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Business managementWix vs. Shopify: Which is better for eCommerce in 2021? Wix vs. Shopify: In a nutshell Wix is one of the best website development platforms out there and provides you with most of the necessary tools you need to create a smooth and successful online store. Since it’s primarily a website development platform, Wix does lack some functions and features related to running an eCommerce website – things that Shopify does better. On the other hand, since Shopify was launched as an online store development platform, it admittedly lacks a little bit in the area of creative design. Those weaker spots are counterbalanced by the strengths Shopify exhibits in terms of backend business management tools and features. So which is better Wix or Shopify? Keep reading to get the final verdict! Wix: An overview Although Wix commands only about 6% of eCommerce market share, it does a great job at staying competitive against other players in the marketplace. Wix ranks high when it comes to SEO tools, provides outstanding user support, doesn’t charge any transaction fees, and even includes abandoned cart recovery with every plan they offer! Wix also offers a 14-day money back guarantee for anybody looking to start a website, but doesn’t have a free-for-life plan for ecommerce stores just yet. Paid plans for online businesses start at $28 per month (annually) or $30 per month (monthly). Shopify: An overview Compared to other eCommerce platforms, Shopify actually ranks lowest in terms of market share (a mere 3.7%). Despite its small size, Shopify offers its online merchants a big bang for their buck. The user interface is extremely intuitive, allowing users to do virtually anything with a click or drag of the mouse. That means getting your website the way you want doesn’t take you hours or even days learning how to do web design. Beyond the ease of using the platform, the extensive number of Shopify apps mean that there’s almost always a way to ‘fill in the gaps’ which Shopify doesn’t address directly. Similarly to many eCommerce platforms, Shopify lets you give them a try for 14 days free of charge. After that, plans start at $29 per month. Who is Wix for? Wix is best for small businesses that want a quick way to start their online presence. Learning how to code isn’t necessary for tailoring the look and functionality of your website. Plus, if you’ve already developed a social media marketing strategy, you can easily sync your social media pages with Wix and bring in leads from existing audiences. Who is Shopify for? Shopify is best for business owners who want to develop an online store with all of the necessary pieces already included. Shopify stands out by offering a much wider array of features even in its most affordable pricing plan (including discount codes, gift cards, abandoned cart recovery, a Shopify POS app, and more). It’s an ideal choice for businesses of all sizes. Still curious about Wix ecommerce vs Shopify? If it’s about eCommerce, Shopify is the clear choice. Wix pricing Since Wix is a website development platform that isn’t exclusively for e-commerce businesses, be sure that you’re evaluating the business pricing plans (not website plans). Under the business pricing plans, there are three options to choose from: Business Basic starting at $28/monthBusiness Unlimited starting at $33/monthBusiness VIP starting at $56/month Each of those plan options also offer lower rates if you pay for a year in advance, or even two or three years in advance with progressively lower rates. So is wix cheaper than Shopify? The answer is yes. Free trial While there’s no ‘free trial’ per se, Wix does provide a 14-day money back guarantee on all of their premium plans – “no questions asked”. Shopify pricing Unlike Wix, Shopify is designed with e-commerce businesses in mind, so the only plans they offer are designed specifically for online stores. Whether you want just the bare minimum or all the bells and whistles, Shopify has a plan for you. Shopify Lite starting at $9/monthBasic Shopify starting at $29/monthShopify starting at $79/monthAdvanced Shopify starting at $299/monthShopify Plus starting at $2,000/month With so many plans to pick from, you can use Shopify to get your business up-and-running online no matter the size or what your broader goals are. You can also save 10% on those plans by paying for a year in advance, or save 20% by paying for two years in advance. Wix pricing vs Shopify – which comes out on top? See below… Free trial Shopify offers a true 14-day free trial that requires you only to enter a valid email address and confirm it to get started. Wix: How long does it take to build a website? There isn’t a one-size-fits-all answer to the question of how long it takes to develop a website with Wix. While you can theoretically publish a website in a single day, we wouldn’t advise you to do so. After all, if you intend on running a successful online store, you’ll want your website to be as near to perfect as possible. That means outlining the sitemap structure, visualizing the website in finer detail, setting up all of the features you’ll need on each page, testing it, and ironing out any wrinkles that remain. Even with those steps in mind, there’s no telling for sure just how long it will take. We estimate at least a month, but every business’s website is different. What we can say for sure is that using Wix drastically reduces the complexity of building a website. You won’t need to study coding or web design to put the pieces together – you’ll just need time, creativity, and patience to get it done right before going live with your online store. Shopify: How long does it take to build a website? Building a website with Shopify is a very quick process compared to using a platform like WordPress, but that doesn’t mean it should be done as fast as possible. Again, you could get a website up and running with Shopify in a single day, but chances are it would have quite a few bugs throughout. Similarly to our recommendation for building a website with Wix, we suggest taking at least 3-4 weeks to develop your website with Shopify (design, test, and optimize) before going live. You only get one first impression, so you’ll want to make sure your online store is as good looking and functional as can be prior to letting your audience interact with it. Wix usability It’s hard to give Wix too much credit for its usability – they’re simply one of the best. The platform’s interface is a breeze to get a hang of, even for novice website designers. And it makes sense that that’s the case, since Wix was founded first and foremost as a website development tool (whereas Shopify is primarily focused on eCommerce). On the other hand, while Wix excels at website design, it does lack a bit in online sales functionality. We get to more on that further in the article. Shopify usability As we mention above, Shopify was not created with the express goal of providing the best website development tool. Compared to Wix, Shopify is a bit ‘clunkier’ and doesn’t have exactly the same level of smooth usability that Wix has. With all of that said, Shopify still does a great job of giving online businesses the functions and features they need to get their ecommerce shops set for success. That’s one of the key places where Shopify has an edge on Wix. Wix themes & design With over 800 templates to choose from, Wix is an absolute powerhouse when it comes to premade themes and designs. Whatever eCommerce niche you’re in, chances are there’s an existing Wix template that can provide you with a strong concept to build on. And if you don’t really vibe with any of those hundreds of templates that Wix already has (somebody’s picky!), you can always create your own from a blank template! Uploading your own images, customizing fonts & texts, and rearranging page layouts are all easy to do on Wix. Shopify themes & design As you might imagine, Shopify has a much smaller number of predefined themes to