Build an app to power Shopify’s million

1. Build an app to power Shopify’s millions of merchants How apps fit into Shopify Shopify is designed to get merchants up and running out of the box. But each merchant is unique, so they use apps to solve their specific challenges. In the Shopify context, apps are web applications that extend the functionality of Shopify stores. They allow merchants to tailor their experiences on Shopify to exactly their needs. Apps integrate with Shopify by: ● Connecting with Shopify’s APIs, the most-used of which is the Admin API, which allows apps to read and write data about products, customers, orders, inventory, fulfillment, and more ● Extending new features inside existing parts of the Shopify Admin or POS ● Enhancing the way stores display information to customers App types There are two different levels of accessibility your app can have:

2. ● Public apps: Apps that are available to many merchants and can be listed in the Shopify App Store (see below). They are created in your Partner Dashboard. ● Custom apps: Apps that are custom made for a specific merchant and cannot be listed in the Shopify App Store. They are created in your Partner Dashboard. "For the purposes of this guide, we’re going to focus on creating public apps: apps that are meant for one-to-many distribution via the Shopify App Store." For the purposes of this guide, we’re going to focus on creating public apps: apps that are meant for one-to-many distribution via the Shopify App Store. For developers who are new to the Shopify ecosystem, public apps are the fastest way to get up and running, and to connect your solution with our existing merchant base. In addition to their type, apps can take two different forms: standalone apps and embedded apps. Standalone apps expose their own user interface, on their own web domain, and don’t have access to app extensions (see below). Embedded apps are hosted on your own infrastructure, but integrate more deeply with Shopify using Shopify App Bridge, and display directly in the Shopify merchant admin or point-of-sale (POS) inside an iframe.

3. Embedded apps also enable you to add features to certain parts of Shopify’s user interface (UI) and online stores via app extensions. When you use an app extension, Shopify relays information to your app when the merchant interacts with Shopify, then surfaces your app back to the merchant via the extension. App extensions can be used to extend into: ● The Shopify Admin ● The online store ● Shopify POS ● Shopify Flow ● Shopify Kit Because of how closely they're integrated with Shopify and how much better of a merchant experience they deliver, we recommend building embedded apps, and this guide will walk you through that process. If you’re still brainstorming what use case your app will serve, read our chapter on validating your app idea. "We recommend building embedded apps because of how closely they integrate with Shopify and how much more they improve the merchant experience." Merchant and buyer data

4. With millions of merchants using the Shopify platform to power their businesses, it’s important that every developer takes their trust and security—and that of their customers’—seriously. The Shopify API License and Terms of Use is the final word on what is allowed and not allowed on Shopify’s platform. You can also visit the trust and security page in our docs for information on the following: ● Authentication and API keys ● API rate limits ● API versioning ● Data privacy and sharing ● Global GDPR compliance ● Mandatory webhooks These rules are designed to make using the Shopify platform fair and transparent for everyone, while protecting the data of our merchants and their customers. You can learn more about app security best practices below. The Shopify App Store

5. The Shopify App Store is the easiest way for merchants to find apps that enable the functionality they need to build their stores. The Shopify App Store is organized by categories, and has a robust search feature and recommendation algorithm that helps merchants find the apps they need. All public apps are given a listing page in the Shopify App Store. Listed apps are publicly available to all merchants, while unlisted apps have limited visibility. Depending on your use case, both listed and unlisted apps have their own benefits. Listed apps are visible in the Shopify App Store, allowing you to reach many merchants and highlight the features your app provides. With listed apps, you can take advantage of features like ads in the app store.

