What is Shopify and How Does it Work? (2024 Guide)

Read Time: 7 min
Read Time 7 min

In day to day life, people with e-commerce business are in search of hassle free and time saving solution where they can manage products, payment and shipping in one go. In past few years millions of people have shifted there business to shopify for the boost in the ecommerce market. From offline stores to online hustle to international shipping shopify came across as an life savior for all small and giant entrepreneurs to meet day to day ecommerce needs.
With the help of this article we will explain what is shopify and how does it work, primary features of shopify, Pricing plans of shopify and, who can use shopify and most important what products can be sell on shopify store.

What is Shopify?

Shopify is the e-commerce platform that allows anyone to start hassle-free online businesses providing a set of features to manage, build, and grow online e-commerce stores. In 2024, Shopify turned out to be the largest e-commerce platform which also allows you to, sell products, and accept payments digitally as well as physically.
Shopify is a SaaS (software-as-a-service) sales platform that offers you in-build tools to grow and succeed in the e-commerce industry. Launched in 2006, Shopify has grown as the most popular e-commerce website builder for its user-friendly interface and access to thousands of features. Whether you are a small business owner or an established giant, this Shopify e-commerce online store has all the solutions in one place. It provides a fully loaded pack of business management tools, including store and inventory management, multiple payment gateways, shipping, customer services, marketing, and reporting. 

How Does Shopify Work?

Shopify is popular for its dynamic working nature. Shopify is not just easy to use it is also very dynamic while creating stores, and changing themes and templates. Shopify works as a go-to platform for all your e-commerce activities from selling products and shipping to payment processing and reporting. Shopify also gives admin access to monitor the flow of sales from placing orders to post delivery. Using Shopify, you can focus on growing your business in this competitive market. Let’s check out the step-by-step guide on “How Does Shopify Work.”

Step 1: Sign Up and Create Your Shopify Store

The first step is to sign up and create your Shopify store. You can sign up for a free 14-day Shopify trial and explore various plans, including Starter, Basic, Shopify, and Advanced. Here, you can fill in the basic details, such as your email address, store name, and also sales channel. 

Step 2: Find and Enter the Products You Want To Sell

Once you have created your account, it’s time to enter the products you want to sell. In the Shopify dashboard, you can find the option of products from where you can add new products manually. For each product, enter details such as the title, description, price, and images.

Step 3: Customize Your Shopify Store

One of the most interesting features that a Shopify store provides you is the ability to customize your e-commerce website with thousands of themes and backgrounds. You can get help from a Shopify expert to easily change the themes, colors, fonts, and layouts, as well as add logos that align with your brand identity.

Step 4: Add Domain

Another important step in setting up your Shopify store is to add a domain. You can add your domain or purchase one directly through their platform. 

Step 5: Set Up Payment Gateways

Do you know Shopify supports more than 100 external payment gateways? It has its own payment gateway called Shopify Payments which can be activated in one click. Other than this, you can also opt for other external payment processing methods, including credit cards, PayPal, Apple Pay, and more. 

Step 6: Select the Shipping Method

Shipping is another crucial aspect to complete the setup of your Shopify ecommerce store. You can set up your shipping zones, rates, and methods in the Shopify dashboard. You can then define the Shipping cost based on weight and price. Other than this, you can integrate with other shipping carriers like UPS, FedEx, and USPS.

Step 7: Launch Your Shopify Store and Start Selling

Once you have customized your Shopify online store and set up payments and shipping methods, it’s time for you to launch your store. As your store is up and running, your store will be visible to your target audiences and you can start selling your products effortlessly. 

Shopify Pricing Plans 2024

Now that we are done setting up the Shopify store, it is essential to know about the various pricing plans that it offers. All plans are designed in a way to cater to all business types. Let’s check out different pricing plans offered by Shopify in 2024.

Plan Ideal For Price per Month
Basic Plan New e-commerce businesses or limited budgets $29
Shopify Plan Growing businesses with advanced features $79
Advanced Plan Larger businesses with complex needs $299
Retail Plan Synchronizing online and offline operations $89
Plus Plan Enterprise-level businesses with high customization needs $2300
Enterprise Commerce Plan Large enterprises with complex operations Custom Pricing

Get a detailed overview of Shopify pricing plans and know how much it costs to build Shopify through our blog Shopify Pricing Plans and Cost Analysis.

Who Can Use Shopify?

