th stat o shoiy ot

2 THE STATE OF SHOPIFY REPORT

Contents

3 Introduction

5 The state of Shopify report at a glance

6 7 ecommerce trends you need to know about

6 WhatShopifylearnedfrom1millionmerchants

10 Shippingandfulfillmenttrendsfrommillionsoforders

15 Keytakeawaystohelpyougrowin2021andbeyond

16 How to increase conversion for your Shopify store with these 4 tips

17 Offerfreeshipping

19 Askforreviews(they’veneverbeenmoreimportant)

21 Makesureyourcustomersupportistopnotch

23 Capturethetrafficcomingtoyourstore

29 Keytakeawaystoincreaseconversionforyourstore

30 How to drive sales (and repeat purchases) with channels YOU own

31 Thepowerofemailmarketing(andwhyitshouldbeyour#1channel)

34 Theriseoftextmarketing:whyyoushouldbepayingattention

36 Thesecrettoturningcustomersintosuperfans

37 Keytakeawaystohelpyoumakethemostofyourownedchannels

38 What’s your #1 piece of advice for small ecommerce businesses? experts share the most powerful things you can do to grow your store.

38 Stayfocusedandrememberthebasics

42 Mastertheartofadvertising


There’snever been a better timetobeintheecommerceindustry. OrstartaShopifystore.

...becauseecommerceisabsolutelyexploding.

Withaboostfromaglobalpandemic,Shopify’srevenue was up 86% from2019to2020.

Source:Shopify

Nearlyhalfabillion(457M)consumersboughtfromaShopify storelastyear.

AndShopifyentrepreneursmadetheirfirst sale every 28 seconds.

https://s23.q4cdn.com/550512644/files/doc_financials/2020/q4/Shopify-Investor-Deck-Q4-2020.pdf

https://s27.q4cdn.com/572064924/files/doc_financials/2020/q4/Press-Release-Q4-2020.pdf


Crazy.

Butthatdoesn’tmeanit’seasytobuildasuccessfulbusiness.

That’swhywepartneredwithecommercegiantslikeShipBob,Loox,Gorgias,andSmile.iotobringyouthisbeastofareport.

BecausewewanttogiveyoutheplaybooktogrowyourShopifystorein2021.

It’spackedwith:

• 7 trends you need to know about• 4 tips to help you increase conversion• 3 secrets to help you drive sales (and repeat purchases)• Benchmarks to keep you on track• Advice from 13 experts

…andthat’sjustthebeginning.

Butbeforeyoupanicabouthowmuchthereistodo,startwith1thing.

Becauseifyoucantake1thingyoulearnfromthisandapplyittoyourbusiness,it’llbeworthit.

Andyou’llbeonyourwaytobuildingasuccessfulShopifystore.


The state of Shopify report at a glanceIfSparkNoteswasalwaysyourgo-to,thissectionisforyou.

Thesearethestatsyouneedtoknowfromtheentirereport.

...butSpoilerAlert:sometimesthere’smoretothenumbers.Soifsomethingcatchesyoureye, makesureyougetthefullstory.

• 84% of consumers have shopped online since the pandemic, compared to 65% who have shopped in-store.

• 54% of consumers shifted more of their spending to online shopping since the pandemic was declared, compared to earlier this year.

• Young consumers led the trend, with 67% shifting more of their spending to online shopping compared to earlier this year, ahead of older age groups.

• 50% of consumers look for independently owned businesses to support.

• 65% of consumers say they support small businesses.

• The median conversion rate for Shopify merchants is 1.12%.

• Average conversion rates by campaign type• Popups: 4.6%• Bar campaigns: 0.9%• Spin to win campaigns: 15.6%

• Average popup conversion rates by trigger type• Automatic trigger: 3.5%• Scroll: 4.2%• Exit intent: 6.9%• Tabs: 23.6%

• Free shipping can help you increase your conversion rate by 3x.

• Free 2-day shipping can help you increase your AOV by a whopping 97% and reduce cart abandonment by 18%.

• Distributing your inventory can reduce shipping costs by 25%, and add 13% cost savings to a business’ bottom line.

• 25% of responses to Loox’s review requests include photos.

• Merchants realize as much as a 28% conversion rate with chats or SMS messages replied to in less than 10 minutes.

• For every email you capture, you can expect to drive $33 in sales.

• Email marketing benchmarks• Average open rate: 28.5%• Average click rate: 5.2%• Average unsubscribe

rate: 0.6%• Average revenue

per email: $581.72• Loyal customers are 9x more

likely to convert compared to a first-time shopper.

• Loyalty members have an average repeat purchase rate that’s 2.5x higher than non-members.

The ecommerce trends you need to know about

The conversion rate stats you need to see

Why you need to lean into channels you own


7 ecommerce trends you need to know about

There’snoquestion.2020changedtheecommerceindustry(andthewayweshop)forever.

SowedugintoShopify’sFutureofCommercereportandaskedShipBobwhatthey’veseenontheshippingandlogisticssidetogiveyou7trendstoknowaboutin2021andbeyond.

Becausethemoreyouknowaboutwhatthey’veuncoveredinthelastyear,thebetterinformed(andprepared)you’llbetomakethisyourbiggest andbestyearever.

Shopifysurveyedthousandsofconsumersanddugintodatafrom1millionmerchantstogetafullpictureofthefutureofcommerce.

Andguesswhat.Thefuturehasneverbeenbrighter.

Here’swhatwelearnedfromtheirreport.

