E-commerce remains one of the most dynamic industries, experiencing a double-digit growth with an expected CAGR of approximately 11.6% from 2024 to 2029.
This surge is fueled by increasing digital penetration, consumer preference for online shopping, and technological advancements in payment and logistics systems.
Over the past decade, the sector was primarily dominated by global marketplaces such as Amazon, Alibaba, eBay, and Walmart. However, the landscape has shifted significantly in the post-COVID era, with direct-to-consumer (DTC) brands experiencing a remarkable boom.
This shift is driven by brands seeking to mitigate dependency on third-party platforms, reduce overhead costs, and increase direct engagement with their customer base.
The DTC model enables business owners to bypass the hefty commissions charged by marketplaces and establish a brand identity through their own stores.
Additionally, the DTC model provides merchants access to valuable customer data, allowing for more targeted marketing strategies. This leads to enhanced customer retention and significantly lower customer acquisition costs (CAC).
Starting a Shopify store is easy and can largely be a DIY effort. However, there are several scenarios where partnering with a Shopify Agency can be helpful:
- Large Brands with Complex Needs: If you are a well-established brand with complex operational requirements, an agency can help tailor your Shopify store to meet those demands effectively.
- Enterprise Brands Migrating Platforms: For brands considering migrating their entire store from another platform, a Shopify Agency can facilitate a smooth and efficient transition.
- Multi-Geographical Operations: If you sell products in multiple geographical locations, a partner can help optimise your Shopify store for different markets, multiple currencies, resolve tax complications, address local regulations and consumer preferences.
- Omni-Channel Retailers: For businesses that maintain both online and offline sales channels, synchronizing these operations is crucial. A Shopify Agency can integrate your physical and digital operations to create a seamless customer experience.
In the scenarios mentioned above, Shopify Agencies and Partners play a crucial role. These seasoned experts are well-versed in the Shopify ecosystem and specialize in services tailored to e-commerce stores built on Shopify. They can expedite the process of helping a store achieve its objectives.
Currently, there are over 3,000 Shopify agencies worldwide, grouped into various segments according to category specialisation and industry-focus. In this article, we will discuss the types of Shopify agencies and provide a guide on how to evaluate them effectively.
Type of Shopify Agencies according to category specialisation
| Marketing & Sales |
1. Email marketing
2. SEO
3. Search engine advertising
4. Social media marketing
5. Content marketing
6. Sales channel setup
7. Conversion rate optimization
8. Analytics and tracking |
Visual content and branding |
1. Logo and visual branding
2. Banner ads
3. Video and illustrations
4. Product photography
5. 3D modelling |
| Store setup and management |
1. Store build or redesign
2. Store migration
3. Product and collection setup
4. Theme customization
5. Store settings configuration
6. POS setup and migration
7. Headless commerce
8. Website audit and optimization strategy
9. Ongoing website management
10. Checkout upgrade |
Expert guidance |
1. Business strategy guidance
2. Product sourcing guidance
3. Site performance and speed
4. Sales tax guidance
5. Wholesale/B2B
6. International expansion
7. Product development |
| Development and troubleshooting |
1. Custom apps and integrations
2. Custom domain setup
3. Troubleshooting
4. Systems integration |
Content writing |
1. Product descriptions
2. Website and marketing content |
How to Evaluate which Shopify Agency you should partner with?
Define Your Needs and Goals
Project Scope
It’s crucial to establish a clear project scope when engaging with an agency. Many brands make a mistake by outsourcing all functions, such as development and performance marketing, to the same agency.
Specific Features and Functionalities
Clearly define the specific features and functionalities you expect the agency to implement. Detailing these requirements helps prevent misunderstandings and ensures that the final product meets your needs.
Customization Level
Specify the level of customization required, whether it involves adapting existing templates or developing completely unique solutions. Understanding the depth of customization can impact both timeline and budget.
Compliance and Security Requirements
Outline any compliance and security standards that the project must meet, such as GDPR, HIPAA, or PCI DSS, especially if you’re operating in industries like healthcare or finance.
