Shopify Plugin

How Profitable Is A Shopify Plugin? (Updated for 2024)

Pat Walls

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Updated: October 6th, 2024

How Profitable Is A Shopify Plugin? (Updated for 2024)

So you want to start a shopify plugin?

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

With a market size of $4.25T - there’s plenty of business to go around.

Especially considering:

You could start a shopify plugin with as low as $300
Based on our data, shopify plugins generate an average of $365K per year
You could see gross margins as high as 45% with shopify plugins

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 plugin.

Let’s dive in!

Is a shopify plugin profitable?

Yes, a shopify plugin 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 $365K per year with an estimated gross margin of 83%, you could expect to recover your investment within 12 months or even less.

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

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 plugin is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a shopify plugin worth it?

If you’re wondering if a shopify plugin is worth it, the answer is a big YES. With shopify plugins, you have the potential to earn $365K 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 $4.25T, 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 plugin 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 plugins case studies.

Examples Of Profitable Shopify Plugins

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

1. SuperLemon ($348K/year)

After 2 failed startups, the founders set their sights on working on something people want and are ready to pay for. Their priority even before they had decided on the idea for the product was to find an audience, a group of people who faced a problem, and who currently pay for a software tool to solve their problem. App marketplaces were a way to mitigate some of this risk.

They had some prior experience with building a Shopify store, and also had a friend who built a $20k/mo Shopify app without any employees.

To find problems worth solving, they browsed the entire Shopify app store, which at the time had 3,000+ apps. Going through every single app, jotting down interesting ones, especially ones that had poor reviews indicating that they could do a better job at solving the same problem, and picked 5 out of the 100s of those ideas they identified, based on their goals and constraints:

An existing problem that people were already paying for
Existing apps weren’t doing the best possible job at solving customer’s needs
The app had the potential to grow to at least $3k in MRR, which after costs would allow the founders to live comfortably in Bengaluru

Is it profitable? Yes
How much money it makes: $348K/year
How much did it cost to start: $0

How We Developed A $29K/Month WhatsApp Plugin For Shopify

SuperLemon, a WhatsApp plugin for Shopify eCommerce stores, crossed $29,000 in MRR as of July 2020, with 20,000 users from 50+ countries and 1700+ paying customers, all acquired through organic marketing strategies and a relentless focus on customer service and satisfaction.

Read this case study

Read by 23,623 founders

2. Analyzify ($144K/year)

DataPack, the founder's productized offer for data-analytics-related projects, had received too many requests from Shopify stores. So they decided to create a standalone product for the Shopify market.

Is it profitable? Yes
How much money it makes: $144K/year
How much did it cost to start: $6K

Our Analytics App For Shopify Reached $12K MRR In Just 7 Months

Analyzify.app is a Shopify app that helps enable accurate and reliable data tracking and generates $12K+/month with over 350 stores empowered, thanks to a freemium version on YouTube and exceptional customer support.

Read this case study

Read by 8,972 founders

3. Widebundle ($660K/year)

He used Shopify Facebook Groups and communities to read people’s problems and questions, add comments, and start conversations. It’s a long job that only a few people want to do, but it works.

At some point, Matt found 3 people who wanted the same thing but it didn’t exist in the Shopify App Store. They wanted features from a bundled app that didn’t exist. And if 3 people want it, maybe there are more.

Is it profitable? Yes
What's the gross margin? 45%
How much money it makes: $660K/year
How much did it cost to start: $300

Failing Thrice, Then Building A $40K/Month Shopify App By The Age Of 25

WideBundle is a Shopify App founded in May 2020, that has grown to making over $40,000 monthly, with 5 people working full-time, and helps Shopify merchants create bundles and offers to increase their average order value.

Read this case study

Read by 4,594 founders

Learn more about starting a shopify plugin:

Where to start?

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

Need inspiration?

-> Other shopify plugin success stories

Other resources

-> Shopify plugin tips

How much can you make with a shopify plugin?

With a shopify plugin, you can make an average of $365K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $300. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a shopify plugin make a week?

Based on our data, average weekly revenue for a shopify plugin ranges around $7.6K. As such, you could see monthly revenues of $30.4K.

To know if your shopify plugin 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 plugin.

How much do shopify plugins owners make?

The income of a shopify plugin 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 plugin is about $7.6K. 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 plugin owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Shopify Plugin Profit Margins

Generally speaking, a shopify plugin can expect profit margin of around 83%. 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 plugin, 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 plugin 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 plugin owners can ensure long-term sustainability and profitability for their business.

Shopify plugin owner salary

The salary of a shopify plugin 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 plugin, in a prime position, might see an average weekly salary around the ballpark of $6.31K.

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 plugin may be a promising business to start - but the success of your shopify plugin mostly depends on your effort and your approach.

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

Part of

Starting A Shopify Plugin: Everything You Need To Know

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