirements, and workflows without off-the-shelf limitations.
Seamless Integration Capabilities
Custom apps excel at connecting Shopify stores with other business systems. Whether syncing with inventory management software, specialized fulfillment services, or custom CRM solutions, custom apps bridge these gaps effectively.
Comparing Custom Apps vs Public Apps
Understanding differences between custom apps and public apps helps you choose the right approach for specific needs.
| Feature | Public Apps | Custom Apps |
| Availability | Listed in Shopify App Store | Built exclusively for your store |
| Development Cost | Subscription fees (often free to start) | Upfront development investment |
| Customization | Limited to built-in features | Fully customizable specifications |
| Implementation | Immediate installation | Weeks to months development time |
| Maintenance | Developer handles updates | Your responsibility |
| Security Control | Follows Shopify standards | You implement security measures |
| Data Access | Predefined permissions | You define exact data access |
| Integration | May not support your systems | Built for your infrastructure |
When to Choose Public Apps
Public apps make sense for standard functionality serving many businesses: email marketing, product reviews, inventory sync with major platforms, or live chat support. If the budget is limited and you need immediate functionality, public apps offer excellent value.
When Custom Apps Are Essential
Custom apps become necessary when businesses have unique requirements that public apps cannot address. This includes proprietary fulfillment processes, specialized inventory management, legacy system integration, or custom reporting matching exact KPIs. Shopify app development expertise ensures these solutions work effectively.
Security Differences: Private Apps vs Custom Apps
Security drove Shopify’s decision to replace shopify private apps with custom apps. Understanding these differences helps protect store and customer data.
| Security Feature | Private Apps | Custom Apps |
| Authentication | Basic API key and password | OAuth 2.0 with permission flow |
| Token Visibility | Viewable by all admins | One-time view only |
| Access Control | Store-level only | Granular permission scopes |
| Audit Trail | Limited tracking | Comprehensive access logs |
| Installation | Automatic activation | Explicit installation required |
| Authorization | Not required | Must be enabled by the owner |
| Token Expiration | No expiration | Revocable anytime |
Custom apps require store owners to explicitly enable app development before creation. This prevents unauthorized staff from building apps without permission. Each app creation is logged and traceable.
OAuth 2.0 ensures apps only access specific needed data. When creating custom apps, you select exact API scopes like “read products” or “write orders.” Apps cannot access data outside defined permissions.
Custom App Development Process
Developing custom apps requires strategic planning and technical expertise to solve real business problems while maintaining security.
Planning and Requirements
Start by identifying specific problems your app will solve. Document required functionality in detail. Map how the app integrates with existing systems and workflows. Consider what data the app needs, which users interact with it, and how it improves processes.
Technical Development Steps
Setting Up Development Environment
Create a Shopify Partner account for development tools and resources. This provides sandbox stores for testing, API documentation, and developer support.
Building Features and Integration
Design intuitive interfaces for team members using the app. Implement functionality incrementally, testing each feature during development. Connect to Shopify’s Admin API for backend operations and Storefront API for customer features. Implement proper OAuth 2.0 authentication for secure access.
Testing and Deployment
Rigorously test custom apps in development environments before production deployment. Check all features, verify security measures, and ensure performance meets requirements. Install the app through the Shopify admin panel after testing completes.
How Custom Apps Maximize Customer Experience
Custom apps transform Shopify stores from standard platforms into personalized shopping destinations, creating experiences that differentiate your brand.
Creating Personalized Recommendations
Generic recommendation engines use simple algorithms. Custom apps analyze customer behavior, purchase history, browsing patterns, and preferences to deliver truly personalized suggestions. The app learns from each interaction, continuously improving recommendations.
Building Loyalty Programs That Drive Retention
Off-the-shelf loyalty programs offer basic points and discounts. Custom loyalty apps create unique reward structures aligning with brand identity. You might offer early access to collections, exclusive events, personalized bundles, or cause-driven donations.
The advantage is flexibility. As your business evolves and you learn what motivates customers, you adjust loyalty programs instantly without waiting for third-party developers.
Streamlining Checkout and Reducing Friction
Custom apps optimize every purchase step. Implement one-click purchasing for returning customers, pre-populate shipping information, and offer flexible payment options. These improvements compound to significantly reduce cart abandonment.
You can build checkout features matching specific business models. For subscription boxes, customize frequency selection interfaces. For custom products, integrate configuration tools directly into checkout flow. Learn more about developing custom Shopify apps that enhance customer experiences.
Cost Analysis: Investment in Custom Development
Understanding true costs of custom app development helps budget appropriately and evaluate ROI.
Development Costs and Timeline
Development costs vary by complexity. Simple apps with basic functionality range from $5,000 to $15,000. Mid-complexity apps with multiple integrations typically cost $15,000 to $50,000. Enterprise-level apps with advanced features can exceed $100,000.
Development timelines also vary: simple apps take 4-6 weeks, mid-complexity apps need 2-3 months, and enterprise applications require 3-6 months or longer.
Ongoing Maintenance
Custom apps require ongoing maintenance for continued functionality, security, and compatibility. Budget for monthly maintenance costs ranging from 15-20% of the initial development investment annually. This includes bug fixes, security patches, performance optimization, and API updates.
Calculating ROI
Custom apps deliver ROI through automation, reducing labor costs, better inventory management, preventing stockouts, personalized experiences increasing conversions, and seamless integrations, eliminating duplicate entry.
To calculate ROI, identify metrics your custom app improves. If the app reduces order processing time by two hours daily at $25/hour labor cost, that’s $50 daily or $18,250 annually in savings.