Integration with Existing Systems
Identify any existing systems (like CRM, ERP, or analytics tools) that the new project needs to integrate with. This will ensure that the agency plans for and addresses compatibility and data exchange issues from the start.
Migrating to Shopify
If you're considering migrating your ecommerce store from platforms like WordPress, BigCommerce, Magento, or Drupal, it's crucial to determine whether the agency you're working with has experience migrating stores to Shopify. During the migration process, agencies should possess the expertise to handle legacy systems and meticulously transfer the entire database to the new platform.
User Experience (UX) and Design Priorities
Highlight your priorities regarding user experience and design, including any brand guidelines that need to be adhered to. This ensures the final design aligns with your brand’s identity and user engagement goals.
Scalability
Discuss the need for scalability, considering future growth expectations. Ensure that the solutions proposed by the agency can scale up to accommodate increased user numbers or data volume without performance issues.
Budget
Detailed Cost Breakdown
Request a detailed breakdown of all costs associated with the project. This should include specific line items for development, design, testing, and any third-party services. Understanding where your money is going can help you make informed decisions and identify potential areas for cost savings.
Contingency Fund
Set aside a contingency fund, typically 10-20% of the total budget, to cover unexpected expenses or changes in the project scope. This can prevent budget overruns and ensure that the project can continue smoothly despite unforeseen costs.
Timeline
Phased Deliverables
Break the project into smaller, manageable phases with specific deliverables and deadlines. This approach not only makes the project easier to manage but also allows for adjustments based on interim feedback without derailing the overall timeline.
Regular Progress Updates
Schedule regular progress meetings or updates to discuss the project's status, upcoming tasks, and any issues that might affect the timeline. Consistent communication can help catch and address delays early.
Integration and Testing
Allocate ample time for integration and testing, especially if your project involves complex integration and multi-currency. Testing is critical to ensure the quality and functionality of the project before going live.
Launch Preparation
Plan for a pre-launch phase to train your team, prepare marketing materials, and conduct final usability tests. This stage is crucial for a smooth transition and successful project launch.
Post-Launch Monitoring
Include a post-launch monitoring period to address any immediate issues that users encounter. Quick responses to feedback and problems can significantly improve user satisfaction and help stabilise the project after release.
Research Potential Agencies
Understanding of Industry-Specific Challenges
Seek agencies that demonstrate a deep understanding of the unique challenges and regulatory requirements of your category. This indicates that they are well-equipped to handle complexities specific to your category.
Proven Track Record in Similar Projects
Look for Shopify agencies that have a proven track record with projects similar in scale and scope to yours. Agencies that showcase successful outcomes in projects that match your business needs offer reassurance that they can deliver the desired results.
Diversity of Merchants
Check if the reviews come from a diverse range of merchants across different categories and project sizes. This can indicate the Shopify agency's ability to adapt and deliver across various contexts and requirements.
Recent Reviews
Pay attention to the recency of the reviews on Clutch, TrustPilot or Google Business. Recent feedback can give you the most relevant insights into the agency’s current operations and performance standards.
Third-Party Verification
Use platforms that verify reviews to ensure authenticity. This can help filter out fake reviews and provide a more accurate picture of the agency's performance.
Case Studies
Case studies can help you iron out their offerings and claims. Case studies can be an anchor on what they have delivered in the past and can be matched with live stores, analytics tools to check site performance and more.
Quantifiable Results
Seek case studies that provide specific, quantifiable outcomes. Metrics such as increased sales percentages, customer engagement rates, and improved operational efficiencies are solid indicators of successful project execution.
Before and After Comparisons
If available, review before and after data or visuals that clearly demonstrate the improvements made by the agency. You can check the store on WebArchive and check their historical edits made on the website. This can be particularly persuasive by providing a tangible depiction of the agency's impact..
