Thousands of entrepreneurs have created online stores on Shopify – does this mean it’s a profitable platform? Realistically, how much can you make on Shopify?
Whether you already have products you want to sell or are still in the beginning stages of your journey as an online seller. This guide will give you a good idea of whether Shopify is the right platform for you.
How Much Can You Make on Shopify?
Let’s start by looking at how you can make money on Shopify. There are several options but for the sake of keeping things simple, let’s focus on the two main ways to make money on Shopify.
Sell Your Own Products
Whether you source products from a manufacturer or design and make them yourself, Shopify gives you a platform to sell your goods online. This can be anything from jewelry and technology products to branded t-shirts and dolphin costumes! The possibilities are endless!
The second way to make money is through dropshipping. This gives sellers the option to sell goods without having to worry about handling and shipping stock. You can find out more about how to get started as a dropshipper on Shopify here.
Which of these options is right for you mostly depends on how much time you have and how involved you want to be with inventory management.
There are a few other ways to earn money on Shopify, which you can read about here.
To determine how much you can make on Shopify, we need to consider the factors that affect profitability.
- The products you choose to sell. When there’s no demand for your product, you’re not going to see the profits you’re hoping for. Understanding your market and your competition is integral to choosing the right products to sell on Shopify. Along with selling a unique product, make sure that it solves a specific problem – this drives up demand even further.
- Pricing. You could have the perfect product, but it will affect profitability if the price point is wrong. Again, research is essential for finding the right price point. It’s also important to consider all other additional costs, including Shopify’s fees and shipping.
- The customer experience. Customers that receive their orders on time and have a good experience, in general, are far more willing to become repeat buyers (Increasing your Customer LTV is always good news). Who will you partner with to handle your shipping? Are your manufacturers trustworthy? Who will manage your customer service? These are all factors that affect the customer experience and, in turn, earning potential.
Try not to feel overwhelmed with any of the above! When you start, you’ll probably do a lot yourself and learn on the job; that’s how we did it anyway!
Can You Become a Millionaire with Shopify?
Yes, you can become a Millionaire by leveraging Shopify. A LOT of people have done it, and with the right mindset, you can too.
However, you do need to be aware of one thing. Shopify is not a marketplace; it’s a DIY eCommerce platform.
Once you’ve set up your Shopify store (Tutorial Below), you’ll need to get people to come to your store. The marketing side of things is all on you.
Consider giants like Amazon and eBay – what is it that sets them apart from platforms such as Shopify? The answer is the audience.
Marketplaces such as Amazon already have an established audience. Once you’ve listed your products, it’s far easier to get in front of your target customers.
Although some aspects are harder, you can definitely earn higher profit margins on Shopify.
You just need to drive the right customers to your store.
Once you get them there, you need to establish trust and convince them to make a purchase.
If you create your own store on a platform such as Shopify, at least you own the customer relationships you build. This isn’t the case with a marketplace like Amazon.
You also need to play by each marketplace’s rules, which means they have more control over your listings, shipments, and more.
There are pros and cons associated with both these options. In the end, you need to decide what’s most important to you and choose a platform accordingly.
How Does Shopify Compare to Amazon?
Shopify and Amazon have a number of similarities but also many differences. Both might give you the ability to earn online and will charge you a monthly fee to do so. However, the features and even the earning potential are slightly different.
The first main difference is that Shopify is an eCommerce platform, while Amazon is a marketplace.
Amazon gives you immediate access to a much larger audience – an audience familiar with the Amazon brand, which means trust levels are far higher.
However, when done correctly, it’s possible to establish a unique and strong brand using Shopify, giving you the chance to build up a regular customer base.
Shopify and Amazon cater to different types of sellers, so it’s up to you to decide which platform is a better choice.
If you are interested in selling on both Shopify and Amazon, you may want to watch this video below.
Conclusion – Is Shopify a Profitable Option?
Whether you end up going with Shopify or a larger marketplace, becoming a successful and profitable seller takes time and effort.
If you want to start an online business that you can either run on the side or take full-time, Shopify is one of the better eCommerce platforms out there. You just need to learn how to get in front of the right people.
If you want to spend less time attracting potential customers and want more hands-off store management options, consider Amazon.
Overall, it is possible to earn good profits on Shopify, but your brand might take a little longer to establish, which is something to be aware of.
Have questions about Shopify? Leave me a comment below.