Launching an e-commerce store is exciting, and being your own boss is even better. But let’s face it: You’re here to make money. Is Shopify profitable? You may be pleasantly surprised by how much the average Shopify store makes per month.
How Much Can I Make on Shopify Monthly?
Once your Shopify store is up and running, making $1,500 to $5,500 a month in profit is a reasonable average. Your take-home pay can vary based on how much time you’re willing to invest in your e-commerce business. Some Shopify merchants go all-in, focusing full-time on building an online brand. Other solopreneurs want a side gig that pays less but practically runs itself.
Factors That Affect Store Profitability
The average monthly revenue for Shopify stores depends on a range of factors:
- How long you’ve been in business: It can take six months to a year or more to hit your stride.
- How many different products you sell: Running a shop with one or two products is simpler, but your total sales volume may be lower.
- What kind of niche you choose: Some niches take longer to build a large following of loyal customers.
- How much you spend on advertising: Marketing eats into your profits at first, but you have to spend money to make it quickly.
- Your profit per item: The higher your profits per sale, the fewer customers you need to build a profitable business on Shopify.
Does luck play a part in profitability on Shopify? Maybe. But making money in e-commerce is more about doing your homework, choosing good products, adding your unique brand twist, and connecting with the right audience.
How Much Does an Average Shopify Store Make Each Month?
Pinning down the monthly average for Shopify stores isn’t easy, mainly because private companies don’t usually release their earnings. Using publicly available data, a hearty helping of math, and a touch of guestimation, we’d put the average sales volume at $120,000 a year or $10,000 a month for Shopify stores.
Keep in mind that this is total revenue, not profits. The consensus is that average profits for Shopify stores hover around $5,600 a month.
There’s a big “but” coming, though. Shopify stores come in all industries and sizes. Startup profits may be in the hundreds instead of the thousands.
After all, Shopify Plus merchants spend $2,300 a month on their subscription and potentially pull in $1 million or more monthly. Shopify is home to major brands like Mattel, Avon, French Connection, Nescafe, and Staples.
The majority of Shopify stores don’t come close to those heavy hitters. With these statistics in mind, our best guess is that Shopify solopreneurs probably make $1,500 to $3,000 a month in profits.
That said, e-commerce statistics from sites like Glassdoor and Comparably paint a better picture. Users there report average salaries of around $100,000 a year, or $8,350 a month.
How Can I Make More Money on Shopify?
What if you’re not seeing $8,000 a month or even $2,000? That doesn’t mean your Shopify store is in trouble. There are many possible reasons why your sales volume isn’t where you want it to be (yet).
1. Increase Your Average Order Value
The average order value for Shopify stores in the United States is around $81.00 per order. If your typical transactions are $30 to $40, it’s time to step up your game. Use bundle offers, upsells, higher-value products, and cross-sells to make more money from each customer. That way, your profits go up for every dollar you spend on marketing.
2. Cut Your Return Rates
Returns are a profit-killer for new Shopify stores. They waste your time and add to your shipping expenses. To get around this issue, start with high-quality products.
Then, improve your product categories with:
- Multiple photos (at least three to five images)
- Detailed product information (material, weight, color, etc.)
- Accurate size charts
- Descriptive headings
Some returns are inevitable, but not as many as you think.
3. Offer Better Customer Service Than the Competition
Your customers are moms and dads, college grads, and proud grandparents. These people care about prices, but they want excellent shopping experiences even more:
- Businesses with great customer service make 5% to 7% more than their market competitors.
- Over 95% of customers think about service when choosing which brands to support.
- Loyal customers bring in 500% to 1,300% more revenue.
- The sales gap between excellent and terrible customer service is 470%, or $8,550 instead of $1,500.
How do you improve your customer service with an e-commerce business? You can’t exactly help clients try on clothes, but you can make big differences in little ways:
- Pay attention to order fulfillment and shipping: Make sure your customers get the right items on time.
- Choose dependable dropshipping suppliers: Vet dropshipping suppliers for quality and reliability, or partner with an agency that handles it all for you, like ZenDrop.
- Respond to customer feedback: Talk with your customers on social media, say thanks for purchases, and provide a helpline or email address for issues.
Once your sales hit a certain point, it can be worth adding an employee (or a family member) to handle customer service.
4. Market Your Business
Even incredible products can’t drive sales if your target customers don’t know you exist. Set aside some funds for advertising to your target audience as soon as possible. At the same time, build your brand with friendly blog posts that talk about product trends, highlight your personality, and answer questions your customers have.
5. Reduce Cart Abandonment
Every abandoned cart represents a potential customer. To solve this issue, you have to put yourself in the buyer’s shoes. Does your site look trustworthy and professional? Is the checkout experience smooth? Show customers discount prices and offers before they reach checkout, not after.
Discover Tools To Increase Your Average Shopify Store Revenue Every Month
Profitability on Shopify is less about discovering a “secret” and more about figuring out what’s working and what isn’t. Once you know which obstacles are holding you back, you can add solutions. Use top-rated apps to boost how much your Shopify store makes on average each month with more profitable dropshipping, better customer service, and unforgettable customer loyalty programs.