Shopify is one of the most versatile online ecommerce stores that cater to a large number of users. You do not need any technical expertise to sell your products on this e-commerce store, which makes it easy for small businesses and startups to take advantage of this platform. Not only this, giant enterprises and firms can leverage this ecommerce website builder to scale their operations globally. Here’s a breakdown of who can use Shopify:

  • Startups and Entrepreneurs with new business ideas can quickly launch their online stores.
  • Users who are selling handmade crafts, artwork, or any other products from home.
  • Users who want to start their dropshipping business without maintaining the inventory.
  • Traditional retailers who have brick-and-mortar stores and want to expand their business by creating an online presence. 
  • Existing online stores that want to shift to Shopify for accessing unlimited features. 
  • Artists, designers, photographers, and creators who want to showcase and sell their work. 
  • Musicians and content creators who want to sell their products related to their brand.
  • Large enterprises that want to scale and manage their operations through a centralized dashboard.
  • Global brands that want to leverage multiple currencies, languages, and tax rates for global selling.
  • Charities and Non-Profits to raise funds, sell merchandise, and run campaigns for causes.

What Products Can I Sell on Shopify?

Shopify offers a wide range of flexibility when it comes to the types of products you can sell on the platform. Whether you’re selling physical goods, digital products, services, or a combination, it provides the tools and features to support various business models. Here’s a breakdown of the products you can sell on Shopify:

  • Physical products which you need to ship such as clothing, accessories, electronics, etc.
  • Digital products that can be downloaded such as e-books, software, music, photographs, art, and design. 
  • Services that can be provided online, including consulting services, online courses, webinars, memberships, subscriptions, and event tickets for workshops, and conferences.
  • Dropshipping items for those who do not want to maintain their inventory.
  • Subscription boxes that offer recurring payments.  
  • Print-on-demand items to sell customized and personalized home decor, apparel, stationary, and gifts. 
  • Fitness and sports equipment such as fitness accessories, nutritional supplements, and sporting goods.

However, there are a few items that you cannot sell on this e-commerce platform. Here’s a list of certain businesses and products that are restricted or not allowed to be sold on the platform.

  • Drugs and drug paraphernalia
  • Weapons and firearms
  • Counterfeit goods
  • Stolen goods
  • Products promoting hate, violence, or discrimination
  • Adult content and services:
  • Personal training sessions (in-person)
  • Medical or healthcare services (without proper authorization)
  • High-risk financial services (e.g., payday loans, cryptocurrency exchanges)
  • Investments, stocks, and trading (without proper authorization)
  • Cigarettes
  • E-cigarettes and vaping products (in some cases)
  • Smokeless tobacco
  • Online casinos
  • Sports betting
  • Lotteries and raffles (without proper authorization)
  • Selling or renting properties, unless specifically approved by Shopify

Conclusion

In conclusion, Shopify is a top choice for e-commerce businesses, offering an easy way to manage products, payments, and shipping. It caters to businesses of all sizes, providing essential features like product management, payment gateways, and marketing tools. Shopify’s flexible pricing plans suit various needs, supporting the sale of physical products, digital goods, and services. However, it’s important to adhere to Shopify’s restrictions on certain products. Overall, Shopify empowers businesses to thrive in the e-commerce landscape. For personalized assistance and guidance in setting up and optimizing your Shopify store, APPWRK can provide expert support to enhance your online presence and drive growth. Contact us today to take your e-commerce business to the next level!

FAQs Related to What is Shopify

Q1. Is Shopify good for beginners?

Ans. Yes, Shopify is excellent for beginners. Its user-friendly interface and extensive support make it easy to set up and manage an online store without technical expertise. You can start selling products quickly and efficiently.

Q2. What does Shopify do?

Ans. Shopify is an e-commerce platform that allows users to create, customize, and manage their online stores. It provides tools for product listings, inventory management, payment processing, and more. Essentially, it’s an all-in-one solution for running an online business.

Q3. Can I sell my products on Shopify?

Ans. Absolutely! Shopify is designed for selling products. Whether physical goods, digital downloads, services, or subscriptions, you can showcase and sell a wide range of products through your online ecommerce store. It’s a versatile platform for various types of businesses.

Q4. How much does Shopify cost?

Ans. Shopify offers various pricing plans to fit different business needs. The basic plan starts at $29 per month, offering essential features for small businesses. Higher-tier plans offer more advanced features, such as reporting tools and lower transaction fees. You can also start with a 14-day free trial to explore its features.

Q5. Where can I sell with Shopify?

Ans. You can sell on Shopify through various channels, including your online store, social media platforms (Facebook, Instagram), marketplaces (Amazon, eBay), and in-person with Shopify POS. It allows you to reach customers wherever they are, whether online or offline.

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About author

Gourav Khanna

Gourav Khanna is co-founder and CEO of APPWRK IT SOLUTIONS PVT LIMITED, a web & mobile app development company. He is a technophile who is always eager to learn and share his views on new technologies and future advancements. Gourav’s knowledge and experience have made him one of the industry's most respected and referenced leaders in the IT industry. His passion for writing and a high spirit of learning new things is reflected in his write ups. He has inspired many organizations to leverage digital platforms with his top-notch writing strategy skills that cut through the noise, backed by sharp thinking. Gourav believes that - “Words are the way to know ecstasy, without them life is barren ''.

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