Blog
/
Editorial

Maximizing profitability for your agency: Balancing custom development and public apps

Published
January 16, 2025
Last updated
January 29, 2025
Knowing when to build custom apps for clients and when to pay for existing public apps is key to helping reduce costs.

Creating the right solutions to meet the often complex and nuanced needs of merchants (while maintaining healthy profit margins) is a challenge for many Shopify agencies. Custom Shopify app development tends to be extremely costly and time-consuming, but installing everything through the Shopify app store almost always comes with compromising on features, and over time, those monthly subscriptions add up. 

Finding the right fit comes down to choosing between cost and convenience. It's about building a sustainable, profitable business model that can scale with your agency's growth while meeting client needs.

Shopify app development

The landscape of Shopify app development has transformed dramatically in recent years. With more than 13,200 apps available in the Shopify App Store across 152 different categories, merchants have more options than ever. Yet paradoxically, this abundance of choice has created new challenges for agencies trying to deliver unique value to their clients.

David Visser, COO at Zyber, explains this tension perfectly: "We always try to solve problems with out-of-the-box solutions first. But there's always something unique to a client that can't be done in any easy way. Historically, the threshold to getting a custom app has always been quite high."

The threshold David is talking about isn't just about technical complexity – it's about the economics of custom development in an ecosystem increasingly dominated by turnkey solutions. Understanding how to navigate this landscape has become crucial for Shopify agencies' survival and growth.

When are apps worth the cost?

Buying from the app store

If a client needs a solution, the Shopify App Store should always be the first place you look. Trying to solve pain points with existing solutions can help you and your client determine when features are necessary rather than nice to have.

Although existing public Shopify apps are often helpful, they can come with their own set of challenges. For example, you might be missing some critical features or underestimating the amount of time wasted on internal processes they can create.

Branch Furniture is a Shopify merchant that needed a custom shipping estimator app, and no existing solution in the Shopify App Store was meeting their needs. Their inability to estimate when orders would be delivered was causing lost sales and taking up support hours. Rather than wasting their time building entirely from scratch, they found a way to build their own app without compromising on features.

The traditional approach to custom development often involves significant hidden costs. Beyond the obvious work of writing all the code (and paying expensive developer salaries), you also need to consider infrastructure management, ongoing maintenance, security updates, and technical debt. If custom app development is something you choose to pursue, find ways to minimize costs wherever you can.

Craftberry is a great example. By optimizing their approach to custom development rather than relying solely on pre-built solutions, they've increased project revenue by more than 30% and can now take on more client projects. This growth came not from charging more for each project, but from being able to deliver better solutions for their clients.

Custom Shopify development

When considering custom Shopify app development for your agency, your primary concern is likely the cost of building (and maintaining) any apps you develop for clients. And you would be right to be concerned, as setting up and managing the infrastructure for apps across different clients can be a huge time sink. 

Take the experience of Code, a development agency that transformed its approach to custom development. When they started offering their clients custom apps, it didn't take long for the ongoing maintenance to get out of hand. Running an entire software business for each and every client wasn't sustainable. For a while, they halted custom app development altogether. However, their clients still had unique needs that could only be met with custom solutions, so they had to find another way.

By consolidating their tech stack and adopting modern development platforms, they reduced their development costs by more than 90% – a transformation that completely changed their project economics.

Building sustainable custom solutions

The key to profitable custom development isn't just about reducing initial build costs – it's about creating solutions that won't become a maintenance burden. Proper project planning helps you avoid running into long-term issues that can become incredibly expensive to fix later.

Before starting any custom development project, you need to consider:

  • How you'll handle ongoing maintenance and updates
  • What happens when Shopify releases API changes
  • Who will provide support for the app
  • How you'll manage hosting and infrastructure costs
  • Whether the solution can scale with your client's growth

Modern development platforms have made these concerns much more manageable. The team at Zyber, for example, is always trying to maximize the value they can give clients. By minimizing time spent on basic setup work like server maintenance or database configuration, they can focus their energy on solving unique client problems instead of reinventing the wheel whenever they start a project.

Finding the right balance

The most successful agencies aren't those that always build custom or always use pre-built solutions – they're the ones that know how to choose the right approach for each project. It would help if you had a clear framework for evaluating client needs that considers both immediate requirements and long-term implications.

Start by looking at existing solutions. What features are missing? How much time would your client's team save by having a custom solution? Are there ways to combine existing apps to solve the problem? Sometimes, the answer might be that a custom app is overkill – and that's okay.

Sometimes, building your own solution is the best thing for your business. The results speak for themselves – just ask the team behind Heloola, who saw a 35% increase in users after launching their custom Shopify experience.