What Shopify learned from 1 million merchants

https://cdn.shopify.com/static/future-of-commerce/Shopify%20Future%20of%20Commerce%202021.pdf



84%ofconsumersshoppedonlinesincethepandemicwhileonly65%haveshoppedinstore.

The COVID-19 pandemic sped up (and shaped) the future of ecommerce

1.

Ofconsumershaveshoppedonlinesincethepandemic,comparedto65% whohaveshoppedin-store.

Source:Shopify

67%oftheseyoungerconsumers(below35)haveshiftedmoreoftheirspendingtoonlineshopping.Comparedtothe54%averageacrossconsumers.

Younger consumers are leading the charge2.

Youngcustomersledthetrend,with 67% shiftingmoreoftheirspendingtoonlineshoppingcomparedtoearlierthisyear,aheadofolderagegroups(57%forconsumers35-54,and41%for55+).

Source:Shopify

Overhalfofcustomersshiftedmoreoftheirspendingtoonlineshoppingsincethepandemicwasdeclared,comparedtoearlierthisyear.

Source:Shopify





Thisgroupofyoungerconsumershasdifferentmotivationsthanothergenerations.

Thetop3factorsthatinfluenceapurchasingdecisionare:

And there are 3 main things this group values3.

Discover and shop via social media

Prefer to shop for sustainable and green products

Shop to have an impact

It’snotjustyoungerconsumersthatwanttoshoptomakeanimpact.

Shopifyfoundthat50%ofconsumerslookforindependentlyownedbusinessestosupportand65%supportsmallbusinesses.

Whichmeansthefactthatyourbrandisasmallbusinessisyoursuperpower. Soyoushouldbeleaningintoyourstoryeverychanceyouhave.

But everyone wants to shop small4.

Source:Shopify

Ofconsumerslookforindependently owned businesssupport.

Source:Shopify

Ofconsumerssaytheysupportsmall businesses.




“Don’tforgettotellyourbrandstory.Peopleconnectwithstories.Sharewhen,whyandhowyoudowhatyoudo.Focusontheemotionsofthoseexperiencessoyoucanrelatetoyouraudienceandmakethatconnection.”

Vivian Kaye | Founder & CEO, KinkyCurlyYaki

“Therealityissomanynewerbrandsfocusonappearingbiggerthantheyreallyareinhopestoappearmorelegitimate.Thehonesttruth?CustomersLOVEsupportingsmallerbrands,andyoushouldbeauthenticallyyou.TellyourbrandstoryonyourAboutUspage.Letyourcustomersknowwhoyouareandwhyyoustartedthisbrand.”

Kelly Vaughn | Founder & CEO, The Taproom

10

Logisticsisn’tthetrendiestorsexiestpartofrunningaShopifystore,butit’sbecomemoreimportantthaneverinthelastyear.

FromsupplychaindisruptionsduetotheCOVID-19pandemic,tothemedia-coined‘Shipaggedon’thathitaroundtheholidays,there’salotwecanlearn.

AndluckilyShipBobaggregatesdataacrosstensofmillionsofshipmentsforthousandsofecommercebusinesses.Here’swhatthey’veseen.

Shipping and fulfillment trends from millions of ordersBroughttoyouby


Oneofthebiggesttrendswesawin2020wasthedecisionforstorestosplitinventoryacrossmultiplefulfillmentcenters.

Asfulfillmentcentersshutdownbecauseofnaturaldisastersandthepandemic,therealvaluebecameclear.

ShipBobcustomerswhodistributedtheirinventorywereabletorouteamajorityoforderstoalternativefulfillmentcentersthatheldtheirinventoryandwereabletofulfillthoseordersontime.

In2021,thishascontinuedtoplayoutwithwinterstormsandotherharshweatherconditionsthatleftTexas-basedfacilitieswithoutpower,causedcarrierstocancelpickups,andpreventedemployeesfromshowinguptowork.

Ontopofthat,multiplefulfillmentcentersallowbrandsandcustomerstosavemoneyonshippingandreceivetheirordersfaster.

Anybodycanshipin2daysfromonefulfillmentcenterviaexpeditedair,butthecostsarehigh,sotherecanbemajorhitstomarginandprofitability.Bydistributinginventory,brandsareabletouseamixofbothgroundandairshippingtobringinexpensive2-dayshippingtotheirconsumers.

Stores are splitting inventory to combat shipping delays

5.

RememberShipaggedon?Carrierswereexperiencingmajordelaysontopofslower-than-normalshippingtimesthankstotheinsanevolumeovertheholidays.

Carriers are getting back to pre-COVID delivery times

6.


Theshippingcarriertransitdatabelowshowstime-in-transitaveragesforthefourleadingcarriersintheUSthroughoutallof2020upuntilearly2021,comparedtopre-COVIDaveragetransittimes(shownviathedottedblueline).

Andluckilymostcarriershaveachievedtheirpre-COVIDlevels,evenamidthecontinuedpandemic.

https://carriers.shipbob.com/


Consumersunderstandthatcarriershavebeencompletelyoverwhelmedthroughoutthepandemic,butcontinuingtobeupfrontanddoingwhatyoucantokeepthemintheloopwillgoalongway.

Hereareafewthingsyoushoulddotoimprovethecustomerexperience:

• Look at shipping carrier transit data provided by ShipBob (and updated weekly) to understand carrier performance and share it with customers.

• Cut out certain services or carriers that aren’t meeting expectations or able to keep up.

• Include potential shipping delays that are outside your control on your website, your order confirmation page, your confirmation email, and other important touchpoints.