pick from compared to Wix (“over 100” according to Shopify’s website). Additionally, the vast majority of Shopify themes are behind paywalls that typically cost between $150-$300, with a mere 10 themes available free of charge. Let’s be clear though – you do not need to pay for a premium Shopify theme to build a strong online store. Every theme comes with the essential components of a functioning eCommerce website, even the free ones. Your choice of theme will ultimately boil down to factors like how many products you intend on selling, what niche you’re selling in, whether you want to focus more on text or on images, and so on. To that extent, Shopify provides enough variety to select from – plus you can still customize aspects such as font, CTA locations, images, and more. Wix plugins/integrations This is another area where Wix falls a bit behind. While the platform itself includes some very strong apps that you can get from the Wix App Market, there aren’t quite as many third-party developers that have integrated with Wix. The number of apps in the Wix App Market totals at just over 250, most of which are entirely free, and many of which offer free or paid versions. Whether you want to auto-generate product descriptions, display your customer reviews, start using upselling techniques, or anything in between – Wix is likely to have a plugin to help you get it done. Shopify plugins/integrations Remember when we said Wix is a powerhouse when it comes to design templates? Well, that would make Shopify a bonafide behemoth in the app game. The platform hosts over 6,600 different apps – yes, you read that right! That means Shopify has more than 26x the number of apps that Wix has. What’s even better is that more than half of those 6,600 apps are either entirely free or offer a free version – can you say “cha-ching”? The sheer number of Shopify apps that exist means that you can find one to address virtually any and every issue, function, or feature you can dream of. One of the best apps that exists for both Wix and Shopify users is the BeProfit Profit Tracker app. This all-in-one profit and expensing tracking app gives you the power to: Track your profit history over timeGet intuitive visuals and graphsUnderstand complex business metricsConnect metrics once with smart integrationsSpot what factors need improvement to increase profitsMake data-driven decisions to optimize your storeAnd much more You can try any BeProfit plan for 7 days free of charge and discover how the app can help you optimize your profitability. Wix payment processing It’s important to note that, in order to accept payments on any Wix website, you must have a premium Business & eCommerce Wix account. That said, accepting payments on your Wix website can be done several ways. Possibly the easiest form of payment processing on Wix is the built-in Wix Payments system which allows you to accept pretty much every major brand of credit/debit card and a few other types of payment including iDeal and Pay Now by Klarna. The second option to accept payments on Wix is to integrate PayPal. If you already have a PayPal account, essentially all you need to do is log in using the email address you use for PayPal. If you don’t have a PayPal account yet, it’s very easy to create one! The downside to using PayPal on your Wix store is that customers will be taken off of your website in order to complete a purchase. Apart from those two options, there are an array of other payment processing tools that Wix offers – a few too many to list in great detail here. Suffice it to say that there is flexibility in the payment processing area of Wix’s platform. Shopify payment processing Shopify also offers a wide range of payment processing options – in fact, Shopify gives business owners even more routes to accept payments than Wix. Similarly to Wix, the simplest and quickest way to set up payment processing with Shopify is through the built-in Shopify Payments. With Shopify Payments, your store will be able to accept payments with all major credit and debit cards, along with Apple Pay, Google Pay, Shop Pay, Facebook Pay, and more! Of course, Shopify also allows you to accept payments through PayPal if you prefer to do so. Additionally, there are a number of third-party payment processors you can use within your Shopify store. As far as payment processing goes, there isn’t such a huge difference between Shopify and Wix. But, given the fact that Shopify offers a broader range of payment options, it manages to come out on top. Wix speed & performance Judging speed and performance can be tricky to do, since every website incorporates a different array of elements that can weigh down on loading speed and website performance. That said, one study found that Wix does tend to work a bit faster and perform a bit better than Shopify – but not by huge margins. Again, if you choose to upload lots of high quality images, include product videos, add in a moving user review bar, and so on, then your online store will take longer to load all of those heavy elements regardless of which platform you use. One thing that stands out about Wix is its mobile load speed, which is faster than Shopify by a large enough margin that it’s worth highlighting. This makes Wix the better choice if m-commerce is a big focus of your business. Shopify speed & performance Despite the fact that Wix has it beat on this point, Shopify is still one of the fastest and best-performing eCommerce platforms available to choose from. Again, your online store’s loading time is strongly correlated with the complexity of the elements you include throughout your site’s pages. To keep speed up and customer experience positive, be sure to compress all images and videos so that they will load more quickly. Another ‘best practice’ is to place more complex elements lower down on pages so that they have time to load before your website visitors scroll down. Whichever platform you end up using, you’ll need to pay attention to what you include and how you organize your content so that your customers won’t be pushed away by slow load times or poor performance. Dropshipping on Wix The question of dropshipping on Wix can be reframed as a question of running a business in general on Wix. In that regard, Wix is at a bit of a disadvantage for a few reasons. First off, as we’ve mentioned several times above, Wix was created as a general website development tool – not as an online store development tool specifically. That means that, while Wix makes it easy and intuitive to create a snazzy, eye-catching website, it lacks the backend functionalities that Shopify has to manage your online store. Secondly, and again as we mentioned earlier, Wix dropshipping apps are drastically fewer in its app market. So, even though you can certainly run a dropshipping store through Wix, the integrations with dropshipping platforms are much, much more limited compared to Shopify. Dropshipping on Shopify Since Shopify is an eCommerce development platform above all else, it naturally has a much more immersive experience in terms of business management. That goes for built-in features that are already part of Shopify as well as the vast number of apps that you can download to enhance your store. In terms of dropshipping specifically, Shopify has an extensive list of integrations available with top dropshipping platforms like Oberlo, Dropified, AutoDS, EPROLO, and so on – which are not available on Wix. Furthermore, the Shopify platform itself is much more focused on making it simple to set up an online store. That makes it much easier to build product pages and include all the necessary details and information straight away, such as product names, descriptions, images, price ranges, multiple variants, and so on. So in the battle of Wix vs Shopify dropshipping, Shopify comes out as the better option. Wix SEO Here’s another area where Wix has a slight leg up on Shopify. Broadly speaking, the major SEO tools and components that you can find in Wix are also available