What is Shopify?

Shopify is a commerce platform that lets a business sell online and in person from one system. You get a hosted online store, a checkout, payments, inventory, orders and customer records in one admin, plus point of sale for physical shops. You pay a monthly plan fee instead of buying servers or software licenses.

Shopify started in Ottawa in 2006 and now runs stores for millions of businesses, from one-person shops to brands doing hundreds of millions a year. We've built more than 300 Shopify stores, so this is the plain-English version we give clients.

How Shopify works

Everything runs from the Shopify admin, a web dashboard you log into from any browser or the mobile app. From there you add products, set prices, track inventory, process orders and see sales reports.

• Your storefront is built from a theme. Shopify has free and paid themes, and a developer can build a custom one.
• Hosting, security and updates are handled by Shopify. There's no server to patch and no SSL certificate to renew.
• Checkout is run by Shopify too, which is why it's fast and trusted by shoppers.
• Apps add features Shopify doesn't include, such as reviews, subscriptions, loyalty programs or shipping rules. The Shopify App Store has thousands of them.

The tradeoff is that you work inside Shopify's rules. Most businesses never notice. Businesses with unusual pricing, complicated catalogs or a lot of back-office systems sometimes need custom development to get there.

Where you can sell with Shopify

A Shopify store isn't only a website. The same products, inventory and customer list can sell through several channels at once:

• Your online store, on your own domain.
• In person with Shopify POS, for retail shops, pop-ups, markets and events. We set up and train teams on Shopify POS.
• Social media, including shoppable posts on Instagram, Facebook and TikTok.
• Marketplaces such as Amazon, Walmart and eBay, through sales channel apps.
• Wholesale (B2B), with company accounts, custom price lists and payment terms. Basic, Grow and Advanced plans include core B2B tools, and Shopify Plus adds more. More on Shopify for B2B.
• Other countries, using Shopify Markets for local currencies, languages and duties.

Payments, Shop Pay and checkout

Shopify Payments is Shopify's built-in way to take credit and debit cards. When you use it, there's no separate payment gateway to set up and no extra transaction fee from Shopify. If you use an outside gateway instead, Shopify adds a transaction fee on top of that gateway's rates.

Shop Pay is Shopify's one-click checkout. Shoppers save their email, address and card once, and every Shopify store with Shop Pay can fill them in for them. It also offers Shop Pay Installments, so customers can split a purchase into payments in supported countries.

Shopify also supports the payment methods people expect: Apple Pay, Google Pay, PayPal, buy now pay later providers, and local payment methods in many countries. Card rates depend on your plan and country, so check Shopify's pricing page for current numbers.

Curious how Shopify's fees compare? Our Etsy vs Shopify fee calculator runs the numbers on your own sales.

Shopify Capital and other money tools

Shopify Capital offers funding to eligible stores based on their sales history. Instead of a traditional bank loan, you repay it as a share of your daily sales, so payments go down in slow weeks. Offers appear in the admin; there's nothing to apply for until Shopify makes one.

In supported countries Shopify also offers Shopify Balance, a business account for your payouts, and Shopify Tax, which calculates sales tax for you.

Shopify plans, from Starter to Plus

Shopify sells several plans. Names and prices change from time to time, so treat this as a guide and confirm on shopify.com/pricing.

• Starter: sell through social media and links, without a full online store.
• Basic: a full online store for a new or small business.
• Grow: more staff accounts, better reporting and lower card rates as sales grow.
• Advanced: deeper reporting, more staff and the lowest standard card rates.
• Shopify Plus: for high-volume and complex businesses. It adds checkout customization, expanded B2B, multiple stores under one organization, automation and higher API limits.

Most businesses don't need Plus, and we'll tell you if you don't. You need it when you need what it adds. How we work as a Shopify Plus partner.

How to set up a Shopify store

1. Start a trial. Sign up at shopify.com with your email. You can build the whole store before paying for a plan.
2. Add your products. Enter titles, descriptions, photos, prices, variants such as size and color, and inventory. Larger catalogs can be imported from a spreadsheet or another platform.
3. Pick and customize a theme. Choose a theme, add your logo and colors, and build your home page, collection pages and product pages.
4. Set up payments. Turn on Shopify Payments and Shop Pay, or connect another gateway.
5. Set shipping and taxes. Decide where you ship, how you charge for it and which taxes apply.
6. Write your policies and key pages. Refund, privacy and shipping policies, plus About and Contact pages.
7. Connect your domain. Buy one through Shopify or point one you already own at your store.
8. Test, then launch. Place a few test orders, check the store on your phone, choose a plan and remove the password page.

A simple store can launch in a few days. A store that needs to connect to an ERP, a warehouse, a POS rollout or a wholesale program takes planning before it takes design.

What Shopify doesn't do on its own

Shopify covers selling very well. It doesn't run the rest of your business. The common gaps we fill for clients:

• ERP and accounting. Orders, inventory and customers need to sync with systems like NetSuite or Microsoft Dynamics. ERP integrations.
• Warehouses and 3PLs. Fulfillment, split shipments and stock across locations. Logistics and warehousing.
• Features no app covers. Custom pricing logic, configurators, B2B ordering tools and admin extensions. Custom apps.
• Moving from another platform. Products, customers, order history and SEO redirects from WooCommerce, Magento, BigCommerce or a custom site.

Is Shopify right for your business?

Shopify is usually a good fit if you want to sell online and in person from one system, don't want to manage hosting or security, and want a large ecosystem of apps and developers behind you.

Take a closer look if your pricing is very unusual, you need deep control over checkout without being on Plus, or your catalog has very complex product rules. Those can often be solved on Shopify, but they're worth planning before you commit.

Selling on Etsy now? Read Shopify or Etsy: which is right for you.

Common questions about Shopify

Is Shopify free?

No. Shopify offers a free trial, then a monthly plan. You'll also pay card processing fees, and possibly for a theme, apps and a domain.

Do I need a developer to use Shopify?

Not to get started. Plenty of owners launch on their own with a theme. Developers come in for custom design, integrations, migrations and features that apps don't handle well.

Is Shopify good for SEO?

Yes. Shopify handles the technical basics, like fast hosting, mobile-friendly themes, sitemaps and editable titles and descriptions. Rankings still come from good content, clean site structure and links, the same as any platform.

Can Shopify handle wholesale and B2B?

Yes. Basic, Grow and Advanced plans include company accounts, a few custom catalogs and payment terms. Shopify Plus adds unlimited catalogs and more control for larger wholesale programs.

Can I move my existing store to Shopify?

Yes. Products, customers and order history can be migrated from most platforms. The step people forget is redirecting old URLs so you keep your search rankings.

Get help with Shopify

Text Connects is a Shopify Plus partner based in Danielson, Connecticut, building ecommerce since 2001. We help businesses choose the right plan, build or rebuild their store, and connect Shopify to the systems behind it.

If you're not sure where to start, our Data & Systems Audit maps out how your products, orders and systems should fit together before anyone writes code. Or just tell us what's stuck.