It’s still incredibly important to keep customers in the loop

7.

https://carriers.shipbob.com/

15

Tobuildasuccessfulbusiness,youshouldalwaysbelookingforthetrendsthatarehappening inyourindustry.

Luckily,ecommercehasneverbeenamorepromisingindustrytobein.

ButhereareahandfulofthingstorememberthankstoShopifyandShipBob:

• Younger consumers are leading the charge spending more online. And they care about supporting mission-driven businesses.

• Remember that consumers want to support small businesses – lean into that.

• If your inventory is in 1 location, it might be worth splitting it into multiple locations to reduce your shipping costs and transit times.

• Even though carriers are getting back to pre-COVID shipping times, it’s still important to set the right expectations and keep your customers in the loop.

Soasyou’rethinkingaboutwaystocontinuegrowingin2021andbeyond,keepeachofthesethingsinmind.Andremembertotellyourstoryeverychanceyouget.

Key takeaways to help you grow in 2021 and beyond


How to increase conversion for your Shopify store with these 4 tips

ThemedianconversionrateforShopifymerchants is 1.12%.

Whichmeansforevery100visitorstoyourstore,youshouldexpect~1person tomakeapurchase.

Justthinkabouthowyoushoponline.Howmanytimeshaveyoulandedonastoreanddecidedimmediatelyitwasn’tforyou?

Andyourvisitorsarenodifferent.Theyexpecttobehookedearlyon.Ifthey’renot,they’requicktomoveontothenextthing–justlikeyou.

Nowbeforeyoupanic,youshouldknowthatminorimprovementstoyourconversionratecanhaveaHUGEimpactonyourbottomline.

Whichisexactlywhatwewanttocoverinthissection:howtoincreaseyourconversionratetogetmoresalesforyourstore.

Butbeforewedivein,thereare4maincategoriesthatinfluence yourconversionrate:

• User experience: the core experience of your website. This includes the page layout, website structure, site speed and more.

• Content: the copy, imagery and overall content displayed across your website.• Onsite campaigns: the calls to action and displays you show to website

visitors. This includes your buttons, forms, popups, onsite displays and more.• Offers: the hook to convert your website visitors into customers.


Thinkaboutit.Howmanytimeshaveyoudecidednottomakeapurchasebecausethestoredidn’tofferfreeshipping?Probablymoretimesthanyoucancount…

Andyou’renotalone.Actually,68%ofonlineshoppersintheUSadmittedthatatleasthalfthetime,theywon’t make a purchase without free shipping.

Andtheperfectplacetocalloutfreeshippingiswithafreeshippingbaratthetopofyoursite.Youknow,somethinglikethis:

...it’sactuallytheonlymessagethatmattersatthetopofyourstore.

Becausefreeshippingcanhelpyouincreaseyourconversionrateby3x.

Andfree2-dayshippingcanhelpyouincreaseyourAOVbyawhopping97%. Itcanalsohelpyoureducecartabandonmentby18%.

Shippingcarriersusezonestodeterminepricing.SoifZone1iswhereaproductisshippingfrom,thecloserthedestinationistoZone8,themoreexpensiveit’llbe.

Whichmeansthatifyouhavemorethan1shippinglocationspreadoutacrossthecountry,youcandrasticallyreduceyourshippingcosts.

How to reduce shipping costs for your business

Free shipping every day at $60 (Continental US only)

Offer free shipping1.

Broughttoyouby

https://www.digitalcommerce360.com/2019/12/23/2019-ecommerce-in-review-consumer-insights/

https://www.shipbob.com/blog/website-teardown/

https://www.shipbob.com/blog/proper-wild/

https://www.shipbob.com/blog/iloveplum/

https://www.shipbob.com/blog/my-calm-blanket/

https://www.shipbob.com/blog/shipping-zones/


TheShipBobteamhasfoundthatdistributingyourinventorycanreduceshippingcostsby25%,andadd13%costsavingstoabusiness’bottomline.

3 fulfillment centers1 fulfillment center

USZones:1 4 72 5 83 6 9

Justtakealookatthischartthatshows1vs.3fulfillmentcenters:

Toreduceshippingcosts,youcan:

• Analyze historical order and zip code data to reevaluate your optimal fulfillment locations (ShipBob can help you do this!).

• Decide if a more central warehouse location would benefit your business if you’re often shipping from one side of the country to the other.

• Calculate what your shipping costs would be if you went from one fulfillment center to two (or two to three, and so on) by experimenting with different locations, and how those would be offset by the additional transportation and warehousing costs you would incur.

It’sclearthatfreeshippinghasamajorimpactonconversion.Soifyou’renotalreadyofferingfreeshipping,youshouldbethinkingaboutwhatyoucandotochangethat.

https://www.shipbob.com/blog/tb12/

https://www.shipbob.com/blog/tb12/

https://www.shipbob.com/blog/ample-foods/


Shoppingonlineisinsanelyconvenient,butyoumissoutonseeingandtouchingaproductinpersonbeforeyoubuy.

Soafteryoulookthroughallthephotosandglanceattheproductdescription,what’sthefirstthingyoudo?

Youprobablylookthroughthereviews.Andthat’sexactlywhatyourcustomersaredoing,too.

Reviewshavethepowertomakeyourvisitorsthink,“OMGINEEDthis!!”or“Ehhhthisisn’tforme.”

Becauseyourvisitorsdon’treallywanttoknowwhatyouhavetosayaboutyourownproduct…

Theywanttoknowwhatyourcustomersthink.

