Is Shopify Legit? Shopify's scams you need to watch out for

If you're contemplating launching an online business, chances are you're familiar with Shopify. But the burning question remains: Is Shopify Legit for e-commerce in 2024? 

Alongside its widespread recognition and adoption by over 4.7 million businesses worldwide, Shopify's legitimacy also raises concerns about accompanying scams and fraudulent activities. 

Is Shopify Legit?

In short - yes. Shopify is a legitimate business. It is in fact one of the most well-known eCommerce platforms in the world. Shopify is trusted and used by millions of businesses from all around the world.

• Over 4.79 million merchants from 175 countries use it in 2024: This is a testament to Shopify's reputation and trustworthiness. 
• Shopify provides a secure platform for businesses to sell online, with advanced features like inventory management, sales tools, and premium themes.
• Large, publicly traded company: Shopify is a leading e-commerce software company founded in 2004 and listed on the New York Stock Exchange (NYSE) in 2015. The stock code is SHOP.

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• Trusted partners: Shopify partners with many of the world's most reputable payment and shipping providers, such as PayPal, Stripe, Braintree, Amazon Pay, UPS, DHL, and more.

4 Reasons Why Shopify Is The Safest Option on The Market

Shopify provides a safe and secure platform for selling

Shopify prioritizes online transaction security with two main measures: SSL Certificates and PCI Compliance.

• SSL Certificates: Every Shopify store includes an SSL Certificate, ensuring secure customer data transmission and fostering trust. Shopify provides these certificates automatically, so users don't need to purchase them separately.
• PCI Compliance: Shopify is Level 1 PCI DSS compliant, adhering to global security standards for credit card information. This ensures safe handling of customer payment details.

Shopify also regularly updates its security systems and employs advanced technologies and experts to protect against threats, providing peace of mind for both sellers and buyers.

Shopify offers transparent pricing plans with no hidden fees

• Clear Pricing Structure: Shopify offers straightforward pricing plans tailored for businesses of all sizes, facilitating accurate budgeting.
• Shopify Payments: This in-house solution eliminates transaction fees, simplifies financial management, and saves on costs.
• Transparent Transaction Fees: While external payment gateways incur fees, Shopify openly communicates these charges, ensuring no hidden costs for users.

You can visit Shopify Pricing for more Shopify pricing details.

Shopify Payments is convenient and secure

Shopify Payments offers a highly secure and seamless checkout experience for customers:

• Powered by Stripe: A renowned payment processor known for its security.
• Convenient Payouts: Sales proceeds are promptly deposited into your bank account for simplified cash flow management.
• International Support: Supports multiple currencies, enabling businesses to accept payments globally.

Shopify only allows trusted third-party apps to appear on their App Store

Shopify stands out by ensuring the quality and reliability of its app offerings:

• Thorough Screening: Apps undergo rigorous evaluation by Shopify's specialists, assessing functionality, security, and user experience.
• Stringent Standards: Only apps meeting Shopify's strict criteria, including SEO optimization and security measures, are approved.
• Protection Against Scams: Shopify selects apps to guard against scams and malicious software, ensuring safe and compatible plugins.
• User Feedback: User comments and reviews provide transparency, helping merchants assess app effectiveness.
• Confidence in Security: With a curated App Store, Shopify ensures users can leverage third-party plugins without compromising store security or functionality.

To provide more detailed information, you can refer to reviews from real users by visiting the following sources:

• Shopify review on Trustpilot (1.5 Star - 2,354 reviews - Jul 2024)
• Shopify Reviews on G2 (4.4 Star - 4,542 reviews - Jul 2024)

What Are The Most Common Shopify Scams?

While Shopify itself is a legitimate business, there are many people who would take advantage of it to scam other people.

Here are the most common Shopify scams to watch out for

#1. Duplicator Shopify Store Schemes

Scammers have been known to create fake Shopify stores that mimic legitimate ones, selling counterfeit or low-quality products. These deceptive tactics often involve luring customers with attractive prices and promotions, only to vanish after receiving payments. 

For instance, while searching for a product on Shopify, you might stumble upon a store offering a similar item at a much lower price. 

However, upon receiving the product, you might find it not as described or of significantly lower quality than expected—like a kettle that appears sturdy in the advertisement but is actually lightweight and poorly made. 

To avoid falling victim to such scams, it's crucial to check customer reviews, use secure payment options, and verify the store's contact details to ensure its legitimacy.

#2. Triangulation schemes

The triangulation scheme is another method scammers use to take advantage of buyers and legitimate stores. They pose as sellers and offer popular items at unusually low prices. 

These fraudulent transactions typically involve using stolen credit card information to purchase products from other sites, which are then sent directly to unsuspecting customers. 

