What Is Shopify & How Does It Work in 2024?

What is shopify?

Among other e-commerce platforms, Shopify stands out as a comprehensive solution that enables individuals and businesses to set up their own online stores. Since its inception in 2006, Shopify has become a powerful tool used by millions to sell products directly to consumers around the world.

Simply put, Shopify is a subscription-based software that offers anyone the ability to create a website and use its shopping cart solution to sell, ship, and manage their products. Using their platform, you can get access to an easy-to-use admin panel where you can add products, process orders, and enter store data.

For a beginner, think of it as your digital storefront. It provides all the necessary tools to construct a website from scratch without the need to dive into the complexities of coding. This makes the platform particularly attractive for entrepreneurs who aren’t particularly tech-savvy but are keen to tap into the online selling arena.

As of 2024, Shopify continues to innovate, offering even more robust tools to help users design their stores, manage marketing campaigns, and analyze sales trends. Whether you're a budding entrepreneur planning to sell handmade crafts or an established business aiming to expand online, the platform offers a scalable platform that grows with your business.

Why use shopify?

Choosing the right platform for your e-commerce business is crucial, and there are several compelling reasons why it might be the perfect fit for you. 

1. Ease of Use. Shopify is known for its user-friendly interface. Even if you have no prior experience in website development or e-commerce, its straightforward setup process and intuitive dashboard make it easy to start selling quickly. Shopify integrates artificial intelligence to streamline content creation and optimize product listings for a more efficient and user-friendly experience

2. Customizability. You can choose from a variety of themes that are both attractive and mobile-responsive. These themes can be customized to suit your brand’s style and needs without needing to know how to code. If you have specific requirements, you can also hire a Shopify expert to create a custom design.

3. Integrated Payments. Shopify Payments  allows you to accept a wide range of payment methods including credit cards and digital wallets without integrating third-party providers. This can simplify the checkout process and potentially increase conversion rates.

4. Scalability. As your business grows, the platform can grow with you. Whether you’re selling 10 or 10,000 products, it can handle the increase in traffic and transactions. Their servers are optimized for performance, ensuring that your store remains fast and accessible as it scales.

5. Support and Resources. 24/7 customer support is provided and has a vast range of resources available for learning and troubleshooting. This includes discussion forums, detailed guides, and even educational webinars, which can be very useful, especially when you are just starting out.

6. Security. E-commerce platforms require robust security to protect sensitive customer information. Shopify is compliant with PCI (Payment Card Industry) standards and offers automatic updates to keep your store secure from threats without any additional effort from you.

7. SEO and Marketing Tools. There are built-in SEO features that help ensure your store ranks as high as possible in search engine results. Additionally, it offers various marketing tools like product reviews, email marketing, and social media integration that can help you reach more customers and boost sales.

Given these advantages, Shopify presents a compelling option for anyone looking to start an online store or expand their existing sales channels. 

How much does Shopify cost?

One of the first questions potential users ask about Shopify is how much it will cost them. Its pricing is designed to be straightforward and scalable, catering to a variety of business sizes and needs. As of 2024, here are the main plans you might consider:

1. Basic Plan is the entry-level plan, ideal for those just starting out or with a small volume of sales. It includes all the essentials you need to launch your online store, such as a website, blog, and secure checkout. This plan also offers support for two staff accounts, which is useful for small teams. The cost is typically around $29 per month.
2. Mid-level option offers additional features suitable for growing businesses. It includes professional reports and better rates on shipping and payment processing. This plan allows up to five staff accounts and costs about $79 per month.
3. Advanced Plan is designed for scaling businesses, this plan provides advanced features like advanced report building and third-party calculated shipping rates. It supports up to fifteen staff accounts and typically costs $299 per month.
4. Shopify Plus is for large enterprises or merchants with very high volumes of sales. It offers a customizable solution with dedicated support and enhanced capabilities. Pricing for this is negotiable and starts at around $2,000 per month, based on specific business needs.

In addition to these monthly fees, there are other potential costs to consider:

• Transaction Fees. While the platform does not charge transaction fees if you use Shopify Payments, choosing an external payment gateway comes with additional fees, which vary depending on the gateway.

• Apps and Add-ons. The platform offers a lot of apps that can enhance your store’s functionality, such as email marketing tools or customer loyalty programs. Some of these apps are free, while others require a subscription.

• Themes. While Shopify provides a range of free themes, premium themes are available for a one-time fee and offer more customization options.