Evaluate Their Expertise in Shopify Plus
Familiarity with Shopify Plus Exclusive Features
If you're on Shopify Plus, ensure they have experience with this platform. Shopify Plus has exclusive features like Custom Checkout, Advanced API resources, B2B Commerce features, Shopify Launchpad, Advanced Multichannel Capabilities. Check for specific examples of how they've implemented these features in past projects.
Scalability and Performance Optimization for Shopify Plus
Shopify Plus is designed for high-growth and high-volume merchants. It's important that the Shopify Plus agency demonstrates how they have helped similar businesses scale. Look for case studies or examples where they have effectively managed increased traffic and transactions, optimized site performance during peak times, and solved complex scalability issues.
Security and Compliance Knowledge
With the higher transaction volumes and customer data involved, Shopify Plus stores must adhere to stringent security standards and regulatory compliance.
An experienced agency should be well-versed in best practices for security and understand the legal implications, including GDPR compliance if applicable. Ask how they ensure data protection and privacy in their projects.
Custom Solutions and Integrations
Due to the customizable nature of Shopify Plus, check whether the agency has the capability to create stellar solutions tailored to specific business needs.
This includes custom apps, specialized integrations with existing ERP, OMS, CRM systems, and unique user interface designs that enhance customer experience while maintaining brand consistency.
Strategic Support and Consultation
Beyond technical skills, a proficient Shopify Plus agency should act as a strategic partner. They should offer consultation based on data-driven insights and industry benchmarks to help you maximize ROI. Assess their willingness to provide ongoing support and strategic guidance post-launch to continually optimize and update the e-commerce platform according to evolving business needs and market conditions.
Proven Track Record with Large Enterprise
Look for a Shopify agency with proven experience in handling large-scale projects for well-established brands that are similar in size and scope to your business. This experience indicates that they can handle complex projects and are familiar with the challenges and expectations that come with larger operations.
Diverse Technical Skills and Background
It’s essential to assess their technical skills, including knowledge of Shopify Liquid, APIs, and integrations. Shopify is a world of its own and one who works in and out of the ecosystem will have in-depth knowledge and latest developments.
Proficiency in Shopify's Liquid Templating Language
Liquid is the backbone of Shopify themes. A proficient Shopify agency should have deep knowledge of Liquid, enabling them to customize and extend Shopify themes beyond the default configurations. This includes creating custom objects, attributes, and full control over the rendering of HTML, CSS, and JavaScript.
API Expertise
Shopify offers a wide array of APIs, allowing for extensive integrations with external systems and the creation of custom functionalities. Check for the agency’s experience in using both Shopify’s REST API and GraphQL API. This expertise is essential for tasks like syncing Shopify data with ERP/OMS systems, integrating third-party logistics services, or building custom apps.
Integration Capabilities
An experienced agency should demonstrate their ability to integrate Shopify with a variety of platforms such as payment gateways, CRM systems, marketing tools, and third-party inventory management systems. Ask for examples of past integrations and how these have optimized the operational workflows or improved user experiences for their clients.
Understanding of Shopify’s SDKs and Toolkits
Shopify’s software development kits (SDKs) and toolkits, like the Polaris design system, the App Bridge, or the Script Editor, provide powerful resources for creating a cohesive look and functionality. Familiarity with these tools indicates that the agency can build consistent and efficient applications within the Shopify environment.
Expertise in User Experience (UX) Design
The agency should demonstrate a deep understanding of UX best practices, with a focus on creating a seamless, intuitive shopping experience. Look for a track record of designing easy-to-navigate sites that guide the user naturally from browsing to purchasing. Effective UX design also involves optimising page load times, simplifying checkout processes, and ensuring that the site is accessible to all users, including those with disabilities.
Proficiency in User Interface (UI) Design
A skilled agency should showcase their ability to design visually appealing interfaces that align with the brand’s identity. This includes the use of color, typography, and layout to create a cohesive look and feel that resonates with the target audience. The agency should also be adept at creating consistent and scalable design systems that ensure brand consistency across all digital touchpoints.
