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Ask HN: $500k revenue business – Shopify vs. Custom website?

2 pointsby jimmygatzover 9 years ago
Hi HN,<p>I run an e-commerce business which now turns over ~$500,000&#x2F;year. It was initially built on Shopify but I am currently looking to invest some money into rebuilding the website and am considering all my options.<p>I assumed it would be cheaper in the long-term to invest in having it custom made, but with the new Shopify online processing fees it seems this is not the case.[1] Shopify payment fees are 1.8% + 20p compared to Paypal which is 2.9% + 30p and Stripe which is similar. Even with the unlimited Shopify plan which works out at $2148 a year it&#x27;s still cheaper for me to use Shopify as I save ~$5000 on online processing fees.<p>My questions are:<p>1. If Shopify payment fees are nearly 1% lower than Paypal&#x2F;Stripe, why does anyone still build their own custom website outside the Shopify platform? Is there some kind of catch I&#x27;m missing?<p>2. Are there any other platforms I should be considering building my website on?<p>Would really appreciate any thoughts or feedback you might have. If you need any more information please ask and I&#x27;ll be happy to answer.<p>Thanks in advance for your time,<p>[1] https:&#x2F;&#x2F;www.shopify.co.uk&#x2F;pricing

3 comments

MarkColeover 9 years ago
Well with regards to #1 a lot of vendors with your revenue find themselves able to negotiate better rates with payment processors, particularly in combination with a merchant account. Shopify have obviously negotiated a deal with their payment processor based on their volume.<p>People build their own still for a multitude of reasons, one of these being may be that they don&#x27;t want to be locked in to a single platform. If Shopify shut down tomorrow, would your business be in trouble?<p>People also want custom features, better analytics, control over SEO, and all those extra things that aren&#x27;t currently possible with Shopify.<p>At 500,000 a year, a sum like 5,000 is nothing, especially if you feel that you can increase your revenue by 1% or more with a new custom site.
sjs382over 9 years ago
You&#x27;ve had 3 threads about this today, one of which was killed (presumably because it&#x27;s a dupe).<p>Original discussion: <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=10455956" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=10455956</a>
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amacover 9 years ago
&gt; People build their own still for a multitude of reasons, one of these being may be that they don&#x27;t want to be locked in to a single platform. If Shopify shut down tomorrow, would your business be in trouble?<p>This is correct and sums up the hosted vs self-hosted arguement. It really depends on your needs and resource - if you have Devlelopers&#x2F;IT folks for example then building out your own site would be sensible. Yet if you have less of those and more marketing people, hosted might make more sense.