Making money building Shopify micro-SaaS apps

Very nice write up. I too am a Shopify app developer with 4 apps in the App Store, currently doing around $56k/mo and growing ~$2k/mo for the last 2 years.

Biggest thing is that the ramp up time is very slow. You're not going to get a bombastic number of installs starting off, no matter how much marketing you purchase. It's a slow climb up and the best time to launch your app is yesterday. Plan on one to two years to see decent revenue, and then hopefully continue to grow it for the next few years after that.

Shopify Plus customers and traffic spikes are definitely a big concern, especially when it comes to your pricing model. Everytime I've come up with a "worst case" scenario it has happened so you need to always have built-in contingencies around that. Whether that means reaching out to the store to create a unique plan/pricing for them and possibly adding more value services. For example, one of our apps gets between 25k to 100k webhooks per hour and the spikes are unpredictable. Our app also has a queue system to process jobs in the background which can mean there are anywhere from a thousand tasks in queue, or 500k. (Shopify API is slow and limiting for big, heavy tasks).

If you are also an actual Shopify developer (theme or private app developer) there is a lot of opportunities for upsells depending on what your app does. It seems a lot of app developers in the App Store simply have apps out there to get leads for development (service) work.

Overall, developing on Shopify has been really good. There are some annoyances with their REST API vs. GraphQL API, their documentation, their support, etc... But generally it's been smooth sailing for the past few years. But we've had very, very slow growth and only in the past couple years have paid more attention on trying to maximize our business around Shopify apps.

Hmm... my company builds Shopify apps for large companies. We have had several in the app store that we maintain, that we're either moving to end-of-life or planning to.

Personally I believe the days of a solo engineer being able to build a viable Shopify app business are nearly over.

Shopify has instituted new process for assessment and approval of new apps in the app store, similar to Apple. We are finding the approvals can take weeks and sometimes require big rewrites to meet as-yet-undocumented business requirements.

Also Shopify stores can explode in bursts of traffic at a moments notice. And these apps sometimes are mission critical to the merchant's business. It is very challenging and expensive to scale an app rapidly when the folks who have installed it get large bursts of success without any forewarning. If a DTC brand launches their store with some cheap / free apps and their product goes viral, that means the indie solo app developer has to scale to meet the demand. These new DTC merchants often don't understand very much of the business of maintaining SaaS and aren't very forgiving when an app fails to keep up with the demand put on it.

The challenge is if an inexperienced developer offers the app for free or a nominal fee like $50/mo that means they have to scale up infrastructure and support and often re-write the app for a small number of merchants who are still only paying $50/mo. This happens to more Shopify app developers than I want to admit, and many many bootstrapped folks are operating at a substantial loss, looking for a way out without irking customers who depend on their app.

With that in mind, be very careful if you enter any type of SaaS marketplace. It seems tempting and low barrier to entry but you may be biting off much more than you can chew.

There seems to be quite a bit of shadiness going on in the Shopify App Store. A cursory review led to apps that give away the sun and the moon for free, which begs the question; how are they actually making money?

For example, this recommendation engine is "100% free", https://apps.shopify.com/orcinus-product-recommendation

Company page: https://autocommerce.io , and there isn't a pricing plan in sight.

How exactly do you pay for the servers and dev costs? ML experts aren't cheap. They seemed to be backed by an app studio, https://www.innonic.com/en/ . Is this a loss leader? Are they harvesting datasets and selling them to PE? Is it part of some master plan? Or, is it simply an influx of cheap capital in the wrong hands?

What's going on here?

This example is one of several I've found that seem to be data harvesting operations. Could someone trick non-technical folks into introducing severe vulnerabilities for all their customers via this? Tracking them across the internet for fraud or scummy marketing?

Edit: More examples,

https://apps.shopify.com/zoorix

https://apps.shopify.com/upsell-funnel-engine-upsells

Further cursory research shows that this isn't the only category with an impossible value : price ratio. What in the name of Baphomet is going on?

From experience, Shopify's app store is great for developers who want to build something and don't want to involve themselves into thinking about distribution. It was one of my first forays into building a SAAS, and I was able to scale to 5-figure ARR.

Churn is incredibly high, unfortunately. And merchant reviews are ruthless. There's some consensus amongst Shopify devs (at least in a particular Facebook group) that Shopify isn't doing enough in weeding out unreasonable reviews and fake reviews. So it's quite possible you launch your app and get killed in your first week. I've experienced it (as well as others) where merchants take you (the dev) hostage by threatening to write a poor review (which will affect your ranking) if you don't create a feature just for them.

I no longer need to develop for their app store anymore, but it's still a good start if you're just breaking into side projects and want to monetize them.

Before I quibble, let me first state that this is an excellent, well written and comprehensive guide that any aspiring Shopify app developer should read carefully.

Two Quibbles.

First, the API is very good but Shopify support will not answer developer questions about it and will push you to their developer forums. There if you are lucky you might get a useful answer within a day or two, if unlucky you won’t.

It’s shocking that a company whose entire business revolves around these APIs (its not just used by app developers but by merchants themselves) refuses to offer technical support.

Secondly, it’s a tiny market. The best data have found indicates about $50M a year total to App developers, so if you want to build that $1M MRR app, look elsewhere. Author, please correct me if this is wrong, as I’m working on a Shopify app as my side project and it would really help my motivation if my estimate is way low.