6. Benefits of listed apps ● Only way to be discoverable by merchants through search ● Increased organic reach ● Brand awareness ● Increased trust from reviews ● Helps sell features ● Leverage Shopify App Store ads Unlisted apps are public apps that are not visible in the Shopify App Store (though they do still require an app listing). This allows you to control who can install your app, or hide your app during down seasons (for seasonal apps) or periods of maintenance. However, we recommend publicly listing your app to take full advantage of the opportunities and features of the Shopify App Store. Benefits of unlisted apps ● Focus on a targeted merchant base ● More control over growth ● Helpful for seasonal apps ● Good for maintenance periods

7. When starting out on Shopify, the Shopify App Store is likely going to be the main source of leads and installs of your app. Optimizing your app listing page, setting your app up for success, and leveraging tools like ads in the Shopify App Store are all ways of increasing installs and sales. We’ll dive deeper into the Shopify App Store and how to use it in the Submitting your app to the Shopify App Store section of this guide. Getting started with your app Now that you have an understanding of the basics of the Shopify platform, you’re ready to start validating your app idea to understand the business opportunity of building with Shopify. Additional resources ● Blog post: The Essential List of Resources for Shopify App Development ● Blog post: Extend Into the Storefront With Online Store App Extensions ● Blog post: How to Build Point of Sale Apps Using Shopify App Bridge ● Blog post: Introducing Shopify Subscription APIs: Build Apps That Integrate with Shopify Checkout ● Blog post: What App Developers Need to Know About GDPR ● Blog post: Web Security Fundamentals: What Every Developer Should Know ● Docs: Shopify App Bridge ● Docs: Authenticate your app using session tokens (tutorial) ● Docs: Embed your app in the Shopify admin (tutorial)

8. 2. How to validate your app idea You’ve got an idea for an app—and it’s good. Now that you know how apps fit into Shopify’s ecosystem, you’re ready to dive into the design process. But wait, are you? Validating your idea is a step in the app-building process you definitely shouldn’t skip. Validating your app idea gives you a much higher chance of success because you know you’re building something that your target user

9. needs—and, in turn, building something that has a higher chance of getting more installs. The key with validation is to not get caught up in research, but to learn enough that will make your minimum viable product (MVP) something that you can tweak and build on. In this section, we’ll dive into how to develop an app that solves a real merchant problem, how to validate your idea through research, and the market shifts and trends you’ll need to consider. Build apps for Shopify merchants Whether you want to build apps for the Shopify App Store, offer custom app development services, or are looking for ways to grow your user base, the Shopify Partner Program will set you up for success. Join for free and access educational resources, developer preview environments, and recurring revenue share opportunities. Sign up 4 steps to validate your app idea Validating your app idea is a process unique to your experience and the needs of your target market. It’s an investment in your future success. Developers Preetam Nath and Sankalp Jonna spent two months investigating whether their first app idea was valid before starting any design or development, a process their team replicated for their second app, DelightChat.

10. “We didn't want to build something and realize nobody's going to use it. We've had that situation in the past,” Nath said. “Although we took a longer approach, we wanted to understand what’s happening in the ecosystem and what the various problems are.” While there are many ways to prove your app idea is a good one, here are four key questions to answer that will help get you started: 1. Does this idea solve a real merchant problem? 2. How is my target market trying to solve this problem right now? 3. Are merchants willing to pay for a solution to this problem? 4. Can we actually build the app? Let’s explore each of these questions more in depth. 1. Does your app idea solve a real merchant problem? First, you have to clearly define what a “real problem” means. Problem-solving is a full-time job for merchants, so it can be challenging to know where to begin. A real problem is something that store owners are actively spending a lot of time, money, stress, and/or effort trying to solve. So how do you find out what merchants’ problems are? You go right to the source. Nath and Jonna posted questions in forums, such as the Shopify subreddit or the Shopify Community Forum, and were able to have conversations with merchants via direct messages to get clear answers to their questions. They also joined various Facebook groups to listen and learn more about merchant frustrations.