Responsive and Mobile-First Design: With a significant portion of eCommerce traffic coming from mobile devices, it's essential that the agency excels at responsive or mobile-first design strategies. They should provide examples of elegantly designed mobile interfaces that offer an optimal shopping experience across various devices and screen sizes.
Communication and Support
Responsiveness
Evaluate how quickly and effectively they respond to inquiries. This can be challenging, as agencies tend to be more responsive before closing a deal and may slow down once the project starts. A good rule of thumb is to outline expected turnaround times early in the discussion.
Project Management Process & Tools
Inquire about their project management tools and methodologies, such as Agile, Scrum, or Waterfall. Find out which communication tools they use; a chat platform like Slack is recommended over email for faster communication. It's also important to understand their working hours and time zone to ensure timely interactions.
Ongoing Support
Clarify their post-launch support options, including maintenance and updates. Often, a major portion of the project continues even after initial delivery, as there may be a need to revisit and review KPIs. Additionally, issues such as bugs might arise later on. Make sure that the agreement covers these possibilities to ensure continuous support and problem resolution.
Assess Their Strategy and Approach
Customization vs. Templates
Determine whether the agency focuses on creating custom solutions or primarily uses pre-made templates. When initiating store development or migration, it’s crucial to understand whether the agency relies on pre-built templates or if they have the capability to provide customised enhancements tailored to your specific needs.
SEO and Marketing Knowledge
Ensure that the agency possesses a solid understanding of SEO best practices and digital marketing strategies. This expertise is essential for building an online presence that not only attracts but also retains customers effectively.
Check for Certifications and Partnerships
Shopify Partner Program
Shopify runs a robust partner program that onboards agencies with in-depth ecosystem knowledge. If the agency is a Shopify Plus Partner, it means they have been certified by Shopify in their respective category, highlighting their expertise and reliability.
Performance Marketing Expertise & Certifications
When focusing on performance marketing, consider agencies that hold certifications from Google Analytics, Google Ads, Meta Ads, or are recognized as Meta Certified Partners. These qualifications indicate that the agency has the expertise to effectively manage and optimize your advertising campaigns.
Interview Candidates
Meet the Team
Schedule meetings to get to know the team members who will be directly involved in your project. This helps establish a personal connection and ensures you feel confident in the team’s capabilities.
Ask the Right Questions
Inquire about their process, how they address challenges, and request examples of past work. It’s important to understand who will be the primary point of contact (POC) when the project starts, as well as who will serve as the secondary contact in case the primary POC is unavailable.
Compare Proposals
Service Offerings
Compare what each agency includes in their proposal in terms of total working hours and the statement of work. This will help you understand the scope and depth of their services.
Pricing Structure
Ensure pricing is transparent. Check if the agency charges on an hourly basis or offers a fixed amount. Also, understand how taxes and currency conversion are handled if you are working with an international agency.
Clarity and Transparency
Ensure the pricing model is clear and all costs are accounted for, including any potential additional fees that could arise during the project.
Payment Schedule
Evaluate the proposed payment schedule. It should align with project milestones, and payments should ideally correspond to the completion of specific phases or deliverables.
Comparative Value
Consider not just the total cost but the value each agency offers. Lower prices may not always mean a bargain if they come with fewer services or lower quality.
International Considerations
For international engagements, understand how currency fluctuations and international fees affect your final cost.
Deliverables
Confirm clarity on what you will receive at the end of the project. This should be clearly stated in the statement of work to avoid any ambiguity at the project's conclusion. The proposal should include a comprehensive list of all deliverables, specifying what tangible items or services you will receive upon completion.
Timeline for Delivery
Each deliverable should have an associated timeline. Verify that these timelines are realistic and align with your overall project deadlines.
Format and Presentation
Clarify the format in which you’ll receive the deliverables, especially for digital products or reports. Make sure it is compatible with your systems or preferences.
Ownership and Rights
Confirm that you will retain full ownership and rights to the deliverables, particularly for creative and custom-developed work.
Types of Payment Structures
Hourly Rate
Payments based on the actual hours worked can offer flexibility but may result in variable costs. Ensure you understand the billing increments and any caps to avoid unexpected expenses.
