Shopify Exchange: How It Works? What You Need to Know
Shopify Exchange: How It Works? What You Need to Know
- July 17, 2018
- Posted by: Editorial Staff
- Category: Uncategorized
Shopify Exchange is a marketplace where merchants can sell their store and investors can buy a fully-functioning business. Through this app, merchants can list their store and Shopify will fetch their traffic and revenue information which will uneditable from the merchant’s end.
Exchange help merchants to get a good deal out of their store value. The investors find exchange a handy marketplace as they can skedaddle the building phase and kick off without straight marketing. You get both startup stores and 6 figure earning eCommerce platforms.
Shopify ensures that critical information of stores is genuine. You get what you see and no catch on it. So dealing on the platform is always pretty safe. The price of each store may cost from $50 to well over $1 million depending on if its a starter or an established business.
Shopify has over 3000 online stores for sale with valid data on their business. It makes the marketplace way bigger than any other platforms online. In this post, we will talk about how Exchange works and why business should use it.
How Shopify Exchange Works?
Now to understand how Shopify Exchange works, we will use by two different perspective.
1. Buyer Perspective
2. Seller Perspective
A buyers perspective:
If you always wanted to own successful online business but never had the time or scopes Shopify Exchange is a chance for you. Just a few simple steps and you will be the owner of a flourishing online store. This platform helps new investors and also existing corporations to expand their business operation.
1st step is, go to Shopify Exchange website and browse through thousands of online stores listed there. You will be able to use filters and narrow your search by industry, business type, age, revenue, and price. Makes it super easy to find out the right store you’re looking for in less time.If you always wanted to own successful online business but never had the time or scopes Shopify Exchange is a chance for you. Just a few simple steps and you will be the owner of a flourishing online store. This platform helps new investors and also existing corporations to expand their business operation.
2nd step is, checking the critical information of the store. You can easily see complete details of every store like social media profiles, followers amount, present and pas traffic, revenue, Shopify package details, sellers bio and much other crucial information you must know before a purchase.
All the information are collected and verified by Shopify. The sellers or store owners have no access or way to edit any of this information. So you can be assured their validity and decide if the Shop’s history fits your requirements.
Just hover over the store’s image, and you will be able to see a “view details” button to click over. Just click on it, and you will land on the details page where you will find all the required information.
3re step is, reaching out to the seller or store owner. If you are happy at what you see and find the store worthy to buy, its time you contact the seller for more information. To do this, use the contact form on the store’s details page. Make sure you are either logged in to your Google or FB account. Shopify requires you either to have an account on their platform or any of these two to contact the seller. Some common questions the investor’s asks are-
- Does the store holds physical inventory or dropshipps?
- What has been their marketing strategy and how productive they have been?
- How much traffic and conversion they get from social media?
- Does the store provide after sale customer support?
- What is the profit margin and regular expenses?
- Where do they get their products from? Who are the suppliers?
- Who are the other stakeholders of the business?
Remeber, it’s perfectly ok to be little investigative upfront before purchasing anything from anywhere. Shopify Exchange has valid and genuine sellers. Not all information is available with the listings. To inquire about the information you want and make a move only when you are all sure.
4th step is, take the ownership of the store. After validating all the information if you think the store is an excellent deal, you can buy it. However, Shopify does not have a payment processing method to obtain a store from their platform directly.
So you got to cooperate with the seller and agree on a payment method and handover of other details. Please note that Shopify strongly recommends escrow account services for maximum security. There aren’t any fees from Shopify’s side for the payment.
A sellers perspective:
Shopify Exchange works as a way out to store owners. They can expand their business by selling their running online shop for some quick cash or can move on to another company or even retire when you are done making enough money.
1st step is you got install The Exchange App on your store first. Its free and you can get it from the Shopify App Store. Here is a step by step guide for listing-
- Log in to your Shopify account, click Apps.
- Find Exchange – Sell your Shopify store and click on it to open.
- Put your store’s title. A short description of your products and stores name will be excellent.
Select the industry your store is dealing in
- Tell the potential buyers about your product and sales volumes. Also, mention details of your social media accounts related to your store.
- Review the price generated by the Exchange app as it will calculate according to your traffic and revenue. Revise the estimate if you find it needed.
- Check the screenshots generated by Exchange App correctly. You can manually upload more images if you want to change the existing screenshots.