on Shopify, there’s one aspect in particular that gives Wix an edge: keyword support. It’s not a huge difference, but getting suggested keywords can help you expand your SEO strategy without increasing the amount of effort you put in. Without suggested keywords, you might turn to a third-party service to present those suggestions instead. Of course, that comes with a monetary cost and simultaneously increases the time it takes to manage your SEO strategy. Shopify SEO Virtually all of the SEO tools you’ll need to run a successful eCommerce store are already included in Shopify, including customizable meta titles, meta descriptions, URLs, headings, image alt text, and so on. As per usual, anything that’s not already built into Shopify is usually available in the shape of a Shopify app. Additionally, since Shopify is designed primarily for online sales, its SEO features are specifically shaped to address the needs of your online business and optimize your store’s exposure on search engine results. Conclusion So which is better Wix or Shopify? As far as creating an online store is concerned, Shopify gets the winning spot in our opinion. Shopify’s platform is designed and developed to address all of the key aspects that an online business owner will need to hit on in order to create a strong and successful store. On the other hand, even though Wix meets most of the requirements to help you build an eCommerce website, it’s a platform designed to help you create a website – not a store. That means there’s a heavier focus on design than there is on internet sales functions. Of course, there are a range of very good reasons as to why we compared Wix to Shopify in the first place. If Wix couldn’t compete, it wouldn’t have warranted this article! Is Shopify or Wix better? The answer may change depending on where you look and who you ask. The bottom line is, whichever way you decide to go, be sure to take into account all that was laid out for you in this breakdown of Wix vs Shopify! FAQs: Wix vs. Shopify What’s better for selling online, Wix or Shopify? Shopify is a better fit for eCommerce stores, since it’s specifically developed to provide online business owners with all the tools, features, and functions they need to manage a shop. You can sell online with Wix, but it’s more focused on design features than it is on online sales. Which is more affordable, Wix or Shopify? Wix lets you sell online using their platform for as little as $28 per month, while Shopify starts at $29 per month. Although those starting rates are nearly identical, the more advanced eCommerce plans are more affordable on Wix than they are through Shopify. Which is more customizable, Wix or Shopify? Wix offers built-in tools that allow for more customizations for the layout and design of your website, while Shopify hosts a much larger number of third-party apps that also give you the power to customize your online store. Which is better for giving customers discounts, Wix or Shopify? Shopify is somewhat better than Wix when it comes to offering customers discounts. With Wix, you can only offer specific monetary amounts for discounts, while Shopify allows you to give customers discounts in the form of percentages as well.
Business management7+ Best Shopify Dropshipping Apps to Boost Your Bottom LineHow does dropshipping work? Dropshipping is yet another phase in the evolution of eCommerce: it’s a unique business model which usually doesn’t involve high risk or requires you to break your savings account on your way to success; it’s a constantly growing trend all over the world and becoming a favorite way of selling online for hundreds of thousand online merchants selling on all kinds of eCommerce platforms, from Amazon to eBay, Shopify, BigCommerce and more. So how does dropshipping work? It’s simple. Dropshippers usually don’t manage any physical inventory nor need to own a warehouse to store their products. The items they sell are bought in real-time from third-party sellers who take care of both order fulfillment and shipping. In other words, dropshippers function as the middlemen between customers and suppliers, making a profit by offering products of other sellers at higher prices, without having any upfront costs. Asking yourself how to start dropshipping? Check out our 6 easy steps to help you make your first dropshipping sale. Why is dropshipping so easy on Shopify? The answer to this question relies on the Shopify app store. Contrary to other popular eCommerce platforms, Shopify doesn’t only offer a super-intuitive tool to help you start your own dropshipping website from scratch but also collaborates with thousands of external apps, answering almost every need of online merchants to optimize their store and increase their profits. » Discover how Wix and Shopify compare for dropshipping Best Shopify dropshipping apps Choosing the right app for your dropshipping business can be challenging, with more than 6,000 available apps on the Shopify app store to date. That’s exactly why we’ve gathered a few of the best dropshipping apps on Shopify every dropshipper needs to optimize their store and boost their bottom line. Let’s dive in! Dropshipping automation apps AutoDS by AutoDS Dropshipping Tools Searching for an all-in-one dropshipping solution? Search no more! AutoDS is probably Shopify’s #1 dropshipping automation platform. The app is packed with features that put you in the driver’s seat of your online store, covering every aspect of your dropshipping needs and automating the dropshipping process from scratch to save you time, effort, and most importantly – money. Looking for winning items? AutoDS provides a comprehensive database of millions of products offered by over 25 global suppliers, as well as the option to easily import the ones you select to your stores. You’ll also enjoy 24/7 price and stock monitoring to make sure you’re always updated with everything your supplier has to offer, all in real time. AutoDS makes it easier than ever to manage your store by providing an intuitive performance dashboard to help you track everything from products to sales, profits, tags and more. The best part? AutoDS lets you see the statistics of one or all of your stores at once under one screen, so you don’t need to flip back and forth between multiple stores to see what’s going on in your business. More features by AutoDS include automatic order fulfillments, a smart filter system to sort inventory efficiently, advanced bulk editing and an advanced product optimization system which also helps you add Virtual Assistant accounts; you can give them control over any part of your store – whether adding products, editing/deleting them, processing orders, handling customer service and more. AutoDS provides automatic tracking number updates and easy one-click returns with the Fulfilled by AutoDS managed orders system. The app integrates with eBay, Facebook and Shopify. Soon, more selling channels will be added to the list, including Wix, WooCommerce and more. In addition to its awesome features, AutoDS provides everything you need to know about dropshipping; its YouTube channel gives you hot product tips, tutorials, news and updates about everything dropshipping related. If that’s not enough, AutoDS offers a completely free Shopify course with over 40 lessons for those who want to build a successful store from scratch, along with a Facebook community dedicated to dropshippers. AutoDS has an excellent average ranking of 4.8 from more than 70 reviews on the Shopify app store. SaleYee Dropshipping by SaleYee SaleYee is a global dropshipping and wholesale platform launched in 2012. The platform makes it easy for merchants to launch and boost their online business. With SaleYee, global online sellers can source and import over 30,000 quality dropshipping products from reliable factories at wholesale prices. The advantage of SaleYee is that merchants can focus on their marketing and sales while the rest is handled by SaleYee. They take care of all the