Do you know how to make money on Shopify?
Established in 2006, Shopify has served as the foundation for numerous e-commerce success stories, catering to a wide range of businesses, from major brands like Pepsi, Tesla, and Gymshark to independent ventures.
With Shopify, the process of earning money in the realm of e-commerce has been simplified, eliminating the need to set up and manage a website. It empowers individuals to effortlessly create their own online storefronts, opening up opportunities for entrepreneurial ventures.
Since its inception, Shopify has evolved to offer various avenues for generating income on its platform. In the following sections, we will delve into these methods in more detail and explore whether building a Shopify store is a viable means of making money. However, before delving into that, let’s first delve into what exactly Shopify entails.
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What is Shopify?
Originally created as a platform for selling snowboarding equipment, Shopify has transformed into a comprehensive e-commerce solution that enables individuals worldwide to establish their online stores. Presently, it empowers millions of online businesses across more than 175 countries.
Shopify prioritizes user-friendliness, providing a seamless experience through customizable templates that facilitate the creation of professional e-commerce websites. Setting up crucial elements like inventory management, payment processing, and shipping is made effortless.
Beyond its user-friendly interface, hosting your e-commerce store on Shopify proves to be a cost-effective alternative to building and hosting a website independently. The platform’s simplicity and affordable overhead expenses serve as major attractions for aspiring entrepreneurs.
One of Shopify’s notable advantages lies in its seamless integration of third-party applications such as Upscribe, which enhance the e-commerce experience and add value to your digital store. These applications cover a wide range of services, including chatbots for improved customer service, email and SMS marketing tools specifically designed for Shopify, and subscription management software like Upscribe.
Top Ways to Make Money on Shopify
Setting up your own ecommerce store is the simplest and most direct method to generate income on Shopify. With Shopify, the process of selling your products online becomes incredibly easy, even for those who are new to the world of ecommerce.
Shopify guides you through each step required to establish your ecommerce store, which includes:
- Creating dedicated pages for your Shopify site
- Adding the products you intend to sell
- Configuring shipping and tax settings
- Setting up payment methods
Shopify offers immense potential for substantial earnings. However, to maximize your success on the platform, it’s essential to acquire knowledge and leverage strategic tools.
Upscribe is an excellent resource for enhancing the performance of your Shopify store. It empowers Shopify storefront owners to scale and expand their subscription-based businesses.
Upscribe aids brands in reducing customer churn through features like timed payment retry (dunning) and implementing effective cancellation flows. By providing alternatives, such as gifting a subscription when a customer cancels, Upscribe helps mitigate churn and retain valuable customers.
Starting a dropshipping business is similar to setting up your own ecommerce store on Shopify, but with a notable distinction. Instead of handling inventory storage, shipping, and manufacturing yourself, you outsource these processes to external suppliers.
In essence, all you need to do is establish your Shopify store and showcase products sourced from dropshipping-friendly platforms like AliExpress. This allows you to earn money from online sales without the need to physically handle the products.
Setting up a dropshipping business on Shopify is straightforward. You can create a product catalog on your Shopify store, set your desired price points, and seamlessly connect to your chosen dropshipping network through the platform.
Related: How to make money with dropshipping
When a customer places an order on your Shopify store, the order is automatically forwarded to your supplier. You’ll then pay the supplier’s advertised price for the item, and the difference between that price and what your customer paid becomes your profit.
For instance, if your supplier’s product is priced at $80 and you sell it for $110, your profit on the sale is $30.
Shopify hosts numerous dropshipping stores, such as Notebook Therapy, which offers notebooks and other stationery items. Their dropshipping partner handles sourcing, storing, and shipping the products on their behalf.
Another option is print-on-demand (POD), which targets creatives. Artists and creators utilize a Shopify store to promote their own designs printed on various products like T-shirts, mugs, phone cases, wall prints, and more. The actual production and shipping of these products are handled by a POD company that holds digital templates created by the artist and prints the products on-demand once orders are received.
POD services like Gelato provide an opportunity for artists and creators to monetize their designs without the need to maintain inventory. This approach significantly reduces costs and waste, often positioning it as an eco-friendly method with a smaller carbon footprint for running a design-focused business.
Affiliate marketing is a business model where individuals, known as affiliates, earn a percentage of the revenue from products they promote and sell.
Many ecommerce platforms, including Shopify, Amazon, and Etsy, offer affiliate marketing programs. When you join these programs, you receive unique affiliate links to share with your audience. Whenever someone makes a purchase through your affiliate link, you earn a commission.
There are numerous Shopify stores that have affiliate marketing programs available for enrollment. Once accepted, you’ll receive affiliate links to share with your audience, and the more sales generated through your links, the more commission you’ll earn.
Alternatively, if you own a Shopify store and want to leverage free advertising and promotion for your products, you can establish your own affiliate marketing program on the platform.
By collaborating with affiliates who have a large following or online publications, you can expand the reach of your store. In return for driving sales, you provide affiliates with a commission for their efforts.
Monetize social media traffic
Social media has become a powerful tool for monetizing your online presence. With a growing number of people making purchases through platforms like Instagram, social commerce offers a great opportunity to establish your brand, advertise products, and generate sales.
Shopify enables you to leverage your existing social media audiences and transform them into sales channels. Even with Shopify’s basic plan, you can easily add “buy now” links to your social media content, allowing your customers to make purchases directly from your social media pages.
For more options, check out our list of the best sites that pay you to sign up.
By integrating Shopify with social media platforms, you can effectively run your business primarily on social media, while Shopify takes care of essential administrative tasks such as order tracking and inventory management behind the scenes.
Whether you choose to operate your social commerce business on Facebook, Instagram, TikTok, or any other platform, you can find the necessary integration app on the Shopify App Store to enhance your social media monetization efforts.