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What Is Shopify & How Does It Work

Launching an online store or managing a small business? Explore our expert guide and discover how Shopify, the all-in-one eCommerce platform, drives your business from setup to sales. ️
Updated on February 13, 2024 2:15 PM

If you are starting an online store or you own a small business, Shopify is what you need to build your website today and manage your business.

Read our expert guide to learn everything you need to know, from what Shopify is to how it works. Manage inventory, connect with customers, and accept payments - all on the number one platform built for eCommerce success. 

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What Is Shopify

Shopify is an intuitive eCommerce  platform for businesses, simplifying online selling through a unified dashboard. You can create modern stores, and sell on social media, blogs, and more. 

With built-in POS, it's ideal for in-person sales too. Subscription plans start at $29 per month, offering tools for sales, inventory, marketing, and more. Optional add-ons further enhance functionality.

Highlighted by our experts:

  • User-friendly Interface: Easily set up your Shopify store and start selling within hours, even if you're new to eCommerce.

  • Affordable Pricing: Shopify offers competitive monthly fees, making it accessible for businesses of all sizes.

  • Robust Security: Shopify's fully managed platform ensures the security of your online store so you can have peace of mind. 

  • Mobile Integration: Sell anywhere with ease using Shopify's fully integrated mobile and retail store POS features, ensuring seamless transactions on the go.

  • Product Sourcing: Utilize Shopify's built-in dropship and wholesale networks to stock your store.
    Email Marketing Tools: Increase sales with just a click by using cart notifications and automated email marketing.

  • Scalability: From startups to Fortune 500 companies, Shopify accommodates businesses of all sizes, offering the flexibility to scale rapidly and sustainably alongside your growth journey.

  • Free Trial: Shopify offers a three-day free trial to explore the platform before committing.

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How Does Shopify Work

Shopify simplifies eCommerce by consolidating product data, customers, and operational tasks into one platform. Here's how it works:

  • Sign Up for Shopify: Begin by signing up for a free trial, allowing you to explore Shopify's features for three days, with the option to continue for one month for just $1.

  • Connect Your Sales Channels: Utilize the account setup wizard to link your initial sales channels. This step is flexible, allowing you to change and expand your channels as needed over time.

  • Input Your Product Data or Find Items to Sell: Input details, pricing, and images for your products, whether you create them or source them elsewhere. Alternatively, click Shopify's Handshake wholesale network and dropship vendors to discover items to sell.

  • Payments Set Up: Activate Shopify Payments with a single click to begin accepting payments immediately. Alternatively, connect your preferred payment processor to your dashboard. Shopify supports over 100 external payment processors.

  • Shipping and Taxes Set Up: Navigate to the Settings tab to configure your shipping methods, fees, and applicable sales tax information. You can start selling while setting up your Shopify online store.

  • Set Up Your Shopify Online Store: If you intend to sell through your own branded website, proceed to set up your Shopify online store. Shopify offers an array of plug-and-play themes that require minimal setup, allowing you to personalize your site quickly.

  • Process, Ship, and Track Orders: Manage incoming orders directly within your Shopify dashboard. Shopify provides tools to streamline order management, whether you're shipping products yourself, dropshipping, or selling virtual items like e-books. Additionally, Shopify automatically emails order status and shipment tracking information to your customers.

Once you've completed these steps, you're ready to explore Shopify's additional features to further boost your sales.

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Who Uses Shopify

Given its focus on online sales, Shopify caters best to businesses that:

  • Sell Physical Products: Shopify’s robust inventory management tools are tailored for eCommerce, making it ideal for managing large-scale product sales.

  • Primarily Ship Products To Customers: Shopify Shipping offers a comprehensive set of features tailored to online sellers, including options for in-store pickup.

  • Prefer Shopify’s Integrated Payment Processor Over Third-Party: Shopify charges a transaction fee alongside the fees charged by the chosen payment processor. By using Shopify's payment process businesses simplify their overall payment process and save the extra fees.

helpful content Shopify expert guide

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Shopify Pricing Plans

Shopify pricing consists of monthly charges depending on your chosen subscription level, alongside additional fees for payment processing, shipping labels, and advanced point-of-sale (POS) requirements.

Here is our expert quick overview of the main 3 pricing plans:

Basic:  

  • The most popular plan
  • Suitable for solo entrepreneurs
  • Monthly subscription price: $39.00
  • Standout features: 
    - World's best-converting checkout
    - Standard analytics
    - 10 inventory locations
    - 24/7 chat support
    - Localized global selling

Shopify:

  • Suitable for small teams
  • Monthly subscription price: $105.00 
  • Standout features: 
    - World's best-converting checkout
    - Standard analytics
    - 10 inventory locations
    - 24/7 chat support
    - Localized global selling
    - 5 additional staff accounts

Advanced:

  • Suitable for your business scales
  • Monthly subscription price: $399.00 
  • Standout features:
    - World's best-converting checkout
    - Custom reports and analytics
    - 10 inventory locations
    - Enhanced 24/7 chat support
    - Added global customization for $59 USD/mo per market
    - 15 additional staff accounts

Learn More About Shopify Pricing Plans

Conclusion

To sum up, Shopify is the top pick for those venturing into eCommerce with its user-friendly interface and broad selling options. Whether you're just starting out or aiming for expansion, Shopify offers the simplicity, growth potential, and affordability that businesses need to succeed in the digital marketplace.

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About Author
Jonathan Levi

Jonathan Levi is a writer who embraces the strange and surreal, weaving them into captivating narratives that resonate on a deeper level. His unique perspective allows him to place these extraordinary elements within a broader context.
When he's not writing, Jonathan finds solace in the world of literature. Whether it's delving into the latest news articles or immersing himself in the depths of offline books, Jonathan's thirst for knowledge and storytelling is insatiable. In Jonathan's downtime, you may catch him indulging in the thrill of a suspenseful binge-watching session. And when he's seeking a change of pace, he turns to the classic of puzzle-solving: Tetris.