Whichiswhyproduct reviews aren’t optional...they’re a must-have.

Buthowimportantaretheyreally?Accordingtorecentresearch,72% of customers won’t take any action until they’ve read reviews.

Butbeforeyoustartquestioninghowmanyreviewsyou’llactuallybeabletoget,youshouldknowthatwhen a product gets at least 5 reviews, it’s 270% more likely to be purchasedthanifitdidn’thaveanyreviews.

Ask for reviews (they’ve never been more important)

2.

Broughttoyouby

https://mytestimonialengine.com/how-reviews-affect-purchasing-decisions-and-seo/

https://spiegel.medill.northwestern.edu/online-reviews/

https://spiegel.medill.northwestern.edu/online-reviews/


Ipromiseyoucanget5reviews.

Butinsteadofthestandard,text-basedreviews,youshouldthinkabouthowyoucanhelpyourvisitorsenvisionyourproductsintheirdailylives.

Andliketheirwords,theirphotosaremorepowerfulthanyours.Ofcourseyouneedamazingproductphotos,butpeoplewanttoseewhatyourproductslooklikeinthehandsofrealcustomers.

Whichiswhyreviewswithphotoscanhaveahugeimpactonyourconversionrate.

JustasktheLooxteam.Foreveryreviewrequesttheysendouttoacustomer(onbehalfofaShopifybrand,ofcourse!),atleast25%oftheresponsesincludephotos.

Thesetypesofreviewsareuser-generatedcontent(UGC)foryourstore. Imean,justtakealookatthisexample

Thesereviewsshowprospectivecustomerswhatitwouldbeliketoactuallyhaveyourproduct.WhichmakesthebuyingdecisionSOmucheasier.

Soifyou’renotalreadycollectingreviews,startthere.Andifyouare,doyouaskforphotos?ThinkabouttakingitastepfurthertogetthatUGCandsocialproofyoucanuseoverandoveragaininyourmarketing.

Source:fancysprinkles.com

https://www.fancysprinkles.com/collections/instabadge-best-selling/products/ultimate-prism-powder-gift-box


Workingwithmorethan5,500ecommercemerchants,we’veseenjusthowmanybusinessesunderestimatethepowerofamazingcustomerservice.

Withincreasedcustomerexpectationsandsteepercompetitionintheecommercespace,deliveringanexceptionalcustomerexperienceisnotjustcriticalforloyaltyandretention,butitcanbeamassivecompetitiveadvantageforyourbusiness.

Why customer support is crucial for your store

Customershavehigherexpectationsthanever.

They’resmarter,moreeducated,andmoreawareoftheirneeds.Theywanttobewelcomed,heard,understoodandappreciated.

Soiftheycometoyouwithaquestion(like,whenshouldIexpecttogetmyorder?),theywantittobeansweredimmediately.

Whichmeansifyourcustomersareonallchannels,youshouldprovidecustomerserviceinallofthoseplacestoo.Otherwise,theymightnotcomeback.

Agreatecommercebusinessdoesn’tputcustomersonholdortakehourstorespondtosimpleemailsorsocialmediaposts.

Becauseevenjust1experiencelikethiscancreatedoubtandleaveabadimpressionofyourstore.Whichmeansvisitorswillleavewithoutpurchasingandyourcustomersmightnotcomeback.

Make sure your customer support is top notch3.

Broughttoyouby

Bad customer service leads to high abandoned cart rates and churn


Andwhenyoumakecustomerexperienceapriority,theresultsspeakforthemselves:lowerchurn,higherAOV(averageordervalue)andLTV (lifetimevalue).

Customer service helps drive sales and conversions

Customersupportisn’tjustaboutansweringquestionsanymore.Thousandsofourmerchantsgeneratesalesopportunities(likeupsells)withstellar customersupport.

We’vealsoseenmerchantsrealizeasmuchasa28% conversion ratewithchatsorSMSmessagesrepliedtoinlessthan10minutes.

Soifyou’renotfocusedonprovidingamazingsupporttoyourprospectsandcustomers,it’stimetochangethat.Youneedtobuildtrustfrom theverybeginning.

Andthatstartswithansweringquestionsandmakingitclearthat you’retheretohelp.


Youalreadyknowthatabout1.12%ofthepeoplecomingtoyourstorearegoingtomakeapurchase…

Butyoushouldn’texpectpeoplewhoarecomingtoyourstoreforthefirsttimetomakeapurchaseimmediately.

Whichiswhyit’ssoimportanttocapturetheiremailaddresseswhilethey’restillonyoursite.

Soyoucanbuildarelationshipwiththemovertimebytellingyourstory,sharingyourwhy,andexplainingwhat’sinitforthem.

Andpopupsarethebestwaytocapturethoseemails.

Nottomentionthefactthatwe’vefoundthatforeveryemailyoucapture,youcanexpecttodrive $33 in sales.Whichmeansthebiggeryourlistis,themore$$youshouldexpecttomakewithemail.

Capture the traffic coming to your store4.

4 of the most popular campaign types and the benchmarks you need to know

You’veprobablyseenthousandsofpopupsasyou’vebrowsedother Shopifystores.

Butwhenitcomestolaunchingyourowncampaigns,youshouldbefamiliarwiththeresultsyoushouldexpecttoseewith4ofthemostpopularcampaigntypes.


A popupisthemostpopulardisplaytypeforemailsignups.

