Shopify Merchants Not Happy | Online Retailers Complaints Mount Up

Shopify, the world-known US ecommerce platform that onboards retailers, offers them credit card processing, website hosting as well as storefront services, is predicted to outshine eBay (in sales volumes) and rank after Amazon.

But this speedy growth is not without its downsides. Merchants and customers using the platform have been raising more and more complaints with concerns revolving around three major growing pains;

• Chargebacks or reverse charges
• Account shutdowns
• Money seizures

Nevertheless, such technicalities are not uncommon for a rapidly flourishing platform. Let’s look at the status quo of each complaint.

Merchants on Chargebacks or Reverse Charges 

An unsatisfied customer sends a reverse charge request to a retailer when they are not happy about a product or service— or if someone else made a purchase using their card, or for any other reasons.

But sometimes the requests are fraudulent or without basis. If a retailer refuses to make a refund, the shopper files a claim with their bank or credit card company who liaises with the credit card processor—in this case, Shopify— who makes a judgment based on existing proof.

Shopify retailers say the platform is unfair on chargebacks because;

• It is quick to side with the shopper on matters of reverse charges
• Even after a shopper has withdrawn a chargeback claim, Shopify still proceeds to deduct fees and penalties tied to reverse charges
• Merchants with complaints also say Shopify has raised its “future charges” fee

One letter from a retailer addressed to Shopify’s boss read;

“Shopify is quite punitive regarding chargebacks. Not only do you assess a fee and keep our money for an extended period, but you also suspend our accounts and raise our rates.”

New Shopify Regulations Could Put Client Data at Risk 

Mailchimp, the email marketing service that helps Shopify to reach out to its clients, cut ties with the retail platform in March this year.

Mailchimp said it told Shopify to remove their Mailchimp for Shopify plugin for its freshly registered clients by March 21. The email marketing company said it decided so because Shopify rolled out updated policies that would impact their bottom line negatively and compromise customer data.

Sudden account shutdowns

Retailers have raised concerns about unanticipated account closures. One merchant told ConsumerAffairs.com how Shopify onboarded his computer-selling retail business and later shut down his store, claiming his company was high Risk.

Even worse, Shopify does not go back in its decision on account closures. Here’s part of the contents of its account shutdown notification email;

“Regrettably, for security and privacy reasons, we are unable to divulge the results of our reviews and investigations. Unfortunately, once an account has been declined, the decision is final. Best of luck with your business going forward.”

Shopify retailers who’ve spent in the skies in monthly charges to build up their businesses say all their attempts to restore their closed-down accounts have failed.

Money Seizures

For Shopify retailers, getting hands on your hard-earned money may also be a problem. Retailers have complained of Shopify holding back their funds, requesting for multiple verification data, promising to get back with a response (like in three days), going mute for weeks and freezing finances.

Final Words

All these complaints pile up at a time when the future is promising for Shopify. But these aren’t obstacles for a company with a vision; they are small challenges any customer-centric business can fix and pave the way for more growth.

Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk credit card processing enabler in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.