You should use Shopify, seriously
We’ve all heard of Shopify, but can it one-day replace the all-mighty Amazon?
What/Who is Shopify?
Shopify’s tagline is “Anyone, anywhere, can start a business,” and I especially think this is a really fitting motto because in my personal experience, Shopify makes it extremely easy to setup an online presence to start earning money. Moreover, Shopify empowers it’s merchants by allowing them to sell pretty much anything to anyone. I mean you can sell Digital Goods, Physical goods and so much more immediately after starting your free trial.
Shopify’s Growth
In Q2 of 2021, Shopify saw a massive spike in revenue of $1.2 Billion Dollars, which is up 57% on a year-over-year basis. This spike is likely attributed to the whole Covid situation but I doubt even when Covid passes their revenue will shrink. Additionally, Shopify’s subscription products grew 70% this quarter alone. Now, these numbers may not sound too impressive to a non-market savvy individual, however I can assure you, these numbers give me the feeling that Shopify has a lot of growth potential in the pipelines.
Also, another reason these numbers are rather significant, is the fact that they’re competing for the same customer/merchant base as Amazon. Merchants who choose to sell their original products on Amazon, likely also have a Shopify store setup to mitigate the fees Amazon charges on every sell they make. Furthermore, it’s a very common approach for these merchants to utilize both Amazon, and Shopify to sell their products, however on their Shopify store they likely have more incentives to purchase the item and most likely have it listed at a cheaper price because they won’t have to pay any fees to anyone besides the payment gateway.
Shopify Fees
When a merchant sells one of their products on Shopify, they only have to pay the payment processor — the middleman who handles the payment, whether it be credit card, PayPal, etc… — the fees to process these transactions are rather low and typically start around 2.9% + $.30 of the overall transaction. On top of these low fees, high volume merchants can typically strike deals with these payment processors and get even lower commission rates such as 2.4% of the transaction.
The only other fee a merchant has to pay is the Shopify subscription fee, which starts at a rather low monthly cost of $29, which is rather generous since you get nearly the full functionality of Shopify behind your store.
To conclude this section, Shopify has rather low fees, which make selling products with low profit margins, a viable solution, albeit you will need to have a higher volume of orders to make any money.
🤗 Shopify 🤗
Please let me know your thoughts in the comments on your take of Shopify and especially Shopify vs Amazon ordeal.
