The global eCommerce market is booming, with sales projected to surpass $8 trillion by 2027, according to Statista.
One thing is evident: the demand for online shopping is only growing. With such massive opportunities, why limit your business to just one channel? Expanding across platforms allows you to tap into different customer segments and increase your reach.
However, the idea of operating on multiple channels often raises concerns—chief among them is channel cannibalization.
Many worry that launching a Shopify mobile app might draw customers away from their existing website or other channels. But is this fear justified? Is channel cannibalization truly a threat, or is it an overhyped concern holding your eCommerce business back?
In this blog, we’ll explore why channel cannibalization shouldn’t deter you from building a Shopify mobile app and how this approach can amplify your overall growth.
Let’s dive right in!
What is channel cannibalization?
Channel cannibalization occurs when a new sales or marketing channel impacts the performance of an existing one. This often leads to concerns that the new channel is "stealing" customers or revenue.
It’s the fear that customers who previously shopped on your website might shift to the app, potentially reducing website traffic or sales.
The concept becomes particularly relevant when evaluating the ROI of launching a Shopify mobile app. The concern is that instead of increasing overall revenue, the app might merely redistribute existing customers across channels without adding new ones.
However, this perspective often overlooks the Shopify mobile app's unique ability to drive customer loyalty, boost engagement, and cater to mobile-first shoppers.
Before we discuss why you should not treat channel cannibalization as a threat, let’s look at the reasons that stop businesses from building their Shopify mobile app.
Why Shopify businesses are scared of building a mobile app?
While building a mobile app for your Shopify store has undeniable advantages, many businesses hesitate due to perceived risks and challenges.
Let’s explore some of the common fears that hold Shopify businesses back:
1. Website vs. Shopify app traffic tradeoff
A major concern is the potential tradeoff between website and app traffic. Businesses worry that by encouraging users to shop via the mobile app, they might inadvertently reduce website visits, affecting metrics such as SEO rankings, bounce rates, or even ad performance. This tradeoff often feels like a zero-sum game, leaving merchants unsure about expanding their sales channels.
2. Marketing investment allocation
Launching and promoting a mobile app requires a dedicated marketing budget, which can strain existing resources. Shopify businesses fear that shifting focus to app marketing could dilute their website’s marketing efforts, potentially affecting its growth. Questions about how to allocate budgets effectively and measure ROI often add to the hesitation.
3. Pricing and promotion coordination
Shopify store owners often think managing consistent pricing and promotional strategies across both the website and app can be a logistical challenge. They worry about confusing customers with different offers on different platforms or unintentionally favoring one channel over the other. This fear of misaligned strategies often discourages businesses from introducing an additional channel.
4. Customer service resources
Adding a mobile app creates a new touchpoint for customer interactions, which businesses might think puts additional pressure on customer service teams. Businesses fear that they may need to invest in more tools, training, or personnel to manage app-related queries effectively. Concerns about resource allocation and maintaining high service standards across all channels often deter businesses from taking the leap.
While these concerns are valid, they stem from the misconception that adding a new channel will create competition within the business itself. However, the reality is quite the opposite.
A well-executed mobile app strategy can complement existing channels and enhance the overall customer experience, leading to long-term growth.
In the next section, we’ll explore why these fears are often unfounded and how Shopify businesses can address them to build a thriving mobile app without worrying about channel cannibalization.
Why channel cannibalization is not a problem with Shopify mobile apps?
The fear of channel cannibalization often prevents Shopify businesses from taking the plunge into app commerce.
However, this fear is rooted in outdated assumptions that don’t align with modern eCommerce trends.
Let’s dive into why channel cannibalization is not only a non-issue but also why building a mobile app for your Shopify store is a strategic move for growth.
1. Diversification is a must
According to Wharton, 66% of online shoppers rely on more than one channel to make purchases, and multi-channel shoppers have a 12% greater buying frequency than those who use only one channel.
Ignoring the need for diversification because of the fear of channel cannibalization is simply not a sound strategy.
In a rapidly evolving eCommerce industry, being present on multiple platforms is crucial to staying competitive.
