Shopify hosts an event every year called Unite, where they share major updates to the platform, and what’s to come in the following year. This year is a little bit different because of the pandemic, but they still made it happen, virtually.
So in today’s episode, I’m sharing the updates from Shopify that I’m most excited about.
Let me know which ones you’re excited about in the comment section below.
What's Covered in This Episode:
What to expect from Shopify:
Links From This Episode:
This podcast is also available in video form. Click ‘Play’ below to start watching. Make sure to subscribe to our YouTube Channel for weekly updates and insights!
What's up everybody, Anton Kraly here from eCommercelifestyle.com and welcome back to the podcast. If this is your first time listening, just know that this show is designed to help you increase your revenue, automate your operations and become number one in your niche and if you are a listener, you're probably well aware that I am a huge fan of Shopify.
We've been using them to build our stores for years and it's because they have the best product and they're always leading in what is coming next. One thing they do that I love is hosting an annual event. It's called Shopify Unite and at this event, they have different team members and different leaders of different areas of the company give these presentations, where they share different things regarding where the company currently is, how it's growing and what's coming next. For the previous two years, I've done episodes, podcast episodes, after Shopify Unite, where I've shared my top takeaways and what I'm most excited for.
Now this year was a little bit different due to COVID-19. They weren't able to actually host the in person events. So they kind of rebranded it as Shopify Reunite and they did it virtually and it just took place. They shared a lot. So what I'm going to do in today's episode of the podcast is share what I'm most excited about right now and in this coming year in the world of Shopify.
So the first thing isn't exactly new but it was talked more about, and that is Shopify email. So what this basically is, is a way to manage all of your email marketing without having to install any apps or leave your Shopify account. For years, and years and years now, we have used and relied on Klaviyo and we still do. Klayvio is the best email autoresponder there is for Shopify. They have the deepest integration. The emails just work. They get sent, they get delivered and we've made a lot of money by using Klaviyo.
So the first thing I'll say is at this point, we are not planning on switching any of our existing businesses from Klayvio to Shopify. But what I will say is, for the next store that we build, I'm going to try to use only Shopify email. We're going to see how the experience works. I'm going to see how it gets better because that's a big thing. It's not where Klayvio is yet. Their plans obviously are to make it better but because it's not there yet, we're not going to just switch a whole bunch of stuff but I think the future does look really exciting and the main reason honestly, is pricing.
So the way this is going to work with Shopify email is they're making it up until October 1st of 2020, it is completely free to use. So all you have to do is log into Shopify and you can use Shopify email for free.
Now, after October 1st, their pricing model is going to be the first 2,500 emails that you send are free. So pretty good deal. Now, after that, the way they are going to bill is a flat cost of $1 for every thousand emails that you send and that is really good pricing, especially because the way that they're it up is again, all the functionality is not there, like what you'd want it to be for a Klayvio replacement. But again, I think they're working towards that and as they release more and more functionality and features into it, there's not going to be pricing tiers. It's strictly going to be based on volume. So it's not like you're going to have to pay X amount of dollars a month to get all of these features unlocked. They're all going to be unlocked from day one and no matter what, your billing is going to be $1 per thousand emails sent.
So I wanted to do a comparison to see how that stacks up against Klayvio, which again is the gold standard in regards to email communication and email marketing. The way Shopify is going to work, let's just take a hypothetical and say you have 10,000 email subscribers and let's say you send biweekly emails. So you send two emails a week to 10,000 people. So that would be, let's just say four weeks in a month, that would be eight emails in a month to 10,000 people. That would mean you send 80,000 emails.
Now with Shopify, again, that's $1 per thousand. So your bill would be $80, which is very good. Again, this is like super cheap when it comes to email marketing. Now let's say you used Klaviyo instead and you had those 10,000 contacts. Well, the way it works with Klaviyo is you pay based on how many contacts you have and for 10,000, with the current pricing, you would have a bill of $150 a month. With that $150, this is the key difference, you can send unlimited emails. So depending on your email frequency, that might be a better deal.
If you had 10,000 contacts and you wanted to mail them seven times a week, not saying you should do that, but you could do that with Klaviyo and your bill would still be $150. Where with Shopify email, again, if you send biweekly emails, you'd still be paying $80. If you sent one email a week, your bill would be $40.
So there's this trade off, I guess, that everybody's going to have to find based on how often am I emailing my subscribers, my email list and when does one make more sense than the other. At this point from a features perspective, Klaviyo is still way ahead, but Shopify again, I love them. They have a great team. So I'm sure their plan is to not just match Klaviyo but get better and once it, then that question is really going to be asked by a lot more merchants and where does the pricing make sense that you just switched to Shopify email?
So for our next store, I'm going to start using it. I'll document and I'll post updates in the podcast with how it works and we'll see, but that's super exciting because in the past they've always had some basic email templates but you can tell now, they're going all in on this and really trying to make it the new gold standard for email marketing.
Now, the second thing that I'm really excited about is Shop Pay and I guess like the easiest way to describe this, it really is just a rebranded Shopify Pay, which has been there. That's not new, but what they've done is not just rebrand Shopify Pay. They've actually linked it and replaced their existing app and this is for, for consumer facing. This isn't the Shopify app as a store owner, but the app for the person that's buying from Shopify stores.