products, inventory, delivery, and after-sales needs. Sellers enjoy fast and free delivery from SaleYee’s warehouses. To ensure fast dispatch of orders, they have over 630,000 warehouses in the US, UK, and EU. SaleYee’s dropshipping service is free. No minimum order quantity is required, and there is no inventory cost. Their support team provides professional after-sales service as well as 1-on-1 sales consultancy. Spocket – US & EU Dropshipping by Spocket Spocket offers a range of features to help you stay on top of your dropshipping business. The app’s products have a 30-60% discount of retail price to help you offer competitive prices and increase your sales. Spocket guarantees fast shipping, as their fair amount of product suppliers are based in the US and Europe. More features by Spocket include auto-updating of inventory, one-click order fulfillment and real-time order tracking. If that’s not enough, the app allows you to test products with sample orders and gives you the option to create branded invoices to strengthen your brand. Spocket offers 24/7 support and has an average ranking of 4.6 from over 2,400 reviews on the Shopify app store. Price: Starts at $24/month with a 14-day free trial. Free plan available. Ali Orders AliExpress Dropship by FireApps Ali Orders allows you to import products from AliExpress to your dropshipping store and fulfill orders automatically – as easily as it gets. The app provides an A-Z automation of the dropshipping process: one click order-fulfillment, shipment tracking, bulk orders, variants control and more. The app supports the Ali Orders Chrome extension to help you filter products by shipping fees, product prices and ePacket. Ali Orders integrates with Ali Reviews, AliExpress, Ali Hunter and more. It has an average ranking of 4.5 from more than 500 Shopify app store reviews. Price: $19/month. 7-day free trial. DSers-AliExpress Dropshipping by DSers The DSers app specializes in helping dropshippers working with AliExpress. Its dropshipping automation tool lets merchants place multiple orders at once and provides exclusive access to unique suppliers. DSers features include the option to auto-track and sync shipping information, find and edit products, create bundle offers, set country-specific suppliers, get notified of every change made to your products, and more. The app has an excellent average ranking of 5 from close to 3,500 reviews on the Shopify app store. Price: $1.99/month. 14-day free trial. Free plan is available. Wiio Dropshipping Wioo is a free all-in-one dropshipping tool for Shopify merchants; it doesn’t require any monthly fees nor a minimum order quantity; the app collaborates with local suppliers to offer its users valuable products at competitive prices. If you’re looking for a place to manage your inventory, Wiio offers the option to store products in one of 3 warehouses for up to 90 days. More features include repackaging and branding, a strict quality check of products, a large variety of payment methods, and more. Wiio Dropshipping has an average ranking of 4.8 from 50 reviews on the Shopify app store. Price: Free to install. Profit tracking apps BeProfit Profit Calc & Reports by Become “What’s your bottom line?” If you asked eCommerce store owners that question, chances are a lot of them wouldn’t be able to answer it accurately, to say the least. But the reality is that knowing your numbers is one of the most important things you can do to increase your chances for eCommerce success. That’s exactly what BeProfit was built for. This Shopify profit calculator gathers all your business metrics in one intuitive dashboard to help you keep track of every expense and know exactly how much you’re making. Features by BeProfit include easy creation of business reports, LTV analysis, ad performance monitoring and much more. All your data is presented in easy-to-digest charts and graphs so you can really understand your numbers and make data-driven decisions. BeProfit has an excellent average ranking of 4.9 from 170 Shopify app store reviews. Price: Starts at $25/month with a 14-day free trial. Free plan is available. Summing Up The extreme variety of apps on the Shopify app store is obviously great news, but can also trigger some difficulties by making the process of choosing the right dropshipping app for your store a bit confusing. Before making a decision, ask yourself exactly what are your needs and goals; carefully read what other users have to say, as reviews will give you a glimpse to the true value of a certain app. Make some time to do some reading and filtering, and create a short list of finalists to choose from. Need some tips for creating a store that sells? Check out these 4 key points to consider about Shopify dropshipping.
Business managementGet the Best Shopify Discount Shipping Rates: 3 Insider TipsShipping rates can make or break a sale. According to Shopify's Commerce Trends report, 74% of consumers want to know shipping costs from the get-go and 60% want same-, next-, or two-day delivery. Meeting these expectations can have a significant impact on conversion, revenue, and profits. So, finding sustainable options for discounted shipping rates can help you stay competitive in the e-commerce market. » Find out how to increase e-commerce store revenue with customer discounts What is Shopify Shipping? Shopify shipping is an integrated way to manage and fulfill shipping orders directly from your Shopify store. This feature is available to anyone with a monthly Shopify subscription who ships items from the US, Canada, or Australia. Some benefits of the integrated method include: Easy management - Shopify owners can manage all shipping orders in one place, simplifying the fulfillment process and saving time.Track packages from Shopify - You can view shipment tracking information directly on the Shopify platform, so you can easily monitor and troubleshoot any delays that may happen.Embedded shipping insurance - There's built-in shipping insurance available that can provide store owners and customers with extra protection if a package gets lost or damaged during shipping. Integrate Your Shopify Stores For Easy Monitoring Reduce the hassle with an all-in-one dashboard for KPI performance tracking, so you can keep track of your business's conversion metrics. Shipping data can be pulled automatically from online platforms and integrated.Get up-to-date reports on shipping and processing fees.Access conversion rates and profitability per platform and product. BeProfit can help you keep track of your sales performance and shipping profiles in real time, so you can easily spot when a shipping discount strategy is not converting the way you need it to. 3 Tips to Get the Best Discount Shipping Rates Shipping discounts can impact a business's bottom line. It can also help Shopify stores reduce shipping costs and can have a positive effect on profit margins and price competitiveness. Let's look at a few tips to get the best discount shipping rates for your store: 1. Calculate Shipping Rates Shopify's shipping rates are generally calculated based on factors such as package weight and dimensions, destination, shipping method, and carrier. The benefits of this system include: Real-time tariff calculationCarrier integrationDiscounted tariffs for users Here's a step-by-step guide to calculate discounted shipping rates using your Shopify account: Sign into your Shopify account and go to Settings > Shipping & Delivery. Click Manage next to the desired shop location. Select Add rate and select Use carrier or app to calculate rates. Enter the dimensions and weight of your package and select your preferred carrier. Repeat the above steps for additional carriers and shipping methods as needed. Add products to your shopping cart and checkout to test your new plan. » Need to know more? Learn how to calculate shipping costs for your Shopify Store 2. Explore Shipping Partners Shopify has partnered with several major carriers for its shipping services, including USPS, UPS, DHL Express, and