Shopify has shut down one of its apps called Shopify Exchange where Shopify store owners used to sell their businesses to other interested buyers. The app was deleted by Shopify on November 1 which means that all data, listings, and businesses on sale were also deleted when the app was shut down.
Before deleting the app, the brand asked all its users to either sell their businesses before November 1 or exchange their contact details with potential buyers so that they can finalize the deal even after the app has been shut down.
The whole objective of the app was to allow the merchants to easily sell their businesses online if need be.
The reason why this exchange marketplace was prefered by Shopify users over any other app is that here the details of the businesses were already available on the database and hence, they would easily sync to the Exchange app displaying all the details of the business on sale to interested buyers.
The CEO of Shopify, Tobias Lütke, has not published any statement or passed any comments on shutting down the exchange marketplace. This action may have deeply affected all those who had their businesses listed on the app and were unaware of the plans to shut down the app.
Why was Shopify Exchange shut down?
The official reason why Shopify decided to shut down its exchange marketplace is still unclear because no official statements have been made by any of its superior officials; however, people have been making their anticipations on why this step may have been taken.
A brand named Empire Flippers, one of Shopify Exchange’s competitors wrote an article where they claimed that the reason why Shopify had to shut down the platform is that there were several misvalued businesses on the app that were valued at exorbitantly high prices and made no profits.
They also claimed that there were no provisions in the app to ensure that the businesses were valued properly and therefore, this mismanagement seriously affected Shopify’s goodwill.
“No company wants to establish this kind of sentiment around their product; being known for trust is crucial in the online business brokerage space where there are people who try to scam business owners and sellers,” read the article on this issue on the Empire Flippers’ website.
Empire Flippers also claimed that in a YouTube video, the host showed that there was a brand listed on the platform that only made a profit of $81 a month and was listed for $5000.
“Some people may not be familiar with how websites are sold, and I think that’s the downfall of the Exchange Marketplace, is that it kind of preys on people who may not necessarily know what they’re getting into,” said the video host.
How will it affect Shopify shop owners?
Now that the exchange marketplace of Shopify has been shut down by the brand, the users will now have to find a new platform for selling their businesses.
It was easier for business owners to use Shopify’s exchange app itself because the Shopify database already contained all the details of the business but in the absence of the app, the users will now have to go through the trouble of filling out all the details and justifying that their brand is legit.
In the absence of Shopify’s exchange marketplace, it is expected for a new app to come to market that can be synced with the Shopify app, resulting in displaying all the details of the Shopify store on a new marketplace app. It is also possible that Shopify acquires an already functional online business brokerage space to make it easier for its customers to sell and buy Shopify stores.
The situation on after-effects of this decision will be more apparent once the real reason for shutting down the app is disclosed by the brand and once it is clear as to why the brand couldn’t continue operating this exchange platform for its users.
Going by Shopify’s ethics of always making it easier for its shop owners to function, it isn’t possible that the brand shut down the app and doesn’t care about how its customers are going to sell their businesses anymore. If the reason is financial, the brand may find another way soon to allow its users to sell their businesses online.
