How to Start a Shopify App Business in 2024

How to Start a Shopify App Business in 2024

🗂 Overview:

Many Shopify store owners face hefty bills due to the accumulation of various app subscriptions, which are essential for different functionalities in their e-commerce operations.

The idea here is to tackle the issue of high costs associated with Shopify apps by consolidating multiple Shopify app functionalities into a single, more affordable app.

There’s no reason that some of these apps should be costing $1500 a month or a percentage of your revenue. In some cases, people are paying more for Shopify apps than they’re paying for Shopify.

The idea: Create a bundle of high-quality, affordable Shopify apps that compete with popular, more expensive apps for one set monthly fee.

Why Shopify Apps:

• Access to a Large Market: Shopify is one of the largest e-commerce platforms, with millions of active users worldwide. This provides a substantial potential customer base for your app.

• Shopify's Ecosystem Support: Shopify supports developers with extensive documentation, development tools, and a marketplace for apps. This ecosystem makes it easier to develop, market, and sell your app.

• Recurring Revenue Model: Shopify apps typically use a subscription model, providing a steady stream of recurring revenue. Once users integrate your app into their workflow, they're likely to continue using (and paying for) it as long as it remains useful.

• Solving Specific Needs: Many Shopify store owners have unique needs or face specific challenges that aren't fully addressed by Shopify's core features. Developing an app that solves these problems can be highly valuable.

📈 Trends:

📊 Stats:

• As of 2023, there are approximately 4.88 million live websites powered by Shopify. (source)

• Shopify has shown significant growth, with a 200% increase in store numbers since 2020, adding over 2.5 million new stores in just two years. (source)

• Shopify is the third-largest online retailer in the US, following Amazon and eBay. (source)

• Shopify has generated over $812 billion in sales during its 17 years of operation. (source)

• Shopify possesses 10% of the global e-commerce platform market. (source)

• More than 80% of Shopify retailers use third-party apps, with over 25.8 million apps installed. (source)

• There are around 8,500 apps available on Shopify's App Store as of 2023. (source)

⭐️ Examples:

• Recharge is one of the biggest apps for managing subscriptions on Shopify but not only do they charge between $99-$499/m, they also take a percentage of revenue and 19c per transaction. This can definitely be done without the subscription fee.

• AfterSell offers a few different upselling apps such as CartDrawer which can cost up to $200/m whilst their post-purchase upsell app can cost up to $800/m - some competitors also take a % of revenue.

👎 Problems:

• Shopify Apps are vital for most Shopify store owners to increase revenue and improve site functionality/performance.

• The cost of these apps can skyrocket and cost more than using the Shopify platform itself.

• Many of these apps provide basic functionality you’d expect from an e-commerce site, such as popups, upsells, reviews, pre-orders, and subscriptions.

• Not all apps are created equal in terms of reliability and support. Some might have bugs or issues that are not promptly addressed, affecting the store's operations and sales. Having them all in one can streamline support.

 🚀 How to Build/Grow:

How to Build:

1. Market Research: Identify key needs and pain points of Shopify store owners.

2. Bundle Offering: Decide on essential features to include in the bundle.

3. Development Approach: Choose between in-house development or partnering with existing app developers.

4. Integration and Testing: Ensure smooth integration and comprehensive testing of the bundled apps.

5. Pricing Strategy: Develop a competitive pricing model offering better value than individual apps.

How to Grow:

1. Content Marketing: Create SEO-optimized content about e-commerce challenges and solutions.

2. Social Media Marketing: Engage with Shopify store owners on platforms like Facebook, Instagram, and LinkedIn.

3. Email Marketing: Send newsletters and personalized emails to a segmented audience list.

4. Partnerships: Collaborate with e-commerce influencers and agencies for wider reach.

5. Referral Programs: Implement incentives for current users to refer new customers.

6. Paid Advertising: Use targeted ads on Google and social media platforms.

7. Free Trials and Demos: Offer free trial periods and conduct live demonstrations of your app.

8. Shopify App Store Optimization: Optimize your app store listing for better visibility and conversions.

9. Customer Support: Provide excellent customer service and incorporate feedback for continuous improvement.

👍 Tips:

• Understand the Shopify Ecosystem: Familiarize yourself with Shopify's platform, its limitations, and the common needs of its users.

• Focus on User Experience: Ensure that the bundle is easy to use and integrates seamlessly into Shopify's platform. A good user experience will increase adoption rates and customer satisfaction.

• Develop a Unique Value Proposition: Your app bundle should offer something that individual apps or other bundles do not. This could be unique features, better integration, superior user experience, or more competitive pricing.

• Prioritize Customer Feedback: Regularly collect and analyze customer feedback to continuously improve your app bundle based on user experiences and needs.

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