How Rainbow Shops Slashed Fees by 80% and Accelerated Innovation with Shopify

Introduction

Rainbow Shops, known for its size-inclusive, affordable apparel, was running on Salesforce Commerce Cloud for more than a decade. As competitors like Amazon and Shein poured resources into their platforms, this family-owned chain of over 1,000 stores found itself slowed by long development cycles and unpredictable costs. A small engineering team faced months-long waits for updates, which undercut their ability to launch new experiences quickly and keep up with shifting consumer expectations.

Background

Founded in New York in 1935, Rainbow Shops carved its niche by blending entertainment and fashion. Shoppers hunt for trend-driven finds in a lively environment, online and offline. But behind the scenes, the tech stack was a barrier. Legacy billing models forced three-year revenue projections, overage fees, and six-figure hosting costs. Engineering talent craved a platform that moved as fast as their ideas.

Challenges

• Slow release cycles—new features took months or even a year to deploy.
• High platform fees—Salesforce billed upfront and charged overages.
• Friction in checkout—lengthy forms and multi-page flows hurt mobile conversion rates.

Solution: Partnering with Shopify

Rainbow Shops evaluated its needs across three areas: technology, finance, and checkout. Shopify emerged as the only platform that combined continuous innovation, transparent monthly billing, and an accelerated checkout flow comparable to Amazon.

Technology and Speed

Shopify’s 3,000+ engineers and thriving third-party ecosystem meant Rainbow’s team could tap into ready-built features or build custom modules without waiting months. From product videos on detail pages to native mobile apps, the team stood up solutions in minutes.

Financial Flexibility

Instead of pre-paying years of gross merchandise volume, Rainbow Shops now pays a flat monthly fee with no overages. This billing model cut platform costs by 80%, freeing budget for marketing, customer acquisition, and new store formats.

Frictionless Checkout

With Shop Pay’s two-step flow, one in three customers now completes checkout via accelerated checkout. On mobile, fewer keystrokes mean less drop-off at the point of sale.

Results

• 80% reduction in platform fees, redirecting savings into innovation.
• 48% lift in site search volume after integrating Google Cloud’s Discovery AI.
• Native apps driving 20% of customer interactions.
• New features shipped in minutes versus months.

Conclusion

By switching to Shopify, Rainbow Shops reclaimed control over costs and timelines. A small engineering team now races ahead of tech roadblocks, building engaging experiences that keep shoppers coming back. The lesson: a flexible, scalable commerce platform can turn a regional retailer into a competitor for the biggest global names.