Let's start by organizing the app concept.

What's great about Shopify apps is that they're not made by Shopify but by a different company - a company known as a third party.

With other ASPs, you add apps that the ASP company itself has prepared, so you can use the functions that the ASP has prepared, but not anything else! However, Shopify is unique in that it outsources app development to third parties, allowing it to gather a wide range of functions that a single company could never achieve!

The image is similar to the "Apple Store for iPhone" or the "Play Store for Android."

In other words, Apple provides iOS, and the apps are made by other companies, right? It's easier to understand if you imagine games for smartphones. Games are not made by Apple, right?

Allowing app developers to make money on the platform provided by Apple

The shopify app is the same!

We provide a platform called Shopify and allow app companies to make money!

This is how the system works.

Of course, just as Apple has its own official apps (such as the Safari browser), there is also an official Shopify app!

It will be easiest to understand that the concept of an app is the same as that of a smartphone .

How does the app work?

I think you'll understand that adding third-party apps, like on a smartphone, can cost money, but at the same time, you need to understand the fact that "the servers are also run on the app company's servers."

Games are always easy to understand, so this time I'll use a game on an iPhone as an example.

When a game that was once popular goes out of fashion over the years, the server gets shut down. That is, it's the moment when you can no longer play the game you were playing before.

I wonder where all that money went to this nostalgic game... but I won't get my money back and I won't be able to use the game anymore.

This is because the game servers were not provided by Apple, but by the game companies themselves, and of course Apple does not guarantee that they will be available.

Also, for simple apps like "Calculator," you don't need a server, so once you download it, you can use it forever . This is also easy to understand.

Shopify is exactly the same!!

As for simple apps, once you download them, they can be installed in the store itself and the whole process can be done within the store, so you can use them forever!

However, high-function apps perform some (or most) of their processing on the app company's servers. From the app company's point of view, it is easier to run things on their own servers. This allows them to add various functions, and in short, this is how incredibly useful apps are born!!

App companies are working hard every day to develop new apps, so the features are more than just feature-rich!

However, some of you may have noticed something after reading this far.

What happens if the app company shuts down the server?

...Yes! That's right, it will no longer be usable...

Continuity is also important when choosing an app!

The appeal of Shopify is that you can add various functions by adding apps, and there's no doubt that this is an unmatched feature, but there are so many apps available that all have similar functions!

For example, if you search for an app that allows you to add it to your favorites, you will find 96 options (as of September 2022).

Looking at the number of reviews, some apps have over 1,700 reviews, while others have as few as 0 reviews. Although the number of reviews is not the same as the number of installations, we use the number of reviews as a reference to estimate the number of users as an easy-to-read indicator.

Because apps with a large number of users are more likely to continue using them!

Of course, a top class app means that the creator is making a profit!! There is no way I would want to stop using this app! That means it's an app I'll keep using!!

On the other hand, there is a high possibility that minor apps will be eliminated in the midst of competition, so to be honest, I am hesitant to incorporate them into my core business operations .

If it's just a minor function, you can just install a different app, but if a minor app is used in the core part of your e-commerce site, then depending on the app company's convenience, it could suddenly become difficult to continue running the site.

This is a very difficult issue, but I am a little skeptical about the continuity of Japanese apps. Japanese apps are easy to use, but since their market share is limited to Japan , the profitability of the app companies is questionable.

On the other hand, English apps have a global market share . Which one will have more sustainability: an app that only sells in Japan, or an app that sells all over the world? The answer is obvious.

By the way, since there is a difference in profitability, Japanese apps are generally more expensive even if they have the same functions. For Japanese apps, estimate the number of installs more carefully.

I think it's a good idea to keep this in mind beforehand.

Summary: The benefits of the app are greater

I've been writing so far just to make you think, "Aren't there a lot of disadvantages?", but of course that's not the case!

The benefits of the app are overwhelming!

I mean, there are so many apps out there! There are some apps that are incredibly difficult to set up, but on the other hand there are all kinds of apps that will make you go "Huh? There's a function like this too?" or "Wow, it has this too!"

・Regular purchases ・Favorite registration ・Review function ・Display related products ・Set sales ・Pre-order sales

It definitely covers all the common functions you'd expect, and there are apps like this one, for example.