If you’re thinking about starting an online store, you’ve probably heard of Shopify. But how does Shopify work, and why is it so popular?
In this blog, we’ll break it down in simple terms so you can understand how Shopify can help you build, manage, and grow your online business.
What is Shopify: An Overview
Shopify is a commerce platform that allows brands to sell products both online and offline through its fully-hosted, cloud-based system. It markets itself as an all-in-one solution, offering a wide range of tools and features to support businesses in selling their products.
Shopify is ideal for startups because of its affordable pricing plans, which help businesses establish an online presence quickly. At the same time, it also serves large enterprises with advanced integrations, high hosting capacity, and secure, reliable checkout systems.
Additionally, Shopify supports B2B, wholesale, and enterprise operations. Many global brands, including Allbirds, Gymshark, and Kylie Cosmetics, rely on Shopify Plus for their international sales.
Shopify gives merchants full control, enabling them to set up stores and sell products easily with built-in integrations for most major tech providers. The platform includes a user-friendly drag-and-drop content management system called Online Store 2.0, which allows brands to manage their stores while giving developers the freedom to create and customize new features. Shopify is not just for new businesses; it also provides the tools needed to grow, whether online, offline, or globally.
How to Get Started with Shopify for Beginners
Starting with Shopify is simple and doesn’t require any technical knowledge or special skills. It’s perfect for beginners. To begin, visit the Shopify website and click the “Start Free Trial” button at the top. This gives you three days to explore Shopify’s features before committing. After the trial, you’ll need to choose a paid plan, but we’ll cover pricing details later.
Shopify handles hosting for you, so you don’t need to worry about setting it up or managing it. However, you’ll need to select or transfer a domain name so customers can find your store online. You can buy a new domain through Shopify or connect an existing one from a third-party provider.
The Shopify admin panel is user-friendly with a clean, intuitive design. To set up your store, add your products, organize them into collections, pick a theme, and configure shipping and payment options. Shopify offers 24/7 support and an AI help center, so assistance is always available if you need it.
Creating a new store takes time because you’ll need to prepare all your content, images, text, and product details. Make sure your website looks exactly how you want before launching it.
How Much Does Shopify Cost & What are The Shopify Pricing Plans?
Shopify charges a monthly fee for its services, with various plans designed to meet the needs of different businesses, from small shops to large retailers. It’s important to keep in mind that there may be extra costs involved in running a Shopify store. Below, we’ll break down the main expenses you might encounter. For more details, you can also check out our article on Shopify pricing.
Subscription Plans
Shopify offers four main plans, all of which include an online store, unlimited hosting, unlimited products, orders, and customers, PCI-compliant security, 24/7 support, and access to most of Shopify’s features.
- Basic Shopify – Starting at £19 per month, this plan provides all the essential tools to manage orders, customers, and your online store. However, lower-tier plans come with higher transaction fees.
- Shopify – Priced at £49 per month, this plan includes everything in Basic Shopify, plus five additional staff accounts. It’s ideal for growing businesses that need more team members to help run the store.
- Advanced Shopify – Starting at £249 per month, this plan supports up to 15 staff accounts and offers advanced reporting tools for deeper insights into your business performance.
- Shopify Plus – Designed for large enterprises, this plan starts at $2,300 per month. It includes advanced customization options, unlimited staff accounts, and features tailored for international sales. The final price depends on your business’s revenue.
Transaction Fees
Shopify charges transaction fees, which vary depending on your plan. Lower-tier plans have higher fees. Shopify also offers its own payment processor, Shopify Payments, which doesn’t incur additional transaction fees. However, if you use a third-party payment gateway like PayPal or Amazon Pay, Shopify will charge an extra fee. Shopify Payments also supports in-person sales through its mobile app or POS system.
Shipping Costs
Shopify partners with major shipping companies like DPD and Evri, allowing you to buy shipping labels at discounted rates directly through the platform. You’ll be charged for shipping labels once your spending reaches a certain threshold.
Paid Themes
While Shopify provides a few free themes, most professionally designed themes cost between100and300. These premium themes are available in the Shopify Theme Store and are created by developers approved by Shopify.
