There's Nothing Free About Free Marketplaces
People tell me Shopify is expensive, and I laugh because it's the best investment I've ever made in my business.
I have a friend who sells handmade goods on both Etsy and Amazon. Whenever we chat, she tells me how frustrated she is because one platform or the other has changed the rules on her again; a new fee assessed, a new rule implemented, a new feature stripped away — slow death by a thousand cuts.
No matter how many times I’ve tried to convince her that she deserves to own her shop outright, she continues her dedication to these platforms that see her as nothing more than a tiny data point in their shareholder report.
She was forced to change the image aspect ratio and resolution on her entire catalog of products (hundreds of listings because Amazon changed their mind on what works for their needs.
She was forced into mandatory off-site advertising to the tune of 15% of her annual revenue by Etsy because sellers weren’t buying in, but Etsy shareholders wanted to see more profit.
Does she get access to all of her data?
Does she get the email addresses of her customers so she can continue the relationship?
Is she shielded from thievery by overseas sellers who steal her designs and replicate her shop using AI?
Does she have the security of knowing that her store cannot be threatened by malicious competitors reporting her shop to the gunshy corporate overlords ready to ban anyone who threatens their legal status?
Those are rhetorical questions because you know the answers.
Etsy, Amazon, or any other marketplaces do not have her best interests at heart, yet when I suggest she start a Shopify store to build something on her terms, she shrugs it off because her perception of the sunk costs in these platforms outweigh the potential. Too many SKUs to manage, too many potential customers to lose, and Shopify is too expensive.
Is it though?
Confession Time
Two facts about my current situation with Shopify* and Lost Mixtape.
I’ve made precisely $348 dollars in gross sales since I opened in November.
Because I’m not making sales yet (more on that in a moment), everything I do behind the scenes is filled with second-guessing and self-doubt.
Neither of those things will stop me from switching away from Shopify. I’ve done it before; went looking for greener pastures, but, this valley is the richest around, even if I’m still waiting for the Spring melt.
The money I spend on my Shopify fees right now are the investment I make until I build out my promotional efforts. I’ve shared before that I’m not satisfied with my product catalog yet, and part of that was because I wasn’t comfortable with the items I was making. That’s shifting right now and soon I’ll have enough items in the shop to feel good about promoting it.
– RELATED READING –
The Curse of Finding Your Proof of Concept
Pinterest can be an amazing resource for visual stimuli and inspiration. My feed is decadent and only takes me about 5 minutes and 37 seconds to get antsy with a need to make things.
I know others who have bailed on Shopify because it was too expensive, too difficult to manage, and not bringing in the sales. Let’s talk about all of those.
↦ No Sales
You are correct, Shopify will not help you with sales at all. Every dollar earned is done through your own efforts. That means advertising, promotion, social media engagement, etc. It’s work, but that’s business. Only those who believe in miracles, magic, and the manipulative marketing of corporate marketplaces believe differently.
Your time, energy, and money will dwindle at first. You may have to sit in the hole for a bit while you build up the brand, which is exactly what any brick-n-mortar business does at first in order to eventually get you as a customer. This is the job and believing any different is a fairy tale.
↦ Difficult Technology
There is a learning curve, and Shopify is so robust, it can be overwhelming, but if you find yourself hyperventilating in the dashboard, let me grab you a paper bag and some reassurance. If you’ve used any selling platform ever, the basics of Shopify are the same.
The interface may be different, but the simplicity of connecting your bank account, adding a product, add shipping options and then turning on the OPEN sign is not that different from any other platform you’ve seen.
NOTE: I will share my thoughts on best practices within the Shopify dashboard in future updates, but there are so many great tutorial videos on YouTube, it’s impossible to remain uninformed on the topic.
↦ Too Expensive
In a word, STOP! You can test Shopify store for free for two weeks,* and then the next three months for $1 a month. There’s absolutely no reason you couldn’t have several items for sale and promoting them to potential customers in that period.
After the trial period, the monthly fee is $29 (basic tier) plus less-than 3% processing fees. If the margin on your product is $10, can you sell three or more items per month to cover those costs?
Whether you sell several or dozens of products each month, your profit margin stays consistent and you’re not subjected to any random fees or advertising you have no control over.
However, if we compare to Etsy; they have their initial .20 cent listing fee, then each sale comes with a 6.5% transaction fee + a 3%+ processing fee. Also add on the 15% offline ads fee. That $10 profit just fell to $7. Sell more than ten items on Etsy at that margin and you’ve lost more than what Shopify costs.
Etsy has never been free!
But really, the point isn’t whether Shopify is inexpensive or not, but that the objections were NEVER about money. They were about fear.
Fear of not knowing what comes next because you somehow believe that any of us know that.
Fear of unknown technology because you’ve convinced yourself you cannot learn new things
Fear of time and energy needed to get started because comfort is better than freedom
Fear of not knowing how to grow without corporate interference
Fear of being responsible for your own well-being
My friend above; I love her like a sister, but sometimes I feel she doesn’t want the responsibility of what happens next. Despite being well educated and incredibly enterprising, she relies entirely on the promotional efforts of the marketplaces. Switching to Shopify will put all that on her and I don’t think she wants it. I stopped trying to convert her, but I remain hopeful she’s switch it up someday.
You, on the other hand; you can do this, and I’m here to add guard rails. This space is for stories, questions, and lifting each other up.
PRO TIP: Don’t close your shop! If you’re on Etsy and considering switching to Shopify, use the testing period to try it out. Carry over your items and start sharing the new link with your audience, but keep the Etsy operating in the background to keep you floating as long as it takes.
Another Confession
Open up the booth, Padre. I’ve got my rosary and I’m spilling my guts today. It’s been seven days since my last confession.
I’ve been holding back on the promotional efforts of Lost Mixtape because I plan on running ads on Meta and Pinterest, and yet, I’m scared to lose money doing it.
I’m no different than you, but I’m changing my mindset around that, looking at this as a learning experiment that will help me grow. Again, sometimes we have to spend money and sit in the hole for a bit before the profit line starts moving up and to the right.
Which brings me back to you. Everything I do in my process, and I believe will be important for others, gets shared here. If I fail at advertising, you’ll know when it happens and why. I’m not the guy to sugar coat my experiences, and if you want to learn from my tough lessons, stick around.
So what do you say?
Tell me where you’re at in your platform journey and what’s the thing standing between you and making the move to more fre? How can I help make those fears a little less intimidating for you?