Making custom apps profitable

Building sustainable custom apps isn't just about keeping costs down – it's about creating real value for your clients that justifies the investment. Existing solutions often lack flexibility and control, which can be incredibly frustrating for smaller brands with limited access to alternative solutions. 

As an agency, custom apps are an opportunity to empower clients by giving them more options, but there are a few key things to keep in mind before you start building.

Keep maintenance manageable

One of the biggest unseen challenges that comes with building custom Shopify apps is keeping them running smoothly over time. 

For example, Shopify releases quarterly API updates, which your app needs to stay compatible with. If you don't keep up, you'll very likely lose functionality. Although custom apps don't require the same multi-tenancy as public apps, you always need to keep an eye on app security to ensure customer data is kept safe.

Building for ecommerce means you need to optimize app performance to handle any amount of traffic throughout the year, like during high-traffic sales for BFCM. Then, if and when issues arise, who handles the customer support for your app? The last thing you want is a custom solution to create more work for clients. 

This is where modern development platforms can shine. There are platforms that can handle most of the infrastructure and give you a framework to help you follow best practices. Gadget even gives you a way to upgrade to the latest Shopify API version in a few clicks. 

When you don't need to worry about scalability and security as much, and you free up development hours to address higher priority work. Less time on core infrastructure frees you up to focus on building the right experience for end users instead of worrying about server maintenance.

Scaling with custom apps

As demand for custom apps grows, try to find ways to make development more efficient. Creating reusable components, for example, might help you build faster without sacrificing quality.

The future of profitable Shopify app development is about moving quickly while maintaining the ability to create custom solutions. Public apps will always be the first place to look for solutions, but when they don't quite fit, custom development doesn't have to break the bank.

Some agencies save weeks of work by working with pre-built templates that already include basic features for a given use case. They can solve the core problems clients face, then customize templates to address any specific needs.

Modern development platforms have transformed what's possible with custom apps. They give you the infrastructure and tools to build quickly and efficiently, while making sure you're not stuck managing servers instead of solving client problems.

Ready to make custom app development more profitable for your agency? Start with a free Gadget account to see if a full-stack, single-stack platform can cut down your costs. If you need help or have questions, you can join our Discord community to connect with the team and find other agencies tackling similar challenges.

Emma Hyde
Author
Riley Draward
Reviewer
Try Gadget
See the difference a full-stack development platform can make.
Create app
No items found.

Maximizing profitability for your agency: Balancing custom development and public apps

Knowing when to build custom apps for clients and when to pay for existing public apps is key to helping reduce costs.
Problem
Solution
Result

Creating the right solutions to meet the often complex and nuanced needs of merchants (while maintaining healthy profit margins) is a challenge for many Shopify agencies. Custom Shopify app development tends to be extremely costly and time-consuming, but installing everything through the Shopify app store almost always comes with compromising on features, and over time, those monthly subscriptions add up. 

Finding the right fit comes down to choosing between cost and convenience. It's about building a sustainable, profitable business model that can scale with your agency's growth while meeting client needs.

Shopify app development

The landscape of Shopify app development has transformed dramatically in recent years. With more than 13,200 apps available in the Shopify App Store across 152 different categories, merchants have more options than ever. Yet paradoxically, this abundance of choice has created new challenges for agencies trying to deliver unique value to their clients.

David Visser, COO at Zyber, explains this tension perfectly: "We always try to solve problems with out-of-the-box solutions first. But there's always something unique to a client that can't be done in any easy way. Historically, the threshold to getting a custom app has always been quite high."

The threshold David is talking about isn't just about technical complexity – it's about the economics of custom development in an ecosystem increasingly dominated by turnkey solutions. Understanding how to navigate this landscape has become crucial for Shopify agencies' survival and growth.

When are apps worth the cost?

Buying from the app store

If a client needs a solution, the Shopify App Store should always be the first place you look. Trying to solve pain points with existing solutions can help you and your client determine when features are necessary rather than nice to have.

Although existing public Shopify apps are often helpful, they can come with their own set of challenges. For example, you might be missing some critical features or underestimating the amount of time wasted on internal processes they can create.

Branch Furniture is a Shopify merchant that needed a custom shipping estimator app, and no existing solution in the Shopify App Store was meeting their needs. Their inability to estimate when orders would be delivered was causing lost sales and taking up support hours. Rather than wasting their time building entirely from scratch, they found a way to build their own app without compromising on features.

The traditional approach to custom development often involves significant hidden costs. Beyond the obvious work of writing all the code (and paying expensive developer salaries), you also need to consider infrastructure management, ongoing maintenance, security updates, and technical debt. If custom app development is something you choose to pursue, find ways to minimize costs wherever you can.