POS System
If you run a physical store, Shopify offers POS (Point of Sale) terminals. These come with additional fees, including a monthly charge and hardware costs for items like iPads, card readers, and cash drawers.
By understanding these costs, you can choose the right Shopify plan and features for your business needs.
How Does Shopify Work? A Step-by-Step Breakdown
1. Sign Up and Choose a Plan
The first step is to create a Shopify account. Shopify offers a 3-day free trial (no credit card required) so you can explore the platform before committing. Once you’re ready, you’ll choose a pricing plan based on your business needs:
- Basic Shopify: Perfect for new businesses.
- Shopify: Ideal for growing businesses.
- Advanced Shopify: Best for scaling businesses with advanced features.
- Shopify Plus: Designed for large enterprises.
Each plan includes hosting, security, and access to Shopify’s tools, with more features available as you upgrade.
2. Set Up Your Online Store
Once you’ve signed up, Shopify guides you through the process of building your store. Here’s how it works:
Choose a Theme:
Shopify offers a wide range of free and paid themes that are fully customizable. These themes are designed to look professional and are mobile-friendly, ensuring your store looks great on any device.
Add Your Products:
You can easily add products to your store by entering details like product name, description, price, and images. Shopify also allows you to organize products into categories, set inventory levels, and add variants (e.g., sizes or colors).
Customize Your Store:
Shopify’s drag-and-drop editor makes it easy to customize your store’s design. You can change colors, fonts, and layouts without any coding knowledge. For advanced customization, you can edit the HTML and CSS.
Set Up Payment Gateways:
Shopify supports over 100 payment gateways, including Shopify Payments, PayPal, Stripe, and more. You can also accept credit card payments directly through your store.
3. Manage Your Store
Shopify provides a centralized dashboard where you can manage all aspects of your business:
Order Management:
Process orders, track shipments, and send notifications to customers. Shopify also integrates with major shipping carriers like UPS, FedEx, and DHL.
Inventory Management:
Keep track of your stock levels and receive alerts when inventory is low. You can also manage multiple warehouses if needed.
Customer Management:
Store customer information, track order history, and create customer groups for targeted marketing.
4. Sell Across Multiple Channels
Shopify isn’t just limited to your online store. You can sell your products through various channels:
Social Media:
Integrate your store with platforms like Facebook, Instagram, TikTok, and Pinterest to reach customers where they spend their time.
In-Person Sales:
Use Shopify’s Point of Sale (POS) system to sell products at physical locations like pop-up shops, markets, or retail stores.
Marketplaces:
Connect your store to marketplaces like Amazon and eBay to expand your reach.
5. Market Your Business
Shopify includes built-in marketing tools to help you attract and retain customers:
SEO Tools:
Optimize your product pages and blog posts for search engines to drive organic traffic.
Email Marketing:
Create and send email campaigns to promote products, announce sales, or engage with customers.
Discount Codes and Gift Cards:
Run promotions to incentivize purchases and reward loyal customers.
Social Media Ads:
Use Shopify’s integration with Facebook and Google Ads to create and manage ad campaigns.
6. Analyze and Optimize
Shopify provides detailed analytics and reports to help you understand your store’s performance:
Sales Reports:
Track your revenue, average order value, and conversion rates.
Customer Reports:
Analyze customer behavior, such as where they’re coming from and what they’re buying.
Marketing Reports:
Measure the effectiveness of your campaigns and adjust your strategy accordingly.
Why Choose Shopify?
Here’s why Shopify is the preferred choice for millions of businesses:
All-in-One Solution: From building your store to managing orders and marketing, Shopify has everything you need.
Affordable Pricing: With plans starting at just $39/month, Shopify is accessible to businesses of all sizes.
Global Reach: Sell to customers worldwide with multi-currency and multi-language support.
Trusted by Big Brands: Companies like Gymshark, Allbirds, and Heinz use Shopify to power their online stores.
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Conclusion
Shopify is a powerful, user-friendly platform that simplifies the process of building and running an online store. Whether you’re selling handmade goods, digital products, or running a large-scale e-commerce business, Shopify provides the tools and support you need to succeed.
By understanding how Shopify works and leveraging its features, you can create a professional online store, reach customers worldwide, and grow your business with confidence.