The way it works now is if you accept Shopify payments, you have to accept Shopify payments and you check off that you want to accept Shop Pay, when somebody is buying from your store, they can choose to pay with Shop Pay, which would be them linking their payment method through that. But what's really cool about this is once their payment information is in there, if they're on your store and you accept Shop Pay, they can click the button. It'll have all of their information there to just populate your order forms. It'll have their credit card information linked or their debit card or whatever and they can just click a button and order from you without having to fill out the whole order form. So similar to Apple Pay and Google Pay, which you should be accepting both now that's called Shop Pay.
The main thing that I like about it that makes it even better is again, they rebranded their app and I have it pulled open on my phone now. Not sure if people could see it, if you're watching the video version but the app used to be called Arrive and this is again, the Shopify app. Great app because once somebody buys from a Shopify store, they can just say, "Yes, I want to track my order," and through this Arrive app, they would get real time delivery notifications and they would get notified when an order shipped and when it was in transit and when it was scheduled to be delivered and when it was delivered. So that was great.
But now that these things are combined, when people are in this app and they're checking their order statuses, there's this tab that says shop and when you go to shop, you can see the stores that you've ordered from before, and you can click in and you can see their full product catalogs, but also you could just see on this app, new arrivals.
So for me, right now in mine, I'm seeing supplements and I'm seeing all different types of electronics and charging stations and digital watches and all these things from other stores that I've already ordered from, that are accepting Shop Pay and that are linked up to the Shop app. So we're definitely going to get in there. Again, it's as simple as clicking a button and I'm excited about it because Shopify has over a million stores now on their platform. So people that are ordering from your store, most likely have already ordered from another Shopify store and it's just a great way to get some internal free marketing and also give your customers a faster checkout experience. So I really like that they combined those two things.
Again, what was Shopify Pay and what was Arrive into one. I think this is going to be a great internal marketing feature and I think it's going to be a great way to bring in some additional sales at no cost. So super exciting. Now the third thing that I'm most excited for this year is what's called Shop Pay installments. So kind of a continuation of this whole Shop Pay thing. What this basically is, is Klarna except owned by Shopify, or a firm except owned by Shopify.
If you're a member of my coaching program, if you're in Drop Ship Lifestyle, you know that we are big fans of accepting financing from customers. The way that it works right now is you can use a third party again, like Klarna or Affirm, and when a customer is on your store, they'll see this little box that says, "Do you want to make payments basically?" "Do you want to make four payments of X amount of dollars?" Whatever that is. If the customer or the website visitor chooses that, then what's going to happen is they're basically going to get approved for financing with that company. The money is going to go to you right away, just like it was a normal sale and then the customer will make payments to Klarna or Affirm or even PayPal Credit and then, that's it. That's how it works, basically. You still get your money right away. They work great and they're amazing, and everybody should use them. But now, Shopify is again trying to take out some of their services by making this new thing called Shop Pay installments, which is the same thing.
If you want to accept payments through this, the customer can see on your checkout that they can make four payments of X amount of dollars and if they choose that, same thing. You get the money right away. The customer will make those payments to Shopify basically to Shop Pay. What's really cool about this, even though it's nothing new or different, is that because it's native to Shopify, the customer, doesn't have to see this thing, like what's Klarna? What's Affirm? It's just this native thing that's built into your checkout process, which is just cleaner and any time, not just with accepting payments but in general, when you can reduce friction, your conversion rates will go up. So we're definitely going to be using this again, as long as approval rates for customers getting credit are the same or similar, I don't see how this will not increase conversion. So highly recommend checking that out as well and getting it set up on your site as soon as you can.
Now, those are the big three. Those are the three main things I was excited about. The fourth one is kind of a wild card because I'm not really sure what Shopify's plan is here with this. It's not something that we're going to use but it's something that could open up the ability to sell on Shopify, to people from all around the world. At my company Drop Ship Lifestyle, we have students from over 50 different countries. I want them to have as much opportunity as anyone from any country. And again, I'm not sure if that's where Shopify is going with this, but if it is, that's awesome.
So this is called Shopify Balance and the way that this is going to work is you can literally get a debit card from Shopify. It's so, so weird, but you can get that from your store and if you're using Shopify payments, you can basically bank through Shopify. So your money will be in an account. You'll have people buy from you. It'll go to that. You'll have this card that's linked to that account. The most similar thing, I guess, that I can see that being linked to you right now is getting a PayPal debit card, which is linked to your PayPal account.
So again, I don't see any reason for anybody to jump out and use this. Why not just have your bank account? Money still goes in within 48 hours. You can use your banks card. But if the longterm play is that they're doing this so that they can get merchants from all around the world, give everybody that same freedom to sell online, then I'm all for it but we'll see what plays out with that.
That's my recap, guys. Just wanted to share that in case you didn't catch all of the keynotes and presentations. What I will do in the description of this podcast is link to these different new products from Shopify. If you want to read more about them or watch those full keynotes, as we start to use these products and get results, I'll definitely be putting out new podcast episodes, sharing how everything's working and if you want to hear those updates, you want to see how things are going, be sure to subscribe. We are on every podcast player there is. So just go to your podcast player, search for eCommerce Lifestyle, click that button, and you'll get notified every Monday and Thursday, which is when we release the episodes.
So that being said, hope you have a great week. Hope you have a bunch of sales coming in and I will talk to you in the next episode of the podcast. See ya.