One of the top eCommerce systems is Shopify, which holds a nearly 20% market share. Over 1.7 million merchants are currently using the Shopify platform to sell their products. Over 1,000,000 enterprises are operated by these traders in 175 different nations.
The whole picture is far bigger than this, though. Only a small portion of the numerous stores that open each day are successful.
Have you ever been curious about Shopify's success rate? Nobody considers someone who operates an online store to be successful. But the reality is not what it seems to be.
The success rate is one of the most important aspects of running a business, as well as eCommerce platforms on the Shopify platform. It decides whether you can make money from it or not!
In this article, we will share some strategies to improve your Shopify success rate.
What is the Shopify success rate?
Most estimates suggest that the success rate on Shopify is around 5-10%. Note that Shopify doesn't give specific numbers on this, so it's hard to know exactly.
That Shopify success rate might seem pretty low, but don't let it discourage you! It's just a good reminder of how difficult it is to start a new business and keep it going. Ultimately, it requires a combination of knowledge, skill, experience, and maybe even a dose of luck from time to time. Unfortunately, many entrepreneurs eager to build a Shopify e-commerce site don't really understand what it takes to be successful.
Building a successful Shopify store requires you to understand the most common mistakes and how to avoid them. Luckily, we're here to dissect some of the mistakes entrepreneurs make. You may create a profitable Shopify store by being aware of these errors. This knowledge will help you achieve that coveted 5%.
Shopify Success Rate Killers: 5 Causes of the Failure of Most Shopify Stores
While this list isn't exhaustive, it's some of the most common reasons that new Shopify stores fail.
Unable to understand the target audience
Think- if you don't know who your customers are, how do you know what kind of products they want to buy?
Often, online sellers don't know who their customers are and what they want from their products or services.
You may have a great idea, but if you can't reach the right audience, it doesn't matter. This is why, if you are running an online store. You need to know who your target audience is and what they want before you start creating your store.
Lack of planning
No planning, no success. You need to plan your store and give it enough time to grow.
If you don't have enough time and resources, you won't be able to make your store successful.
Selecting the wrong product
This is one of the most common reasons why any ecommerce store fails. You need to choose a product that fits your niche and is in high demand.
We all know that selecting the right product is the foundation of any business. So, if you want your Shopify store to be successful, then you need to select good products. This can be difficult because there are so many options out there, it's hard to tell the good from the bad. Therefore, you need to thoroughly research your market and consumers.
Before investing, you need to make sure that your product will sell.
High shipping costs and other shipping problems
You may have great products and great marketing strategies, but if your customers don't get them on time, they won't buy from you.
If you sell physical products, shipping and handling policies are one of the most important factors for your business. You need to make sure your product reaches its destination safely and on time.
Shipping problems can arise for a variety of reasons, such as poor packaging materials, wrong labels, poorly organized warehouses, and more.
When a customer orders from your store and is disappointed with the delivery time and quality, they won't come back! Customers will no longer trust your brand and will move to other sites.
Reduce product profit
One of the main reasons Shopify stores fail is that they don't have a product profitability strategy. You cannot survive as an entrepreneur if you do not know how much profit you need to make from each sale.
If your profit margin drops every month, it means you are underselling or not selling well!
One way to deal with this is to research other companies in your niche or industry to see what they're doing better than your current one. Then try implementing these strategies in your business and see if it works for you.
Poor optimization of Shopify theme
A poorly optimized theme can make customers uncomfortable using your website, which can affect their shopping experience. If customers don't like your website, they will leave without buying anything from your store because they don't feel comfortable browsing through it. So that, you should select the best converting Shopify theme for your store to make it easier for optimization.
General signs of a successful Shopify store
While no one likes to talk about their failures, knowing what to expect from a failed Shopify store can help you avoid making the same mistakes. Here are a few telltale signals that a Shopify store is doing well.
High conversion rate
It's fantastic to have a lot of guests. A high conversion rate is even better. When the conversion rate is high, it means that customers are visiting your e-commerce site. Thus, you can track the success of your Shopify store by how many visitors make a purchase.
For example, if 4 out of 100 visitors make a purchase, you have a conversion rate of 4%. In general, anything above 5% is great, and you feel extremely happy.
Low return/refund rate
If you have a low return rate, it means most customers are satisfied with their purchase and will recommend your store to others. It also means that you are doing something right with inventory management so that customers don't have problems receiving damaged or incorrect products from your business.
The biggest sign of a successful Shopify store is that it's making money and growing!
You can have a high Shopify success rate in terms of profits, but a low conversion rate. This means you are getting a lot of sales but no profit.
If your online business is not profitable, its success is not guaranteed, and it probably won't last long.
Social media presence
For any business, especially eCommerce companies, social media has become crucial. If you have a healthy social media presence, that means people are interacting with you online. This helps in more sales as they will be more familiar with your brand and products through social media channels like Facebook or Instagram.
You can check out the graph of Facebook driving more eCommerce traffic than Pinterest below.
