How to Make Money on Shopify

Updated On October 4, 2021 by Anca Iusan
Blog

Shopify is one of the world’s leading e-commerce selling platforms and the perfect tool for any entrepreneur looking to establish a name online.

Whether it has always been a dream to own your own business or just make some extra money; Shopify offers everyone the opportunity to start with them.

We say dream on and and dream it up, just as the creators of the platform learned.  With over 5,300 stores and 1 million businesses in 175 countries, Shopify can offer anybody the ability to make money.  Shopify holds a significant position in the e-commerce industry, consistently ranking in the top 3 ecommerce software platforms available. That is a long way from the company’s inception in 2004 as a Canadian outlet to help snowboarders find their gear. The founders were really just looking for an online store that was easy to use for both merchants and customers, when they couldn’t find it, they built it. Quickly Shopify became a massive contender of the e-commerce giants and has increased revenue by 400%.  

Due to its efficient development and its brand reputation, it is one of the most successful e-commerce outlets for those looking to make money through one  Shopify venture or another.

Shopify has made over $100 billion to date in sales and received its one-billionth sale in 2018.

However, you do not necessarily have to open a storefront before you can make money with Shopify. The platform is affordable, user-friendly and easily scalable allowing you to integrate other money-making ventures that are not storefronts.

If you want a slice of the Shopify pie, this is a good time to buy stock of the company, become a drop shipper or advertise your developer skills or turn your ideas and hobbies into cold hard cash.

How does Shopify work?

It dominates 11% of  e-commerce market share and has contributed over 319 billion USD to the global economy. This is massive, and that is why making money on Shopify takes a few different forms.

Shopify How It Works | Shopify How Does It Work - YouTube

Shopify is a cloud-based, flexible, and powerful SaaS e-commerce solution that enables budding entrepreneurs to sell goods and services online through ecommerce stores. This model has evolved some by setting up an online storefront. The process is simple as Shopify has a plethora of tools, themes, and free support and education courses to ensure you start and finish successfully.

Additionally, it has carefully put exit strategies in places such as a payment system, multiple gateways, and Point-of-sale solutions to enable merchants and store owners to interact with clients and accept payment quickly and flawlessly.

But that is not all why Shopify is a great place to make money.

The ability to set up an online storefront or integrate an external link to it is incredible. Moreover, the platform has resources and services that benefit entrepreneurs, whether small, medium, or large. So if you are starting or own an existing business, start making money on Shopify now. It is as easy as ABC.

For merchants, investors, developers and more, who are  looking to make money with Shopify, the platform affords them a wide range of ways to gain revenue faster.

  • A
  • Ability to engage new customers through numerous marketing opportunities, including email marketing, Facebook ads, and Google ads. Once customers, interaction can be easy and in real time with Shopify Ping.
  • Alternative paths to income with that include purchasing stock, referral programs, and dropshipping; which can be very lucrative when having the functionality to take inventory, store, and ship out orders seamlessly.
  • B
  • Business processes made easy from the tracking and recording of all inflow and outflow from to the promotion  and sale of items on your website using external links
  • Being part of a company that was started by business owners, solving problems for business owners and their customers
  • C
  • Countless ways to buy and sell anything from digital to physical products and services. 
  • Customer service that really supports both users and partners, no matter their size or type

So how does Shopify make its money?

If you are into stocks and are looking for a viable company to buy into, you might want to try Shopify. 

You make money with shopify and they make money doing what they do best, helping other business owners, and their customers, connect. Yes, the little Canadian ski/snowboard outlet has a place with other e-commerce giants like Amazon. Its share price goes for $1,231.10 USD with generated revenue of $2.93 billion USD, a stark contrast from the $105 million earned in 2014.

Shopify has a portfolio today that is fed through multiple routes, but the highest generation of revenue comes from subscriptions. Of course other channels generate a sizable amount of revenue as well. Some include transaction charges, payment programs or referral fees for supporting other websites & advertising for other brands and businesses, apps and themes available for sale, email marketing, physical sales of hardware, and many more.

Money-making via subscriptions

With subscription plans ranging from $9 to $299, merchants get to choose what works for them.There is a trial session available, and the subscription can be canceled anytime with no questions asked.

