What is Shopify and How Does it Work? (2023) - Intellipaat

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What is Shopify and How Does it Work
Updated on 12th Aug, 23 1.8 K Views

Shopify is a platform that allows customers to buy and sell goods to the global population. Let’s discover what is Shopify, how it works, and the different business plans it offers. 

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What is Shopify?

Shopify is an all-inclusive e-commerce platform that gives organizations everything they require to conduct online sales. It is a cloud-based system that provides many features and tools to assist businesses in setting up and managing their online shop, accepting payments, completing orders, and tracking inventory. 

Even if you have no prior web design or coding skills, you can quickly develop a unique professionally designed online store using Shopify. The platform provides a range of editable themes and templates that are simple to modify to fit a company’s brand and design.

Shopify offers a full range of capabilities for organizing items, handling payments, and delivering orders. The platform makes it simple for businesses to accept credit cards and other types of online payments by integrating with well-known payment gateways like PayPal and Stripe. Furthermore, Shopify offers real-time shipping prices from significant carriers, making it easy to compute and provide shipping costs to buyers.

Shopify is vast app store, which provides a wide range of connections with third-party tools and services, such as email marketing, accounting software, and shipping services. The functionality of your online store can be quickly expanded and the operations made more efficient.

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How does Shopify Work?

Shopify operates by giving companies a platform on which to create and run their online stores. This is how it goes.

1. Account setup

Create a Shopify account and choose a price plan that works for your company to get started.

2. Store design

Shopify offers a selection of themes and templates that can be readily customized to match your company’s brand and style. Businesses can customize their online shop by including their own logo, product photos, and other material.

3. Product management

Companies can add and change product descriptions, photos, and pricing using the dashboard on Shopify. Businesses can track product sales and manage their inventory with Shopify.

4. Payment processing

Shopify makes it simple for companies to accept online payments by integrating with well-known payment processors like PayPal and Stripe. The platform manages the safe processing of client payments and ensures that the money is transferred to the company’s bank account.

5. Fulfillment and shipping

Shopify offers real-time shipping quotes from top carriers, and make it easy to calculate shipping prices. Businesses can handle and monitor orders using Shopify’s built-in shipping capabilities, or they can link with outside shipping platforms for a more sophisticated delivery choices.

6. Marketing

Sales and marketing solutions are available from Shopify to assist companies to sell their goods and increase sales. This includes the capacity to design and control email campaigns, promo coupons, and emails for recovering abandoned carts.

7. Reporting and analytics

Shopify has strong analytics and reporting features that allow businesses to monitor sales, consumer behavior, and other crucial indicators in real-time. This facilitates corporate decision-making regarding e-commerce strategy and enhances the functionality of the online shop.

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How to Sell on Shopify?

The method of selling on Shopify is easy and uncomplicated. 

How to Sell on Shopify

1. Set up your Shopify store

First, you’ll need to register with Shopify to create an account and configure your online store before you can start. This entails picking a pricing strategy, personalizing the look and feel of your business profile, and adding items together with their prices, descriptions, and photographs.

2. Add shipping and payment options

To take online payments, you must set up a payment gateway with PayPal or Stripe. To compute and show shipping prices to clients, you may also set up shipping options, such as real-time shipping rates from major carriers.

3. Promote your store

If you want to improve sales, you must advertise both your shop and your products.To help you reach your target audience and boost sales, Shopify offers a range of marketing and sales tools, including email campaigns, discount coupons, and abandoned cart recovery emails.

4. Order fulfillment

After receiving email notification that a client has placed an order, you may proceed to complete the order via your Shopify dashboard. In addition to managing your inventory, packaging, and shipping, Shopify offers customer support services to help you resolve customer queries in no time.

5. Track your sales and customer behavior

Shopify has strong analytics and reporting features that let you keep tabs on your sales. You can also track your client’s actions in real-time. Your online store’s success may be enhanced by using this information because it enables you make educated decisions regarding your e-commerce strategy.