Averagepopupconversionrate:4.6%

A flyoutisalittlemoresubtlethanapopup,appearingatthebottomofthescreen.Andit’stheperfectoptionformobilecampaigns.

Averageflyoutconversionrate:6.0% (slightlyhigherthanyourstandardpopup)


Abarcampaignisevenmoresubtlethanaflyoutandoftendoesn’tincludeaform,whichmeansconversionismuch,muchlower(they’reperfectforcalloutslikefreeshipping,though!).

Averagebarconversionrate:0.9%

Free shipping every day at $60 (Continental US only)

A spin to wincampaignistheperfectwaytogamifycollectingemails.Becausethey’reamuchmoreinteractivedisplaytype,theyconvertreallywell(whodoesn’tlovetowinthings?!).Butthey’renotforeveryone...

Averagespintowin conversionrate:15.6%


How to choose your offer: what will convert best?

Andwhilethetypeofdisplayyouchoosehasabigimpactonconversionrate,yourofferisevenmoreimportant.

Youroffer=whatyou’regivingvisitorsinreturnfortheiremailaddress(oranyotherinformationyou’reaskingfor).

• Join our list: Convert 1% (ex: Join our list to be the first to know about new products and promotions)

• Coupon campaign: Convert 5% (ex: Join our list to get 15% off your first purchase)

• Enter to win: Convert 10% (ex: Join our list to have a shot at winning a $50 gift card)

Acrossmillionsofonlineshoppers,we’veseentheseresultsconsistently.

Sochooseyourdisplaytypeandoffercarefullytogrowyourlist(andgetmoresales).

Butitdoesn’tendthere…

The 4 trigger types you can choose from (and how they convert)

Onceyou’vechosenyourdisplaytypeandoffer,it’stimetothinkaboutwhenyourpopupisgoingtoload.Thisiscalledyourtrigger.

Apopupthathasanautomatictriggerwilldisplayafteravisitorhasbeenonyourstoreforacertainlengthoftime,let’ssay5seconds.

Averageautomatictriggerconversionrate: 3.5%


Andyoucanalsotriggerapopupwhensomeoneisabouttoleaveyourstore(exitintent).Bytrackingcursormovement,Privycandetectwhensomeoneisabouttoclickthedreadedclosebutton.

Butapopupthatdisplaysaftersomeonehasscrolledacertainpercentageofapage,say75%,shouldbeexpectedtoconvertataslightlyhigherrate.

Averagescrolltriggerconversionrate:4.2%

Thatwouldlooksomethinglikethis

Averageexitintentconversionrate:6.9%


Thelasttriggertypeyoushouldknowaboutisatab(you’llseeatabinthebottomleftcornerintheexampleontheleft).

Ataballowsyourvisitorstotriggerthepopup.Whichmeanstheintentismuchhigher.

Andyoucanhavepopupsthatshowautomaticallyandalsohaveatab.Soifsomeoneisn’treadytogiveyoutheiremailafter5secondsonyoursite,they’reabletopullitbackuponcethey’vepokedaroundalittlemore.

Sowhenyou’rethinkingaboutconvertingthetrafficthat’salreadycomingtoyourstore,rememberthatyourcampaigntype,offer,andtriggerwillallhaveanimpactonyourconversionrate.

Averagetabconversion rate:23.6%


Key takeaways to increase conversion for your store

Rememberthatevenslightimprovementstoyourconversionratehavethepotentialtodrivemajorrevenueforyourstore.

Andtherearesomanydifferentwaystohaveanimpact.

• Offer free shipping• Ask for reviews• Make sure you have stellar support• Collect emails for the traffic you’re already getting

Andthat’sjustthebeginning.Butifyoutakethetimetostartwithjust1ofthesethings,you(andyourcustomers)willnoticethedifference.


“Intheconstantlyshiftinglandscapeofprivacyandsocialmediaalgorithmchanges,theONLYthingbrandscancountonisbuildingdirectrelationshipsthattheyown.Thisisthecriticalpieceofgrowingathrivingecommercebrand.Youpaytodrivetraffictoyourstore.Youknowthatonly1-3%converts.Soyouneedtobuildemailandtextbasedrelationshipswithprospectstonurturethembacktothesite.

Buildingacustomerlistiscontrollingyourowndestiny.There'ssomuchmagic(andrevenue)youcanunlockthroughemailandtextifyougetinthehabitearly.”

Ben Jabbawy | Founder & CEO, Privy

How to drive sales (and repeat purchases) with channels YOU own

Whenitcomestothedifferentmarketingchannelsyouhaveatyourdisposal,ithasneverbeenmoreimportanttobuildadirectrelationshipwithyourcustomers.

Emailandtextallowyoutodojustthat.

Andwhenweaskedexpertsfortheir#1pieceofadvice,theseownedchannelscameupoverandoveragain.


The power of email marketing (and why it should be your #1 channel)

Sowe’vealreadytalkedabouthowyoucanbuildyouremaillistbycapturingthetrafficyoualreadyhavecomingtoyourstore...

Buttoactuallymakemoneywithemail,youneedtobecommittedtosendingemailsregularly.

Becauseinanidealworld,emailwoulddrive 30% (or more!) of your store’s revenue.

AndIpromiseonceyoustartseeingtheresultsfromemail,you’llbehooked.Butbeforeyoustartsendingone-offemails,makesureyouhavethesetypesofemailsupandrunning.

Soifyou’renotalreadydoubling(andtripling)downonchannelsYOUown, it’stimetostart.

...andthisincludesretentionplays(likerewards/loyaltyprograms)tokeepyourcustomerscomingbackagainandagain.