You can access a number of different features allocated to the plan you choose. All subscribers enjoy 24/7 support, the ability to integrate and sell on multiple platforms, and more. 

The storefront plans available currently include Shopify and Advanced Shopify for merchants that run small to medium businesses or Shopify Plus for large businesses.

The pricing is different for large companies and conglomerates or businesses. Brands in this category get registered under Shopify Plus, and the offer starts at a token of $2000.

The Shopify Lite subscription plan is for businesses that do not operate on Shopify but want to add Shopify to their website. This is the plan that goes for $9 monthly.

The Shopify POS Pro is another subscription solution,made for merchants looking for more in-store features like analytics, store staff, inventory, or registration. This plan goes for $89 every month and is dependent on location.

The Shopify POS Lite is an in-store payment system that allows you to accept payments via cards online. The best thing about this plan is it is free with no hidden charges.

The Shopify App Marketplace

Introducing the New Shopify App Store

This is a win-win situation for both Shopify and developers. We live in a digital and mobile world, and you must be able to design and have absolute control of your website and brand. The Shopify app store is a collection of plug-ins that enables you to enhance the functionality of your store to suit the needs of your business, your target demographic, and your supply chain.

Shopify makes money with their apps in multiple ways. They charge the developers on the app store a token percentage for commissioning the app itself. Then the developed app is based on a keyword, and when the app goes live, the developers pay for any click on the keyword. Charges are dependent on the competitiveness of the chosen keyword, which can make them very pricey.

Transaction Fees

It is an open fact that Shopify charges a fee for every order processed on the platform. What it means is whenever a customer pays for an order; a charge is deducted via its own payment gateway route called Shopify Payments. The payment route is similar to PayPal and allows the merchant to develop a secure pathway,which is PCI compliant, for customer information on your site. Charges vary

 according to your subscription and are as follows:

The basic Shopify plan pays a 2.9% cut with 0.3$ for each transaction

Shopify plan has a 2.6% cut with 0.3$ per transaction

Advanced Shopify plan pays a 2.4% cut and 0.3$ for each transaction

For merchants on Shopify Plus with a $2000 subscription per month and Shopify Lite pays a fee of $9 monthly.

Shopify Domain Sales

If you are going to make money on Shopify, you need a unique internet address that distinguishes you from the crowd, even more so when you are on a competitive platform like Shopify. As you tunnel through the processes of finding a domain name suitable for your business or brand, you could check Shopify and relieve yourself of the stress.

This is where they can help.

Users need a domain name to start using Shopify. Luckily for you, Shopify offers astounding domain names for a token. At 14$ for a year, you can enjoy your website using this Shopify service. Shopify is undoubtedly the best domain registrar for an online store, and if you truly want to make money on this platform, this is where to start. Although some think the price is steep, there is immense support and access to resources that make it worthwhile.

Email Hosting and marketing

As a truly integrated e-commerce platform, Shopify tries to offer various marketing channels to enable merchants and store owners to make money with/on Shopify.

Although Shopify does not offer email hosting services, it allows you to seamlessly connect to third-party domain sites with these options and attracts a hosting charge usually under $5 per month.  Users get access to 2500 emails monthly free of charge, ensuring you make money on Shopify. The fee is a small token of 0.001$ per email sent and 1$ for additional 1000 emails over 2500 emails.

That is clearly an excellent way to promote your business and make money with Shopify.

How Can You Make Money With Shopify?

We are in a new normal, and digital is the way to go to make ends meet. E-commerce is a world of opportunities for anyone that seeks to make money, and Shopify is the best place to start. Whether you are a newbie or pro, Shopify has grown tremendously. A look at its stock will affirm this fact, from $285 in 2019 to over $1200 now.

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Anyone, a company or individual can use Shopify to sell or promote content and make a lot of money. We are not promising that you will be rich overnight, however there is more than one way to make cash through the platform.  

Shopify Exchange Platform

exchange marketplace - Dumb Little Man

This is like Shopify real estate, but this time it deals with digital storage space. The Shopify Exchange began in 2017, and it allows registered and accredited Shopify merchants to openly list their stores to sell or buy.

