Shopify’s Marketplace Is A Scam
Shopify is a billion-dollar company that allows anyone to make an e-commerce marketplace. Recently, Shopify released a new website exchangemarketplace.com where the millions of Shopify store owners can buy or sell their stores.
In this article, we're going to show you why Shopify's marketplace is corrupt and why you should stay away!
Shopify Is Not Checking The Listings
There are millions of people who use Shopify daily, many of which are trusted brands. However, it's marketplace is infested with scammers trying to make a quick buck off of naive buyers.
Now, I'm not saying that Shopify is trying to scam their customers, but they aren't doing anything about the scammers on the marketplace.
Allow me to explain.
This is a recent screenshot of the first listings you'd see on the website. Notice how the first one is asking for $500 but generates $8k/month?
How about the other listings? The second one is asking for $1k but generates $1500/month. The third one is asking for $5k and generates $2.9k/month.
These numbers don't make any sense at all. No one in their right mind would sell their stores at these prices unless the numbers aren't correct!
Let's see the details of the second listing, Kolonso.
These scammers generate revenue as high as possible and then completely ignore their store after they listed it in the marketplace. At the time of writing this, the store is actually losing money now!
They explain that they used Facebook ads to drive most of the traffic to the store, but they don't show how much they spend to get their revenue.
Why is the average profit exactly $1,500/month? The number shouldn't be so even. If it was close to $1,500 on average, it would be something like $1,497 or $1,506.
Shopify doesn't check for average profit, only average revenue and sessions. You can see that the average revenue and sessions are verified by Shopify.
Shopify doesn't verify average profit, profit margin, or average sales. These are the most important metrics to know when buying an online business!
Notice how the revenue has a more exact number? That's because Shopify didn't verify revenue.
This is true for almost all listings on Shopify's marketplace.
The seller decides the average profit, not Shopify.
Shopify is a billion-dollar company with only a few hundred listings on their marketplace. Shopify needs to hire a specialist to go over the listings individually before they're posted to ensure that the price is reasonable.
There are going to be people who buy these businesses and realize they're getting ripped off, especially when the profit isn't accurately listed. This could potentially give Shopify a bad name in the industry.
Here are some tips to remember if you plan on buying an online business.
- If it's too good to be true, then it probably is.
- Go with a trusted broker.
- Learn the industry standards.
The exchange marketplace is still in development by Shopify. There's still lots to be learned when deciding to invest in an online business.
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- Where to buy online businesses.
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