Set up your automated emails first

Imagineiftherewereemailsthatcouldmakeyou$$whileyousleep.Well,that’sexactlywhyautomatedemailsaresopowerful.

Nomatterhowbusyyouareorwhatyou’reworkingon,yourautomatedemailsareworkingforyou.

It’sseriouslylikehavinganextraemployeeforyourbusiness.

Butalotofecommercefoundersskiprighttonewsletters.Andwhilenewslettersareamazing(andacriticalpartofyouremailmarketingstrategy),youshouldn’tskipahead.

Makesureyouhave:

• A welcome series:tonurturethepeopleonyourlistandintroducethemtoyourstoryandyourwhy

• An abandoned cart series:torecovercartsthatdon’tendupconverting(youcanactuallysave3-4%ofthemforeveryemailinthisseries)

• An order follow-up series:tokeepcustomersengagedandexcitedabouttheirorders

Then you can start sending newsletters

Onceyourautomatedemailsareon,thenit’stimetogetinaregularcadencewithyourone-offsends(newsletters).

Youshouldbesendingatleast1emailtoyourlist(outsideofyourautomatedemails)everysinglemonth.Ideally,yousendanemaileveryweek,butyoucanworkuptothatcadenceovertime.

Butwhatexactlyshouldyournewslettersbeabout?


• Announcements• Newcontent• Promos

• Holidays• Reviews

Theshortansweris:anything.Buthereareahandfulofideastogetyoustarted:

Theeasiestwaytogetinspirationforyourownemailsistofindotherbrandsthataredoinganamazingjobwiththeirownemails.Themostimportantthingyoucandoisgetintoarhythmandsticktoit.Andonceyoustartseeingsalesafteryouhitsend,it’llbeeasierandeasiertoprioritize.

The email marketing benchmarks you need to know

Whenitcomestosendingyournewsletters,it’shelpfultohaveanideaofwhatyoushouldbeshootingforwhenitcomestometricslikeopenrate,clickrate,unsubscribes,andthe$$youshouldbebringinginwitheveryemailyousend.

That’swhywetookalookatourowndatatobringyoutheemailmarketingbenchmarksyouneedtoknowabout.

Imagineifyousent1emaileveryweekandaveraged$582peremail.That’sanextra$2,328 every single month.Whichmeansit’sanextra $27,936 per year.

...andthat’snotincludingyourautomatedemails.

That’sthepowerofbuildinganemaillistandturningitintoadedicatedprogram.

• Average open rate: 28.5%• Average click rate: 5.2%

• Average unsubscribe rate: 0.6%• Average revenue per email: $581.72


The rise of text marketing: why you should be paying attention

Yourcustomersareontheirphonesconstantly.

Andresearchshowsthatonly11%ofbusinessesaresendingtextstoday.Whichmeanstextmarketingisstillintheveryearlystages...

Justtakealookatyourmostrecenttexts–it’sprobablyacombinationofyourfamilyandfriends.

Nowcomparethatwithyourpersonalemail.Idon’tknowaboutyou,butIhavewaymoreemailsfrombusinessesthanIdofromactualpeople.

Butitturnsoutyourcustomersandsubscribersactuallywanttogettexts fromyou...

Infact,75%ofconsumerssaidtheywanttoreceivetextmessagesfrombrands.

Butbeforegoinganyfurther,let’sdiveintosomeofthekeynumbers.

“TheadviceIfindmyselfgivingtoanybrandownerwhowilllistenistostartanSMSprogram.OurclientsatCommonThreadCollectiveseeSMSdriveconversionratesdoubleortriplethatofeventhemostmatureemailprogram.”

Mandi Moshay | Director of Retention, Common Thread Collective

https://learn.g2.com/sms-marketing-statistics

https://techjury.net/blog/sms-marketing-statistics/#gref


Thebesttwochannelsforbrandstobeabletocontroltheirdestiny(tosomedegree),areemailmarketingandSMS(textmessagemarketing).

SMSiscomplementarytoemailandit’sforcustomerswhowantanevenmorepersonalconnectionwithabrand.

Inmyopinion,it’sbesttopositionSMSasanexclusiveclubandawaytoget“VIPaccess.”It’sperfectformakingacustomerfeelspecialandtheygetthenewsbeforeanyoneelse.”

Chase Dimond | Partner, Boundless Labs

• Consumers are 134% more likely to respond to a text than an email.• Text marketing has 98% open rates. Your messages are getting read almost

every time.• 90% of SMS messages are read within 3 minutes.

Looking at the numbers...

Butit’snotacompetitionbetweenemailandtext…

Attheendoftheday,theyshouldbeusedtogethertohavethebiggestimpact.

https://learn.g2.com/sms-marketing-statistics

https://techjury.net/blog/sms-marketing-statistics/#gref


Thebiggestadvocatesforyourstorespend3x more on every orderthanthepeoplewhodon’tfeelaconnectionwithyouoryourbusiness.

Nottomentiontheseloyal customers are 9x more likely to convert compared to a first-time shopper.

Soit’ssafetosaythatinvestingintheselongertermrelationshipscanhaveaHUGEimpactonyourrevenue.

Buthowexactlycanyouturnone-timebuyersintoyour#1fans?

Themostimportantthingtorememberisthatyourcustomerswanttosupportrealpeople.Justthinkaboutthebusinessesyoutellyourfriendsabout…

Ofcoursetheproductshavetobegood,butyouprobablyalsofeelaconnectionwiththeactualpeoplebehindthebusiness.