- Review the contact information you entered. Buyers will be contacting you buy that information.
- Save and preview your listing
- Click on Publish.
2nd step is communicating with buyers effectively. If you want to get a good deal you have to be proactive on this. Interested buyers will reach out to you via email. Make sure you respond to them ASAP and don’t miss out the opportunity. Shopify Exchange is a big marketplace and buyers will always find a great store. Be friendly and provide all the information the buyer asks for that is required for the purchase.
3rd step is to sell your store to the buyer. Now keep in mind that Shopify does not have a payment processing tool to get the payment from the buyer through the marketplace. You will have to liaise with the buyer and agree on a payment method. Though there are no fees on Exchange for the payment, third-party services for payment processing may incur charges. Shopify strongly suggests using escrow account services for maximum security.
4th step is to prepare your store for transfer. Once there is an agreement in place to update necessary information and make the required changes carefully. Here is a checklist-
- Separate all accounts linked to your sales channel so the buyer can re-create it according to his or her terms. Make sure you make the buyer an admin to all of your social media account linked to your store.
- Remove payment accounts like PayPal or any other from your store.
- Update the contact information of your shop’s domain with the new information of the buyer.
- Make sure you are transferring the full ownership of all installed Shopify Apps. For help, contact the app developer.
- Keep all essential financial information printed for tax purpose.
- Remove all your custom carrier accounts.
- Remove all or any private apps
- The Shopify Exchange team will make the buyer the owner of the account. You create a staff account instead of the buyer.
Once you are done with all the documentation and updating information, its time that you transfer the store to the buyer. Please note that once your transfer the store there is no way to reverse it and that’s final.
What you need to know about Shopify Exchange?
While using this popular marketplace, please be sure to know about some of the most important things that revolves pretty fast in the platform. Its pretty easy to buy a running store on Exchange and all the listings are valid with accurate data. Even sellers find it a great platform as the buyers are real too. However, still, you need to know about some areas which are crucial for both buyers and sellers.
Must know things for buyers:
Know and Verify about all traffic sources: Before you purchase, make sure your seller has complied with the rules of Google, and the site is fully whitelisted. Ensure all traffic sources are genuine and keep a note so you can use it as well.
Understand the reason why the site is being sold: There may not be a specific reason. A store owner may sale a running and wealthy online store just cause he wants to go out fishing. That’s his choice. But still, its better if you know the exact reason for the sale.
Validate all financial info: Know how much they are spending to generate their actual revenue which you know about. Learn about the sites expenditures and the cost centers.
Ensure what exactly includes with the purchase: You will see a lot of information on the marketplace. When you contact the seller, you will find a lot too. Still, make sure its well documented that what are the things you will be getting with the purchase.
Analyse all their social media accounts: This crucial to check their engagement ratio and to make sure their fan followers are real. Social media is a blur place sometimes and never take numbers as face value only.
Asses suppliers: Check the suppliers quality and how responsive they are regarding orders. See how long they are in business with the store and their overall performance in the market.
Change passwords: Change user credentials for every account related to the store. Make sure all of sellers access are disconnected completely.
Must know things for sellers:
Sure about selling: Exchange is a popular and trusted platform to sell your Shopify store. Only list your store when you are sure you want to sell it.
Listing it on the marketplace: Learn how to list your store on this platform. You can do it quickly by logging in to your Shopify account and integrating it with the Exchange app.
Proper Documentation: If you have decided to put your store up for sale, make sure you finish documenting all your credentials and financial information. Ensure there is no tax relating complexity.
Payment method: You must arrange a different way to get the payment for selling your store as Shopify has no payment processing tool. You have to decide it with the buyer and agree on a payment method suitable for both parties.
Over to you:
Shopify Exchange is a marketplace for both people looking to invest and own a fully functioning online store and also for people who want to sell their running business. The platform helps both users to ignore any hassle and sells or buy an online shop in few steps only.
If you are an investor looking to invest in a ready-made eCommerce business without hitting the marketing ground or development phase, Shopify Exchange is the best place without question. The platform has thousands of stores listed, and all information provided by Shopify is upfront and accurate.
It’s up to you now how you want to use it. If you are a seller, you can get a great deal from this marketplace. If you are a buyer, you can acquire a brilliant and successful eCommerce business in few steps only. So we hope this post is going to help you learn and know more about Shopify Exchange marketplace.