Canada Post USPS. Each provider has multiple options that vary in price and shipping time. DHL, for example, has up to 74% shipping discount rates through Shopify and offers the following, among others: First-Class Package Service offers delivery in 2-5 business days.Priority Mail delivers in 1-3 business days.Priority Mail Express provides a delivery guarantee of 1-2 business days. By using these services, Shopify store owners can access discounted shipping rates based on any given Shopify plan and also enjoy benefits such as international shipping discounts. To use these options, simply set up shipping rates and connect your shipping carrier account to your Shopify account. This helps by: Streamlining the shipping processReducing costsImproving overall customer experienceBoosting Shopify sales and profits 3. Consider Your Rate Options You can also set predetermined rates for each purchase from your Shopify store, which can allow for greater flexibility and optimized pricing that can help increase your profits. But it can lead to under-charging or over-charging, so be sure to test your rates first. For example, free shipping on all orders can lead to lower profits, and high rates regardless of how small the purchase is can lead to customer dissatisfaction. Here are some shipping options: Flat rate - This is a fixed shipping rate for all orders regardless of weight, size, or destination. A use case example is if a store sells small items with a consistent shipping cost.General shipping - These shipping rates are also fixed rates, but with some wiggle room, such as a set rate per shipping method. An example is a store offering free shipping for orders over $50 or charging a flat rate for orders using standard delivery times.Weight-based - Shipping rates here depend on the weight of the package. For example, a store that sells products of varying weights, such as furniture or pet supplies, may implement this shipping calculation.Price-based - These rates are based on the total price of an order. For instance, a store may offer discounted shipping rates for high-value purchases or for customers who sign up for a subscription. Discounted shipping can be applied to each of these shipping rate options where needed to help increase Shopify conversion rates and profits. » Discover shipping analytics: benchmarks and insights for e-commerce sellers Save Time and Money With Discount Shipping Rates Utilizing Shopify shipping and its discounts can help store owners reduce shipping costs and focus on customer satisfaction, which can increase sales and profits. But that's only one part. Keeping track of your ROI and sales performance can help you identify where the discounts aren't effective and which shipping methods should be changed. With BeProfit, you can integrate your Shopify store into an intuitive dashboard for real-time monitoring of e-commerce expenses, profits, and shipping profiles.
Business managementIncremental Cost vs Marginal Cost: 5 Ways They Affect Your BusinessStatista forecasts that e-commerce sales are expected to reach around $8.1 trillion by 2026. To gain efficient revenue and make informed decisions, you need to understand the cost of producing goods and services. Two related concepts that are used in this context are incremental and marginal costs. While these terms are often used interchangeably, they have distinct meanings that are important to distinguish between. » Learn about effective cost leadership strategies with examples Difference Between Incremental and Marginal Cost Incremental Cost Incremental cost refers to the cost of producing an additional unit of output, taking into account all costs that vary with the level of production, including fixed costs. Some costs may include: Power usageNew production line implementationUpgraded equipment The costs may differ depending on the step in production. To work out the incremental cost per additional unit, you can use the following formula: Incremental Cost = Variable Costs / Units Produced Marginal Cost Marginal cost, on the other hand, refers to the cost of producing an additional unit of output, considering only the variable cost associated with that unit. These variable costs may include: LaborMaterials To calculate the marginal cost per new unit, you can use the following formula: Marginal Cost = (Future Costs - Current Costs) / (Future No. of Units - Current No. of Units) Track Your Costs With Ease Monitor your store's—or multiple stores'—profits, revenue, and expenses from one dashboard. Effortlessly visualize complex data with charts and graphs.Get up-to-date data reports on COGS and processing and shipping fees.Access your data from anywhere using a desktop or mobile device. With BeProfit you can monitor and track your business's revenue metrics and costs per order in real time. How Do These Costs Affect Your Business? These costs can have negative and positive impacts on a business's strategies and revenue, depending on the accuracy of calculations. Some areas of impact include: Profitability In manufacturing and retail businesses, knowing the marginal cost of each unit produced can help determine the optimal production level and pricing strategies that can increase your profit margins. Additionally, knowing the cost associated with each production unit helps businesses allocate resources effectively to different products or services. Product Volume If the incremental cost of producing additional units is higher than the selling price, then it is not profitable to produce them. And if the marginal cost of producing an additional unit is lower than the selling price, producing more units may increase profitability. Therefore, businesses need to carefully consider both costs when deciding on the volume of production. » Want to organize product volume? See the best Wix inventory management apps Product Pricing If the incremental cost of producing additional units exceeds the product selling price, you aren't likely to gain a profit. And if the marginal cost of producing an additional unit is lower than the product selling price, then a business may be able to offer lower prices and still maintain product profitability. Volume discounts may work, for instance, if marginal costs are low, whereas higher prices may be necessary if incremental costs are high. Marketing Reach Marketing costs may include: Specialized marketersInvestments into new software or platforms If the incremental cost of reaching an additional customer exceeds the expected revenue generated by that customer, then you may need to lower your cost per acquisition (CPA) and rework the strategy. Conversely, if the marginal cost of reaching one additional customer is lower than the revenue generated by that customer, then it may be a profitable marketing strategy. Production Changes Incremental and marginal costs both play a critical role in determining production and how it changes due to the effects it has on the business. Some changes may include: Altering the steps of the production lineIncreasing production numbersOutsourcing If the incremental cost of the changed method exceeds the marginal revenue generated by the units it can turn out, then it may not be economically viable. And if the marginal revenue generated by producing additional units, more example, exceeds the marginal cost, then increasing production may be profitable. » Got excessive costs? Check out these insights on how to reduce your COGS Keep Costs in Mind and Run Your Business Confidently Incremental and marginal costs are fundamental business concepts that help you make confident and informed decisions about production, pricing, and marketing. A level of confidence plays a major role in growing your business and sustaining it long-term. By tracking the efficiency of these e-commerce expenses, you can make strategic adjustments in a timely manner. With BeProfit's platform, you can monitor expense metrics in real time all from one dashboard, making it easier to implement changes that can maximize your bottom line.