Sowhatshouldyoudoafterthatfirstsale?Youneedtomotivatethesecustomerstoengagewithyou.Becauseloyaltymembershaveanaverage repeat purchase rate that’s 2.5x higher than non-members.

The secret to turning customers into superfansBroughttoyouby

Rewardsforthingslike:

Social engagement

Leaving product reviews

Or even joining your mailing list


Canbeallthemotivationthese1-timepurchasersneedtocomebackagain.Becauseifyoucanshowthatthere’srealvalueinitforthem,whywouldn’ttheycometoyoufirst?

Afterawhile,theyseethevaluetheygetfrombeingpartofyourcommunity,earningandredeemingrewards,andengagingwithyourbusiness,assecond-natureandthey’llbesharingyourstorewithanyonewhowilllisten.

Key takeaways to help you make the most of your owned channels

Ifyou’restillnotconvincedthatownedchannelslikeemailandtextareworththeinvestment,I’llleaveyouwithonemorepieceofexpertadvice.

Soifyouaren’tinvestinginownedchannelsandfindingwaystoincentivizerepeatpurchasesfromyourbestcustomers,there’ssomuchyoucanbedoingtomovetheneedle.Don’tletthefateofyourbusinessrestinanyoneelse’shands.Youstartedyourownbusinesstobeinfullcontrol.It’stimetotakeit.

ThemostimportanttipIhavetogiveforecommercebrandsistofocusyoureffortsonthemarketingmethodsthatyouown.

Withemailmarketing,SMS,pushnotificationsandtoacertainextentMessenger,noonecanevertakethesemarketingmethodsawayfromyou.Youareinfullcontrolandyourcustomerlistwillprovideyourbusinesswithasolidfoundationtogrowthatislargelyimmunetooutsideforces.”

Steve Chou | Founder, My Wife Quit Her Job


What’s your #1 piece of advice for small ecommerce businesses?

Experts share the most powerful things you can do to grow your store

Youhavealotonyourplaterunningyourbusiness.

Andoneofthebestthingsyoucandoistolearnfromexperts(andotherfounders)whoaregrowingtheirownstoreseverysingleday.

Becauseyoucanstealwhat’sworkingforthem…

Butyoucanalsolearnfromtheirmistakes.

That’swhyweaskedecommercegurusfortheir#1 piece of adviceforsmallecommercebusinesses.

Here’swhattheyhadtosay.

Stay focused and remember the basics.

Asasmallbusiness,it’sreallyeasytogetdistractedbyshinyobjects.

Andit’samazingtogetinspirationfromotherbrandsthatarebiggerthanyours,butyouneedtonailthebasicsfirstandforemost.

Sobeforeyourunanothertestorlaunchanotherproduct,makesureyouunderstandthebasicsofecommerce,marketing,andyourbusiness.

JustaskKurtElster,JasonWong,andLucasWalker.


What makes a 7-figure ecommerce business.

Iseesmallstoreschasingpagespeedscores,must-haveapps,andothershinydistractionswhentheystillhaven'tquitefiguredouttheirproduct-marketfit,positioning,messaging,merchandising,profitability,copywriting,content,orcustomersupport.

Everyoneofthosethingsismoreimportanttothelongtermsuccessofanecommercebusinessthananypartofitstechstackordesign.Mynumberonetip:saynotodistractions,focusyourresources,andnailthosefundamentals.Itwillpaydividendsasyougrow.Thatfocusiswhatseparatesthealso-ranbusinessesfromtheseven-figurebusinesses.”

Kurt Elster Shopify expert, host of The Unofficial Shopify Podcast, and CEO & Co-founder of Ethercycle


Everything adds up... don’t make this mistake.

UsuallyI'llrecommenddifferentmarketingstrategiestoacquirecustomers,butI'mgoingtotakeastepbackheretotalkaboutfinances.Icangoonandonaboutgrowth,butifyourfinancialsaren'ttakencareof,it'llbedifficultforthecompanytogrow,orevensurvive.

Payattentiontothefundamentals:yourpayroll,inventorycost,marketingexpense,andthesmallthingslikeapps,hosting,transactioncosts,everythingaddsup.ManymerchantsmakethemistakeoflookingonlyattheirdashboardoreventheShopifymetricsappandthinkthatthey'remoreprofitablethantheyactuallyare.Onceyougetaholdoftheseexpenses,makeityournorthstartominimizethemthroughnegotiatingwiththevendorsorincreaseyourpricestocoverit.”

Jason Wong Managing Partner, Wonghaus Ventures


Set your sights on this major milestone.

Gettoamillionasfastasyoucan.Itcanbeamillionunitsshipped,amilliondollarssold,orevenamillionpodcastdownloads.Onceyougetthere,you'llhaveabusiness.

Ilostwaytoomuchtimeandsalesswitchingapps,tryingtobeperfect,orhavethesamesystemthatabigmerchant wasfollowing.”

Lucas Walker Founder, Rolled Up


Youcanhavethemostincredibleproductandstore,butifyoudon’tgetanytraffic,you’renotgoingtohaveasustainablebusiness.

That’swhysomanyShopifystoresrelyonpaidadstogettraffic.

SoSavannahSanchezbreaksdownhowtocreateawesomeads(andwhyUGC issoimportant).

NikSharmashareshowyoucanactuallygetthattraffictoconvertoncethey’velandedonyoursite.

KaleighMoorehasatipaboutinfluencers.

AndEzraFirestoneexplainsthe1thingthatwillhelpyouwin.

