Shopify is a popular e-commerce platform trusted by millions of business owners and merchants. The platform is committed to providing merchants with simple yet powerful features and a safe and secure space to sell their items. However, in recent years, as its popularity grew, the question “Is Shopify Legit” has also increasingly appeared online. The main reason for this question’s frequent appearance is an increase in scams and fraudulent activities.
This article will help you understand why some people say, “I got scammed on Shopify,” even though the platform is one of the safest and most secure. So, let’s deeply dive into Shopify, its legitimacy, and how to identify and avoid Shopify scams and frauds.
What is Shopify? How Does It Work?
Shopify is the dominant e-commerce platform, hosting a large user base of small business owners and international enterprises. From its humble roots in 2006 as an online store selling snowboarding gear, the platform has grown to host more than two million live stores worldwide.
Shopify allows merchants interested in selling products online to create and host a personalized storefront. Merchants pay a monthly fee to access the platform’s features and services, which are renowned for helping business owners build an efficient shopping experience.
Due to Shopify’s business model and the rising popularity of DTC e-commerce, people seeking to make money by running sham businesses can target the platform. Consequently, consumers who have fallen prey to these scams have asked, ” Is Shopify a scam?” However, it is important to note that e-commerce scams and frauds also affect Shopify’s competitors, such as WooCommerce and Salesforce.
Is Shopify Legit and Safe?
Since e-commerce is a borderless industry, anyone can open an e-commerce website and start selling products to consumers. Shopify knows this, so to reduce questions like “Is e-commerce legit?” the platform has adopted various safety measures and ethical practices.
Provides Safe and Reliable Platforms for Online Shopping
Shopify highly prioritizes user security on all their platforms. The platform’s stringent security measures protect both sellers’ and consumer data. Shopify’s security procedures include –
- SSL certificates across all stores for safe data transmission
- Level 1 PCI DSS compliance – Shopify PCI compliance ensures secure processing of credit card information
- Regular security updates and checks
Collaboration with Leading Payment Gateway Providers
Stripe, PayPal, Alipay, Amazon Pay, Hyp, and Ignite Payments are some payment providers and online payment gateways Shopify partners with to provide users with secure transactions. Since Shopify is a global platform, it also collaborates with many trusted foreign payment gateways, so businesses selling overseas can enjoy secure payment processing.
Secure Payments Across a Variety of Currencies
Shopify offers all users a secure and seamless checkout process, regardless of their payment method and currency. This feature and the platform’s partnership with leading payment gateways ensure businesses can answer questions like’ Is Shop Pay legit?’ Your customers can rest easy knowing their credit card, shipping, and billing information is safe and secure with Shop Pay. In addition to buying in their local currencies, you can allow customers to shop in their local languages with Etranslate.
Easily translate store into multi-languages & multi-currency
Advanced Anti-fraud Measures
Shopify also offers businesses various anti-fraud tools to help keep their customers’ financial information safe and secure. Some of these tools include:
- SEON
- Fraud analysis
- Shopify Protect
- Dynamic 3DS
- Proxy detection
- Chargeback protection
The platform uses these tools to protect sellers and consumers from scams and fraudulent activities.
How to Tell Whether a Shopify Store is Legit or Not?
According to Storeleads, about 2,363,380 live online stores use the Shopify platform. And although there are some untrustworthy Shopify stores, most are upright and honest with their customers. So, to help you answer the question, “Are Shopify stores legit?” when looking to shop online, here are some things you can look out for:
- Shoddy website design: Scam websites are usually not well designed. They have bland or cluttered layouts, links that don’t lead anywhere, and lack simple navigation and functionality
- Check the site’s domain age, hosting location, and contact details: Sham sites usually withhold this information.
- Check customer reviews and ratings online: You can also ask about the site on public forums like Reddit. If a shop makes you ask the question, “Is the shop legit?” then reviews and ratings are the easiest way to find the answer.
- Review payment, shipping, and returns policies: Scam sites usually use jargon to confuse consumers about their store policies. Legit stores will make their policies as easy to understand as possible. Additionally, the policies of scam stores usually don’t align with standard industry practices.
All in all, you should be skeptical of stores that outright ask for personal information like credit card numbers.
The 6 Most Common Shopify Scams and Frauds to Look Out For
Shopify’s ubiquity, ease of use, and growing popularity attract many scammers. As a result, these fraudsters have engineered several schemes to collect money from consumers and sellers. Here are six well-known scams that you should be aware of to protect your business, customers, and reputation.
Triangulation Fraud
In this scheme, both merchants and customers can become victims. Triangulation fraud occurs in three stages, hence the name.
1. Firstly, the fraudster uses a fake Shopify store to sell well-known items at absurdly low prices. The low prices attract buyers. When a buyer buys the product by entering their credit card information, the fraudster collects their payment information.
2. The fraudster can access the buyer’s credit card information and the item’s payment. They then use different stolen credit card information to buy the item from a legit online store and ship it to the buyer. When fulfilling another order, the scammer keeps the buyer’s account details for future use.
