Shopify is an easy shop builder website for eCommerce store owners. The Shopify tool allows its users to create e-commerce websites and begin selling products online in just a matter of a few minutes.
How does Shopify Work?
Shopify is an online business platform that helps customers to develop an online store for selling their products online. To develop an e-commerce site, Shopify helps businesses to connect with customers by implementing the necessary tools.
First of all, you need to develop your store and include whatever products you need to sell on it. Check your site to make sure that both mobile and desktop are fit for public view. After that, promote your products. While you are selling a product online, a customer will visit your online store.
Moreover, you can view through the Shopify admin whether customers are buying the product or not. If any customers buy product through the Shopify account, They will transfer the payment to your account after the purchase. While receiving the payment, you can forward the product to the customer, so that it will be received within time.
How does Shopify make money?
Shopify can earn money in various ways from their business. It allows potential dealers to build an online storefront. Shopify produces most of its funds in different ways, such as:
They will earn through monthly subscriptions.
Mainly three subscription plans are offered for most of the business.
1. Basic Shopify plan
The basic cost is $29 per month for contributing fundamental features and services to start and manage a small e-commerce store.
2. Shopify Plan
For granting advance point of sale service features, need to pay $79 per month.
3. Advanced Shopify Plan
This is the best subscription if you have a huge volume of business and merchants. It provides very less service charge for each transaction among all subscriptions, and it will cost $299 per each month. The other two subscription plans are Shopify Plus and Shopify lite.
4. Merchant solution fees
The merchant solution fee is the other major earning income source of Shopify and it has its own payment option. Subscription charges are different according to their plans. For the basic Shopify, they will charge 2.9 percent and an additional charge of 30 cents for each transaction. For Shopify, it will be reduced to 2.6 percentage and an addition of 30 cents for each transaction.
The rate will again decrease to 2.4 percent for the advanced Shopify and an extra of 30 cents for every single transaction done through Shopify payments.
5. Payment gateway fees
This is another earning method of Shopify, other than subscription plan, Shopify charges a fee for the usage of payment gateway. The charge was different according to each subscription plan.
For basic Shopify subscription plans, they will collect a 2% for each transaction. But for Shopify, it will be only 1% for each transaction. And for advanced Shopify, they will charge a small fee of only 0.5% for every single transaction.
6. Point of sale service
This is a software service in which we can track our sales information and transactions that are happening in your physical stores. This also provides consolidated data that blends in-store and online store. The point of sale features is changing according to the subscription plans.
The Shopify point of sale app and the third-party POS app are only available for the basic Shopify subscription plan. The main difference between Shopify and advanced Shopify is in the case of a store location.
Shopify also can earn through the sale of themes through the store by the users on a regular fee, and they also provide many add-ons and integration to other sites. This is also a reason for the earnings of Shopify.
Learn more about the role of mobile applications in online business.
Pros and Cons of Shopify
While using Shopify, there are many advantages and disadvantages. Shopify is a good choice for many merchants, but for some, it is not at all good. The following are some reasons why merchants choose Shopify.
Pros of Shopify
1. Low start-up cost
The start-up costs for Shopify are normally very low as compared to others. The monthly charge of Shopify can be affordable for merchants to set up.
2. Detailed Shopify admin
The Shopify app provides a detailed statement and features which will be helpful for the merchants to understand the performance of your Shopify store. Through this, you can understand which is your best performance product page and can view your real-time website visitors. Shopify is a complete tool for online merchants, which permits you to have better deep knowledge and details of your online stores.
3. Easy to use
The main reason for the merchants to attract Shopify app is the comfortability and accessibility to use this Shopify. This is mainly developed for the illiterate merchants. The tools and other features for selling, adding products and creating discounts are very easy to understand.
4. Support Options
There are a large number of support options available while using Shopify. Technical support can be easily accessible every hour of the day through your mobile phone, email or live chat. So the availability of helpline accessibility after the business hours is more useful for the customers.
5. Beautiful Themes
There are many varieties of paid and unpaid mobile themes available for the subscribing merchants.
Cons of Shopify
Shopify provided with all of the features to develop an online store for the smaller merchants. Every business has some specific necessities, but usually, Shopify doesn’t have such features in order to meet those definite needs.
2. Expensive add-ons
Shopify lacks some advanced features. These features have to be found by you in the form of add-ons. These are not free. We have to pay for the add-ons approximately double your monthly fees.
3. Success is not Shopify’s guarantee
Shopify is just an opportunity for success. It has lots of features and apps that make an online store easier. The issue regarding the success of your store is actually up to your business skills.
You need to well prepared by learning the business skills through Shopify and need to have the skill to promote your products that will be more attractive to the customers. So from this, you can understand that success is not in the hands of Shopify, but it is your responsibility and success is in your hands.
4. Transaction Fees
Even Though most of the shopping carts have released their transaction fees completely, Shopify has maintained its 0.5% to 2.0% feed, which depends upon your pricing plan.
5. Strained customer support
Shopify has been well known for its active customer support in the past years, while it seems their support team has experienced their increased strain this past year. So that Shopify’s client load increased very aggressively and their support is struggling to keep up.
You can create an online store builder like Shopify using the Shopify clone script – iScripts GoStores.
iScripts GoStores is an easy tool to build and host your own online store creation business. Apart from the shopping cart hosting system this unique online store builder software also includes billing, account management and helpdesk support systems.