New Year Offer : Buy 1 For $1 + Get 1 FREE

Shopify Exchange Marketplace Closed-Why??

Shopify Exchange Marketplace Closed-Why

Shopify Exchange Marketplace began in 2017, but now they have announced to shut it down. Shopify allowed the merchants to complete the sale and transition by November 1, 2022.

Yes! You have heard it right. The Shopify Exchange marketplace is dead. What now? 

There is no doubt that this exchange marketplace has earned the trust of business owners because of its transparent policies. 

And while shutting down this service, Shopify clarified its vision for the upcoming days.

Here, we will describe why Shopify closed the exchange marketplace and what you can use instead.

So, don’t panic, and keep reading to learn more about this issue.

All You Need To Know About Shopify Exchange Marketplace

About Shopify Exchange Marketplace

The Shopify exchange marketplace was a default marketplace where a business owner could sell their store or purchase party b’s business. 

Here, anyone could buy a business or a store. The monetization of this marketplace occurred through the commissions that Shopify would take on every successful deal. 

However, the marketplace was a moderately popular place to buy and sell businesses. You would find a lot of spammy buyers who could sustain in the market with no screening. 

Shopify also noticed some issues regarding unusual sellers. Having said that, you could find a pretty exciting and stable business in this exchange marketplace. 

But that’s no longer possible as Shopify has decommissioned this platform. Shopify has also clarified that it will no longer offer this service again.

What Caused This To Happen? 

What cause Shopify Exchange Marketplace to closed

Now, the question arises, “What led to this decision?” Here is what we have figured out.

In November 2021, during the COVID pandemic and e-commerce boom, Shopify’s share price hit 169 dollars per share. It was an extraordinary price for Shopify.

But since then, the price has gone all the way down to 34 dollars per share. The share price dropped 80%, which struck Shopify. Shopify realized it needed to focus on its core business model.

So, what is Shopify’s core business model?

Shopify’s core business model is to provide an eCommerce platform for businesses to create an eCommerce store and sell their products. A business startup cost is also less with Shopify.

It offers a variety of features and tools to help businesses. Creating your own business and managing your online Shopify store became easy because of these services. 

In this model, anyone can start a business online, paying a certain amount to Shopify on every transaction. The commission that Shopify gets on every transaction varies from 1 to 2% of the transaction amount.

Unfortunately, the Shopify exchange marketplace didn’t even come closer to one percent of the core business model revenue.

That’s why Shopify wanted to focus on its core model instead of wasting time on the least profitable exchange marketplace platform.

Expert’s Opinion On Shopify Exchange Marketplace

Expert's Opinion about Shopify exchange marketplace

It might look like a huge downfall, but Shopify won’t lose any of its business anytime soon. There is no need to worry about its success or future.

They have been in this industry for a long time and are a fundamental part of the online world. The e-commerce industry has experienced a lot of lows and highs, and Shopify knows what they are doing exactly.

In the 1st week of November, Shopify posted a 22% increase in revenue compared to the last year. It is incredible, considering the overall economic situation of the entire world.

They have earned $1.4 billion in revenue. Shopify requires that they find loopholes in their storefront business module, and if they can overcome the upcoming issues, they can earn a lot through this module.

The founder of Shopify bought 10 million dollars worth of Shopify shares. So, they have increased revenue and found a CEO that supports the company. These things give you faith in the company’s future.

Shopify will be fine; you can still rely on them when buying and selling your products.

Let’s Hear The Views of the Marchants About This Service

Views of the Marchants

Shopify exchange marketplace opened the door for business owners to buy and sell their businesses on the online platform. 

In theory, this sounds pretty promising, but what do merchants think about this service?

Full of Scammers

People can buy and sell legitimately sustainable businesses where they can invest in scalable businesses. 

But in reality, it turned out that most of the listings were just scams. Finding a noteworthy store where you could earn a satisfactory amount of money was hard. 

Not only that, a lot of people lost their money buying inefficient businesses. Getting scammed on a website like Shopify was never expected by the users. 

