How Does Shopify Work: A Complete Guide for Sellers and Businesses

Over 520,000 retailers worldwide use Shopify in the fashion industry alone. But what exactly is Shopify, and what does Shopify do? On the basic level, it’s an e-commerce platform that helps business owners create websites and sell their products online or in-store.

Thanks to how convenient the platform is, it’s popular with small as well as large retailers, making it the most used e-commerce solution in the USA. Even major brands like Netflix and Red Bull use it!

In this article, we’ll discuss how Shopify works, its pricing plans, and how to accept payments through it.

Shopify Pricing Plans

How does Shopify function? First of all, you have to choose a pricing plan: Basic, Shopify, Advanced, and Plus, with the last one being the most expensive. To get Plus, you have to pay for three years in advance. For other plans, you can either pay annually (saving up to 25%) or once per month. Also, the service offers a 3-month trial for $1/month, so you have time to explore its every feature and see if it’s the right fit for your business.

The good news is that you won’t be charged any transaction fees if you use Shopify Payments as your primary payment gateway. However, if you choose a third-party payment provider, Shopify charges a transaction fee per order, which varies depending on your plan. Additionally, you may incur extra charges from your payment processor.

Additionally, Shopify offers extra app subscriptions to enhance the functionality of your online store. How does Shopify work in this case? You just need to download the app you need from the brand’s online store and confirm the subscription. That’s it.

The prices can vary a lot and range from free of charge to several thousand dollars per month. For example, Shopify Email is free, while the Advanced plan for the Jioukou app can cost up to $6,000 per month.

Setting Up a Store on Shopify: How It Works

Now that we’ve covered the pricing plans, you might ask yourself, “How does Shopify work for sellers?” Simply put, the platform consolidates your customer information, product data, and operational duties into a single system that can be integrated with your selling channels.

1. Sign up for a Shopify Account

You can start with a free trial to test the platform and see if it's right for you. Access is completely free for 3 days, and the platform doesn’t require you to enter your card number to get this feature. Just remember to validate the email address that Shopify sent you to keep your business secure.

2. Add Your Products

To create a product page, go to Products in the menu bar, then choose “Add Product.” Here, you can provide details such as the product’s name, description, price, and images. Add as much information as you like and make the item look appealing. After that, click “Save.”

3. Choose a Theme

Shopify has plenty of themes to choose from. You can use one of the free themes or purchase a premium one for better customization.

To set a theme, go to the “Online Store” section on the admin panel and click “Themes.” Once you’re happy with your choice, click “Add Theme.”

4. Set Up Payment Methods

To set up payment options, open “Settings” and click “Payments.” Don’t forget to carefully review pricing and fees before selecting a suitable payment gateway.

There are two ways you can approach payment integration: Shopify Payments and third-party payment processors such as PayPal.

Shopify Payments is the platform’s built-in payment gateway. However, it’s not available in certain countries like Cuba or Iran, and merchants must meet specific legal criteria to use it.

If you can’t or won’t use Shopify Payments, there are more than 100 third-party payment processors available on the market. Just mind the transaction fees!

5. Control Shipping Effortlessly

Shipping is one of the hardest processes to handle in business, so Shopify tries to simplify it for its partners. The platform collaborates with top shipping companies like UPS, DHL, and others to handle your packages and provide a range of delivery choices.

With Shopify Shipping, your business will have access to the best pricing plans on the market while also avoiding unexpected delays that are common when working with third-party providers.

To get to the Shipping page, navigate to “Settings” and click “Shipping and Delivery.”

6. Manage Orders

Merchants can view, track, and process orders through the Shopify Admin dashboard or the platform’s mobile app. This means you can access detailed order information such as customer details, payment status, and shipping preferences at any time. To manage orders from the Admin panel, go to the “Orders” section.

7. Market Your Business

After you set up the essentials, you might be wondering how Shopify works for businesses in need of marketing. The service has built-in tools designed to help brands reach and engage their target audiences. For example, there’s a tool for running email marketing campaigns and social media integrations. Shopify partners with Facebook, Instagram, and Google, which makes it easy to set up ads.

8. Analyze Your Success

Shopify analytic tools can give businesses valuable insight into their store's performance. Through the Shopify Admin dashboard, merchants can access reports on sales, traffic, customer behavior, and product performance. Advanced plans offer more advanced tools like custom reports and profit analytics.

How Shopify Payments Work

How does Shopify help sellers accept payments? It has a built-in payment gateway that can accept payments directly from the store without involving third-party processors.

Shopify Payments supports all common payment methods, including credit and debit cards, Apple Pay, and Google Pay. You can easily transfer the funds to your bank account, and there are no additional transaction fees beyond standard credit card rates. It’s also easy to set up, has fraud detection, and integrates seamlessly with Shopify’s checkout process.

What to Sell on Shopify?

Finally, you probably want to know what you can sell on this platform. How does selling on Shopify work? And are there any restrictions on goods?

You can sell nearly anything on Shopify, whether it’s physical or digital, including:

• Clothing and accessories;
• Tech gadgets;
• Household goods;
• Health and beauty products;
• Books, DVDs, CDs, video games;
• Food and beverages;
• Sports and outdoor gear;
• Ebooks;
• Video and audio files;
• Software and apps;
• Digital art, templates;
• Online courses and exclusive community memberships;
• Print-on-demand products: T-shirts, mugs, phone cases, etc.

Yet, there are some products you can’t sell on this platform. The pages featuring these goods and accounts selling them are usually removed from Shopify.

What is forbidden to sell on Shopify?

• Drugs, controlled substances, and cannabis products;
• Fake or unauthorized products;
• Hazardous materials that require special handling;
• Explicit or sexually suggestive content;
• Weapons, ammunition, explosives.

Now that we have the Shopify platform explained, you can check if your business is allowed on Shopify, and give the platform a try!