Shopify Costs versus Potential Sales
Many people are hesitant to start their own e-commerce store. One of the reasons that they never follow through with it is that they are concerned that it will cost them more than they will make in sales.
Obviously, this is to be avoided, and many people that are considering starting an e-commerce store are already having trouble with their bills and don’t have the budget to pay for a store until it makes a profit.
So you have to do some calculations to decide whether or not the cost of doing business in the Shopify is going to be worth whatever price that you’ll be paying.
Your Shopify Plan
Your Shopify plan is the first thing that is going to determine whether your sales are going outweigh your cost or whether it’s going to be the other way around. There are four Shopify plans to choose from. The first of the plans is only nine dollars a month.
From there it goes to $29 a month, $79 a month and $179 a month. With each of these plans, you get various benefits and features for your Shopify store. You also get discounts on things like Shopify shipping and on credit card processing fees so factor this in as well.
Your Product Choice
The next thing that is going to influence whether or not you’ll be above or below water with your Shopify site is what products you have chosen and whether or not you have chosen to fulfill orders yourself or you’re using a third-party like a drop shipper.
On the product side, your profit will depend on how much you can save by buying the products wholesale and how much you can mark them up before selling them to the customer.
However, if you are selling the items yourself and keeping them warehoused, you are going to have overhead and cash flow issues that may affect your profit.
The other thing that will determine how much you’re spending versus how much are making is what sort of add-ons you have and how much you’re spending on them.
Some people have third-party applications that they use to manage their social media, other people have Shopify apps that they are paying a monthly subscription for and there may be other fees or costs covered under this miscellaneous umbrella. How much you can keep these costs down correlates to whether you can afford your payment or not.