Business management5 Fundamentals of Planning an Effective TikTok BudgetTikTok has exploded in popularity over the past few years. With 246.96 million app downloads in the first quarter of 2023, TikTok is a booming platform businesses can leverage to spread their reach and boost conversions. However, with so much competition and businesses having varying budgets or ad spend, managing KPIs can help ensure your TikTok ads are efficient. What To Consider For Your TikTok Budget When planning a budget for your TikTok ads, you'll need to consider the minimum budget: more than $50 for campaigns and more than $20 for ad groups. And optimizing the budget to meet your business goals can help boost conversion rates. For instance, 67% of TikTok users say that the platform inspired them to make purchases even when they weren't looking to shop. So, what should you factor into your planning? Intention TikTok ads can have the following business intentions: Increasing brand awarenessDriving traffic to your website or storeBoosting sales By understanding your ultimate goal, you can better allocate your budget and choose the most effective ad types. For instance, if you're looking to drive sales, allocating more of your budget toward product listing ads will be more beneficial than just focusing on brand awareness campaigns. Bid and Budget Types Depending on your campaign's objectives, you can choose your budgeting and bidding types accordingly. Let's start with budgeting types on TikTok: Daily budget - ideal for short-term or immediate campaignsLifetime budget - suited for long-term campaigns Additionally, you can choose between two types of bidding. Manual bidding allows you to set the maximum price you're willing to pay for a specific action.Automatic bidding will automatically adjust your bids based on the competition. » Worried about CPC? See if you're spending too much per these industry benchmarks Ad Types TikTok offers several ad formats. And choosing the best for your business depends on your budget and intention. Some ad types include: In-feed ads - ads appear in users' feeds as they scroll in the app.Branded effects and hashtags - sponsored effects and hashtags that users can include in their videos.Topview ads - the first ad users see when opening the app. If you have a lower budget, branded ads are less of an option as they are typically used by big corporations with high ad spend. For a more budget-friendly route, you can try in-feed ads, which can grab users' attention creatively with clear CTAs and engaging videos. User-Generated Content Encouraging user-generated content (UGC) in your advertising campaigns can help amplify your brand message. UGC can optimize your budget because it leverages users or e-commerce influencers as a way to help boost reach and buzz around your product or service. For example, a brand could create a TikTok hashtag challenge that asks users to showcase how they use a particular product in their daily lives. The brand can then share the best UGC on its channel or website. This can be powerful because it can: Foster a larger sense of community and engagement around the brand. Boost sales and revenue through collaboration.Improve customer loyalty and reach for improved conversions. » Check out the ultimate guide to effective e-commerce ads Interactivity Engaging with your audience can help build a successful advertising campaign on TikTok. Using interactive elements in your ads can allow you to gather feedback and better understand your potential customers. These interactive elements include: PollsBranded stickersHashtag challenges Additionally, factoring in your audience's feedback in future campaigns can help you adjust your budget and tactics more efficiently. Therefore, interactivity can create more value from your budget and achieve greater results. For instance, if you invest some of your budget into branded stickers for a limited product, you could see a positive ROAS if the content is engaging and promotes UGC. Plus, it could spread faster on the platform because of the urgency associated with limited content. Keep Your Budget In Check With Ease Save time and effort with a fully integrated view of your store's ad performance, profits, and expenses. Uses cohort analysis for in-depth insight into marketing performance.Can highlight ROAS per platform.Auto-syncs with TikTok and other platforms seamlessly. BeProfit offers an intuitive dashboard for easy data access and customizable reports to help you monitor your budget and profits in real time. Why Should Businesses Use A Budget Planner? By having a budget planner in place, you can easily track your business expenses and optimize your ad spend for maximum ROI. You can better plan your TikTok budget through the following tracking methods: A/B testing - By running different TikTok ads and testing bid amounts, you can identify which amounts and ads garner the best results, whether it's high conversions, more impressions, or increased sales.Demographic monitoring - With TikTok ads and personalization AI, you can target audiences based on age, location, gender, household income, and more. Analyzing which groups respond most to your ads can help you adjust your budget allocation to marketing for groups more likely to convert.Ad performance - You can check impressions, click-through rate, conversion rate, and other metrics. This can help you identify whether your budget has been spent wisely or if you need to rework your ad strategy.Behavior trends - You can identify which user behavior most commonly occurs with your ads, like category searches, devices used, and more. Then, you can use this to optimize your budget for remarketed ads that are more likely to reach your ideal audience. » Check out more about TikTok ad metrics e-commerce sellers should keep an eye on Maximize Your Profits With Strategic TikTok Budgeting Launching a successful advertising campaign on TikTok requires a well-planned budget. By utilizing ad types and engagement tools that align with your intentions, you can initiate campaigns effectively that resonate with users and maximize profitability. With BeProfit's help, you can easily keep track of your expenses and your ad efficiency all from one integrative dashboard.
