What Is Shopify And How Does It Work?

Are you searching for a digital, exclusive eCommerce platform that provides a user-friendly interface and lets you start without spending much on store and bearing the pains of outlet extensions?

This Dream becomes possible with Shopify as Shopify provides you with all the essential features that benefit your online store`s growth. If you are new in the online business, you still hear or view the name Shopify while browsing Search engines. Yeah, you are right! But What is Shopify?

What Is Shopify And How Does It Work

Let me introduce this in one sentence. Shopify is a powerful eCommerce platform established in 2004 that supports all types of businesses, from starters to great enterprises, to start and grow their stores with its different pricing plans. 

I’m sure you got the idea, but many questions about Shopify are popping into your mind.


  • How Does Shopify Work?
  • Which type of product can I sell on Shopify?
  • Is Shopify legit? 
  • What benefits it provides to the merchants?
  • Is Shopify have any disadvantages?
  • How is Shopify better than other online E-commerce platforms?
  • How can I get the maximum out of Shopify Store?
  • And many more

If these are your queries, you can stick with me on this blog. I will give you detailed information and answer your questions. So what are you waiting for? Let’s begin.

How Does Shopify Work?

Shopify is an all-in-one e-commerce platform that enables businesses to create and run online stores. It provides a comprehensive set of tools and features to handle everything from website design and development to inventory management and payment processing.

The key characteristics that make it the merchants’ most desired platform are;

  • User-friendly interface
  • Easy to set up
  • Dont require technical knowledge
  • Variety of Payment Gateways
  • Build-in marketing tools
  • Range of Customizable Themes
  • Provide data analysis
  • Facilitates with SEO tools
  • And Much more 
what does shopify do

Shopify is built on a robust, cloud-based infrastructure that delivers exceptional reliability, security, and scalability. Businesses can easily and quickly set up and manage online stores without worrying about technical details.

With Shopify, businesses can customize their online stores to match their branding, choose from various payment gateways, and efficiently manage their inventory and orders. The platform also provides comprehensive analytics and reporting features, allowing businesses to track their performance and make data-driven decisions.

A Beginners Guide To Start Selling On Shopify 

Shopify provides businesses with a complete e-commerce platform to create and run online stores. Here’s how it works in a way that’s easy to understand:

  1. Sign Up For A Free Trial

Finally, you have decided to Start your business with Shopify; it’s easy to set up. But How? businesses can sign up for Shopify and create their online store by choosing a template or customizing their storefront with their branding.For Example,

  1. Go to the Shopify website: First, go to www.shopify.com.
  2. Click on the “Get started” button: On the Shopify homepage, click on the “Get started” button.
  3. Enter your email address: Next, enter your email address and click on the “Start free trial” button.
  4. Create your account: Enter your desired password and create your Shopify account.
  5. Set up your store: Once you’ve made your account, you’ll be prompted to set up your store. You can choose a template from Shopify’s library or customize your design
ecom vali shopify store

2. Add Products And Manage Inventory 

Once the store is set up, businesses can add and manage their products using Shopify’s built-in tools. They can also set shipping rates and taxes and collect orders and customer information.

Overall, adding products and managing inventory on Shopify is a straightforward process that can be done quickly through its user-friendly interface. With its inventory management tools, businesses can keep track of their stock levels and ensure they have enough inventory to fulfill customer orders.

3. Customize Payment And Shipping Options

Shopify provides a range of payment and shipping options, including its own Shopify Payments gateway. It allows businesses to accept customer payments worldwide and ship products using popular carriers.

Customizing payment and shipping options on Shopify is a simple process that can be done through its built-in settings. With its flexible payment and shipping options, businesses can offer their customers a seamless checkout experience and ensure their products are delivered on time and at the right price.

4. Market And Promote Your Store

Overall, marketing and promoting your store on Shopify requires a multi-faceted approach that involves social media, SEO, email marketing, influencer marketing, and promotions. These strategies can drive traffic to your store, increase sales, and build a loyal customer base.

5. Monitor Performance And Optimize

Shopify provides detailed analytics and reporting tools to help businesses track their performance, identify areas for improvement, and optimize their online store. It helps businesses make data-driven decisions and improve their sales and customer satisfaction.

Overall, Shopify makes it easy for businesses to create and run their online stores, from setting up their storefront to managing their inventory and shipping to marketing and promoting their products. Its comprehensive features and tools help businesses succeed in the competitive world of e-commerce.

