Shopify Ecommerce Agency

How Profitable Is A Shopify Ecommerce Agency? (Updated for 2024)

Pat Walls

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Updated: September 6th, 2024

How Profitable Is A Shopify Ecommerce Agency? (Updated for 2024)

So you want to start a shopify ecommerce agency?

And the first question that came to your mind was, “well, are shopify ecommerce agencies actually profitable?”

Especially considering:

You could start a shopify ecommerce agency with as low as $6
Based on our data, shopify ecommerce agencies generate an average of $1.26M per year
You could see gross margins as high as 70% with shopify ecommerce agencies

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a shopify ecommerce agency.

Let’s dive in!

Is a shopify ecommerce agency profitable?

Yes, a shopify ecommerce agency is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.26M per year with an estimated gross margin of 52%, you could expect to recover your investment within 6 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your shopify ecommerce agency.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your shopify ecommerce agency is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a shopify ecommerce agency worth it?

If you’re wondering if a shopify ecommerce agency is worth it, the answer is a big YES. With shopify ecommerce agencies, you have the potential to earn $1.26M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a shopify ecommerce agency to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful shopify ecommerce agencies case studies.

Examples Of Profitable Shopify Ecommerce Agencies

Here are a few examples of profitable shopify ecommerce agencies, and a few more details about them:

1. Velstar ($2.1M/year)

Dan Sheard, the founder of Velstar, came up with the idea for his business after working in sales and later as a web developer at various large agencies. He wanted to focus on helping direct-to-consumer brands that didn't have big budgets, so he decided to start his own agency that combined "big agency" experience with simple, intuitive platforms like Shopify. Since its launch, Velstar has experienced rapid growth and has become an official Shopify Plus partner.

Is it profitable? Yes
How much money it makes: $2.1M/year

How I Started A $100K/Month Shopify Ecommerce Agency

Velstar, a UK-based Shopify Plus partner agency, has seen impressive year-on-year revenue growth of at least 100% every year, due to their focus on building engaging and conversion-focused eCommerce websites, and highly effective growth marketing for direct-to-consumer brands on Shopify, with big ambitions for 2020 including launching a local Shopify Plus meetup, an eCommerce podcast, investing in content marketing and hiring their first business development personnel.

Read this case study

Read by 9,057 founders

2. Create Circus ($288K/year)

Oliver, the founder of Create Circus, came up with the idea for his business while building his own Shopify branded business during the global lockdowns. He noticed that many stores lacked great branding and quality, so he began offering custom-built templates and designs to make stores stand out. Today, Create Circus has a turnover of around $24,000 a month and is expanding their services to include SEO, SEM, and TikTok marketing.

Is it profitable? Yes
How much money it makes: $288K/year
How much did it cost to start: $1K

How We Launched A $24K/Mo UK-Based Shopify Development Agency

Create Circus, a Shopify development agency that focuses on high-quality e-commerce store creation, started during the later end of the pandemic and has since turned over around $24,000 a month with two amazing full-time project managers and three full-time developers.

Read this case study

Read by 2,813 founders

3. Envision ($360K/year)

Leighton Taylor, founder of eCommerce marketing agency Envision, came up with the idea for his business while freelancing in web design and development. He noticed the explosive growth of Shopify as the eCommerce platform of choice and decided to specialize in Shopify-related services. Through clear communication, punctuality, and early success with content marketing, Envision has attracted and retained clients, earning approximately $30k/month in revenue.

Is it profitable? Yes
How much money it makes: $360K/year
How much did it cost to start: $0

How I Started A $30K/Month Conversion-Focused Shopify Development Agency

Founder Leighton Taylor shares how his eCommerce marketing agency for Shopify has grown to approximately $30k/month, working with about 350 eCommerce brands and an ideal client with annual revenue from $1-10 million, while focusing on clear communication, punctuality and content marketing through a podcast.

Read this case study

Read by 7,585 founders

Learn more about starting a shopify ecommerce agency:

Where to start?

-> How much does it cost to start a shopify ecommerce agency?
-> Pros and cons of a shopify ecommerce agency

Need inspiration?

-> Other shopify ecommerce agency success stories
-> Marketing ideas for a shopify ecommerce agency
-> Shopify ecommerce agency slogans
-> Shopify ecommerce agency names

Other resources

-> Shopify ecommerce agency tips

How much can you make with a shopify ecommerce agency?

With a shopify ecommerce agency, you can make an average of $1.26M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $6. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 6 months.

How much does a shopify ecommerce agency make a week?

Based on our data, average weekly revenue for a shopify ecommerce agency ranges around $26.2K. As such, you could see monthly revenues of $105K.

To know if your shopify ecommerce agency achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your shopify ecommerce agency.

How much do shopify ecommerce agencies owners make?

The income of a shopify ecommerce agency owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established shopify ecommerce agency is about $26.2K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a shopify ecommerce agency owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Shopify Ecommerce Agency Profit Margins

Generally speaking, a shopify ecommerce agency can expect profit margin of around 52%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a shopify ecommerce agency, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, shopify ecommerce agency owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, shopify ecommerce agency owners can ensure long-term sustainability and profitability for their business.

Shopify ecommerce agency owner salary

The salary of a shopify ecommerce agency owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established shopify ecommerce agency, in a prime position, might see an average weekly salary around the ballpark of $13.6K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a shopify ecommerce agency may be a promising business to start - but the success of your shopify ecommerce agency mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable shopify ecommerce agency.

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Starting A Shopify Ecommerce Agency: Everything You Need To Know

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