3. Lastly, the buyer receives their item without knowing they were part of a scam. Meanwhile, the credit card owner who used to buy the item might request a refund from the legitimate store.
Buyers can avoid this scam by being cautious of fake Shopify sales characterized by absurdly low prices.
Store Duplicator Scheme
As the name suggests, this scam involves fraudsters duplicating legitimate, often popular online stores to steal money from unsuspecting buyers. In this scheme, a fraudster creates a fake store bearing a domain name similar to an existing Shopify store. The people involved in this scheme even go as far as cloning the layout and inventory of the original site. Of course, the items they sell are usually fake or inferior.
My Pillow is an example of an online store that fell victim to the store duplicator scheme. In 2018, several fake stores built using Shopify emerged to sell My Pillow-branded products. The problem also affected Shopify stores, as reported by Inzelane store owners in the Shopify community. The clone sites have since been taken down.
To avoid this scam, customers always need to check whether the store they’re shopping at is original or duplicate. As Shopify store owners, we can utilize customer reviews as proof to show our store’s legitimacy and originality and set ways to help customers by providing the store contact for them to validate. Creating a secure e-commerce store will win millions of customers’ trust, generating growth.
Fake Return Tickets
This scheme mainly affects Shopify store owners, as fraudsters try to pose as unsatisfied customers. Scammers in such schemes usually require refunds and exchanges for damaged items or inaccurate orders.
In this scheme, fraudsters send empty packages to the store’s return address and claim to have shipped the item. They also sometimes present fake return tracking numbers to trick store owners into issuing refunds.
The best way to avoid this scam is to set up a clear return and refund policy. You should also review returned items and demand a legitimate tracking number. ParcelPanel Returns & Exchanges can help you set up clear return and refund policies and avoid return fraud with smart eligibility rules.
Make returns and exchanges hassle-free to reduce costs
Scam of Purchase Order
Purchase order scams and supply chain fraud are the most common cons affecting online and retail stores. Many scammers use this scheme to target small and budding businesses.
In this scheme, fraudsters submit fake purchase orders to unsuspecting businesses posing as legitimate businesses and customers. In e-commerce, these fraudsters usually target dropshipping businesses and suppliers and ask for a rush delivery of products. They often ask for a large shipment of products to make business owners so enthusiastic about completing the order that they don’t double-check the details.
After shipping, owners usually get payment through deceptive cheques or stolen credit card information. Therefore, the best way to avoid this scam is to confirm payment before shipment. Store owners should also investigate rushed or unusually massive orders.
Direct Client Scheme
The direct client is another scam targeted at small and growing online stores. The fraudsters involved in this scheme pose as prospective clients, wholesale purchasers, or fulfillment companies. They usually ask for a B2B partnership in the form of marketing, distribution, or product partnerships. In some cases, like the purchase order scheme, they will place large orders to further persuade the store owner to accept the partnership.
Once the partnership is accepted, the fraudsters ask for free products or samples to ‘further understand the business model.’ They may also prompt the owners to accept credit or offer discounts without ever paying for the products.
To avoid this scam, you should be cautious when partnering with other firms or new clients. Remember to always check buyer credentials and details before agreeing on any deals.
“Skip The Line” Scam
It is another common e-commerce scam targeting customers, making them ask, “Is Shopify legit?” The main reason why this scheme is common yet effective is that it preys on people’s desire for instant gratification.
The scheme works by offering customers a way to have their items delivered faster for free. This scam usually targets new or upcoming releases of popular products that people can’t wait to get their hands on. Once a buyer chooses to ‘skip the line’ with the deal, the fraudsters send a cheaper or incorrect item. In some cases, buyers may not receive any product at all.
To avoid this scheme, thoroughly research the seller and their website. Read customer reviews online to see if anyone else has gotten the products early. Remember, an online store that does not share customer reviews on its website is a red flag.
Awareness of a scam is the first step in avoiding becoming a victim. Once you familiarize yourself with scam tactics, implementing preventative measures becomes easier.
How to Avoid the 6 Common Shopify Scams
Now that you know which scams to watch out for, let’s look at how to avoid them. Additionally, there are tools that Shopify uses and makes available so people can answer, “Is Shopify legit?” with a “yes.”
Triangulation Scheme
You can avoid this scam by carefully investigating deals with super-low prices. Consumers can also buy from reputable Shopify merchants. Sometimes, merchants may use store domains ending in ‘myshopify.com.’ This less-known Shopify subdomain has led many to ask, “Is Shopify legit?”
What is Myshopify?
Myshopify.com is a domain Shopify provides to merchants right after they create an account on the platform. It allows merchants to introduce and launch their brands and is therefore trustworthy.
Store Duplicator Scheme
You can avoid this scam by checking if the store offers secure payment options and provides credible contact information. You should also browse suspicious sites to check for red flags in their design and layout.
Reporting clone sites to Google or Shopify can also help take the site down.