Connecting Your Store To Shopify Sales Channels To Increase Sales

Connecting your store with Shopify sales channels can increase your store’s visibility and reach more potential customers. Here are some steps to secure your store with Shopify sales channels:

  1. Log in to your Shopify account and navigate to the “Sales Channels” section.
  1. Click “Add sales channel” and choose the channel you want to add. Shopify offers a variety of sales channels, including Facebook, Instagram, Amazon, and eBay.
  1. Follow the prompts to connect your store with the selected sales channel. It may involve creating a new account or linking an existing one.
  1. Once your store is connected with the sales channel, you can start listing your products and promoting them to the channel’s audience.
  1. Optimize your listings to ensure they appeal to each sales channel’s target audience. It may involve adjusting product descriptions, images, and pricing.
  1. Use the built-in analytics tools to monitor your sales performance on each channel and adjust your strategy accordingly.

You can expand your reach and increase sales by connecting your store with Shopify sales channels. Each sales channel offers unique benefits and audiences, so choosing the most relevant channels for your business and target audience is essential. Optimizing your listings, using analytics to track your performance, and making data-driven decisions to improve your sales are crucial.

Use Shopify To Sell On Social Media 

Shopify has several features that make it easy for businesses to sell on social media. Here are a few ways in which Shopify can be used to sell products on social media:

what is shopify used for
  1. Facebook; Businesses can set up a “Shop” tab on their Facebook page and sell products directly through Facebook. Shopify also integrates with Facebook Messenger for customer support and sales.
  2. Instagram; It has  a “Shopping” feature allowing businesses to tag products in their posts and stories. Shopify makes it easy for customers to purchase products directly from the Instagram app.
  3. Pinterest;  Shopify integrates with Pinterest’s Buyable Pins feature. It allows businesses to sell products directly through Pinterest.
  4. Twitter; While there is no direct integration with Twitter, businesses can use Twitter to promote their Shopify store and drive traffic to their website.
  5. TikTok;  Shopify has a partnership with TikTok that allows businesses to create shoppable video ads on the platform.
  6. Snapchat; Shopify integrates with Snapchat’s Dynamic Ads feature, which allows businesses to create ads that show products to users who have previously interacted with their website or social media profiles.

Overall, Shopify integrates with several popular social media channels, allowing businesses to reach new customers and increase sales through social media.

A. Shopify`s Pricing Plans

Shopify’s pricing plans include unlimited bandwidth, storage, products, and access to more than 100 free and paid themes. Additionally, Shopify offers a 14-day free trial to test the platform before committing to a pricing plan.

Let’s make a comparison among Shopify`s different pricing plans.

FeaturesShopify LiteBasic ShopifyShopifyAdvanced ShopifyShopify Plus
Monthly Cost$9$29$79$299Custom
Staff Accounts2515Custom
Online StoreXXXXX
Mobile AppXXXXX
Point of Sale (POS) SystemXXXXX
Gift CardsXXXX
Professional ReportsXXXX
Shipping DiscountsXXXX
Abandoned Cart RecoveryXXXX
Advanced Report Builder$299XX
Third-party Calculated Shipping Rates$20/moXX
Advanced Discounts$15/moXX
Custom Report Builder$50/moX
Advanced Fraud Detection$10K setup feeX
Priority SupportX


  • The cost for Third-party Calculated Shipping Rates and Advanced Discounts may vary based on the region and payment plan.
  • The cost for Advanced Fraud Detection is a one-time setup fee.

Some of the pricing plans of Shopify are as mentioned below:

            Shopify Lite;

Shopify Lite costs $9 per month. This pricing plan is designed for businesses that don’t need a whole e-commerce website but still want to sell products and services online.

With Shopify Lite, you can add “Buy” buttons to your existing website or blog or use Shopify’s point-of-sale (POS) system to sell products in person. It allows you to create a simple online store without a complete e-commerce website.

 Basic Shopify:

This plan is for starting new businesses. It costs $29 monthly and includes unlimited products, 24/7 support, a free SSL certificate, and basic Shopify reporting.


This plan is designed for growing businesses and costs $79 monthly. It includes all the features of the Basic Shopify plan, plus additional features such as gift cards, professional reports, and abandoned cart recovery.

Advanced Shopify: 

This plan is designed for high-volume businesses and costs $299 monthly. It includes all the features of the Shopify plan, plus advanced features such as third-party calculated shipping rates, advanced reporting, and up to 15 staff accounts.

Shopify Plus: 

This plan is designed for large enterprises and offers custom pricing based on business needs. It includes all the features of the Advanced Shopify plan, plus additional features such as a dedicated account manager, priority support, and custom checkout pages.

