Have you dreamed of starting your own business? For many aspiring entrepreneurs and side hustlers, that dream has come true by making money on Shopify. Ecommerce is a booming business – statistics show online retail sales increased 30% in 2020, a trend that has accelerated due to the COVID-19 pandemic. By opening a Shopify store, new business owners can gain access to global markets and create and sell goods on a large scale.
As online stores gain traction, many are asking, “How can I make money from Shopify?” If you have dreamed of starting a business or using Shopify as a sideline, here is everything you need to know about getting started.
Whether you’re a brick and mortar store thinking of a digital tech nub or a business-minded person looking to get into the ecommerce game, Shopify can remove many of the barriers to getting started selling online .
What is Shopify?
Selling goods online has not always been easy. Creating a website that is linked to an online shop and can securely process payments was once a task that required a high level of technological know-how. Shopify simplifies this process by creating a platform that business owners can use to easily create and manage an online store.
Shopify can’t make you rich, but it does give you the tools you need to build an online business. It’s a platform that serves your business goals. Whether you are a brick and mortar store thinking of a digital tech linchpin or a business-minded person looking to get into the ecommerce game, Shopify can remove many of the barriers to getting started selling online .
Ways to make money with Shopify
Small business ideas come in all shapes and sizes. Remember, Shopify is a tool for your small business. You can find ways to integrate it with an existing business, or you can use Shopify as a starting point for a new business. There is more than one way to make money from your Shopify store. Here are some popular ways to make money from Shopify.
1. Create an ecommerce store
Whether you’re a brick and mortar retailer looking to move to digital or an online seller, setting up a Shopify store is easy. You can sell both goods and services, and Shopify makes the buying process easier for your customers.
If you already have a website, you can add a Shopify store. You can also create a store right from Shopify using one of the templates that become its own website. If you’re not sure what to get started, you can also buy a store that a current Shopify user is already running. This can be done on Shopify’s official exchange marketplace.
Remember, setting up your business is just the beginning. Once you have it up and running, you need to focus on optimizing to make sure that you are maximizing your sales. One of the first optimization techniques online sellers deal with is abandoning cart reduction. Statistics show that communicating with your customers after they leave your store prior to checkout can lower your abandoned cart rate by 58%, which is more than $ 156,000 for a business in 30 days. Whichever optimization techniques you choose, it is important to remember that starting your business is just one step of many that it takes to actually make money on Shopify.
2. Try dropshipping
No story about making money from Shopify is complete without mentioning dropshipping. Dropshipping allows you to sell products without having the inventory yourself by outsourcing shipping for order fulfillment. The global dropshipping market was valued at $ 111.28 billion in 2018. For sellers, dropshipping is a significant benefit as you don’t have to pay upfront for inventory or worry about the manual process of order fulfillment and shipping.
While there are many online commentators who might suggest that dropshipping is an easy way to get rich quick, keep in mind that while this tactic offers some great benefits for online retailers, it also requires a commitment to optimization. You must continue to create demand for your products and drive customers across a sales cycle.
3. Shopify Affiliate Program
You don’t need an online store to make money from Shopify. If you already have an audience, you can monetize it by becoming a Shopify partner. Shopify estimates that for every user who signs up for a paid plan, you can make around $ 58. This option can fit seamlessly with anyone creating business or financial content that encourages others to start their own online stores.
In order to enroll in the program, you must submit an application. If you’re approved, Shopify will provide you with a unique referral link. Shopify pays you bi-weekly through Paypal for any paid accounts you recommend. You can combine this strategy with others that you can use to make money on YouTube, Instagram, or other platforms to develop multiple revenue streams for your business.
How Much Money Can You Make From Shopify?
Remember that starting a Shopify business is going to cost you money. As such, you will likely need to spend capital before making any income on the platform. While Shopify offers a free 14-day trial, there are three pricing options available after that.
- Basic Shopify: $ 29 / month
- Shopify: $ 79 / month
- Advanced Shopify: $ 299 / month
You also need to consider costs like marketing to your business, photography of your products, and shipping.
It’s difficult to get a reliable estimate of how much money you can make from Shopify. The company does not publish statistics on the store’s average sales. While there are many internet bloggers and commentators who claim to be making more than six-figure amounts per month using the platform, there are also many businesses that are unsuccessful.
A smart way to estimate your potential Shopify earnings is to use the Gross Profit Margin Calculator, which can help you determine the price of your products. After that, you need to estimate how many products you can sell on a daily or monthly basis to get a rough idea of how much money you can make from Shopify.
Make money with Shopify vs. Amazon and Etsy
Shopify isn’t the only way to sell products online. There are a growing number of online marketplaces offering business owners the opportunity to sell their goods or services to the masses. For example, Shopify compares it to Amazon and Etsy, two other popular platforms with slightly different purposes.
|Platform easy to use||Customer service available to sellers 24/7||No customer service phone number for sellers, you have to send a request and wait for a call||Online help resources and official forums, but hard to reach customer support from the seller|
|Monetization options||Can create an online store with physical products or services, can do dropshipping, affiliate program available||Sell wholesale goods or your own label, sell products as an Amazon partner, sell handmade items through Amazon Handmade, and offer services through Amazon Services||Sell vintage or handcrafted items and become an Esty partner|
|Platform costs||monthly fee||Commission on your sales||Commission on your sales|
Note that one key difference is that Shopify does not act as a marketplace. While Amazon sellers appear in the website’s search lists, as a Shopify seller you are primarily responsible for driving traffic to your website. This is similar to other platforms in the Shopify category, e.g. B. the competitor Oberlo.
Using your Shopify store as a sideline
Shopify has established itself as a viable way for online sellers to create stores that generate profits. While there are plenty of Shopify success stories to draw from, it should be kept in mind that opening a successful Shopify store requires dedication and is not guaranteed to work.
If you are planning on using a Shopify business as a sideline, make sure you do the hard upfront work of budgeting your startup costs to know how much money you need to make before your business is profitable. If you think Shopify is not the way to go, keep in mind that there are other ways to make money online. For example, some people with social media knowledge find that they can make money off of TikTok, while others prefer to use their freelance skills to get digital odd jobs like social media management or content writing.
Starting a sideline business can be not only a positive financial endeavor, but also an opportunity to develop new skills, train your creativity, and explore possible future career paths. If you’re interested in improving (or improving) your online marketing and sales experience, using Shopify to start a side business might be a good option for you.