11. If you’re working with merchants already, consider sending out a feedback form or questionnaire to find out more details about the problems they face. If you don’t work with merchants yet, or you’re ready to learn more, it’s time to move on to question number two. Once you know your app can solve a real merchant problem, the next step is to learn more about how (or if) merchants are already trying to fix the problem themselves, and anticipate any new challenges they could face within their industry. WHAT’S HAPPENING IN THE INDUSTRY AND WHAT ARE THE TRENDS? There are unique challenges within every industry and at every stage of the merchant journey—and each stage is a potential billion-dollar industry you can tap into. Keep up to date on trends and disruptions within a certain industry, such as marketing, shipping, finance, customer support, or product sourcing to learn its past, present, and future concerns and ambitions. "There are unique challenges within every industry and at every stage of the merchant journey—and each stage is a potential billion-dollar industry you can tap into." Taking the time to understand your target market, potential users, and industry trends will save you time and effort when it comes to refining your MVP. This comes down to the research you do before you begin to build. Learning the app development business trends applicable to your app idea is an ongoing process, so taking advantage of your existing expertise or knowledge will help get you started.

12. Over the span of just three months in early 2020, ecommerce growth accelerated 10 years into the future as COVID-19 changed how many merchants do business. Read how Shopify App Challenge winner Tilo Mitra built his first app in response to these new challenges. Leveraging any prior experience with a current client, or within the industry or adjacent market you’re building an app for, will give you a competitive advantage, because you’re already familiar with your users’ pain points and industry trends. Read our case study to learn how co-founders Aneto Okonkwo and Andrew Olaleye built customer support app Chatdesk based on experiences, goals, and lessons learned in their previous careers. CONDUCTING MARKET RESEARCH Even if you don’t already have experience in the industry you’re building for, you can conduct market research for your app. Figuring out what excites or frustrates your customers will help shape your product. At this point, you’ve already spoken to merchants and figured out how and where your app will add value. Gain more context about how your app will fit into the “big picture” by: ● Reading industry publications and white papers, such as Shopify’s annual Future of Commerce report, and McKinsey’s quarterly Five Fifty report

13. ● Following industry leaders and experts on social media, such as Shopify leadership team: Director of Partnerships, Fatima Yusuf, President Harley Finklestein, CTO Jean-Michel Lemieux, and CEO Tobi Lutke ● Monitoring news reports about commerce and business ● Speaking to experts in your industry ● Creating a focus group ● Analyzing merchant feedback and concerns on social media and in community forums ● Analyzing app reviews on the Shopify App Store ● Subscribing to newsletters like What’s New for Shopify Developers ● Attending events like Shopify Partner Town Hall ● Subscribing to relevant blogs, such as the Shopify Partner Blog, the Shopify Engineering Blog, and the Shopify Merchant Blog ● And more

14. Shopify Director of Partnerships Fatima Yusuf recently shared a full thread of anticipated commerce trends in Shopify’s app ecosystem in 2021. Some of the most successful apps in the Shopify App Store started out by proactively solving merchant problems. Look back on past wins with specific clients, platforms, or markets to see if there are any trends or patterns you can build on. WILL THIS APP SOLVE A NICHE NEED, OR A FEATURE OR FUNCTIONALITY GAP? Although there are multiple apps in each category of the Shopify App Store, remember that with millions of diverse merchants growing by the day, every merchant may need something a little different, depending on their size, their industry, their goals, and where they are in the world. This means there are niche needs in every category that you can find and create a solution for. The apps that work for one segment won't necessarily work for another. "Adding significant value to a niche merchant problem is one key to standing out."

