Statista forecasts that global ecommerce sales will reach 6.4 trillion USD in 2024. If that does not convince you about the massive earning potential of starting an online store, then I don’t know what will!
Since the advent of the internet, the process of buying and selling goods has undergone substantial transformation, giving rise to a lucrative business opportunity online. The same report from Statista also reveals that the global share of ecommerce sales to the overall retail industry is just below 20%.
As someone who’s been into online selling and dropshipping, I can attest to how rapidly the online business, particularly ecommerce retail, has grown! If you want to start an online business, the most crucial decision you will make is which platform to use for the ecommerce store.
This decision can make or break your online business, aside from choosing the right niche and products to sell, which I also provide many guides for!
So, what is Shopify? And what makes Shopify e commerce platform an excellent choice if you want to build online stores? Keep reading to find out how to succeed with your e commerce business and sell online more successfully!
Key Takeaways
- Shopify offers various pricing plans that enable you to pick the right plan according to your budget or business goals.
- Shopify streamlines the process of adding products, managing inventory, and tracking customer orders.
- Shopify offers marketing tools to online store owners to reach their target audience and increase sales.
- Shopify is an all-in-one ecommerce solution that empowers entrepreneurs to start and grow an online store.
What is Shopify?
Shopify is an e commerce platform and online store builder available as a subscription-based service. It is an all-in-one platform where you can manage an online store, starting, growing, managing, and running your online business in one place.
Shopify is an excellent solution for ecommerce store owners because it has all the tools you need to build an online store and market it to your target audience. The features you can access from the platform depend on the Shopify plans you choose and the corresponding charges.
You can integrate Shopify apps to optimize the capabilities and performance of your e commerce business.
Shopify is secure and cloud-hosted, allowing you to access your online store from any device easily. It is an advantage for online store owners who want flexibility since you can manage your business wherever you may be.
How Does Shopify Work?
To cover what Shopify can do and its features is quite extensive, but I will break it down to the three main functions offered by the e commerce platform.
1. Build and Launch an Online Store
Shopify works like any e-commerce platform, enabling you to build your website using its online tools and services. But it’s more than an online store builder because Shopify supports multiple sales channels and SEO tools to boost sales.
But I’ll discuss more of that later.
The first thing you must do when starting an ecommerce business with Shopify is build your online store. You must select your preferred Shopify plans and then choose an appropriate theme from the Shopify theme store.
The Shopify theme store offers free and premium themes, which vary depending on the level of customization preferred. The premium themes offer more customization options, such as changing the colors, fonts, and images to meet your branding needs.
Another advantage of using Shopify to build your online store is that the website is mobile-friendly.
You need to buy your own business domain name for the online store. Otherwise, your website link will be the default Shopify domain. Buying your own domain adds to the store’s credibility and trustworthiness, so it is worth the investment.
Setting up payments is the next step in figuring out how Shopify works. You can choose as many payment gateways as allowed, and you should max it out to let your customers know that you accept payments from multiple options. Adding several payment gateways to your online store is also beneficial because it allows your customers to choose the payment method that is most convenient for them.
Since Shopify Payments was launched as the default payment gateway on the e commerce platform, Shopify now charges a fee when you add a different payment processor. Therefore, it’s something to consider when setting up how to accept payments in your online store.
The next step in launching your Shopify store is to set up the buy button. You can embed it into your products or integrate it into your website or social media platforms.
As mentioned, Shopify allows multiple sales channels, allowing you to boost sales by accessing your target audience.
2. Sell Products
The next step in setting up a Shopify store is to start selling products. Once your Shopify store is live, you can start selling products online from your ecommerce website.
Shopify offers various tools you need to run an ecommerce store.
The Shopify dashboard allows you to manage inventory. The inventory management capabilities on the Shopify dashboard allow you to track stock levels for certain products, which include current and incoming stocks.
It also makes it easy to manage inventory across multiple Shopify stores. This tool makes it easier to sort orders based on the delivery location and fulfillment method.
The next tool available on Shopify for selling products is through managing the shipment of orders. Shopify allows you to print shipping labels and get discounted shipping rates.
You can easily track orders shipped to customers from the Shopify dashboard.