In addition to these pricing plans, Shopify offers services such as Shopify Payments, which allows merchants to accept credit card payments directly on their store, and Shopify Shipping, which provides discounted shipping rates and easy label printing.

Shopify’s pricing plans offer flexible options for merchants of all sizes and stages of growth. Businesses can create a powerful e-commerce platform to drive sales and grow their brand by choosing the right strategy and utilizing additional services.

B. Shopify`s Payment Processing And Transaction Fee 

If you use Shopify Payments as your payment gateway, you won’t be charged any additional transaction fees beyond the above rates. However, if you use an external payment gateway, you’ll be charged the additional transaction fee mentioned below in addition to the fees charged by the payment gateway provider.

Payment and transaction fees for all of Shopify`s plans include;

  • Shopify Lite: 2.9% + 30 cents per transaction for credit card payments processed through Shopify Payments
  • Basic Shopify: 2.9% + 30 cents per transaction for credit card payments processed through Shopify Payments; 2.0% per transaction for using external payment gateways
  • Shopify: 2.6% + 30 cents per transaction for credit card payments processed through Shopify Payments; 1.0% per transaction for using external payment gateways
  • Advanced Shopify: 2.4% + 30 cents per transaction for credit card payments processed through Shopify Payments; 0.5% per transaction for using external payment gateways.

It’s also worth noting that if you’re on a Shopify Plus plan, you can negotiate custom transaction fees based on your specific needs and transaction volumes.

C. Shopify`s Shipping Fee

Shopify’s transaction fees vary depending on your plan and whether you use Shopify Payments or a third-party payment provider. Here are the current transaction fees for each plan as of February 2023:

  • Basic Shopify plan: 2.9% + 30¢ per transaction (if using a third-party payment provider, an additional 2% transaction fee applies)
  • Shopify plan: 2.6% + 30¢ per transaction (if using a third-party payment provider, an additional 1% transaction fee applies)
  • Advanced Shopify plan: 2.4% + 30¢ per transaction (if using a third-party payment provider, an additional 0.5% transaction fee applies)

So here is the Shipping fee for each pricing plan of Shopify that you can opt according to your business strategies and financial needs.

What Can I sell On Shopify?

There are many different types of products and services that you can sell on Shopify, but here are some examples:

ecommerce shopify
  1. Physical products include clothing, accessories, beauty, and electronics.
  2. Digital products include ebooks, music, courses, and software.
  3. Subscription-based services such as magazines, box subscriptions, and software.
  4. Services such as consulting, coaching, and design services.
  5. Event tickets for concerts, shows, and other events.
  6. Artwork and handmade goods such as paintings, jewelry, and pottery.
  7. Food and beverage products include coffee, tea, and snacks.
  8. Drop shipped products you don’t physically stock but have a supplier ship directly to customers.

Shopify is a versatile platform selling a wide range of products and services. However, ensuring that your products comply with Shopify’s Acceptable Use Policy and applicable laws and regulations is essential.

Which Type Of Businesses Can Use Shopify?

Shopify is a popular choice for small and medium-sized businesses (SMBs) who want an easy-to-use platform to sell their products online. Shopify’s intuitive interface and low starting costs make it accessible to businesses that may not have much experience with e-commerce.

  1. Small and medium-sized businesses want an easy-to-use platform to sell their products online.
  2. E-commerce entrepreneurs who want to start an online store quickly and affordably.
  3. Existing brick-and-mortar businesses that want to expand their sales online.
  4. Influencers and content creators want to monetize their following by selling products related to their brand.
  5. Non-profit organizations that want to sell merchandise to support their cause. Here are examples of who uses Shopify:

Here are some examples of business types or situations where Shopify may not be the best fit:

  1. Large-scale e-commerce businesses that require extensive customization or integration with existing systems.
  2. Businesses need a lot of control over the design and functionality of their online store.
  3. Businesses that require complex shipping or fulfillment processes.
  4. Shopify’s Acceptable Use Policy prohibits businesses that sell products, such as certain types of firearms, drugs, or adult content.

It’s important to note that these are just a few examples, and other factors may determine whether or not Shopify is the right platform for your business. Researching and exploring your options before committing to a specific e-commerce platform is always good.

Brands Working On Shopify 

Shopify have many features and integrations, making it a popular choice for many small and large businesses. Examples of USA-based brands using Shopify:

  1. Allbirds – Sustainable footwear company
  2. Gymshark – Fitness apparel company
  3. Kylie Cosmetics– Cosmetics and beauty brand
  4. Bombas – Socks and apparel company
  5. MVMT – Watch and accessory brand
  6. KITH – Streetwear and lifestyle brand
  7. Death Wish Coffee – Coffee and merchandise brand
  8. Rebecca Minkoff – Fashion and accessory brand
  9. MVMT – Watch and accessory brand
  10. Purely Elizabeth – Healthy food and wellness company.

