What is the failure rate of Shopify?

What factors play crucial roles in the failure rate of Shopify? How often do businesses experience failure while using this e-commerce platform? What does it take to run a successful company on Shopify? Questions like these often cross the minds of future online entrepreneurs, piquing their interest, creating doubts and uncertainties – significantly contributing to the discourse around the Shopify failure rate.

According to a report by BuiltWith, a significant proportion of online businesses on Shopify fail to sustain or prosper. An analysis by CB Insights states the top reasons for this failure, including lack of market need, incompetence and even legal challenges. Despite acknowledging these risks, online entrepreneurs still opt for Shopify because of its user-friendly interface, less technical complexities, and widespread reputation. However, the urgency to mitigate these risks cannot be ignored. A recent survey across different states in the USA confirms that these problems often remain unaddressed, resulting in business closure and failure.

In this article, you will learn about the ins and outs behind the Shopify failure rate. We will delve into the nitty-gritty of the reasons behind these failures, by elaborating on the study of expert institutions like BuiltWith and CB Insights. We will also dissect the results of the aforementioned American surveys, drawing correlations between these results and the difficulties faced by Shopify businesses.

Further, you will explore potential solutions to prevent the failure rate reported by Shopify businesses. Understanding the pitfalls and learning about methods to circumvent them can be the difference between success and failure. Let’s enlighten ourselves to bring those entrepreneurial dreams to life.

Understanding Key Definitions Related to Shopify’s Failure Rate

Shopify’s Failure Rate is a term that denotes the percentage of Shopify-powered businesses that do not succeed. It represents the number of shops that shut down or cease operations compared to the total number of shops that are active on the platform over a given period.

Success rate is the opposite. It refers to the percentage of businesses on Shopify that have managed to generate profit, growth or achieve their defined objectives.

Average Survival Rate is another important concept. It indicates the average duration a store remains active before it fails or stops operation.

Unveiling the Hidden Truth: Shopify’s Underreported Failure Rate

Understanding Failure Rates in E-commerce

In the dynamic world of e-commerce, success isn’t always guaranteed and this holds true for Shopify as well. But here’s where it gets tricky – the actual failure rate of Shopify businesses can be challenging to pinpoint due to a range of factors. Some studies suggest that as many as 80%-97% of Shopify stores fail, but these numbers only tell part of the story.

This apparent high failure rate can be attributed to a variety of factors. For many store owners, a lack of adequate knowledge about e-commerce or specific product markets can pose significant challenges. Other issues can include poor site design, weak marketing strategies, and competitive pressures.

The Impact of Failing Stores on Shopify’s Reputation

Failing Shopify stores, however, shouldn’t deter prospective entrepreneurs because this doesn’t necessarily paint a complete picture of the platform’s efficiency and potential. The failure rate of individual stores is more reflective of the store owners themselves than it is of Shopify’s functionality.

The platform comes equipped with all the necessary tools and functionalities an e-commerce store needs to thrive. Shopify’s role is analogous to a powerful vehicle, and its effectiveness depends on the driver’s ability to use it properly.

  • Shopify provides robust and user-friendly design options to create attractive online stores.
  • The platform offers a variety of plug-ins and integrations for better customization and functionality.
  • It hosts a suite of marketing tools, including Search Engine Optimization (SEO) features, to help stores reach their target audience.
  • Shopify also has a reliable customer service team that provides swift and effective resolutions to any problem the store owner encounters.

Reducing Shopify Failure Rates: A Need for Realistic Expectations and Knowledge

To reduce the Shopify failure rate, store owners need to set realistic expectations and put in the required effort and time. Understanding the nuances of the chosen market, developing solid sales and marketing strategies, and continuously learning and adapting are all components of a successful Shopify store.

Shopify, like any other tool, is as effective as its user. While it’s true that many stores fail, each failure is a learning point and an opportunity for growth. When approached with the correct mindset and the willingness to enhance knowledge, Shopify can be a powerful tool to succeed in the burgeoning e-commerce industry.

Shopify Disappointments: Unmasking the Real Failure Rate Statistics

Understanding the Prevalence of Failure

Is it really the case that a significant number of Shopify stores fail? Such a question can be shocking, but it is essential to consider in a comprehensive understanding of the platform. Intriguingly, statistics indicate that over 90% of Shopify stores are shut down within the first three months – a dramatically high failure rate. The “one-click-to-riches” promise that is often associated with the platform may not be as foolproof as it initially appears. The harsh reality is that success is more nuanced and dependent on various factors like the supply-demand fit, the store’s aesthetics, effective digital marketing strategies, ongoing store optimization, customer care, amongst others.

Diagnosing the Problem

Certainly, such a high failure rate calls for an exploration into the main issues at hand. Many failed Shopify store owners have cited a lack of understanding of eCommerce and marketing fundamentals as a critical failure factor. Unlike conventional brick-and-mortar stores, online stores require a profound understanding of SEO techniques, digital content marketing, and utilization of online analytics for insightful business decision-making. Another common reason is that many Shopify store owners dive straight into a saturated market without an adequate analysis of the competition and demand. Additionally, they fail to develop a unique value proposition to differentiate their store, leading to a lack of customer interest and engagement.