And as I’ve mentioned above, Shopify allows you to integrate multiple sales channels into your online stores. Therefore, you can expand your reach to potential customers so that you can sell products outside of your own website.
It means that you can leverage social media, such as Google, TikTok, Facebook, or Instagram, to sell products online.
3. Run Your Online Business
The third aspect of having a Shopify store is that you can use it to run or manage your ecommerce business. Basic to advanced tools are available on Shopify to manage and grow your Shopify store.
Shopify store owners can use the tools to track orders and monitor sales performance. It can easily track where the order was placed, whether from the website or any sales channel.
The data is easily accessible from the dashboard, ensuring you can monitor reports and data analytics to evaluate order information and history.
Furthermore, you can manage your business through the Shopify app. You can use the Shopify app to upload product photos, set or update prices, issue refunds, monitor visitor traffic and sales, receive order notifications, and other marketing tools for growing your business.
Another important tool available to Shopify online store owners is the ability to communicate with customers. You can set up chat on the Shopify app to promptly respond to customer queries or launch email campaigns.
The vast integration capabilities of the Shopify app provide more possibilities for your online store.
How Much Does Shopify Cost?
While starting an online store without capital or inventory is possible, you must shell out a certain amount to set up an online business website, such as a Shopify store.
The cost of starting an ecommerce store with Shopify varies depending on your chosen Shopify plans. You can also subscribe to the quote-based option, providing more flexibility to suit your budget.
First, there is a free trial offer on Shopify. You can use this free trial to see if it’s the ideal e commerce platform for your online business.
You can update your Shopify plan as you grow your business or depending on your changing needs.
When subscribing to a plan, you have two payment schemes: annual or monthly. You can enjoy discounts when you opt for the annual plan, meaning you will pay your subscription for the entire year at once.
But if you cannot afford this, you can always choose the monthly option, which will be based on your specific plan.
Basic Plan
The Basic plan is available for $19 per month on an annual plan or $25 for a monthly plan. The features available on the Basic plan include a customizable checkout, standard analytics, 24/7 chat support, up to 10 inventory locations, and localized global selling.
The Basic plan is designed for solo entrepreneurs or those who are starting their online business journey.
Shopify Plan
The next plan is called Shopify, which is recommended for online stores with small teams. The cost is $49 per month on the annual plan or $65 per month on the monthly plan.
The features included in the Shopify plan are a checkout page, standard analytics, 24/7 chat support, up to 10 inventory locations, localized global selling, and five staff accounts.
Advanced Plan
The Advanced Plan is recommended for online stores that want to scale and grow. It is available for $299 per month for the annual plan or $399 per month for the monthly plan.
It comes with the features available on the Basic and Advanced Shopify plans but with enhanced customer support, added global customization (for an additional fee), and 15 staff accounts.
You can see the full list of features for each plan here.
In addition, Shopify offers more advanced solutions for established businesses. It starts at $89 per month for retail businesses and custom pricing for enterprise commerce solutions.
Meanwhile, a Starter plan is also for online business owners who want to sell via social media or messaging apps. It starts at $5 per month.
Shopify Transaction Fees and Processing Fees
Shopify charges a transaction fee for every sale you make on the platform. The fee ranges from 0.5% to 2%, depending on your pricing plan subscription.
However, you can scrap this fee if you use Shopify payments, the built-in payment processor offered by Shopify. But if you prefer to accept payments using other payment processors, that is also accepted, except that you must pay the added fee.
Shipping is another cost to consider when selling products on Shopify. The platform offers a built-in shipping label printing available on any plan.
It offers competitive shipping rates on carriers like DHL, UPS, and USPS. You can enjoy higher discount rates if you’re subscribed to a higher-tiered plan.
The Shopify app offers the POS in-person selling feature, available in all Shopify pricing plans. This feature enables merchants to sell in person through the Shopify app and use a manual keyed-in entry on their mobile device to process payments.
However, you need to set up Shopify Payments to be able to use the POS Lite feature.
Finally, the Shopify premium themes are a final cost consideration when setting up a Shopify store. Currently, there are up to 75 premium themes available on Shopify.
The cost for these premium themes starts at $180. However, this fee allows you maximum customization to create the look you want to match your store brand.
