Shopify tutorial: store setup, features and pricing

What type of eCommerce platform is Shopify?

Shopify is a Canadian multinational eCommerce platform founded in 2004 and headquartered in Ottawa. It went public on the New York stock exchanges in May 2015 and its market value once exceeded $100 billion. With over 10,000 employees, it serves millions of merchants in 175 countries around the globe. The company's revenue reached $2.05 billion in Q2 2024, increasing by about 21% year-on-yea.

As an all-in-one eCommerce platform, it assists businesses to start, operate and grow online and offline by offering services such as online shop setup, payment systems integration, marketing and dropshipping support. Shopify provides a variety of tools as well as free and paid layout themes for users so that they can choose among multiple pricing plans, and hence, build an online shop based on their needs and preference on the page’s designs and functions.

Introduction to Shopify’s functions

Shopify aims to assist businesses or individuals without IT resources and knowledge to build professional-level online shops. Both entrepreneurs and physical shop owners can choose from hundreds of free or paid website templates to select a design that suits their brand, build and customise their own online shop and integrate social media with Shopify. 

They may also use Shopify POS, the point-of-sale app, to sell their products in person in retail stores, pop-up shops, and markets. Shopify also provides a powerful back-office management suite for shop owners so that they can monitor their inventory, orders, fulfilment, and the status of refunds and returns. With analytics and reporting services, users can view key metrics of their businesses at a glance.

Comparing Shopify with other eCommerce platforms

As a Canadian eCommerce platform, Shopify mainly targets the European and American markets. Although it was only listed in the US in 2015, its market cap has reached about US$98 billion as of October 2024. While considered a mature and reliable eCommerce platform, Shopify's scale and maturity still lags behind major eCommerce giants like Amazon and eBay. Shopify focuses on providing online shop setup services for individuals and merchants looking to establish their brands without extensive IT expertise.

A step-by-step guide: how to start an online shop on Shopify 

1. Sign up for a new account on Shopify’s official website. Fill out your basic information, such as shop name and product details.

2. After registration, go to “Settings” and fill out your business information, such as shop name, industry, and email. Choose a suitable pricing plan and management preference.

3. Click on “Payments” and select your preferred payment providers, such as Shopify Payments, PayPal, or other third-party payment gateways. You can also choose from a variety of shipping rates and methods for customer checkout.

4. Start designing your online shop by choosing a free or paid theme, which controls the organisation, features, and style of your online shop. 

5. Fill in a domain (the URL or web address where customers visit your online shop). It can be the “myshopify.com” URL given to you by default when you signed up for Shopify or one that you bought from Shopify or any third-party domain provider. After that, add product listing with photos, descriptions, and prices.

6. Test the checkout process by submitting a few test orders before launch. When you’re ready, remove the password on the “Themes” page or the “Preferences” page under “Online Store” in your Shopify admin to go public.

Shopify’s pricing plans and payment methods

Shopify offers a three-day free trial on the official website or app without providing credit card information. Once the trial is over, users can choose a pricing plan that suits the scale and development plan of his/her business. They can start for free and enjoy their first month for only US$1 (except for “Shopify Plus” and “Enterprise commerce” plans). The Starter, Basic, Shopify and Advanced plans are billed monthly. There is a 25% discount if they choose to pay annually.

Details of different pricing plans:

Alternative solutions for established businesses:

1. Retail: US$89/ month

2. Shopify Plus: US$2,300/ month

3. Enterprise commerce: custom pricing

After selecting a plan, users can pay for their bills with credit cards or co-branded debit cards from Mastercard, Visa or American Express. They can also pay for their Shopify bills, either one-time or recurring, with Paypal.

Credit card fees

According to the Shopify website, when merchants accept major credit cards (such as Visa and Mastercard) as payment methods, they incur small credit card fees, which vary depending on the chosen plan.

Transaction Fees

Merchants using Shopify Payments do not have to pay transaction fees. However, if they opt for third-party payment providers, they will incur additional fees based on a percentage per transaction. For example, the Basic plan, Shopify plan, and Advanced plan charge transaction fees of 2%, 1%, and 0.5% respectively.

Features of Shopify POS

Shopify POS is a point-of-sale app for shop owners facilitating in-person sales. It helps retail businesses in overseeing their staff, inventory, stock, orders and customers. The app syncs with their Shopify online shop so they can monitor their business in an all-in-one panel. In short, shop owners can integrate their physical stores with their online business, including the shop’s website, social media and the back-end POS system, greatly benefiting both their online and offline business operations.

