The common question that every e-commerce merchant asks when setting up their Shopify store is whether selling on Shopify is profitable. The quick answer is: yes. If you just want to make your products available online or if you’re launching an online business, the ultimate goal of setting up a Shopify store would be to make a profit.
However, to get accurate financial data about your Shopify store, you need to integrate it with the best accounting app for Shopify, allowing you to know how much profit your Shopify store makes and when it’s making losses. It’s also important to be aware of the average income of a Shopify owner so you can ascertain if your Shopify store is making as much profit as it should.
How to Make Your Shopify Store Profitable
As you build your Shopify store, you need to understand that it’ll take some time to start making enough profits. Therefore, you should be patient with it as your business establishes, and you’ll need to pay attention to certain aspects of online sales before you can start getting significant returns for your investment. Fortunately, Shopify has a vast community of merchants and customers who will contribute immensely to your success. So, with the right business strategy, your Shopify store will generate profits. If you want to make your store profitable, here are a few steps to follow:
Set Up Your Goals
For any business to succeed, it has to be based on a set of goals and deliverables, so it’s important to start by establishing revenue and traffic goals for your Shopify store. How much revenue do you hope to make with your Shopify store? Give it a realistic figure so that it can guide you, and when you hit that number, you’ll know that your store is making a profit.
Remember to also define how much traffic you want to attract to your Shopify store. The more potential clients you attract to your store, the higher your chances will be of making more profit. Fortunately, Shopify offers reliable analytics that will show you how many people visit your store each day.
Get to Know Your Customers
Because your ultimate goal is to make as many sales as possible, you should only sell what your customers like, so take time to perform thorough research on the needs of your target customers so that you can come up with products or services that will satisfy those needs. When you set up your Shopify store, you should create strategies to reach out to the people who visit your store and find out what they like and don’t like about your products and store in general. After a customer makes a purchase, send a survey or other follow-up method to learn how they feel about your products.
Optimize Your Sales Funnels
Your sales funnels are as good as your optimization skills. If you’re struggling to optimize them, your sales will stagnate, so test your sales funnels continuously and find ways to make them more effective. Sales funnels help you direct potential customers to your products and encourage them to make a purchase. With more people coming to your store, the more sales you’re likely to make, and the more profits you’ll generate.
Market Your Store
To make your target customers aware of your store, you have to market it across different channels. Fortunately, Shopify allows you to share your store on various social media and marketing platforms. You should also take advantage of email marketing and search engine optimization (SEO) strategies to market your Shopify store efficiently.
Check Your Numbers
It’s important to continuously review your prices and markups to ensure that you aren’t losing money through poor pricing. Before you list a product on your Shopify store, be sure to calculate accurately to know how much profit you expect to make from it after everything has been deducted. Remember that Shopify takes a percentage of each sale, so you should also factor that in when you are setting your profit margins.
All in all, Shopify is as profitable as you make it through effective marketing, sales funnel optimization, customer outreach, goal setting, and follow through.