How to Sell
Guide to Setting Up an Ecommerce Store on Shopify
As the global online marketplace continues to expand, setting up an ecommerce store has become an increasingly attractive venture for entrepreneurs. With the holiday season approaching, online sales in 2021 are projected to be 50% higher than in 2019, signaling a perfect opportunity for businesses to delve into ecommerce. One of the most popular platforms for this purpose is Shopify, known for its user-friendly interface and robust features.
Starting Your Shopify Journey
Shopify offers a 14-day trial period, providing potential users the chance to explore its features without any initial commitment. After the trial, a monthly subscription is required, with plans designed to cater to businesses of varying sizes and needs. The starter plan is priced at $29 per month, the mid-tier plan at $79 per month, and the top-tier plan at $299 per month. Each tier offers distinct advantages, including reduced credit card payment rates and enhanced shipping rate discounts for higher-tier subscribers.
Before launching a store, a crucial step is establishing a brand identity. Shopify facilitates this process with tools such as a name generator, which assists users in selecting a unique business name and checking domain availability. Additionally, Hatchful, Shopify's logo maker tool, enables users to create personalized brand logos, contributing to a cohesive brand image.
Payment Solutions: The Heart of Ecommerce
A functional ecommerce store must have reliable payment solutions to securely accept customer payments. Shopify supports a wide range of payment methods, including credit and debit cards, digital wallets, and emerging options like Buy Now Pay Later (BNPL) and cryptocurrency. The platform also accommodates traditional methods, such as PayPal and Venmo, ensuring flexibility for both merchants and customers.
To process these payments, several components are involved: a payment gateway, payment processor, merchant account, issuing bank, and acquiring bank. Each of these elements plays a vital role in ensuring seamless transaction processing. However, it's important to note that payment providers may impose various fees, including transaction fees, monthly fees, setup fees, and chargeback fees. These costs should be considered when planning your ecommerce budget.
Maximizing Sales Through Payment Options
Offering a diverse range of payment methods is crucial for reducing cart abandonment and boosting sales conversions. While credit cards remain the preferred payment method among consumers, digital wallets are gaining traction, particularly among younger demographics. Incorporating these options into your store can significantly enhance the customer experience.
Alternative payment methods, such as biometric payments and cryptocurrency, are also emerging in the online payment landscape. While still in the early stages of adoption, these options provide additional flexibility and can appeal to tech-savvy consumers seeking innovative payment solutions.
Navigating Ecommerce Costs
Running an ecommerce store comes with its own set of financial considerations. Beyond Shopify's subscription fees, merchants must account for the costs associated with payment solutions. These include setup fees, monthly subscription fees, transaction fees, and chargeback fees, among others. Understanding these costs is essential for maintaining profitability and ensuring the long-term success of your online store.
In conclusion, setting up an ecommerce store on Shopify offers a wealth of opportunities to tap into the burgeoning online market. By leveraging Shopify's tools and features, and strategically managing payment solutions and costs, entrepreneurs can position themselves effectively in the digital marketplace. As consumer preferences evolve, staying informed about payment trends and adapting accordingly will be key to thriving in the competitive world of ecommerce.