On the other hand, Shopify has its own App Store that offers various third-party app extensions, such as SEO and automatic product video creation software, to enhance sales.

What is Shopify Payments?

Shopify Payments is the simplest way for Shopify stores to accept payments online. Users do not have to link their stores to another third-party payment provider or merchant account, and hence, they can also avoid the hassle of having to enter credentials into Shopify. However, as mentioned earlier, when merchants accept major credit cards like Visa and Mastercard as payment methods, they incur small credit card fees, which vary based on the chosen plan. Once Shopify Payments is activated, their Shopify stores will be automatically configured to accept all major payment methods, such as Visa, Mastercard, Apple Pay and Google Pay.

Is Shopify suitable for you?

Shopify is suitable for businesses of all types. Whether you're a newly established startup or a brick-and-mortar store looking to venture into online retail, Shopify provides a comprehensive solution. The platform is particularly well-suited for businesses looking to establish their brand image and focus on product sales without being constrained by platform rules. With greater flexibility, merchants can control the appearance and operational model of their online store. Importantly, Shopify offers robust SEO support, helping drive traffic to merchants' online stores.

Clueless about website structure and web design? Shopify is here for you.

Shopify's standout feature is its provision of a diverse range of website templates for businesses that know little about website structure and web design. With hundreds of free and paid themes available, users can create professional online stores through simple drag-and-drop functions. The system's backend interface is user-friendly, allowing merchants to easily manage tasks such as product listings, inventory tracking, and order processing. Even entrepreneurs with no technical background can swiftly establish visually appealing and fully functional online stores with Shopify.

For diversifying payment channels

Shopify offers a diverse range of payment options. In addition to the built-in Shopify Payments supporting credit card payments, merchants can integrate with mainstream payment methods like PayPal, Apple Pay, and Google Pay. Businesses can also choose from other payment service providers such as Airwallex, which similarly support Apple Pay, Google Pay, and over 60 payment methods, along with multi-currency payment capabilities. Moreover, robust payment security mechanisms ensure transaction safety and reduce fraud risks.

For venturing into foreign markets

For businesses looking to expand into international markets, Shopify provides cross-border eCommerce solutions. The platform supports multilingual online store setups, making it easy to establish dedicated online stores for different country markets. Through built-in tax calculation tools, Shopify can automatically handle tax rate issues in different countries. Furthermore, Shopify collaborates with logistics providers worldwide to offer international shipping options. Particularly through integrating payment services like Airwallex, businesses can accept payments from over 180 countries; support 160+ local payment methods; settle transactions in local currencies, significantly reducing exchange rate losses, and making cross-border operations smoother and more efficient.

Airwallex Payments: built for global commerce

Aside from Shopify Payments, shop owners can also choose a third-party payment provider, such as Airwallex, which offers dedicated eCommerce plugins that allow you to connect with their existing eCommerce platform. Installation is quick and easy. Shop owners can get up and running in minutes without having to learn any coding or technical knowledge. They are also safeguarded against fraud with Airwallex’s 3DS engine.

What are the benefits of using Airwallex Payments?

Airwallex Payments provides like-to-like settlement for more than 10 major currencies, directly depositing the received funds into the merchant’s multi-currency account. Therefore, users can eliminate costly foreign exchange conversion fees and maximise their profit by collecting and settling funds in the same currency. Moreover, customers can make card payments directly in the Shopify shop without being redirected to other checkout pages. They are also provided with more than 60 payment methods, including Apple Pay and Google Pay, which can help maximise on-page conversion rates.

FAQs

1. What is Shopify as an eCommerce platform?

Shopify is a Canadian eCommerce platform adopted by millions of merchants in 175 countries globally. It provides all-in-one services for businesses to start an online shop and integrate online payment systems. It also offers marketing and dropshipping support.

2. What are the procedures to open a Shopify online shop?

It’s not complicated to open an online shop. You’ll just have to create an account on Shopify’s official website, fill out your shop’s details, and choose a pricing plan. Then, design your shop by selecting a theme, and upload product information, including images, descriptions and prices. And after all, you are ready to launch your online shop.

3. What payment methods are available when checking out on a Shopify online shop?

Besides Shopify’s in-house-developed payment gateway – Shopify Payments, merchants can also choose other payment providers that help save costly foreign exchange conversion fees, such as Airwallex, which also provides more than 60 payment methods, including Apple Pay and Google Pay.

*Retrieved as of 6 March 2024. Information provided is for reference only. Please refer to Shopify's official website for the most up-to-date details.