15. There are so many opportunities to address a merchant pain point that hasn’t yet been addressed. Adding significant value to a niche merchant problem is one key to standing out. For example, if you want to build an SMS app and feel like there's too much competition, you can further investigate the needs of a key region or specific merchant segment, and you home in on the solution that makes sense for them. Learn how Heyday addressed a functionality gap and established a differentiated value proposition to successfully launch their self-serve app on the Shopify App Store in 2020. There’s no one correct way to differentiate your app’s value proposition. Nath says he got to know where gaps in his chosen vertical existed by analyzing the reviews of other apps to understand what challenges were going unaddressed. This work helped Nath understand what underserved areas their app could address, and what their users’ expectations would be. “It took me a whole day, but it was worth it because now I knew clearly what merchants gave five-star reviews for, and also what they hated,” he said. It’s important to remember that you’re not bringing merchants any value if you just create a copycat app. Without adding a significant, unique, or new improvement, your app won’t stand out. It’s also an ethical issue and you could be in violation of copyright. "It’s important to remember that you’re not bringing merchants any value if you just create a copycat app. Without adding a significant, unique, or new improvement, your app won’t stand

16. out. It’s also an ethical issue and you could be in violation of copyright." 2. How is your target market trying to solve this problem right now? The fastest and best way to understand how your target market is trying to solve this problem is by talking to real merchants. The good news is that it’s easier than you might think. Once Nath and Jonna had identified the right communities to join to learn from, and connect with merchants, they connected with them directly to learn how they were already trying to solve their problems. “Just reach out to five of these people you see on Shopify Facebook groups, subreddits, or the forum and ask them, ‘Do you need this app? If not, why? If yes, what do you need it for?’ That will open up Pandora's box of qualitative information for you,” Nath says. Taking the time to speak with your target users can teach you not only what their problems are, but also what they feel constitutes a solution. For example, the merchant could already be paying someone to take care of the problem for them, which can be expensive or may not fulfill their needs. Sometimes merchants won’t necessarily consider outsourced work a pain point, because it’s a task that is already being handled. This is important to consider because you may have to investigate deeper and ask specific, nuanced questions to truly understand both the problem and how your app aligns with the user’s needs.

17. Furthermore, if you’re considering building a custom app for one merchant to solve their unique needs, investigate whether it would be applicable to more merchants in the same industry or with similar traits. There’s a good chance you could better serve a broader market with similar challenges by publishing a public app in the Shopify App Store. 3. Are merchants willing to pay for a solution to this problem? Figuring out whether you can make money with your app idea is the next piece of the puzzle. “If you're looking to build a free app, just to get a feel of the ecosystem, that’s fine,” Nath says. “But if you want to build your app into a product or business that replaces your salary, you need to know if people are willing to pay for it.” If you want to build your app into a product or business that replaces your salary, you need to know if people are willing to pay for it. Preetam Nath, Co-founder and CEO, DelightChat The best way to find out is to discover if people are already using existing solutions, and if so, how much they are paying for them. “That price point fundamentally changes your business,” Nath says. “As we were building DelightChat, we were very cognizant that we wanted to

18. be in this $100-$200 price range, where we are serving merchants whose businesses are at a certain level.” Many apps offer a free version and/or a free trial so merchants can try out its various features to see if it’s the right fit for their needs. As discussed above, if your target audience isn’t already using an app or software to solve the problem you’re considering, they could also be hiring freelancers, paying someone part-time to manually work on the issue, or have even hired a full-time employee. How much are they paying for that solution? Would they be willing to pay instead for your app? This is where you’ll have to ask merchants in forums and direct conversations to learn more about their stop-gap solutions. 4. Do you have the expertise and time to build this app? Once you take all merchant insights, industry trends, and current opportunities into consideration, and have researched your target market, you need to decide if what you want to build—and by when—is possible. There are varying degrees of complexity behind an app and you want to be sure that your timeline for building is realistic. “Some apps might take you a year to build if you're a one-person team, and some apps can be built in two weeks as a solo person,” Nath says. “You need to pick problems you can solve. Otherwise, you're just setting yourself up for failure. ” Some apps might take you a year to build if you're a one-person team, and some apps can be built in two weeks as

19. a solo person. You need to pick problems you can solve. Otherwise, you're just setting yourself up for failure. Preetam Nath, Co-founder and CEO, DelightChat