Day 169
17:49 PM
Turned Facebook ads off. Waiting for payouts from the bank + 14-day payouts from customers.
Sorted out subscriptions with both UK & US store.
Had to create a workaround to charge customers without shipping them extra products ...
Since what I'm doing is Afterpay/Klarna/Affirm, one product but split payments.
Seems like Shopify/other apps don't really have a built-in way to do that.
Most are centered around creating monthly/weekly subscription shipments etc.
That would probably be a decent Shopify app.
All you have to do is leverage Shopify's built-in Subscription APIs.
2 apps can come out of this
1) Split payment, like Klarna
2) Monthly/weekly subscription creation for merchants (like Recharge Payments).
Number 1, could easily charge 5% of total transaction. Adds up over time.
Problem is dominating the market + advertising.
There would also be other issues, i.e. expiring cards
It appears Klarna and Afterpay solve this with:
- late fees
- locking customers out from using the service (until they pay)
- extra interest
- raising prices (e.g. 100 product but split into 35 x 3)
That's a damn good model.
All you'd have to do is make it accessible to merchants + cold email etc.
You already know it increases average order value.
All you have to do is be the first person to message them + integrate... and you'll have a customer for life.
Take e.g. 2-5% of transactions.
Easy.
Number 2,
Many Shopify merchants don't use subscriptions.
Reasons:
- too hard/complex to setup
- they think subscriptions won't work
- never heard of them
So, all you have to do is...
Offer to set it up for them (FREE).
Give them suggestions + ready-made landing pages/integrations (FREE).
Guarantee: Profitable or they don't pay.
Take idk 1% + $0.20 per transaction.
Once they're with you, they're pretty much with you for life.
Job done.
Might do that.
Especially Number 2. Very easy to setup.
Another highly profitable SAAS idea to make later...