A Shopify mobile app diversifies your sales channels and ensures you reach customers where they’re most active. Limiting your business to a single channel in hopes of protecting it is a short-sighted approach that risks leaving money on the table.
2. Customers want better experiences
Today’s customers care about convenience and seamless shopping experiences. With the increasing shift towards app commerce, businesses that fail to adapt risk losing their competitive edge.
If you choose not to build a mobile app while customer behavior leans heavily toward app-based shopping, your online store’s traffic and conversions could decline over time.
This isn’t channel cannibalization—it’s simply a failure to meet customer expectations.
Shopify businesses that prioritize customer experience by offering an app position themselves as leaders in their space, ensuring they capture and retain a growing segment of app-first shoppers.
3. Customers spend more on apps
Even if your existing customers shift from your website to your mobile app, this isn’t a problem—it’s an opportunity.
Studies show that people use mobile apps six times more often than browsers on their phones. Additionally, customers who shop via mobile apps spend 32% more compared to those shopping on websites.
With higher engagement rates and greater spending on apps, this channel drives long-term profitability, turning potential channel cannibalization into a growth move.
4. Access to better data with a Shopify mobile app
Shopify mobile apps provide richer, more actionable customer data compared to websites. Through apps, you can gain insights into customer behavior, preferences, and purchasing patterns. This data enables personalized shopping experiences, helps identify products to stock more effectively, and informs strategies for cross-selling and upselling. By leveraging the superior analytics capabilities of your Shopify mobile app, you’re not just selling more—you’re selling smarter.
5. Apps support sales across channels
The notion that customers shifting to an app will stop buying from your other channels is flawed. In reality, an app complements your existing channels, enhancing your Shopify omnichannel strategy.
For example, a customer may discover your product on the website but hesitate to buy. If your app offers an exclusive 10% discount, they may download the app to take advantage of the deal. Once they have your app, they’re more likely to shop again due to the convenience and personalized experience.
Rather than competing, your app and website work together to convert hesitant customers into loyal buyers.
By embracing the potential of Shopify mobile apps and recognizing that channel cannibalization is more myth than reality, businesses can find new opportunities for loyalty and long-term success.
How does Appbrew solve Shopify channel cannibalization problems?
After exploring the challenges businesses associate with channel cannibalization, it’s clear that these concerns are largely misconceptions.
Here’s how Appbrew, a Shopify mobile app builder, addresses these challenges and helps Shopify businesses thrive:
1. Website vs. Shopify App Traffic Tradeoff: Is traffic shifting from your website to your app still a concern if those customers buy more frequently and spend more? It’s actually a win because eCommerce app users are proven to engage more often and have higher purchase values, making the shift beneficial for your business.
2. Marketing Investment Allocation: Building a Shopify mobile app with Appbrew doesn’t mean overhauling your marketing budget. Instead, it enhances your strategy. Appbrew supports app-exclusive campaigns, push notifications, and retargeting to boost customer engagement. It integrates seamlessly into your existing marketing mix, ensuring all channels work together for optimal results.
3. Pricing and Promotion Coordination: With Appbrew, there’s no need to worry about pricing and promotional inconsistencies. Changes made on your Shopify store are automatically reflected in your app. App-exclusive discounts can be created in just a few clicks, ensuring smooth coordination across channels and eliminating logistical headaches.
4. Customer Service Resources: Growth naturally brings more customer service queries, but should that deter you from expanding? With Appbrew, it doesn’t have to. Appbrew offers over 100+ integrations with your existing marketing and support tools, ensuring seamless data syncing. This equips your customer service team with the information they need to handle app-related queries effectively.
Also Read: How to Choose the Best Shopify Mobile App Builder
TL;DR
With Appbrew, you don’t need to worry about any of the perceived challenges of channel cannibalization.
Our platform ensures your Shopify app integrates smoothly into your ecosystem, complementing your website and other channels. And the customer success team is here to guide you through app management and help you prepare for any changes.
Still on the fence? Book an Appbrew demo today and discover how businesses like yours have successfully built their apps and leveraged them for growth.
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