Fake Return Ticket Scam
To avoid this scam, you should set up clear return and refund policies and always check if returned items match their orders.
Shopify also has tools and features to help merchants avoid this fraud. One such feature is Shopify Protect, which protects orders against fraudulent and unrecognized chargebacks.
Scam of Purchase Order
You should always investigate customers or businesses that place large and urgent orders and accept payment before shipping the products.
Shopify’s fraud analysis feature can also help you avoid this scam. The feature analyzes orders based on insights and risk levels to help merchants decide which orders to fulfill.
Direct Client Scheme
Merchants can avoid this scheme by being cautious about partnering with new clients and businesses. One should always conduct all transactions via Shopify and avoid giving out products without payment.
Skip The Line Scam
Consumers shall conduct enough research on sellers before paying for early access. If you must ask, “Is Shopify legit?” because a deal seems too good, you should check the store’s online reviews. Genuine online reviews will tell you whether or not it’s possible to get the items early.
How To Make Your Shopify Store Reliable for Customers
Now that you know which scams to watch out for and how to avoid them, you’ll need to extend the same level of assurance to your customers. Presenting your store as a legitimate shop will help build customer confidence in your brand.
Here are some ways to prevent customers from asking, “Is Shopify legit?” in your store.
Enable SSL Shopify Encryption
Shopify provides SSL certificates to all merchants that use their platform to run a store. This certificate turns an HTTP site into an HTTPS-trusted site. The latter means that a site’s data is encrypted, making it hard for hackers to read or steal customer data.
You can tell if a site is SSL encrypted by checking if it has a little lock icon on the left side of its URL on search engines. The lock icon and HTTPS help increase customer confidence in your brand as they know their data is safe.
Add Two-factor Authentication
A two-factor authentication system allows you to add an extra layer of security to your Shopify store. This security feature is the easiest and most effective way to prevent unauthorized access to your Shopify account.
You can add this feature in the security section of your Shopify admin dashboard. The best way to protect your Shopify store is to use two-factor authentication and a strong password.
Use Social Proof
Reviews and social mentions signal trustworthiness to consumers while helping you improve conversion rates. Genuine reviews increase your store’s credibility and make customers less likely to ask, “Is Shopify safe?”.
You can use Trustoo.io to collect and display reviews on your store. This app can auto-collect and display reviews from different platforms to ensure you reap maximum benefit from social proof.
Make it easy to build and scale a reliable brand
Use Trusted Third-Party Apps for Payment Processing
When customers come to shop at your store, they want to know that the details of the payments are secure. For this reason, you should avoid less reputable or cheap payment processing apps.
Shopify provides a list of trusted payment gateways worldwide that users can comfortably use to send payments.
Show People What’s Behind the Curtains
One of the best ways to help your customers avoid questioning your store’s legitimacy by asking,” Is Shopify legit?” is to let them get to know you and your team.
Putting a picture of you and your team members alongside their professional details will help assure customers you’re running a legit store.
Is Starting a Shopify Store Worth It?
Now that we’ve definitively answered the question, “Is Shopify legit?” with a resounding “yes,” let’s see whether or not a Shopify store is worthwhile.
Market Coverage & User Base
Starting an online store requires significant time and effort, as with any other business venture. However, many merchants praise Shopify as an excellent platform because it provides mShopify supports a wide range of merchants, from crafters to global brands, where success stories like Allbirds and Gymshark are born. With its large user base, your products can easily reach consumers around the world, whether you’re looking to expand quickly or focus on a specific market. Starting an online store requires significant time and effort, as with any other business venture.any tools and features that make running a store convenient.
Fee Structure
Known for its transparent fee structure, Shopify’s basic plan starts as low as $29 per month and includes core features like unlimited website and blog creation, secure payment processing, and more. As your business expands, you can upgrade your plan as needed to unlock more advanced features like international sales support and detailed reporting analytics.
User-Friendly Interface
Shopify offers customers a great shopping experience. You can expect an intuitive design alongside a drag-and-drop interface that makes it easy to create an interactive store. The platform also offers tons of unique, customizable templates optimized explicitly for e-commerce.
Logistics & Distribution Support
For example, Shopify has partnered with logistics giants such as DHL and UPS to provide merchants with preferential shipping rates and convenient label printing services. With Shopify Fulfillment Network, small businesses can enjoy an all-in-one warehousing and distribution service that ensures products get to customers safely and quickly, no matter where they are in the world.
Read more: Is Shopify Worth It?
Conclusion
Hopefully, this article has helped you understand why people ask, “Is Shopify legit?” and know the answer. As you protect your brand from fraudsters, you should also let customers know about the different Shopify scams.
Remember, while Shopify and other e-commerce platforms are trying hard to ensure consumers and potential sellers don’t have to ask, “Is e-commerce legit?” it is your responsibility to be informed and protect yourself.
We can help you find the best and most trusted e-commerce platforms and apps to help take your business to new heights. Check out our e-commerce apps and integrations at Channelwill today.
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