Overall, Shopify's pricing structure is designed to grow with your business, allowing you to start small and upgrade as your needs expand. 

What can I sell on Shopify? 

It is a rather comprehensive platform, which means you can sell just about anything, from goods and services to digital products and experiences. Here’s a breakdown of the types of products you can offer.

1. Physical Products. This is the most common use for Shopify. Whether it’s handmade crafts, books, clothing, electronics, or beauty products, if you can ship it, you can sell it there. The platform provides all the tools necessary to manage inventory, process orders, and handle shipping.

2. Digital Products. For those who create digital content like ebooks, music, digital art, or software, Shopify can handle these sales as well. Digital products are delivered to customers electronically, which means no shipping costs and instant delivery.

3. Services and Consultations. If your business involves offering services, whether it’s consulting, coaching, or home repair services, you can manage bookings and accept payments through Shopify. This can be facilitated by various apps available that integrate booking systems directly into your store.

4. Memberships. Memberships and subscriptions also can be sold. Whether you’re offering premium content on your site, a subscription box service, or membership access to an exclusive club, Shopify can handle recurring payments and customer management.

5. Ticketed Experiences. Selling tickets for events or experiences? Shopify supports this too. Whether it’s a cooking class, a concert, or a webinar, you can sell tickets and manage event registrations through your store.

6. Classes and Workshops. Similar to services, educational offerings like classes and workshops can be managed through the platform. This includes scheduling, payments, and even delivering content if your classes are offered online.

7. Rentals. Businesses that offer rentals, such as equipment, dresses, or even properties are also supported. With the right apps, you can manage rental agreements and schedules through your store.

The flexibility of Shopify makes it a great choice for a wide range of business models. Whether you’re a solo entrepreneur or a large enterprise, it can accommodate your selling needs.

Shopify pros and cons

Like any platform, Shopify has its strengths and weaknesses. Understanding these can help you make an informed decision about whether it's the right tool for your business needs. 

Pros:

1. It is designed for people who are not tech-savvy. Setting up a store is straightforward, and managing it does not require coding skills, making it accessible to virtually anyone.

2. Shopify’s App Store offers thousands of apps that can extend the functionality of your store. Whether you need marketing tools, SEO helpers, or inventory management enhancements, there's likely an app for that.

3. It takes care of hosting and keeps your site secure from threats. It also handles updates and maintenance without disrupting your business operations.

4. It provides round-the-clock customer support via chat, email, and phone. They also offer a wealth of documentation and user forums that are very resourceful.

5. With a range of themes and the ability to tweak them or build a custom design, the platform allows you to create a unique look for your store that can stand out from the competition.

6. Shopify Payments simplifies the process of accepting payments, managing transactions directly within the platform without needing a third-party payment gateway.

Cons:

1. While Shopify offers a basic plan, the costs of additional apps, themes, and potentially higher plan fees for lower transaction rates can add up and become a significant monthly expense.

2. Compared to dedicated content management systems, its blogging and content creation tools are somewhat basic, which might be a constraint for content-heavy sites.

3. While themes are customizable, deep customization might require knowledge of Shopify’s own coding language, Liquid. For extensive customizations, you might need to hire a developer.

4. If you choose not to use Shopify Payments, it charges an additional fee for every transaction made through other payment gateways.

5. Although the platform can handle high traffic and sales volume, very large stores or those with extremely complex requirements might find limitations with its standard functionalities and may need extensive custom solutions.

Conclusion

Shopify is a robust platform that offers a lot for prospective e-commerce entrepreneurs and businesses. Its ease of use, comprehensive support, and scalable infrastructure make it a popular choice for online retail. Whether it is right for you will depend on your specific needs, technical comfort level, and growth expectations.

As you consider diving into the world of e-commerce with Shopify, it's essential to maximize every aspect of your online store to ensure success. At Plavno, we specialize in optimizing Shopify stores to enhance functionality, improve user experience, and boost sales. Here’s how we can help:

• Custom Design and Development
• Marketing and SEO Services
• Integration and Automation
• Training and Support
• Continuous Optimization

Whether you’re launching a new online business or looking to enhance an existing one, partnering with Plavno can help you use the platform’s capabilities to their fullest. With our expert guidance and comprehensive services, you can achieve your business goals and ensure a seamless and successful online presence.

If you’re ready to take your Shopify store to the next level, contact Plavno today and discover how we can transform your e-commerce venture.