Inside Shopify Editor’s Choice: 3 Expert Tips for App Success

The Shopify App Store is a bustling marketplace, home to over 8,500 apps designed to enhance the e-commerce experience.

With the ever-increasing number of apps launched each year, competition is fierce in this dynamic ecosystem. In 2022 alone, over 2,000 new apps were introduced, making it clear that the path to recognition is challenging. However, success stories are still emerging amidst this competitive landscape, like that of MBC Bundles, an advanced Bundle Products App that has been the Shopify Editor’s Choice.

MBC Bundles, recently acquired by Capitaliply, a roll-up company specializing in Shopify apps, is engineered to enhance sales with many upsell and discount options. It empowers merchants to create visually appealing bundles that cater to the unique preferences of their customers, offering advanced customization options.

In this post, we have explored how MBC Bundles made it to the coveted Shopify Editor’s Choice. We also speak on achieving audience recognition and a substantial boost in the company’s valuation on the Shopify market. All the tips are shared by the founder of MBC Bundles, Andrey Gadashevich, and the founder of Capitaliply, Mathew Gramovich.

Here are the major points you should focus on while shaping and growing your Shopify App:

1. Meeting Shopify Market Demand

The journey to MBC Bundles’ recognition began with a keen eye for market demand. The company’s team was embedded in an agency that developed add-ons for Shopify merchants, giving them direct access to user needs.

Upon receiving a notable 17 requests in the 1st half of 2019 for a product bundling solution, we recognized a clear demand. We made a strategic pivot, opting to develop a universal product rather than customize solutions for individual clients. This insight-driven approach, capitalizing on market trends and customer demands, has already became a driving force at the launch in October 2019.

For those who need direct access to client requests, staying informed about general market trends is essential. Technologies like artificial intelligence (AI) and augmented reality (AR) are gaining traction in e-commerce, and being ahead of these trends can give your app an edge. Consider the example of iOS 17-based AR scanners that can create dynamic 3D objects, potentially revolutionizing the online shopping experience.

It’s important to stay vigilant as the platform continues to introduce new features like Shopify Magic, which might render some existing apps redundant.

2. Attaining Quality Marks

Our strategic decision to attain the “Built for Shopify” seal of approval marked a pivotal milestone in the journey. This distinguished status represents the highest level of recognition an app can achieve within the platform’s ecosystem. Apps bearing this seal receive enhanced promotion within the Shopify App Store and become eligible for prime placement on other key merchant sites.

Obtaining the “Built for Shopify” status involves adhering to stringent criteria:

• Safety, Security, and Reliability: Merchants need assurance that their data is handled responsibly.
• Performance: Apps must function swiftly and seamlessly for both merchants and customers.
• Ease of Use: Apps should seamlessly integrate into the Shopify admin.
• Proven Usefulness: The platform gauges an app’s usefulness through factors such as installation numbers, reviews, and average ratings.
• App Info and Benefits: Your app listing is your first point of contact with merchants and should comprehensively reflect your app’s functionality.

The approval process for “Built for Shopify” status can be rigorous; it took us up to 4 months, but the results are unquestionably worth the effort. With only 185 out of 8,500 apps bearing this distinction, achieving this mark significantly differentiates the product from the competition.

3. Customer Experience Focus

The official statistics reveal that the average merchant uses around six apps. However, merchant behavior in the Shopify app marketplace has evolved over the years. Once characterized by haphazard installations, it has transitioned to a more discerning approach where merchants closely analyze an app’s performance. If an app fails to deliver the desired results, merchants quickly abandon it in favor of more efficient alternatives.

This shift in merchant behavior underscores the paramount importance of customer experience. It can be distilled into two key components:

• Deeper Onboarding: Effective onboarding plays a pivotal role in ensuring users harness your app’s full potential. When merchants comprehensively understand and utilize an app’s features, they can significantly enhance their profitability. Whether through video tutorials, written materials, or personalized support, a robust onboarding process is essential.
  
• Feedback Loop: Actively soliciting and responding to user feedback is a linchpin of success. Single requests for improvement often lead to significant features in future updates. In-depth interviews with e-commerce managers offer invaluable insights, as MBC Bundles discovered with the introduction of a duplicating feature. Customer-centricity remains critical to thriving in the evolving e-commerce landscape.

Mathew Gramovich, founder of Capitaliply, speaks on Shopify App Valuation and Market Prospects.

A unique marketplace for buying and selling Shopify apps has taken shape within the Shopify community. Here, apps are evaluated not merely based on monthly revenue but also by considering factors like marginality, total revenue, and year-over-year growth. Apps on the Shopify market command higher valuations than most other SAAS projects, largely due to the existence of a transparent and well-defined market for their sale and purchase, guided by a set of evaluation criteria.

To evaluate Shopify apps, buyers rely on an Annual Recurring Revenue (ARR) multiplier ranging from 4 to 10. On average, strong apps are bought and sold at multipliers of around 6, signifying remarkable performance in the market. This trend reflects the robust health of the Shopify app ecosystem and underscores that we are indeed on the right path.

In this dynamic marketplace, the journey to success is about crafting innovative apps and understanding the intricate art of app valuation, which plays a pivotal role in shaping the future of e-commerce.