With the world being stuck inside during the COVID-19 pandemic, e-commerce has skyrocketed. One of these platforms is Shopify, so naturally, we thought we’d ask: “How do I make money on Shopify?”
This platform has different ways to make money than traditional e-commerce sites since it emphasizes selling over re-selling or affiliate marketing. (But those are still options, too!)
A few examples include:
- Create an e-commerce store
- Become an affiliate
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But First: Shopify Alone Won’t Make You Money
Before we talk about how to make money on Shopify, it’s important to note that the platform alone won’t make you money. To understand why, you have to understand what it is.
Shopify is one of the most popular e-commerce platforms that enables merchants to sell products online through an intuitive interface. But it isn’t only designed to make online transactions possible. The company also offers a point of sale (POS) system. This means that you can manage all your digital and in-person payments within one unified system.
Now, the fact is that Shopify can’t make you rich. Why not? Because it’s just software designed to help you meet your goals – a tool, nothing more. It takes a lot more than a single software program to build a business, especially a successful one.
Make Money on Shopify by Creating an E-Commerce Store
One of the best abilities to help users make money on Shopify is to set up an online store quickly and easily. Shopify has an easy platform for you to add items, curate them, and have your customers easily checkout. Shopify Lite makes it a breeze to add purchasing options to a blog or website.
Build a Dropshipping Business
Another great way to make money on Shopify is through dropshipping. You can hit the ground running by sourcing a pre-existing product from a supplier and having them take care of everything else, including packaging and fulfillment – instead of buying and storing your inventory yourself.
Setting up a dropshipping business through Shopify is easy, too. If you want to know how to start a dropshipping business in the first place, Shopify even offers a service in partnership with Oberlo to help you get started. Here are a few tips:
Step 1: Come Up with Great Product Ideas
In truth, choosing winning products for your store is not easy. Because with so many potential products on the market, it’s difficult to keep yourself focused. These helpful pointers may help you with a key aspect of how to make money on Shopify:
- Study what’s trending
- Browse social shopping sites
- Take action!
Step 2: Validate Your Product Idea
Now that you’ve got a list of potential products, it’s time to identify the ones that have the highest potential to make you money on Shopify. First, you need to filter out any products that aren’t suitable for dropshipping. Also, get rid of any products that are expensive – unless you’re looking to get into high ticket dropshipping. Once you do that:
- Discover which way they’re trending
- Determine market saturation
- Take action! (Again!)
Step 3: Creating Your Shopify Store
You don’t have to have a huge budget and a lot of knowledge to build an e-commerce store. In fact, some of the world’s most successful dropshipping stores were created by people who had no web development skills. Here are a few basics to start with:
- Choose a name
- Register a free account on Shopify
- Pick a theme
- Add your logo
- Create your basic pages
- Add a payment gateway
- Set up free shipping
- Add a custom domain
Make Money on Shopify through Affiliate Marketing
You don’t have to sell stuff to make money on Shopify. The Shopify affiliate marketing program lets you earn money per successful referral made from your account. As we’ve talked about in our articles on Poshmark and Amazon, the e-commerce industry really benefits from those who do affiliate marketing. The more sellers you’re able to bring to the Shopify platform, the more money you’ll earn.
Best Practices to Follow to Make Money on Shopify
It’s important to know that making money with Shopify requires more than simply publishing an online store. There are a lot of best practices for your Shopify store that you’ll want to follow to keep driving leads and converting them into paying customers. These are a few:
Display and Describe Your Products Clearly
As people shop, they need to know what they are shopping for and they need desire to purchase the product. One way to ensure that the customer will make the purchase is by making sure your products are displayed clearly. This means using clear, crisp, and styled pictures, and also describing your products in detail and in a way that resonates with your target customers. Include any measurements, color and size variants, special features, and anything else that potential customers would want to know.
Do Market Research
As an increasing amount of people are buying and selling on Shopify (and online in general), competition is rising for many store owners. Do your market research to find out and understand who your customers are and how they shop.
Also, it’s crucial that you price your products or services competitively. But at the same time, it’s important to strike that right balance between being competitively priced and still turning a profit.
Offer Great Customer Service
Another tip to help you make money on Shopify is to have great customer service. This can help bring back buyers over and over again. Make sure you have an easy way for customers to reach out during the buying process if they have questions. List your contact information clearly on your site and make sure your staff – or just you, if you’re still in the early stages of building your business – is trained on how to provide excellent customer service.
Conclusion: Can You Make Money on Shopify?
It’s important to understand that Shopify is different than other e-commerce sites. Don’t think that you can make money on Shopify just because you can on some other e-commerce sites. If you can find how to strike the right balance of traditional e-commerce and using Shopify’s tools, you can make some money in the process.