As a result, customers may remain unaware of the illegal activities behind their purchases, mistakenly believing they are dealing with legitimate sellers. 

To avoid falling victim to such schemes, buyers should ensure they purchase from reputable sellers, conduct thorough research on the store, and remain cautious of prices that seem excessively low.

#3. Fake return ticket

Scammers can pose as unhappy customers seeking returns or refunds, employing various deceptive tactics. They may allege that they received faulty or incorrect items and request to return them. 

To trick sellers into issuing refunds without actually receiving the product back, these scanners will provide fake return tracking numbers or send empty packages.

To safeguard against such fake return scams, sellers should implement clear and detailed return policies, verify the authenticity of tracking numbers, and thoroughly inspect all returned items before issuing any refunds. This can help ensure that the return process is legitimate and protect against fraudulent claims.

#4. Direct client scheme

This is another tactic that scammers commonly use. They pose as potential clients or wholesale buyers to deceive sellers and aim to acquire free samples or products without paying. 

They engage in false negotiations, where they might negotiate discounts or favorable credit terms but ultimately never fulfill the promised purchase. 

To avoid falling victim to this scam, sellers should exercise caution by conducting thorough background checks on potential buyers and establishing secure payment terms. 

#5. Switching scheme

Scammers often use stolen credit card information to make what appear to be legitimate purchases. After receiving the items, they contact the sellers with false claims, alleging that the received items are damaged or incorrect.

Using switching tactics, these scammers propose returning the items but instead send back similar-looking or lower-value items, intending to keep the originals and obtain a refund.

To combat this type of scam, sellers should document product details meticulously, photograph items before shipping, and implement strict quality control procedures for returned items. 

#6. Fake purchase orders

Scammers often submit fake purchase orders to suppliers or dropshipping businesses, posing as legitimate customers or businesses. Using deceptive tactics, they provide detailed order information and request immediate shipment. The payment is typically made using fraudulent checks or stolen credit card information, which eventually fails to clear or is reported as unauthorized. 

To safeguard against such scams, sellers should verify the authenticity of orders, conduct thorough due diligence on customers or businesses, confirm payment before shipment, and be cautious of rushed or unusually large orders. 

How to spot a scam Shopify store

Shopping on Shopify offers many conveniences for users. However, there is still a potential for scams if you're not careful. Here are some ways to help you spot a scammy Shopify store:

#1. Carefully Check Store Information

• Address: Reputable stores typically provide a specific address that can be verified on a map. Be wary of shops that only list a general address or lack clear contact information.

• Phone number: It's best to shop at stores with a landline number for easy contact when needed. Be cautious of shops that only provide mobile numbers or virtual numbers.
• Email address: Email is an important communication channel between the store and customers. It's advisable to shop at stores with a professional and easily contactable email address.

#2. Read Reviews from Previous Customers

• Carefully read reviews from previous customers: This is a valuable resource for assessing the store's reputation. Pay attention to both positive and negative reviews to get an objective perspective.
• Consider negative reviews: If there are numerous negative reviews about product quality, delivery service, or return policies, you should carefully consider them before making a purchase.

#3. Extremely Low Prices Compared to the Market Could Be a Red Flag

Compare the product's price in the store with other stores selling the same item to see if the price is reasonable. Prices that are significantly lower than the market average could be a sign of counterfeit, fake, or low-quality products.

#4. Unclear Shipping and Refund Policy

• Reputable stores: Provide clear information about delivery times, shipping costs, return, and refund policies.
• Scammy stores: May hide or fail to provide complete information about these policies, making it difficult for customers to return or get a refund.

#5. Check Review Sites to See if the Store Has Been Accused of Scamming

There are many websites dedicated to reviewing and compiling information about Shopify stores.

You can refer to these websites to see if the store you want to buy from is well-rated or has been accused of scamming in the past.

Here are some websites you can refer to: Trustpilot Reviews, BBB, Facebook, Shopify (reddit.com)

5 Tips to Provide A Safe Shopping Experience for Your Customers

• Clear Pricing and Return Policies: Transparency is crucial. Clearly display pricing information and return policies to avoid customer surprises at checkout and set clear expectations.
• Website Security Assurance: Instill confidence in your customers by displaying trust badges and security seals, reassuring them that their personal and payment information is safe.
• Personalize Your Brand: Showcase the people behind your business through staff profiles and customer testimonials to build credibility and foster connections with customers.
• Active Social Media Engagement: Maintain an active social media presence to promptly address customer inquiries and concerns, demonstrating your commitment to excellent customer service.
• Customer Ratings and Reviews: Encourage satisfied customers to leave reviews and prominently display them on your website to build trust and showcase positive experiences. Monitor your store for suspicious activity and stay updated on security practices to protect customer information.