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Shopify: Success rate and profit margin of Shopify stores

Several information sources suggest that the Shopify Success Rate of eCommerce stores is around 5% to 10%. This means that out of every 100 businesses that use Shopify, only about 5 to 10 businesses of them are successful.

(https://www.stylefactoryproductions.com/blog/shopify-statistics, https://www.cirklestudio.co/blog/shopify-success-rate/)

This inversely implies that 90–95% of stores fail. However, it’s important to note that these are estimates and not official statistics from Shopify itself. What are the margins brackets of the Shopify stores from the available data:

  1. The average net profit margin for Shopify stores is estimated to be around 10%.
  2. A 5% net profit margin is generally considered on the low end for Shopify stores.
  3. The typical profit margin ranges for Shopify stores are:

  • Low-end profit margin: 5%
  • Average profit margin: 10%
  • High-end profit margin: 20%

  1. For small eCommerce stores, the average gross margin is 30%, while for larger businesses it’s 37%.
  2. The optimal Gross profit margin for a Shopify eCommerce store is typically around 40%, though this can vary based on factors like business type, products sold, and competition.

Given this information, we can conclude that most Shopify stores do operate with net margins around 5% or lower, as this is considered the low end of the profit margin spectrum.

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