Are you interested in starting a Shopify store? Keen to build your business through this eCommerce platform but not sure what you can expect in terms of revenue and, more importantly, profit? Well, I am here to give you an idea of what to expect, and some factors and considerations that can have a huge impact on your bottom line.
So, how much can you make on Shopify in a month? The average Shopify store owner makes between $500-$5,000 per month. Though there are stores that make a loss and stores that make hundreds of thousands each month. It ultimately depends on business acumen, consumer trends, product demand, profit margin per sale, total sales, and fulfillment capacity.
I can only give you an average here.
That’s because there are so many factors involved – from being a brand new start-up with a minimal marketing budget all the way through to international and global brands with an existing customer base and existing market share.
Nevertheless, this range is useful, as you can see what is possible, and it may even give you the impetus to start.
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How Much Money Can You Make Through Shopify
There is no limit to the amount of money you can make through Shopify. Though, there are costs to consider, and your success is ultimately reliant on the number and frequency of sales that you can make.
Perhaps a better question to ask is, “how much money can I make through Shopify.”
That’s because it will take into account your circumstances and the context in which you will operate within.
Are you a brand new business yet to get started?
Or are you an established brand with knowledge, experience, and a business plan to pursue?
Or do you just fall somewhere in between?
Now, just because you may fall into the latter doesn’t mean you can’t necessarily earn more than the latter.
But your chances of such are definitely reduced.
That’s because you likely won’t have the knowledge and experience of what to do and when.
Unless you are following a course that points you in the direction you’re going to have to learn the different aspects and processes to make sales.
From niche and product research all the way through to effective marketing and customer communications.
You can always learn as you go, but you will need to factor in error and the cost of such.
It may even be that your first few months make a loss as you set up and due to your initial startup costs.
Then months later, you may start turning a large profit.
It’s all circumstantial.
That being said, many stores are able to profit with a Shopify store from the first month onward, with seasonal variations in profit, with the right due diligence, research, and approach.
What Factors Affect Your Profit
The amount of profit you can make each month on Shopify is ultimately dependent on the difference between your revenue and your costs.
Assuming you are making sales, the following factors will impact how much you make in profit (revenue – costs):
The initial outlay may take a while to recoup.
You may need to purchase stock, you may need to opt for an initial marketing push, or you may just invest in other services to get your business off the ground.
ROI On Sales
The number of sales you need to make to turn a profit largely depends on how much you make per sale.
Generally, high ticket items require fewer sales, where you will earn more per sale for each transaction.
Then there are factors such as sourcing fees, shipping fees, payment processing fees, etc.
So consider what you want to sell and how many sales you need to make to ensure you are profitable.
You need to ensure that you are selling in-demand products and that there is sufficient interest in what you have to sell.
Are you trying to sell a nice-to-have or a need-to-have?
It’s these little things that can make all the difference.
Advertising on platforms like Google, Facebook, YouTube, or Instagram is not cheap.
But some eCommerce stores advertise through free organic search engine traffic or from an existing audience or customer base.
So, you do need to take into account how much it will cost to acquire your customers, to begin with.
How Much Do You Need To Start A Shopify Store?
It is generally advised to have at least $250-$500 to start a Shopify store.
However, how much you need to start a Shopify store depends on how you are sourcing products, advertising, how many apps and integrations you may need, and the kind of Shopify plan you get on.
On the low end, you can start a Shopify store for as little as $29 per month. You can opt for the dropshipping method of product sourcing, and you can leverage free marketing channels. So you can keep your initial start-up costs under $100, all in.
On the other end, an advanced Shopify plan of $299, wholesale product sourcing (could be anywhere from $500-$10,000) marketing (could cost anything from $100+) could make your initial investment requirements substantially higher.
Again, this is something you need to consider in the context of your own circumstances.
More money invested does tend to make sales come faster (assuming proper due diligence, market research, and so on), but it also could mean you burn through your capital faster and even make a loss.
Tips To Succeed With A Shopify Store
Know Your Customer
Making sales is much more likely should you know what your customer needs, wants, and why.
You can improve upon existing products (overcoming flaws), or you could fill a gap in the market.
Know Your Numbers
Understanding all the numbers involved will ensure you actually turn a profit.
You need to ensure you leave sufficient room for error, returns, etc.
Unexpected costs can sabotage your efforts or even result in loss of earnings/debt if not accurately considered.
Take The Long-Term Approach
You starting a business, and these things take time.
Unless you are lucky, you are unlikely to make sales and profit right away.
In time you will learn what costs you can do without, at what ceiling your product can sell for at most, etc.
Don’t go all in without some testing first.
Product testing, advertisement testing, etc.
It’s much better to find what works first and then scale thereafter.
How much money you can make a month on Shopify is not an easy question to answer.
It’s not even something I can confidently state.
Though the range above does appear to be an average to go on.
Perhaps the biggest piece of advice I can give, is to do your research and due diligence ahead of time.
Know what you are selling, to who, when, and how much you can expect to make per sale.
Give yourself plenty of margins.
Definitely, get started, but be mindful of costs and test (products, marketing channels, etc.) before you commit.
Other eCommerce guides you may be interested in:
- How Much Do Dropshippers Make On Average? [What About Profit?]
- Can I Really Make Money With Dropshipping? [From Experience]
- How To Make $10,000 A Month By Dropshipping [The Best Way]
- How Fast Can You Make Money Dropshipping? [Realistically]
- Is Dropshipping A Scam? [What To Know About This Business Model]
Hey, I’m Jeremy; a seasoned entrepreneur that has been earning his full time income online since 2005. My online business portfolio includes eCommerce stores and affiliate marketing niche sites. I also make money through Blockchain and Crypto. I created Unrivaled Review to share my knowledge, experience and recommendations for anyone looking to pursue such ventures.