Craftberry is a great example. By optimizing their approach to custom development rather than relying solely on pre-built solutions, they've increased project revenue by more than 30% and can now take on more client projects. This growth came not from charging more for each project, but from being able to deliver better solutions for their clients.

Custom Shopify development

When considering custom Shopify app development for your agency, your primary concern is likely the cost of building (and maintaining) any apps you develop for clients. And you would be right to be concerned, as setting up and managing the infrastructure for apps across different clients can be a huge time sink. 

Take the experience of Code, a development agency that transformed its approach to custom development. When they started offering their clients custom apps, it didn't take long for the ongoing maintenance to get out of hand. Running an entire software business for each and every client wasn't sustainable. For a while, they halted custom app development altogether. However, their clients still had unique needs that could only be met with custom solutions, so they had to find another way.

By consolidating their tech stack and adopting modern development platforms, they reduced their development costs by more than 90% – a transformation that completely changed their project economics.

Building sustainable custom solutions

The key to profitable custom development isn't just about reducing initial build costs – it's about creating solutions that won't become a maintenance burden. Proper project planning helps you avoid running into long-term issues that can become incredibly expensive to fix later.

Before starting any custom development project, you need to consider:

  • How you'll handle ongoing maintenance and updates
  • What happens when Shopify releases API changes
  • Who will provide support for the app
  • How you'll manage hosting and infrastructure costs
  • Whether the solution can scale with your client's growth

Modern development platforms have made these concerns much more manageable. The team at Zyber, for example, is always trying to maximize the value they can give clients. By minimizing time spent on basic setup work like server maintenance or database configuration, they can focus their energy on solving unique client problems instead of reinventing the wheel whenever they start a project.

Finding the right balance

The most successful agencies aren't those that always build custom or always use pre-built solutions – they're the ones that know how to choose the right approach for each project. It would help if you had a clear framework for evaluating client needs that considers both immediate requirements and long-term implications.

Start by looking at existing solutions. What features are missing? How much time would your client's team save by having a custom solution? Are there ways to combine existing apps to solve the problem? Sometimes, the answer might be that a custom app is overkill – and that's okay.

Sometimes, building your own solution is the best thing for your business. The results speak for themselves – just ask the team behind Heloola, who saw a 35% increase in users after launching their custom Shopify experience.

Making custom apps profitable

Building sustainable custom apps isn't just about keeping costs down – it's about creating real value for your clients that justifies the investment. Existing solutions often lack flexibility and control, which can be incredibly frustrating for smaller brands with limited access to alternative solutions. 

As an agency, custom apps are an opportunity to empower clients by giving them more options, but there are a few key things to keep in mind before you start building.

Keep maintenance manageable

One of the biggest unseen challenges that comes with building custom Shopify apps is keeping them running smoothly over time. 

For example, Shopify releases quarterly API updates, which your app needs to stay compatible with. If you don't keep up, you'll very likely lose functionality. Although custom apps don't require the same multi-tenancy as public apps, you always need to keep an eye on app security to ensure customer data is kept safe.

Building for ecommerce means you need to optimize app performance to handle any amount of traffic throughout the year, like during high-traffic sales for BFCM. Then, if and when issues arise, who handles the customer support for your app? The last thing you want is a custom solution to create more work for clients. 

This is where modern development platforms can shine. There are platforms that can handle most of the infrastructure and give you a framework to help you follow best practices. Gadget even gives you a way to upgrade to the latest Shopify API version in a few clicks. 

When you don't need to worry about scalability and security as much, and you free up development hours to address higher priority work. Less time on core infrastructure frees you up to focus on building the right experience for end users instead of worrying about server maintenance.

Scaling with custom apps

As demand for custom apps grows, try to find ways to make development more efficient. Creating reusable components, for example, might help you build faster without sacrificing quality.

The future of profitable Shopify app development is about moving quickly while maintaining the ability to create custom solutions. Public apps will always be the first place to look for solutions, but when they don't quite fit, custom development doesn't have to break the bank.

Some agencies save weeks of work by working with pre-built templates that already include basic features for a given use case. They can solve the core problems clients face, then customize templates to address any specific needs.

Modern development platforms have transformed what's possible with custom apps. They give you the infrastructure and tools to build quickly and efficiently, while making sure you're not stuck managing servers instead of solving client problems.

Ready to make custom app development more profitable for your agency? Start with a free Gadget account to see if a full-stack, single-stack platform can cut down your costs. If you need help or have questions, you can join our Discord community to connect with the team and find other agencies tackling similar challenges.

Interested in learning more about Gadget?

Join leading agencies making the switch to Gadget and experience the difference a full-stack platform can make.