Buyers or sellers can access background information such as store capacity, traffic, revenue generation, and other data to affect their decision to buy or sell. Buying a store on Shopify exchange eliminates creating a store from scratch, and it is cost-effective and simple.

Just like buying into real estate, store prices range from as little as $50 to an online shopping empire, going for 1 million USD or more.

So how does Shopify make money from the exchange? There is a percentage cut when the deal is sealed, but Shopify also charges a $10 fee for listing your store.

Even though Shopify has provided all the amenities to get you started, sometimes building a store from scratch is tedious, tiring, and time-consuming. Yes, the stores are sold for a reason, but one thing is sure, you have the opportunity to alter the outlook and change the situation. If you are looking for a storefront you can operate immediately – the Shopify Exchange is the ideal place to start.

Accessing Shopify Loans and Business Capital

We bet many people did not know this, but registered store owners with Shopify can access loans and cash advances to grow their business through the platform. Businesses can borrow up to 1,000,000 USD loan or cash that must be repaid in 12 months from the month the money was approved and received by you. Although there is no interest rate charged on loans, a fixed borrowing rate of 1.1 or 1.13 applies when applying for the cash advance.

So how does this work?

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The loan is only applicable to selected merchants in some states in the US, it is deposited in your bank account, and a 10% repayment rate applies. While the thought of a loan scares plenty of people, if your store is busy and making adequate turnovers, a loan will boost sales, buy a product and deliver to clients anywhere. After all, you need money to make money, even on Shopify.

Referral Fees

We live in a world of networking and business referral. Whether it is via word of mouth or digitally, Shopify makes money from it. As one of the leading e-commerce brands in the world, many businesses look to Shopify to promote their business to get them going. This is not without benefits; they pay for this service.  Furthermore, Shopify pays top dollar to users who refer others on their paid plan.

For the first two months, the user will get up to 100% payment based on all plans except merchants on Shopify Plus.

Other methods Shopify makes money are through hardware sales, from their theme store, and via logistics.

As an e-commerce platform, the biggest problem encountered is shipping and delivery within a convenient time. Although Shopify does not deal in shipping and delivery, they have partnered with DHL, USPS, and UPS to provide quick shipping solutions tailored-fit for its merchants.

So if you have been asking yourself, how does Shopify make money? This is it. Now the other question is how to make money on Shopify.

Start Dropshipping On Shopify

There is no limit to the amount of money you can make on Shopify dropshipping, it will not be easy, but it is one side hustle that could enable you to live your dream life. Let us remind you again, it will not be easy but definitely worth it.

How I made 6-Figures Dropshipping with Shopify 2019 | by Reda Ezzain |  Medium

Dropshipping is a decent way to make some nice cash but if you want to truly make money, then dropshipping on Shopify is the way to go. Dropshipping is a process whereby a seller acts as the middleman between a customer and the supplier. You need Shopify to help you build an exceptional storefront that will attract customers while the supplier does the delivery.

Why is Shopify the best for drop shippers?

While the overhead risk is minimal and you do not need cash to start the business, you can sometimes lose sight of the actual cost and sell at the wrong price. This is where Shopify comes in. using the Shopify profit margin calculator, you can analyze your market and price your products right.

Affiliate with Shopify

Shopify Affiliate Program Review: How to Make $3000 a Month

Seriously, everybody is making money as an affiliate, and if you are looking to make money with Shopify, you might want to register with its affiliate program. Like Amazon, Shopify has a robust affiliate program that can make you thousands of dollars by just referring a merchant to the store on a paid plan. Whether you are an entrepreneur, content creator, influencer, or educator, affiliating with Shopify offers a tremendous amount of benefits to help you earn money.

Read more on the criteria and start making money on Shopify as an affiliate.

Advertise your freelancing career on Shopify

We know this sounds misplaced, but you would marvel at how many people actually look for freelancers on Shopify. Moreover, Shopify allows you to subtly create your mark by advertising your skills, available time, and more. Furthermore, since you are not making any delivery, remember to switch that option off. Additionally, if you are on other platforms like Freelancer, Upwork, or Fiverr where the competition tight, Shopify is just the right platform to separate yourself and create an obvious brand.