Fixed Fee
This is suitable for projects with well-defined scopes. It gives predictability in budgeting but requires clear communication and agreement on what constitutes project completion and how deviations are handled.
Retainer
A monthly fee for ongoing services. This is common for services like ongoing marketing, support, and maintenance. Make sure the scope of work and deliverables for the retainer are well-defined.
Performance-based
Some agencies might offer a performance-based payment model, especially in marketing and sales projects. These depend on achieving specific agreed-upon metrics and can motivate high performance.
Payment Schedules
Milestone Payments
Payments are made when specific milestones are reached. This can help manage cash flow and ensures that the agency delivers results before receiving full payment.
Advance Payments
Some agencies request an upfront payment to begin work. This is often a percentage of the total cost. While common, excessive upfront payments (over 50% of the total cost) should be approached with caution.
Delayed Payments
In some cases, especially with long-term projects, payment might be delayed until after certain services are rendered. This requires a high degree of trust and should be backed by a robust contract.
Payment Terms
Investigate their payment structure. Once the scope of work is determined, the agency should provide a Statement of Work outlining the deliverables and timelines.
Avoid arrangements that require 100% payment upfront. A milestone-based payment approach is preferable, where a portion of the fee is released upon completion of each deliverable.
Considerations
Late Payment Terms
Understand the penalties or fees for late payments. These should be reasonable and agreed upon to avoid disputes.
Escrow Services
For larger projects, using an escrow service can offer protection by holding funds until deliverables are approved.
Cancellation Fees
Check for any fees associated with terminating the project early. This should also include how much notice needs to be given by either party to terminate the agreement.
Contractual Clauses
Change Orders
The terms should outline how changes to the scope of work will be handled, including how they will affect costs and timelines.
Dispute Resolution
The payment terms should also include methods for dispute.
Support and Maintenance
Ongoing support is essential to ensure that your store operates smoothly after it goes live. A reliable agency should swiftly address technical issues and consistently provide regular updates.
Evaluation
When evaluating post-launch support, inquire about the extent of support services offered. This includes availability (such as 24/7 support), types of support (like troubleshooting, updates, and security monitoring), and whether they provide training for your team on effectively using the Shopify platform. Understanding the terms of support, such as response times and escalation procedures, is also critical.
Trust Your Instincts
Cultural Fit
The compatibility of an agency’s values and working style with your company culture is vital. An agency that aligns well with your team will likely lead to a more productive and enjoyable working relationship.
Long-term Partnership Potential
Assess whether the agency has the capacity and desire to grow alongside your business. Consider their track record with long-term clients and their ability to scale solutions as your needs evolve.
Initial Engagement
If feasible, begin with a smaller project to test the agency’s capabilities and the effectiveness of your working relationship.
This approach allows you to evaluate their reliability, responsiveness, and the quality of their work without extensive commitment.
A successful smaller project can build trust and pave the way for more significant engagements.
Conclusion
In conclusion, selecting the right Shopify agency is crucial for the success of your e-commerce venture. A thorough evaluation of potential agencies, based on the insights provided, will help ensure that the agency you choose can meet your business needs effectively.
Start by assessing their expertise in Shopify Plus and their technical and design capabilities to ensure they can handle the complexity of your project.
Examine their service offerings, pricing structure, and deliverables carefully to align expectations and avoid surprises. Consider their certifications, partnerships, and the strength of their client testimonials and case studies to gauge their reliability and performance.
Importantly, understand their communication practices and support infrastructure, as these will greatly influence your ongoing relationship.
Trust your instincts about cultural fit and long-term partnership potential, as these factors are often indicative of the quality of the engagement you can expect.
If possible, initiating the relationship with a smaller project can be an effective way to test compatibility before committing to larger projects.
By applying these evaluation criteria, you can confidently choose a Shopify agency that not only meets your immediate project requirements but can also grow with your Brand, ensuring a fruitful, long-term collaboration.
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