Good Website SEO Ranking
The best Shopify stores have great SEO rankings.
This means that customers can find their website easily when they search for keywords related to their product or service. It also means that people are visiting their website regularly and spending time there—which is important for conversion rates!
7 simple tips to increase your Shopify success rate
We've covered the most common mistakes and signs of a successful Shopify store, it's time to discuss what you should do to increase your chances of success.
Here are my top 7 tips to increase your Shopify success rate.
#1. Make sure your storefront is mobile-friendly.
The first step towards a successful store is to make sure your entire shopping process—from first impression to check out—is mobile-friendly. The mobile-friendly Shopify's store also supports all sorts of things like content marketing and SEO, so it should be one of your top priorities before launching.
Here are a few ways you can help optimize your website for the mobile experience:
- Compress your images to reduce loading time: The large file size for images on the sales page causes a lot of time for customers to leave the website to go to another store. So to avoid that, use an image compression tool like Tiny PNG to reduce the file size while maintaining a high-quality image.
- Run each new page through the Google Mobile-Friendly Test: Mobile optimization is so important for modern websites, Google has a handy (and free!) tool that anyone can use to test their own site. Every time you add a new page to your site, run it through the Mobile-Friendly Test to make sure it passes.
- Minimize unnecessary plugins on your site: The downside of those plugins is that each plugin increases load times, some of them significantly more than others. While it can be tempting to add more plugins, keep the plugins in line with what's needed for your store to function at its best.
#2. Create brand appeal
A strong, cohesive brand is more likely to stick in the customer's mind than a generic, unbranded experience. Even if you sell an excellent product at a competitive price, a brand appeal can set you apart and make buying from your store more irresistible.
A brand appeal can help your Shopify store succeed by attracting targeted customers to your online store. If your brand is designed to appeal to a certain type of consumer, and they recognize your brand as the kind of brand they would normally buy, they will be more likely to buy from you.
Your brand can also evoke a quality to legitimize your business. When shopping online, customers do not have as much information to access as when they shop in a physical environment. They can't touch and feel your product to gauge its quality, but a well-designed, consistent brand experience conveys quality and reliability.
Finally, a memorable brand is compelling. If customers can easily connect your brand with a certain visual aesthetic and voice, they are more likely to remember it.
#3. Use email marketing
The significance of social media in marketing is frequently discussed. While social media marketing is an important component of the marketing mix for many businesses, both large and small, email doesn't always get the attention it deserves as a powerful marketing tool.
Since email has been around for so much longer than social media, it's easy to see why people aren't excited about it. However, when it comes to the best ROI for your marketing budget, email has the potential to outperform every other marketing initiative.
You can automate your email marketing with a good deal of software, free to use or inexpensive to use, depending on how many subscribers you have. Every email is an opportunity to remind customers and subscribers about your brand, share interesting or valuable information with them, let them know what you're up to, or introduce a new product.
#4. Create an attractive website with high-quality product images
It is important to make sure that your eCommerce site looks good and is easy to navigate. There are different ways to do it -
Choose a theme that aligns with your brand and makes sense for your products. Don't select a theme just because it looks good—make sure it fits your business.
Use decent photos on the homepage and product pages. Make use of clear, understandable visuals that are large and high-resolution. Make sure that all essential information is visible in the image without scrolling or zooming in too much (i.e., without using thumbnails).
The design of your Shopify store should be user-friendly so that even a novice can use it without any problems.
It should also have a good navigation system so that users can easily find what they are looking for without having to search for it repeatedly through different pages or categories.
#5. Provide relevant information about your products and services on product pages
Look at how you present your product. Do you use videos? Infographics? Picture? How about testimonials from customers? The more elements you add to your store page, the better your chances of increasing sales conversions and attracting more buyers.
Make sure you have a clear and accurate product description, including pictures, pricing, and shipping information. Further, optimize your product page with the prominent “Add to Cart” button.
Make sure you have a good description of each product and service, including its benefits and features. Use bullet points, so your customers can easily read through the information without getting bored.
#6. Use Google Analytics to track visitor behavior
Use Google Analytics to track
Every time a customer visits your website, Google Analytics records information about them, including where they came from (referring to the source) and what pages they visited on your website. This information can be used to edit your website. How to ensure that the page key can be easily accessed from the home page and that visitors do not lose too many mouse clicks before finding anything they want.
For example, if you notice a lot of people are visiting your site looking for something specific and can't find it, see what else they're looking for and create content that meets their needs. This will help them engage more deeply with your website and make them more likely to buy from you.
#7. Using a clear pricing structure
Your customers need to know exactly how much they will pay for each product or service listed on your website before they make a purchase. This way, they won't be surprised by any hidden fees at the time of checkout.
Success on the Shopify platform is not about luck. It's about using smart tactics to increase your Shopify success rate and deliver high-quality products to your customers.
We've put together some key tips to boost your Shopify success rate. If you find it valuable, be sure to check out some other content on our blog.
Do you have any more tips to increase Shopify success rate? Share it with us, we'd love to hear from you!