Drawing Upon Successful Practices

Amidst the store closures, however, there are some successful Shopify stores that serve to prove that success is indeed attainable. The key lies in understanding what these stores are doing differently and incorporating these best practices into one’s business model. For example, successful store owners invest in learning eCommerce and digital marketing fundamentals. They engage in consistent A/B testing for their store’s design and invest in Search Engine Optimization to improve their store’s visibility. They initiate a good understanding of their target market and competition before launching the store and focus on creating unique value propositions for their products. Moreover, they prioritize customer care by offering adequate pre- and post-purchase customer support. Incorporating such practices could dramatically improve the survivability and success rate of Shopify stores.

The Untold Story: Why Shopify’s Failure Rate Isn’t as Rosy as You Think

A Thoughtful Examination

Are we seeing the whole picture when it comes to Shopify’s success? To gain a more comprehensive understanding, we must peel back the layers to demystify its failure rate. While Shopify has successfully dominated the e-commerce space, there is a lesser-known side to its story that is eclipsed by its widespread successes. It’s the silent narrative of unsuccessful ventures that quietly fade into obscurity. Mainstream narratives often overlook the fact that for every flourishing Shopify business, at least two fail to thrive. However, this situation is not regrettably uncommon in the volatile landscape of eCommerce, where the failure rate is generally high. An exploration into the reasons for this high failure rate can be insightful, helping budding entrepreneurs avoid common pitfalls.

The Underlying Issue

Several factors contribute to Shopify’s high failure rate. Primarily, people often jump onto the Shopify bandwagon without a clear business plan, little to no knowledge about the market and their target audience, and a limited understanding of the platform’s tools and functionalities. Lack of SEO and digital marketing skills may further worsen their odds of success. Moreover, people often underestimate the amount of work invested in running an online store: stocking, shipping, handling returns, and providing customer service. All these oversights collectively inflate the Shopify failure rate.

Triumph Over Turbulence

While high failure rates can be disconcerting, it’s not all doom and gloom. Successful Shopify entrepreneurs learn from the mistakes of failed businesses and adapt accordingly. A common strategy among successful Shopify stores is carving a niche market rather than competing with mass markets. They invest their time in understanding their target audience and prepare a solid business plan accordingly. Mastery over Shopify’s tools, like retrieving abandoned carts, also plays a vital role in turning potential customers into buyers. A deep understanding of SEO and effective use of digital marketing strategies help these businesses become visible to their target audiences. Furthermore, they leverage responsive customer service to garner trust and loyalty for repetitive sales. By deeply understanding such best practices, anyone can significantly reduce the likelihood of failure on Shopify.


Ponder this, are we correctly interpreting the statistics relating to the success and failure of Shopify users? Are we proactively applying this data to optimize our business strategies and avoid becoming another unpleasant statistic ourselves? As we draw the curtain on this discussion about Shopify’s failure rate, it is paramount to realize that data and statistics mustn’t cloud our judgment. Instead, it should inspire strategies for improved eCommerce experiences, customer engagement, and ultimately, business growth. However, failure or success depends largely on individual users and their unique business experiences, strategic application of Shopify tools, and the business landscape they are navigating.

We genuinely appreciate your interest and patronage towards our blog. Your frequent visits and engagement mean a lot to us, and it is a fuel that motivates us to keep producing high-quality content specifically tailored to guide you in your e-commerce journey. To always stay abreast with current trends and valuable information to boost your businesses, we implore you to remain steadfast with us. As the business landscape shifts, we will continue to deepen our dives into the wealth of e-commerce, and of course, keep dissecting data on platforms like Shopify in ways that are both insightful and advantageous to our readers.

Notably, we have several exciting releases lined up just for you, filled with more data breakdowns, analytics, and expert advice revolving around eCommerce and Shopify. But remember, the wait will be worth it. Each blog post is crafted meticulously to ensure quality, accuracy, and most importantly, relevance in today’s rapidly expanding e-commerce universe. We are excited about the future, a future where our readers are armed with all the knowledge required to run successful online enterprises and lower the margin for failure significantly. So here’s to the upcoming releases, may they keep igniting the eCommerce fire in all of us.


1. What is the overall failure rate for Shopify stores?

Exact analytics on the failure rate of Shopify stores aren’t publicly available. However, it is known that the success of a Shopify store, like any business, primarily depends on factors such as business strategy, product demand, and customer service.

2. Does Shopify provide any support or resources to decrease the chance of failure?

Yes, Shopify provides a multitude of resources such as online tutorials, guides, and online support to help users optimize their online stores. Shopify also hosts a forum where community members can exchange business strategies and insights.

3. What are some common reasons for Shopify stores failing?

The common reasons for Shopify stores failing can be poor market research, mismanaged advertising budgets, and a lack of understanding about SEO and digital marketing tactics. Inadequate customer service and poor website design are also contributing factors.

4. How can I improve my chances of success with my Shopify store?

Effective strategies include conducting thorough market research, optimizing your website for SEO, and using the right digital marketing tactics. Investing in good customer service and maintaining a user-friendly website can also significantly improve your chances of success.

5. Does Shopify have a higher failure rate compared to other eCommerce platforms?

Comparative failure rates between Shopify and other eCommerce platforms aren’t publicly available. The success or failure of the online store is more reliant on the business strategies implemented rather than the platform used.