These are just a few examples of the many USA-based brands that use Shopify for their online stores.

Using Shopify Tools To Initiate Sells

There are several ways businesses can use Shopify’s tools to increase sales on their online store. Here are some strategies that can be implemented:

  1. Optimize product pages: 

Businesses can use Shopify’s tools to optimize their pages, including writing detailed product descriptions, using high-quality product images and videos, and adding customer reviews and ratings.

  1. Upsell and cross-sell:

 Shopify’s platform makes it easy for businesses to upsell and cross-sell their products. By recommending complementary products, offering bundles or packages, and highlighting related products, businesses can encourage customers to purchase more.

  1. Implement abandoned cart recovery: 

Shopify offers an abandoned cart recovery feature that allows businesses to send automated email reminders to customers who have left items in their cart but still need to complete their purchase. It can help to recapture lost sales and improve overall conversion rates.

  1. Optimize for mobile:

 With most online shopping on mobile devices, ensuring your online store is optimized for mobile is essential. Shopify’s platform is mobile-friendly by default, but businesses can customize their mobile store design and functionality to provide an optimal shopping experience for mobile users.

  1. Offer multiple payment options: 

By offering various payment options, including credit cards, PayPal, and Apple Pay, businesses can make it easier for customers to complete their purchases and reduce cart abandonment rates.

  1. Use analytics to make data-driven decisions:

 Shopify’s platform offers robust analytics and reporting tools that can help businesses track their performance, identify areas for improvement, and make data-driven decisions to optimize their store and increase sales.

By using Shopify’s tools to optimize product pages, upsell and cross-sell, implement abandoned cart recovery, optimize for mobile, offer multiple payment options, and use analytics to make data-driven decisions, businesses can increase sales and grow their online stores.

Is Shopify Worth It?

Using Shopify has several advantages and disadvantages that businesses should consider before deciding whether to use the platform for their online store.

shopify website


  1. User-friendly platform: Shopify’s platform is intuitive and easy to use, making it accessible even for beginners. Businesses can quickly and easily set up online stores and start selling.
  2. Wide range of features: Shopify offers a wide range of features, including customizable themes, a drag-and-drop store builder, integrated payment options, and Extensive app and plugin integration. It allows businesses to tailor their online store to their specific needs and provide a seamless shopping experience for customers.
  3. Optimized for search engines: Shopify is designed with search engine optimization (SEO) in mind, providing businesses with built-in SEO features such as customizable meta titles and descriptions, clean URLs, and easy-to-use sitemaps. It can help stores improve their visibility in search engine results and drive more traffic to their online store.
  4. Strong customer support: Shopify offers 24/7 customer support via email, phone, and live chat, making it easy for businesses to get the help they need when they need it.


  1. Limited design customization: While Shopify offers many customizable themes, businesses may need more customization. It may disadvantage businesses looking to create a unique and personalized online store.
  2. Transaction fees: Shopify charges a transaction fee for every sale made through their platform. While these fees are relatively small, they can add up over time and may cut a business’s profit margin.
  3. Limited control over servers: Shopify is a hosted platform, meaning businesses have limited control over their server. It may disadvantage businesses with specific server requirements or security concerns.
  4. Monthly fees: While Shopify’s pricing plans are relatively affordable, businesses must pay a monthly fee to use the platform. It may be a disadvantage for small businesses or those with limited budgets.

Overall, using Shopify can be an excellent way for businesses to create a user-friendly online store optimized for search engines and designed to provide a seamless shopping experience for customers. However, it’s essential to consider the potential limitations and fees associated with the platform before making decisions.

Frequently Asked Questions (FAQs)

Final  Assessment

Shopify is a user-friendly platform that makes it easy for businesses to create and manage online stores. Shopify can be a good choice for businesses looking to set up an online store, but whether or not it’s the best choice will depend on various factors.

However, Shopify also has some potential limitations and fees that businesses should be aware of, including limited design customization options, transaction fees, and monthly fees for using the platform.

Ultimately, whether or not to use Shopify will depend on a business’s specific needs and goals. For businesses looking to create a professional, user-friendly online store optimized for search engines and designed to provide a seamless shopping experience for customers, Shopify can be a good choice. However, businesses with more specific or complex requirements may find that another e-commerce platform better fits their needs.

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