Gaining trust takes a lot of time, but losing it doesn’t take more than a moment. And losing hard-earned money on a fraudulent business certainly irritates users. 

Inadequate Buyer Safeguard

In the Shopify Exchange marketplace, nothing is entirely private. Anyone can see the business name, and that’s why it gets easier to copy the idea and implement it in another person’s business.

Copying the business idea was a headache for the merchants. Because of the lack of privacy and protection, sellers faced different problems while doing business in the marketplace.

In any business, protection and privacy are the utmost priorities. No one would like to put their business at risk.

Due to this issue, sellers were losing faith in this business, which also affected the marketplace.

Risky Profit Margin

Finding the right website became really hard. While choosing a store for buying, you first notice the monthly revenue and profit margin.  

Determining the accurate valuation was also quite difficult in the marketplace. Besides, getting the right amount of traffic to sell your products needs precise marketing and strategy. 

For any inexperienced seller, it was nothing more than a loss project. 

Was It An Appropriate Time To Make This Decision? 

Make the Decision

Shutting down the exchange marketplace gave sellers a hard time when the year was about to end and the holiday season was coming. 

The sellers started to panic about their pending businesses and transaction issues. Shopify had declared that all unfinished business after November 1 would be voided, and sellers would retain ownership of their businesses.

This holiday season came with disappointment for the sellers. However, you can switch to another online business marketplace and sell/buy your business instead of becoming hopeless about this situation.

Alternative Marketplaces That You Can Use

Ecommerce is a rising platform, and Shopify is one of many marketplaces you have. You will find so many promising exchange marketplaces on the internet, and it is high time to shift to a new one. We have made a list of some exchange marketplaces.  

Flippa.com

Flippa.com has the most extensive inventory compared to other brokers and marketplaces. This website can be a great alternative to your Shopify exchange marketplace. 

Like Shopify, you can make your listing, show earnings on this website, and sell it to other merchants. You can also buy an existing business.

Make sure to read all the legal documents, business acquisition costs, and business operations of an existing business. Assess its tangible and intangible assets. All assets, including goodwill, intellectual property, and the worth of a solid client base, etc.

WebsiteClosers.com

Websiteclosers has an extensive background in the sale of web-first businesses. Due to their extensive experience working with Shopify stores that generate over $500,000 annually. It’s a good idea to work with Websiteclosers business broker because of their adaptable technique and willingness to work with diverse clients.

But again, you have to review all legal and important documents and financial track record before buying an existing website.

FAQs About Shopify Exchange Marketplace

What is the Shopify exchange marketplace?

The Shopify Exchange marketplace was a platform for sellers to sell their businesses. You make your listing, show your estimated earnings on the online store, and make a deal to sell the store to others. Anyone was allowed to buy or sell their online store on Shopify.

Buyers had to find the right store and contact the sellers. When the seller responds to your message, you make an offer. When both parties agree on the terms and conditions, then the exchange happens

And after paying, the seller would transfer the asset to you. It was a simple process to buy and sell any business online.

Shopify has recently decommissioned this app, and this marketplace is no longer available for any deals.

Does Shopify own the exchange marketplace?

Shopify has closed its exchange marketplace, and they do not intend to reopen this service any longer. All the transactions and businesses were closed by November 1, 2022. 

What is the most important existing business faq?

The most important existing business faq is all about the legal documents of a business. Before buying any business, ask about the legal documents and thoroughly review important legal documents. You should also do your own online research about the business.

Final Thought

A hue and cry started in early November as Shopify Exchange Marketplace shut down all its services. This decision by Shopify gave merchants a hard time initially, but it was a much-needed initiative. 

Despite being lost, Shopify took time to shut down this service. Shopify merchants are forced to use another exchange marketplace. However, you will find plenty of alternatives online and still grow your business. We hope this holiday season brings light to everyone’s life.

To buy brand-new prebuilt dropshipping stores, visit bebiggy.com.

Ready To Start Your Own Drop Shipping Business?

Subscribe & start winning the drop shipping game.

Share This Story, Choose Your Platform!

Leave a Comment

Leave a Comment