Business managementManage Journal Entries in Your Periodic Inventory System Like a ProAs an experienced data professional in the e-commerce supply chain and inventory management field, I understand the importance of inventory management for businesses operating on tight margins. Effective inventory management and utilizing journal entries can help businesses avoid stockouts, optimize stock levels, and reduce carrying costs. And with the periodic inventory system, the process is fairly minimal. What Is the Periodic Inventory System? The periodic inventory system involves taking a physical count of your inventory at regular, specified intervals—such as weekly, monthly, or quarterly—to determine the ending inventory balance. This method is typically used by smaller businesses with low inventory turnover rates, as it is more cost-effective and requires less manpower than the perpetual inventory system which tracks inventory levels regularly. Documenting your inventory usage can: Help deduce the cost of goods sold (COGS) per accounting periodIdentify which items drive profits Make Profit-Tracking Hassle-Free With journal entries to help you keep your inventory in check, tracking your expenses and profits can be simple, too, with an all-in-one integrative system. Uses UTM attribution to identify your best-selling and most profitable products.Accessible on desktop and mobile devices.Customize your data reports and edit your store's data to your liking. BeProfit offers a seamless platform to help you manage your expense and profit data for easy analysis of your business's performance. How to Use Journal Entries Journal entries are used to record transactions by date in the periodic inventory system. Tracking how much inventory is costing the business over a period can help track expenses that can be reduced, ultimately helping improve revenue. To illustrate how journal entries are used, let's look at an example of a small camping gear retailer that uses the periodic inventory system. The retailer purchases 200 camping bags for $50 each and starts the accounting period with 100 bags in stock. During the accounting period, it sells 150 bags for a total of $12,000. The period ends with 250 bags in stock. The goal is to perform the necessary periodic journal entries to update inventory accounts and help ensure accurate financial statements. Record the Purchases The first step is to record the purchases of the camping bags in our inventory account. The business bought 200 bags for $50 each, for a total cost of $10,000. To record this transaction, use the following journal entry: AccountDebitCreditInventory$10,000Accounts Payable$10,000 Record the Sales Second, record the sales of the camping bags and the COGS. The business sold 150 bags and the cost per bag is $50, so the COGS is $7,500. AccountDebitCreditCost of Goods Sold$7,500Inventory$7,500 The debit to the COGS account represents the expense we incurred in selling the bags, while the credit to the inventory account reflects the decrease in our inventory assets due to the sales. » Find out how to calculate cost of goods sold (COGS) for your Shopify store Adjust the Inventory Next is a physical count of the inventory at the end of the period to adjust the account and reflect the actual inventory on hand. The business counted 250 bags with a total cost of $12,500. AccountDebitCreditInventory$5,000Cost of Goods Sold$5,000 The debit to the inventory account represents the increase in our inventory assets due to the adjustment, while the credit to the COGS account reflects the expense we incurred. Calculate the Final Inventory Balance AccountDebit CreditBeginning Inventory$5,000Purchased Inventory$10,000Cost of Goods Sold$7,500Ending Inventory$7,500 The below table shows the final inventory balance for the camping gear at the end of the accounting period. AccountBeginning BalancePurchasesCOGSEnding BalanceInventory$5,000$10,000($7,500)$7,500 The ending balance of $7,500 will be the starting inventory balance in the next accounting period. Ending with a balance higher than the beginning inventory balance can indicate that the business might need to: Reduce inventory purchases each periodPurchase fewer low-selling itemsBuy in smaller bulks This may help lower wasted costs, which can aid in improving revenue and profit margins. Other possible Journal Entries Write-off of obsolete inventory - If a company has inventory that is no longer sellable due to damage, expiration, or other reasons, it may need to be written off. To record this, the company would debit the COGS account and credit the inventory account.Purchase returns - If there is defective or incorrect inventory from a supplier that needs to be returned, it should be recorded in the journal. The company would debit the accounts payable account and credit the inventory account.Sales returns - If a customer returns products to the company, this would need to be recorded. The company would debit the sales returns account and credit the accounts receivable or cash account.Cost of goods sold adjustment - In some cases, a company may need to adjust the cost of goods sold for a particular period. This may be necessary if, for example, there are errors in inventory counts that affect the COGS. To adjust the COGS, the company would debit or credit the COGS account, depending on the adjustment needed. » Do you use Wix? Discover the best Wix inventory management apps Manage Your Periodic Journal Entries With Confidence Journal entries with the periodic system are simple and don't require constant sales tracking. These entries can help you keep track of inventory levels, costs, and profits. With BeProfit, you can achieve even more intuitive tracking through a one-stop dashboard that can monitor your profits and expenses in real time. This and proper journal recording can help you make informed decisions about your inventory and help ensure accurate financial reporting.
Business managementPerpetual vs Periodic Inventory Systems: Which Is Best for Your E-commerce Business?In e-commerce, your inventory refers to the materials used to purchase goods or merchandise you sell to earn a profit. Because inventory is a core foundation of your business, an effective inventory management system can help you track it better. Though there are no standard inventory system requirements, Generally Accepted Accounting Principles (GAAP) require inventory systems to abide by regular accounting periods. So, the system you choose should be based on what works for your business. What is a Periodic Inventory System? A periodic inventory system is a valuation method where physical inventory counts are done at specified intervals (monthly, quarterly, or yearly). Businesses using this method do not update their records in real time to account for every sale or purchase. Instead, the periodic system calculates the cost of goods sold (COGS) only at the end of each regular interval and then deduces a gross profit. COGS = Beginning Inventory + Purchases - Ending Inventory This system can be most suitable for smaller businesses since they won't have to invest revenue into robust management software or larger workforces. Depending on the ratio of COGS to gross profit, the periodic system can highlight whether you're making a sufficient ROI or if your inventory management is wasteful. What is a Perpetual Inventory System? A perpetual inventory system uses sophisticated software to automatically track every inventory transaction, such as incoming and outgoing shipments, returns, and adjustments. Here, businesses have a more accurate and up-to-date view of inventory levels, so they can quickly reorder products when necessary and prevent stockouts or overstocks. This system is highly suitable for businesses with high transaction volumes and large inventories, such as grocery chains. Although the system calculates COGS with the same formula as the periodic system, it continuously updates the COGS based on any inventory modifications. This constant tracking of every sale detail can impact profits by lowering wasted revenue through improved stock estimates. » Are your COGS high? Check out these insights on how to reduce your COGS Track Your COGS Without Hassle Save time and effort with customizable expense tracking and reporting. Available on desktop and mobile devices.Allows you to pull custom expense data from multiple sources at once.Offers up-to-date COGS reports. BeProfit can help you keep tabs on your COGS and track revenue data for one or multiple stores in an all-in-one, intuitive dashboard. Advantages To Enjoy PeriodicPerpetualLower technology costs: You only need basic tools like a calculator and a spreadsheet to keep track of inventory.Manage multiple locations easily: Real-time inventory tracking ensures that all locations are up to date and can coordinate to fulfill orders more effectively.Simple process: You don't need to track every individual sale, purchase, or refund in real time.Allows more informed stock forecasting: Real-time data on inventory levels and movements allows businesses to better predict future stock needs.More cost-effective: With no special software or specialized employees required, businesses can save costs.Lower inventory management costs: Better forecasting helps address stockout and overstocking issues, reducing excess inventory costs.Minimal experience required: Basic experience in inventory valuation is sufficient since it involves simpler calculations than other methods.Accurate, real-time data: Automatic updates to inventory levels provide businesses with a more accurate instant view of their stock. » Discover the best Wix inventory management apps Disadvantages To Consider PeriodicPerpetualPotential revenue loss: You may run out of stock and not realize it until the next inventory count, leading to lost sales and revenue. Scanning issues: Incorrect data entry and discrepancies can occur due to barcode malfunctions or human error.Poor stock tracking: This can result from the reliance on manual counts, which has the potential for human error.Needs increased monitoring: Frequent audits and checks are necessary in case of theft or misplacement, which can require more time and resources.More time-consuming: Physical inventory counts can disrupt operations, diverting resources from other business activities. Expensive: Significant investment in training, hardware, and software may be required. Inventory Systems in Practice Although both periodic and perpetual inventory systems have setbacks, they can work efficiently for different businesses and industries. Example of a Periodic Inventory System A toy business uses a periodic inventory system where the owner and staff manually count and record the toy quantities on paper every quarter. The system works at first, but their substantial product offerings lead to misplacement and overstocking. To help improve this, the business can change the frequency of the periodic intake to monthly. This could ultimately help by: Saving time and money by lowering reactive purchasing.Reducing the risk of overstocking by analyzing which items are popular.Improving inventory visibility so low-selling items aren't restocked. Perpetual Inventory System in Use The same toy business opens two other branches and switches to a perpetual inventory system where they use barcode scanners to track the movement of each toy in and out of their stores. They hire and train more staff to manage and troubleshoot when issues come up. Despite additional investments, this system works effectively for the toy business because: Automatic up-to-date data helps identify which toys sell well and which don't. Allows for more informed decisions about ordering and restocking, reducing the risk of stock shortages and potential revenue loss.The more trained staff helps achieve a significant return through better stock visibility and increased profits. » Learn more about keeping track of your e-commerce business expenses Which System Is Best For Your Business? When choosing the right inventory system for your business, you should prioritize your unique situation and needs. You may have less inventory and benefit from the simplicity of a periodic system, or you may have a multi-location franchise and do better with a perpetual system. You could even hybridize for increased efficiency that drives sales and profits. Once your inventory system is in place, platforms like BeProfit can help make your COGS and profit tracking seamless with data integration, custom reports, and real-time monitoring.