Migration From Private Apps to Custom Apps
If you’re currently using shopify private apps, understanding migration paths ensures smooth transitions without disrupting operations.
Existing Private App Status
Shopify has not disabled existing shopify private apps. Stores with functional private apps can continue using them indefinitely. However, you cannot create new private apps. Consider migration when apps need significant updates or when security compliance becomes more important.
Migration Process Overview
| Migration Step | Description | Timeline |
| Documentation | Document all functionality and API calls | 1-2 weeks |
| Enable Custom Apps | Turn on custom app development in the admin | Immediate |
| Code Adaptation | Rebuild using OAuth 2.0 authentication | 4-8 weeks |
| Testing | Validate in the development environment | 2-3 weeks |
| Deployment | Install and transition to the custom app | 1 week |
The main technical difference is authentication. Private apps used permanent API credentials. Custom apps use OAuth 2.0, requiring code changes to handle the authentication flow properly. Working with experienced Shopify development companies ensures smooth migrations.
When Your Business Needs a Custom App
Recognizing situations where custom apps deliver essential value helps invest development resources wisely.
Unique Workflow Requirements
Your business may have processes not fitting standard templates: specialized fulfillment integrating with proprietary warehouse systems, custom product configurators for made-to-order items, or complex pricing logic based on customer relationships.
When public apps force workflow adaptations to their limitations, productivity suffers. Custom apps let systems work how your business operates, preserving processes that make you competitive.
Integration With Legacy Systems
Many established businesses operate on legacy ERP, CRM, or inventory systems predating modern e-commerce. Public apps rarely integrate with older systems. Custom apps bridge this gap, connecting Shopify stores with existing infrastructure without forcing expensive migrations.
Proprietary Competitive Advantages
If competitive advantages come from unique features or processes, custom apps protect differentiation. Custom recommendation engines, specialized reporting revealing competitor-missed insights, or automated workflows dramatically reducing costs represent competitive moats custom apps enable.
Real-World Custom App Use Cases
Automated Inventory Synchronization
A multi-channel retailer struggled with inventory discrepancies across Shopify, Amazon, and physical locations. Their custom app connected all sales channels to central inventory management, updating stock in real-time. Within three months, stockout incidents dropped 73%, and overstock carrying costs decreased 41%.
Personalized B2B Pricing Engine
A wholesaler needed tiered pricing based on customer relationships and order volumes. Their custom app integrated with the existing ERP containing pricing agreements. B2B customers saw personalized prices reflecting negotiated terms. Order processing time decreased 60%, and pricing errors virtually disappeared.
Custom Product Configuration
A furniture manufacturer needed customers to configure products by selecting materials, finishes, and dimensions. The custom app created intuitive experiences showing only valid options based on selections, calculated accurate pricing in real-time, and generated manufacturing specifications automatically. Custom order errors dropped from 12% to less than 1%.
Key Takeaways
- Shopify private apps were replaced by custom apps in January 2022, delivering identical functionality with enhanced security through OAuth 2.0 authentication.
- Custom apps excel when businesses require unique workflows, proprietary integrations, specialized customer experiences, or legacy system connections.
- Security improvements include one-time token viewing, explicit authorization requirements, fine-grained scopes, and comprehensive audit trails.
- Development investment varies from $5,000 for simple apps to over $100,000 for enterprise solutions.
- Successful projects require clear scope definition, experienced partners, realistic timelines, and comprehensive documentation.
Conclusion
The evolution from shopify private apps to custom apps represents more than terminology changes. This transition brings robust security, better accountability, and enhanced flexibility for merchants needing tailored solutions for unique business requirements. For stores requiring specialized functionality beyond public app capabilities, custom apps deliver competitive advantages through personalized experiences and seamless integrations.
Ready to explore how custom apps can transform your e-commerce operations? Our team at Folio3 specializes in custom solutions aligning with business goals and technical requirements.
Contact us at 408-365-4638 to discuss your project needs.
FAQs
What Is a Shopify Private App?
A shopify private app was a custom application built for individual stores, discontinued in January 2022 and replaced by custom apps with improved security.
Why Did Shopify Discontinue Private Apps?
Shopify discontinued private apps due to security vulnerabilities, replacing them with custom apps using OAuth 2.0 for better data protection.
How Do Custom Apps Differ From Public Apps?
Custom apps are built exclusively for your store with complete customization, while public apps are available to all merchants with limited customization options.
Can I Still Use My Existing Private App?
Yes, existing private apps continue functioning, but you cannot create new ones. Migrating to custom apps provides better security.
How Much Does Custom App Development Cost?
Custom app development ranges from $5,000 for simple apps to over $100,000 for complex solutions, with ongoing maintenance of 15-20% annually.
Do I Need Technical Skills to Create a Custom App?
Creating custom apps requires development experience. Most businesses partner with experienced Shopify developers for these projects.
How Long Does Custom App Development Take?
Development timelines vary: simple apps take 4-6 weeks, mid-complexity apps need 2-3 months, and enterprise applications require 3-6 months or longer.
What Security Advantages Do Custom Apps Offer?
Custom apps provide OAuth 2.0 authentication, one-time token viewing, granular scopes, audit trails, and explicit authorization for enhanced protection.
Can Custom Apps Integrate With My Existing Systems?
Custom apps excel at integrating with ERP systems, CRM platforms, inventory management software, and proprietary systems that public apps cannot connect with.
When Should My Business Invest in a Custom App?
Invest in custom apps when you need unique workflows, legacy system integration, proprietary advantages, or specific security and compliance requirements.