What to Sell on Shopify?
Knowing what products you can start selling on Shopify is crucial to help you boost online sales. Also, it pays to know what products you can sell online to avoid violating Shopify’s terms of use and policies.
Among the products or services you can offer to customers online are:
- Physical products shipped by you
- Digital products (e-books, music files, gift cards)
- Dropship items
- Retail goods and services
- Online courses, workshops, and tutorials
- Event tickets and passes
- Rental equipment and clothing
- Subscription-based products or services
On the other hand, you must know about the prohibited items on Shopify. Here is an overview of that list:
- Adult content
- Gambling
- Investment or credit services
- Virtual currency services
- Extended warranties
- Cannabis or tobacco products
- Fireworks
- MLM products
- Telemedicine
- Drug paraphernalia
The list above is not exhaustive, so refer to the complete list on Shopify’s website to avoid being suspended or penalized.
Reasons to Choose Shopify
What is Shopify, and is it the right choice for your business? Explore the benefits this ecommerce platform offers to determine if it’s a good fit for you.
1. It caters to various online sellers.
Whether you’re a beginner or an enterprise, Shopify supports various business needs and can adapt its services accordingly. With a vast array of features and customized pricing plans, it can work for any business, large or small.
2. It helps you attain global reach.
Shopify offers various sales channels and helps you build your own store website to reach a global audience.
3. It offers vast integration capabilities.
You can do more with your Shopify store as it can be integrated with various ecommerce built-ins. Therefore, you can expand the reach of your online store to serve customers from anywhere in the world and on any platform.
4. It allows you to showcase your brand.
Shopify provides endless customization options, from pricing plans to store themes. Thus, you can build and highlight your brand, making it easier to stand out from the competition and boost your online sales.
You can integrate images, links, and videos to bring your brand story to life and offer a positive customer buying experience.
5. It streamlines the selling process.
With various store integrations and management tools easily accessible from the dashboard, running and growing your business becomes easier and more organized. The best part is that you can access these tools from any device, making it easier to run your business wherever you may be.
6. It is easy to scale.
Make sure your Shopify store grows with you. As your business grows, you can easily increase your subscription plan, giving you access to more advanced tools that match your growing business needs. The flexibility and adaptability of the Shopify platform ensure that you can consistently aim to grow your business.
Summary: What is Shopify?
As an aspiring online business owner, you must allocate time and effort to compare through various e commerce platforms to find the right one. There is a suitable solution for your varying business needs, so aligning your business goals with what the platform offers is crucial.
Shopify is suitable for beginners who want to test the waters and sell online for a small investment and those businesses that want to scale. It has all the tools you need to set up your online store and customizing it to look like an online business website that can attract your target audience and potential buyers.
At the same time, it is equipped with the marketing tools to boost sales and get your products in front of as many customers as possible.
It’s part of why Shopify is among the leading choices for ecommerce business owners. It empowers online entrepreneurs with the tools and capabilities to achieve their goals!
FAQs
What exactly does Shopify do?
Shopify is an ecommerce website builder and ecommerce platform where business owners can build, sell, and promote their online store. It enables various integrations to facilitate sales across multiple channels besides their website.
Is Shopify worth it for beginners?
Yes. Shopify is a beginner-friendly platform that boasts a vast array of ecommerce features that make it easier to sell products online, even if you’re a starter.
Is Shopify free to use?
Shopify does offer a free trial for a limited time. However, various pricing plans are available, with $5 per month being the lowest. Depending on how many products you want to sell online, running a Shopify store costs up to $2,000 per month.
What are the disadvantages of using Shopify?
Some of the major downsides to using Shopify is the transaction fee per sale, and the subscription cost. In addition, you need to pay for the themes if you want to customize the look of your website. Otherwise, you will be limited to the customization options available on the free themes and basic pricing plans.
How much does Shopify take per sale?
The transaction fee per sale is 2.9% + 30 cents. The actual fees that Shopify charges will depend on your pricing plan.
Is it worth it to sell in Shopify?
Yes. Shopify is not among the leading ecommerce platform for nothing. It boasts many features to start an online store and sell online. However, it depends on your budget and online business goals, so compare it with other platforms.