Business managementWhat is Periodic Inventory? Definition, Advantages & ExamplesHaving a sufficient stock of goods or supplies on hand to sell or use is a crucial asset for any business. By keeping tabs on inventory, businesses can ensure they have enough products to suit customer needs, eliminate slow-moving or outmoded lines, and better manage their cash flow. Businesses can benefit from a periodic inventory system because it can help identify where and if their supply chains can be improved and waste can be reduced. This can better overall growth and profits. » Using Wix? Find out the best Wix inventory management apps What Is Periodic Inventory? Periodic inventory involves physical counts of goods at regular intervals, such as weekly, monthly, or quarterly. How Does It Work? Periodic inventory does not update inventory records as sales and purchases occur. Instead, it regularly uses the cost of goods sold (COGS) to deduce how effective a business's inventory management is: COGS = Beginning Inventory + Purchases - Ending Inventory COGS is then used to figure out the gross profit for that period. This can also provide useful insight into how efficiently inventory is managed and highlight how lucrative the business is. Gross Profit = Total Sales Revenue - COGS Example of a Periodic Inventory System in Use A small retail store may use a periodic inventory system to manage its inventory. Let's say the store conducts physical counts of inventory every quarter. At the beginning of the quarter, the store had $10,000 worth of inventory, and during the quarter it purchased $5,000 worth of additional inventory. At the end of the quarter, the physical count reveals that the store has $7,000 worth of inventory remaining. Using the periodic inventory formula, we can calculate the COGS as follows: COGS = Beginning Inventory + Purchases - Ending Inventory= $10,000 + $5,000 - $7,000= $8,000 If the store's sales revenue for the quarter was $15,000, then the gross profit would be: Gross Profit = Total Sales Revenue - COGS= $15,000 - $8,000= $7,000 Periodic inventory systems are easier to use than systems that keep track of everything in real time. This is especially true for smaller businesses with fewer sales, as it can be cheaper to do physical counts than to buy more expensive technology for keeping track of inventory. Depending on the business's sales and profit margins, the result of the periodic inventory calculation can be positive or negative. If a business has low COGS, this can show that the business is better at keeping track of its inventory costs. Take the retail store example. It has a fairly even profit-to-COGS ratio, so its inventory management can be considered effective. But if the COGS is high, the business may need to explore ways to reduce inventory costs, such as by negotiating better prices with suppliers or improving inventory management processes to reduce waste and obsolescence. Track Your COGS and Profits With Ease Better understand your business's expenses and profits with customizable data tracking. Accessible on mobile and desktop devices for easy collaborationReceive up-to-date COGS reports.Schedule custom reports and have them emailed directly to you. BeProfit offers an intuitive platform to help you customize your expense tracking and calculate COGS effortlessly. Advantages of Periodic Inventory For Your Business Because physical counts are only done at the end of each period, periodic inventory systems can help small businesses keep track of their stock without affecting their production time too much. This extends to other benefits, such as: Cost-effective: This system doesn't need advanced technology or a lot of ongoing costs, like training or support, which can help small businesses keep expenses low. This also offers businesses the space to put money into other important areas, like marketing and customer acquisition. Less Workforce Required: Periodic inventory systems require less manpower and specialized knowledge. This can be helpful for businesses that don't have a lot of staff or resources. Less training required also means that fewer uniquely skilled workers are needed.Simplicity: They involve basic math based on physical inventory counts and don't need to track every individual sale, purchase, or refund in real time. Because of the simplicity, businesses can save time and reduce the chance of making errors. Drawbacks of Periodic Inventory Systems Periodic inventory systems aren't without disadvantages, though, and businesses should consider these when deciding on an inventory system. These include: Weaker Inventory Control: Because inventory is not tracked in real time, stockouts, overstocking, and inaccurate demand forecasting can occur. Misplacement and theft can also result from fewer frequent inventory checks. These can impact accuracy, lower consumer satisfaction, raise costs, and damage profits.Higher Production Costs: Higher production costs can result in reactive purchasing, where businesses must order inventory as they run low, rather than planning and ordering in advance. » Discover the most common e-commerce expenses and how to reduce them How Periodic Inventory Systems Can Help Your Business Tracking inventory is a valuable way to assess stock, COGS, and businesses' capability to supply products and services effectively. Businesses can thrive from a periodic inventory system because it's a simple, cost-effective way to manage inventory for regular gross profit and COGS assessments. Although open to inaccuracies and overstocking, small businesses can benefit because of smaller, easier-to-manage stock amounts. With BeProfit, you can consolidate your COGS data and profits into an easy-to-use dashboard, access data reports, and customize profit calculation preferences. That way, tracking your inventory data and monitoring your profits is simple, leaving more time for managing other areas of your business efficiently.