Without a doubt, the future of retail business relies on the internet. Therefore, every business owner is now trying to figure out how they can take advantage of the growing online shopping community to increase their sales. Fortunately, well-established and reliable e-commerce platforms like Shopify have made it possible for small and medium enterprises to have online stores without spending large amounts of money on creating e-commerce websites.
With Shopify, you can make all your products available online without the hassle of managing your website – but is it profitable to sell on Shopify? If so, how much does the average Shopify owner make? Read on to find out.
What Is Shopify?
Shopify is a cloud-based e-commerce platform that hosts millions of merchants from all over the world. It allows you to set up your online store so that your products can be available to as many potential customers as possible. Shopify lets you merge all your shops so that you can manage them from a single platform, and gives you the opportunity to sell right on the Shopify platform, as well as through social media pages, in-person, and physical stores.
How Much Can You Make With Shopify?
When you set up your Shopify store, you are entering an already-established online community that’s eager to try your products. With the right products and business strategy, it’s possible for you to make money from your Shopify store.
Recent reports indicate that Shopify stores are making record sales since the outbreak of the COVID-19 pandemic, particularly because many consumers now prefer to do their shopping online. So, if you come up with a good product and set the right price, you’re sure to begin making sales with your store. How much you make with the Shopify store also depends on your profit margin, and you need to do your calculations properly so that you can set an efficient and accurate profit margin.
Thankfully, Shopify allows you to integrate your store with a third-party accounting program that will make your accounting tasks simple and accurate–just be sure that you get the best accounting software for Shopify. With a reliable accounting program like Synder, you can easily compile all your accounting data from multiple sales channels to calculate the amount of profit you make every day. One common question that merchants often have when setting up their Shopify stores is how to do bookkeeping for Shopify – but with this accounting software, everything is as simple as clicking a button.
Research has shown that an average Shopify merchant in the United States makes about $72 of profit from each customer–high-earning merchants on Shopify earn about $149 on a per-client basis, while low-earning merchants make a profit of about $44 per-client. According to 2016 Q1 data, the average Shopify store owner makes about $3,897 per month. It’s also important to note that stores don’t even have to pay income taxes if they are under a certain profit margin.
When you are marketing your business, it’s vital to focus on your target audience in order to create a connection with the right consumers. You’ll need to identify your exact customer base and focus your marketing resources on them instead of wasting time and resources on uninterested prospects.
In terms of profitability, Shopify stores can be highly profitable depending on several factors. For instance, your profit depends on your ability to read the market and make the right predictions. If you can effectively identify gaps in the market and come up with effective solutions, your profits will always be impressive. Eventually, you also will need to spread your business wider to attract more customers and boost profits.