Share your developer’s skills on Shopify

Shopify has an extensive community of people with a variety of talents and skills, including developers improving the platform, but there is another way to make money on Shopify.  If you are good at designing web pages and storefronts, this is the time to monetize your skills.

Even though Shopify has all the resources and support to enable anyone to build their storefront, many people still find it tasking, and with thousands on the Shopify platform looking for something unique, capitalize it now. This way, you can combine your knowledge with the resources on Shopify to create unique and spectacular storefronts for store owners.

Make money leveraging Shopify’s partnerships

Shopify is constantly looking for a way to improve the lives and commerce systems of its store owners. With that said, they partner with other brands to help you achieve more. For example, the Shopify-eBay partnership allows sellers to sync their store to eBay and sell more while still maintaining the inventory with Shopify.

Recently Shopify partnered with GreenDropShip to launch an app that allows grocery sellers to add natural and organic produce to their online store. Merchants can access up to 20000 from its inventory. This is a creative way for drop shippers to deliver fresh produce to clients.

Using their apps makes it easier to sell and make money with Shopify. Many other partnerships are worth checking out.

Direct

How to set up a store on Shopify

In case you are asking why I need a Shopify store, the answer is simple. You cannot make money with Shopify without a Shopify store.

Before your sign up for a place on Shopify, check out the free trial of 14 days. This trial will enable you to tour the site and see how things work. This trial period is also a learning time to try out the themes, colors, functions, and designs. It also enables you to know what Shopify can and cannot do for you. You get to choose products, improve the store and go live afterward. It is just a matter of signing up on the page.

Announcing New Shopify Pricing Plans - stubble.IO

To get started, the user must choose one of the three plans when they decide to go live. There are varying degrees of features and support depending on the subscription choice. If you have other questions, you can ask the admin too.

For example, you must choose a unique store name, as mentioned earlier. The format for your url will be streamlined as follows storename.myshopify.com. While this cannot be changed, you can customize it to yourstore.com when you are sure of the direction and products occupying your storefront. Other information includes personal details, contact and what is the goal of the store. Overall, it is a learning stage and a fun one at that.

Besides the above, Shopify gives you the ability to select templates and designs that fit your specifications, demographic, products, and goals. Furthermore, the Shopify app store has countless independent developers adding their touch and skill to enhance the existing Shopify ecosystem.

Finally, Shopify has an interactive support session which is just one more reason why it is easy to make money with Shopify. They are available 24/7 and readily available to help out with any problem as long as Shopify is involved. There is also a responding community forum where users get help from one another, making problems disappear before they escalate.

Run an e-commerce store

Well before anything else, Shopify is an e-commerce platform, so it makes absolute sense to go the e-commerce way. Shopify is the go-to e-commerce site for all types of sellers, from electronics to pet food, household, sports, and everything in between. And it is because Shopify is simple, affordable, and supportive. Choose a plan and head on to the plug-ins and themes page to customize your page. Do not forget that you can decide to scale up anytime you want.

While you make money on Shopify, you can also make money with Shopify.

How! You ask.

Shopify allows you to integrate third-party websites, including your personal website, into your store. This enables you to expand your customer base and sell on other platforms with Shopify’s support. While you work hard to optimize your store, you must also understand how your business is doing. At this stage, incorporating a Shopify profit calculator or an analytic tool will give you a report of your business at regular intervals.

Now that you have set up your e-commerce store, what can you sell to make money on Shopify?

Can I sell class or lesson subscriptions?

Yes, you can. You can advertise your rental or catering skills, show ticket, memberships and consultation offer to anyone that needs it.

Sell your artistic talent online

Online stores are no longer for physical items anymore. If you have a talent that will help people, sell it. The world is full of empty spaces that need to be filled, and only skillful people can do that.

Whether you are a musician, artist (potter, painter, embroidery, seamstress, photography, or designer), Shopify can help you monetize your talents into money.

How?

Get a storefront and showcase your work. As you do that, delve into other parts like selling art equipment and tools to even teaching kids and adults how to harness the artist in them. You can also show sneak videos of you at work. It will give your customers a yearning to be part of you.

Artists sell your art, musicians sell your beats, songs, and sample or offer online downloads as you gradually establish your music empire.

