A Globe and Mail analysis shows that the number of Shopify stores that close down or leave the e-commerce platform is increasing at a rate of 34% per year. This is a growing problem for Shopify, as customers are complaining about lack of customer service, downtimes, and poor explanations. Below, we’ll dive into some of the potential reasons behind this trend and what it could mean for the future of Shopify.
It’s been a brutal year for Shopify’s shareholders. The e-commerce platform’s stock price is down 80% so far in 2022. Slowing e-commerce sales growth and the company’s mounting losses have weighed heavily on its shares — along with several poor hiring decisions of overpriced staff.
The Problem with Shopify
Shopify’s increasing churn rate is a problem for the company because it indicates that customers are not happy with the platform. There are several reasons why customers may be unhappy, such as lack of customer service, downtimes, and poor explanations. All of these factors can lead to a decrease in sales and an increase in the number of stores that close down or leave Shopify.
Overcharging
Many customers complained that they were overcharged by Shopify and had almost no way to get refunds despite it happening over and over again — costing them both time and money. Some customers claimed they continued to have their credit cards charged for a store, even months after closing it down.
Lack of Customer Service
One of the biggest complaints from customers is lack of customer service. This can be a major problem for Shopify because it indicates that the company is not providing the support that its customers need to succeed. Downtimes and poor explanations can also lead to a lack of customer service, which can make it difficult for Shopify to retain its customers.
Downtimes and Poor Explanations
Another major complaint from customers is downtimes and poor explanations. Downtimes can be especially frustrating for customers because it means that their store is not accessible and they cannot make sales. Poor explanations can also lead to frustration because it makes it difficult for customers to understand why their store is not working properly. If Shopify does not address these issues, it will continue to lose customers.
Customer Retention Is Key Customer retention is key for any company, but it is especially important for e-commerce platforms like Shopify. The reason for this is because e-commerce platforms rely on their customers to make sales. If Shopify wants to keep its customers, it needs to provide them with better customer service, fix its downtimes, and improve its explanations. Otherwise, it will continue to see an increase in the number of stores that close down or leave its platform.
Shopify’s increasing churn rate is a problem for the company because it indicates that customers are not happy with the platform. There are several reasons why customers may be unhappy, such as lack of customer service, downtimes, and poor explanations. All of these factors can lead to a decrease in sales and an increase in the number of stores that close down or leave Shopify. In order to successfully retain its customers, Shopify needs to address these issues and provide better support. Otherwise, it will continue to see an increase in store closures and churn rate.
