The .SHOP domain has officially celebrated its 1 year anniversary on 26 September with a huge range of discounts from a variety of vendors. However, mention GMO – the management company of this extension is a little worried.
In January of the same year, many large companies took part in auctions for .SHOP domain name, but when prices exceeded $15 million, they gradually gave up. Only GMO has persevered to the end and won up to $41.5 million. At this price, .SHOP also became the most expensive domain at that time.
But, the GMO calculations for the .SHOP domain are correct? Is this price too high compared to the power of this extension???
The .SHOP domain is short, meaningful and very suitable for online business, so from the beginning of the launch, it has good response and GMO expects to reach 1 million registered domain names successfully after the first year.
In fact, the .SHOP only reached about 32% of expectation.
Statistics show that after a year, only over 320,000 .SHOP domains have been registered successfully.
I think, though, you can easily register for .SHOP domain for as little as $2/year, but with high renewal rates (over $30/year), this is a major barrier to many people wondering when buying this domain.
It will take years for GMO to recover capital, if possible. Even if the .SHOP domain is licensed by the Chinese government, we have not said anything yet.
The exact extension of a domain name can only be determined after 45 days of expiration. So, maybe until November we get a more specific number, how many% of the .SHOP domains will be maintained? If the percentage is a little higher then .SHOP and GMO can expect to recover capital and get a quick profit.
On CouponTree, I guess there will be many online dealers and have bought .SHOP domain name. Will you continue to renew? Please share your comments in the comment below!