Start a customize clothing line

There are too many clothing designers on the market, but people still buy them. However, if you have something unique, you can rest assured that customers will come knocking at your door. The best thing about using Shopify for this business path is the ability to start selling immediately after you go live, but there is more.

Thanks to digital print-on-demand apps like Printful, SPOD, and Printify, customers can seek unique designs that are sent to the manufacturers, printed, and shipped out within 5 working days. For clients in the US, within 2 – 3 days, this is absolutely amazing. Additionally, these print-on-demand requests are not for shirts alone but any household goods with useable material that can be printed on

Develop a niche

A niche occurs when a segment of a larger market is redefined to make it unique and different from the parent market.

An example is the shoe brand, Clove. It is, designing shoes for healthcare workers that are always on their feet or something unique that caters to specific demographics, psychographics, geographics, or quality. Developing a niche is not going to be easy. However, if you are looking to be different, you must be ready to beat or become the competition to your competitors. You can create a niche for pets and pet owners, health-conscious people, make sustainable products, eco-friendly or vegan products. The sky is your limit, and Shopify is the starting point.

Displaying your crafts

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Do you have a craft you like the world to see? Do you like making things with your hands, and then it is time to start making money on Shopify. Many customers are looking for unique items away from the norm. Whether it is leather works, weaving, or making delicious goodies, Shopify is the best platform to start selling them. Selling on Shopify eliminates market charges, and you have absolute control over your business. This is the time to turn your passion into money by building an entrepreneurial base on Shopify.

Benefits of using Shopify instead of other e-commerce platforms.

Easy Setup

This is why everybody wants to be on Shopify. The site might not be for everybody, but a huge majority enjoys the super easy and intuitive ways Shopify makes owning an online store feel. Whether you opt for the paid or free version, you get ample support and resources to start on your own. Additionally, you do not need a degree in coding or computer language to create a design. Even when you are clueless about the next step, Shopify has outstanding outlets and partnerships with other apps and stores like Oberlo.

Full support for humble beginners to mighty Giants

Shopify is support is excellent, and you will never lack help, whether from the admin or the community. So if you have a burning ambition to make it online, we can guarantee that Shopify will be there to ensure it happens. The same support that small startups get is what large established systems get too. Overall, your online adventure starts with Shopify and goes on from there.

Plug-ins and add-ons

With over 4000 apps for different purposes, Shopify has a solid solution for various e-commerce stores. The add-ons and plug-ins are tools and accessories that help you enhance your storefront according to your business needs. Finding the best one is a task, but you can start from the Shopify App Store.

A vibrant and ready to help the community

Shopify has a massive community of over 800,000 members sharing ideas, solving problems, and developing new insights to tackle the problems faced online with the platform.

The community consists of Shopify staff, entrepreneurs, partners, experts, developers, store owners. Shopify community to the questions and answers because chances are one or more people have suffered the same problems. Any question is welcome from startup to exiting Shopify.

The community also has authors and writers that fill you in on the latest with Shopify. The community has over 1 million posts to date. So you can never be one and do not find answers.

No maintenance fee

One would think that with all these upgrades, it will be expensive to remain sustainable on Shopify. Alas, the reverse is the case. Shopify is a cloud-based service, and therefore users do not have to worry about storage space, lag, or low performance. Additionally, it is super fast regardless of the business or services you are going for.

If you are still thinking about how to get started, call the guys at Ecomitize for a thorough job and excellent consulting. They work with various e-commerce sites, and Shopify is one of them.

Conclusion

Running a business or brand on Shopify is not easy even though it is attractive, but it is a stable foundation if online is the way forward for you.

Shopify has made it easy for anyone to create, grow and make money on its platform and the following article just answered two questions. How does Shopify make money and how can you make money on Shopify? Truth be told, Shopify is just a channel; the ideas and dedication are in your hands.

We always dream of working from home, and this is the time to grab hold of the opportunities before us. Whether you are looking for a side hustle, passive income, to build a brand, business, or expand on an existing one, making those dreams come true through Shopify is possible.

Just like Shopify itself, that started as a website for snowboarders, you could be another success story with millions to show for it.

So what are you waiting for? Sign up today and set up your shop to start making money with Shopify.

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