How Much Does the Average Shopify Store Make per Month?

Industry:,
In a Nutshell

Online businesses are booming, and new entrepreneurs are looking for ways to enter the market and build a strong revenue stream with Shopify. In this article we will discuss:

  • How much does the average Shopify store make per month?
  • How can you improve revenue?
  • What factors play into your store success?
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Table of Contents

The e-commerce market is growing at an exponential rate and businesses are already taking advantage of the online boom. According to studies an average online shopper spends $2.74 per visit. If we take this into account along with the 78% mobile online retail traffic share, you can see that the online business is very profitable.

Organisations such have Shopify have seen this growing trend and developed a platform that simplifies the process of making an online store for businesses all across the world. This begs the question, how much can a person making from selling through a Shopify store? To answer this question, we can look at some of the sales that was generated through Shopify stores during the biggest sales event of the year Black Friday – Cyber Monday.

In this article we will discuss how much does the average Shopify store make per month, the factors that can improve your revenue and things that improve your store success. Keep reading to learn more.

Average Revenue of Shopify Stores

Recent studies about revenue suggests that an average Shopify store can generate upwards of $67,000 annually.

This means that an average Shopify store can get between $5,000 and $6,000 every month in revenue. While these are average figures, there is a lot more that needs to be taken into consideration to understand the average revenue of Shopify stores. Let’s dive into the profit margins and the comparison between top tier Shopify stores and average Shopify stores.

Profit Margins

The profit margins determine the profitability of your Shopify store. Depending on your economies of scale your business can enjoy a profit margin anywhere between 5% to 20%. This is based on the volume of production and other marketing efforts.

Based on our previous readings, businesses can enjoy a profit of $250 to $1,000 monthly. While the profit margin can vary based on the product you sell, your marketing efforts and the actual layout of your store, these numbers give you a fair estimate of what to expect as profit from your Shopify store.

Top Performing Stores v. Average Stores

Averages can sometimes be misleading since they might not accurately represent how revenue is distributed among different Shopify stores. While some top-performing stores can produce a revenue of millions on a monthly basis, smaller or newer stores might earn in only the thousands. Consequently, the average revenue number might appear inflated for an average store owner.

A more insightful comparison could involve looking at median revenue, providing a potentially more precise depiction of what an “average” store earns. However, data specifically on median Shopify store revenue is scarce and challenging to access.

How To Increase Your Shopify Store Monthly Revenue

While it is difficult to determine how much does the average Shopify store make per month, there are ways to be at the upper tier of this average by incorporating certain aspects that can help you increase your monthly revenue.

Optimising Your Store for Conversions

To boost your Shopify store’s monthly revenue, start by optimising your store for conversions. Ensure a user-friendly interface, with clear navigation and infromative product descriptions. You will also need to simplify the checkout process to minimise cart abandonment. Finally, leverage tools like A/B testing to refine your website design and identify high-converting elements.

Expanding Your Product Line and Target Audience

Diversifying your product range and targeting a broader audience can significantly impact your store’s revenue. Conduct market research to identify top products and niches within your industry. Expand your product line to cater to a diverse customer base and even consider targeting new demographics.

Utilising Shopify Apps and Integrations

Shopify stores can leverage various apps and integrations available on the platform. Explore apps for email marketing, social media integration, abandoned cart recovery, and customer relationship management. These tools can streamline your operations, enhance customer engagement, and drive more sales.

Key Factors Contributing To How Much Does the Average Shopify Store Make per Month?  

New business owners are wondering how much does the average Shopify store make per month and how to improve the store success. Following are some of the steps that you can take into consideration to improve your Shopify store success.

Effective Marketing Strategies

Implementing robust marketing strategies is essential for driving traffic and conversions. Utilise a mix of digital marketing channels such as social media advertising, content marketing and email marketing to reach and engage your target audience.

High-Quality Product Offerings

Offering high-quality products that meet the needs and preferences of your target market is essential for the success of your Shopify store. Conduct thorough market research to identify trending products and niche opportunities.

User-Friendly Store Design and Navigation

Creating a user-friendly and visually appealing store design is essential to drive traffic and minimise bounce rate. Optimise your website layout for easy navigation and better browsing.

Excellent Customer Service and Support

Delivering exceptional customer service and support will help you build trust and loyalty with your audience. Offer multiple communication channels such as email, live chat and phone support to address customer inquiries and concerns promptly.

Conclusion

New entrepreneurs are wondering how much does the average Shopify store make per month and the truth is there is no real answer. With the online business market growing, the averages can be skewed. That being said, it is still seen as a good revenue stream. Some factors need to be kept in consideration in terms of your online store.

If you are looking for an online store that is designed to drive traffic and improve conversion, partner with FuturByte. Our team of Shopify development experts will create an online store that will check all the boxes necessary for you to start producing a good revenue stream for your business. Get a free consultation today.

What are some factors that can influence the monthly revenue of a Shopify store?

Factors such as product demand, pricing strategy, marketing effectiveness, customer retention rates, and seasonality can all impact the monthly revenue of a Shopify store.

Is there a typical range for monthly revenue among Shopify stores?

While there is no one-size-fits-all answer, Shopify stores typically fall within a wide range of monthly revenue figures. Some stores may generate only a few hundred dollars per month, while others can earn tens of thousands or even millions of dollars.

How long does it take for a Shopify store to become profitable?

The timeline for a Shopify store to become profitable varies depending on factors such as the niche competitiveness, marketing budget, product quality, and brand awareness. Some stores may become profitable within a few months, while others may take longer to see a return on investment.

What are some strategies for increasing monthly revenue for my Shopify store?

Strategies for increasing monthly revenue may include expanding product offerings, optimizing marketing campaigns, improving website conversion rates, implementing upselling and cross-selling techniques, and enhancing customer retention efforts.

Can I use data analytics to track and improve my Shopify store's monthly revenue?

Yes, data analytics tools available within Shopify and other third-party platforms can help you track key metrics such as website traffic, conversion rates, average order value, and customer lifetime value. Analysing this data can provide insights to optimize your store’s performance and increase monthly revenue.

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