Master the art of advertising


How to create amazing ads that convert.

Nomatterwhatplatformyou’reonforpaidsocial,UGC(orusergeneratedcontent)videosdrivemoreengagementforyourcreative.Inthisdayandage,UGCshouldbeattheforefrontofyourcreativestrategy.

Gettinggreatvideocontentforadsdoesn’tmeanthatyouneedtohaveabigproductionshoot.CreatingengagingvideocanbeassimpleaspickingupyouriPhone,filmingsomequickUGGofanunboxingexperienceoraproductexplainervideo.

Whendesigningformobile,thereareacoupleofkeythings tokeepinmind.

The2mostimportantquestionstoaskyourselfwhen creatingamobileadare:

• “HowcanIcapturesomeonewithinthefirst3seconds?”• “Doesmyadmakesensewiththesoundoff?”

I’veseenadswheretheviewer(includingmyself)hasnoideawhat’sgoingonwhentheyhavethesoundoff.Ratherthanexpectingeveryviewertoturntheirsoundon,justaddcaptions.

Yournumberonegoalshouldbetointrigueusersalmostinstantlysotheyswipeuporclicktoyourwebsite.Capturingtheirattentionwithinthefirstthreesecondsoftheadisideal.

Savannah Sanchez Founder, The Social Savannah


Spend less to acquire new customers with this hack.

Thenumberonethingbrandscanandshoulddo,thatrequireslowliftandcanbedoneverycheap,isbuildlandingpages.Whenyourunacquisitioncampaigns,you’resofocusedonmakingsureyougetahighclickthroughrate(CTR)andalowcostperclick(CPC),butmanyforgettheimportanceofwhathappensaftertheclickitself,thedigitalexperienceyouleadthemto.

MostbrandsjustrunadsfromFacebooktotheirsite’shomepage,whichisusuallyneveroptimizedtodriveconversion.Or,theysendpeopletotheproductpage,butforgettoproperlyeducateconsumersonwhytheyshouldbecomeapartofthisbrand’secosystemandbecomeacustomer.It’ssoeasytodowithasimplelandingpagethatanswersthefollowingquestions:

WhyshouldIbuyit?

• What is it?• How does it work?• How does it compare?• Social proof

Ifyoudothis,you’llnotonlyseeanincreaseinyourcustomerlifetimevalue(LTV),butalsoasignificantdecreaseinyourcustomeracquisitioncosts(CAC). Youcanseeexamplesofgoodlandingpageshere.

Nik Sharma CEO, Sharma Brands

https://twitter.com/mrsharma/status/1367301523710103557


Test out this opportunity to get sales.

Ithinkrightnowsmallecommercebrandsneedtothinkstrategicallyabouthowtheycanleverageinfluencers.

Thesecreatorshaveengagedaudiencesandhugeamountsoftrustwiththeiraudiences,whichisripeforproductrecommendationsthatdrivesales.Evenifit'samicro-influencer,thesepartnershipscanhavehugeROI."

Kaleigh Moore Ecommerce Writer


Deliver on this 1 thing to build trust.

Getgoodatadvertising.EnsureyouhaveaTRULYgreatproduct.Itdoesn’thavetobeunique,butithastobegreat.Thebestpromisewinsinthemarketplace,NOTthebestproduct…buttheproducthastoliveuptothepromiseyoumade.

Focusonstellarsupport.Thisgoesbeyondbeingavailablebyphone,emailandlivechat.Thisisabusinessethos,awayofbeing,aphilosophicalapproachtobusiness.NEVERkeepsomeone'smoneywhentheywantitback.Andagain…GETGOODATADVERTISING(whichincludesmakingcreative)."

Ezra Firestone Co-founder & CEO, Boom! By Cindy Joseph

47 THESTATEOFSHOPIFYREPORT

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TheLooxappenableshigh-growthShopifystorestoleveragethepowerofhappycustomersacrossthebuyerjourney.Withsocialproof-driventoolsforgeneratingproductreviewsandreferrals,Looxhelpsonlinestoresboostsitetraffic,improvetrustandretention,andincreaserevenue.Over100,000merchants,fromJungalowtoBlendjet,useLooxtoturneachcustomerpurchaseintosales-drivingcustomercontent.

Gorgiasistheleadingcustomersupporthelpdeskbuiltforecommercemerchants.Connectwithcustomersacrossallchannels,automateupto30%ofyoursupport,andstopswitchingtabs-GorgiashasalltheShopifyandcustomerinfoyouneedinasingledashboard.

Gorgias is offering 1-month free to Privy readers. Book a 20 minute consult here.

Smile.ioistheworld’slargestloyaltyplatform,providingeasy-to-userewardprogramsthathelpscalingecommercebrandstransformone-timesalesintorepeat,loyalcustomers.

Over60,000brandsuseSmilepoints,referral,andVIPprogramstomaximizetheiracquisitioneffortsandturntransactionalpurchasesintopassionatebrandadvocatesthatcan’thelpbutcomebackagainandagain.

Privyisanemailmarketingplatformwiththetools&coachingtogrowfrom$0to$1millioninsales. GrowyouremaillistanddrivemoresaleswithPrivy’swebsiteconversion,emailmarketing,andtextmessagingtools.

With18,500+five-starreviewsontheShopifyAppStore,Privyisthe#1salesapponShopifythat’shelped generateover$5.5Bfortheircustomers.Jointhe600,000othersandcreateyourfreeaccounttostartgeneratingresultstoday.

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