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Shopify Plans and Pricing

Shopify offers a range of subscription plans. Take a look at the different plans and their prices to choose one that best suits your requirements.

Shopify Basic

  • Monthly Cost: ₹2,000 or less
  • Features:
    • Secure shopping cart
    • Manual order creation
    • Discounts
    • Infinite goods
    • 24/7 assistance


  • Monthly Cost: Starting at ₹6,000
  • Additional Features (over Basic package):
    • Gift certificates
    • Professional reports
    • Abandoned cart recovery

Advanced Shopify

  • Monthly Cost: ₹35,000
  • Additional Features (over Shopify plan):
    • Extensive report authoring
    • Estimated shipping prices from third parties
    • Capability to design unique checkout interfaces

Shopify Plus

  • Monthly Cost: Starting at ₹1,50,000
  • Additional Features (over Advanced Shopify plan):
    • Build numerous stores from a single account
    • Dedicated account management

Common Features Across All Plans:

  • Free SSL certificate
  • Mobile commerce shopping cart
  • Option to sell on social media, Amazon, and eBay
  • Cost-effective payment processors: Shopify Payments, PayPal, Stripe

Additional Costs:

  • Payment processing charges
  • Theme modification fees
  • App purchases

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Career Transition

What is Shopify Used for?

As a cloud-based e-commerce platform, Shopify is used to build and operate online businesses. It is used to sell a range of goods and services online by individuals, small businesses, and big corporations.

What is Shopify Used for

Shopify offers a variety of tools and services to assist retailers in creating and managing their online businesses.

  • Choose from customizable templates and themes for a unique store appearance.
  • Manage products effortlessly, including additions, removals, inventory tracking, and updates.
  • User-friendly order management, payment processing, and streamlined shipping.
  • Enhance product visibility and SEO with powerful marketing features and tools.
  • Secure payment options via gateways like Shopify Payments, PayPal, and Stripe.
  • Smooth mobile shopping experience with mobile commerce cart and optimization.
  • Explore an app store with plugins and extensions to enhance business functionality.

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Pros of Using Shopify

Using Shopify as an e-commerce platform has a number of benefits, some of the most noteworthy of which are as follows:

  1. It features a user-friendly interface that makes it simple for individuals to set up an online store even if they have no prior coding or technical skills.
  2. It is a one-stop shop for all your e-commerce needs thanks to its many features, which include tax calculators, payment processing, shipping, and inventory management.
  3. Shopify has themes that may be easily changed to fit your brand’s aesthetic. Additionally, you may pay a Shopify Expert to design a unique theme for you.
  4. It offers live chat, email, and phone support around-the-clock, so you can receive assistance whenever you need it.
  5. It provides a sizable collection of apps and integrations that may be added to your store to improve functionality and expedite certain procedures.
  6. Shopify is available to companies of all sizes, providing a range of pricing options to suit various spending limits and operational requirements.

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Cons of Using Shopify

Although it  is a well-known and effective e-commerce platform, there are a few drawbacks of setting up an online store through Shopify. 

  1. All payments handled through Shopify’s platform are subject to transaction fees, with the exception of payments made with Shopify Payments.
  2. Although Shopify’s themes may be changed in certain ways, the platform has restrictions on how you can alter the website’s source code.
  3. Despite the large selection of integrations available in Shopify’s app store, some sophisticated functions cannot be accessible without the purchase of additional apps.
  4. As your shop expands, the number of applications, items, and photos on your site may cause load times to increase slowly. This may have a negative effect on user experience and search engine results.
  5. Shopify only offers a small amount of file storage, so you might need to buy more space if you have many high-resolution photographs, videos, or other files.

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Is Shopify Good For Small Businesses?

Certainly, Shopify is a wonderful choice for small businesses, and there are several actual cases of small firms using the platform effectively. For instance, have a look at “The Little Market,” a modest internet store that offers products manufactured by local craftsmen to customers all around the world. With Shopify, The Little Market, which started as a side project, has grown into a profitable online business.

This is but one instance of a small company that has used Shopify effectively. There are several companies that have benefited from it. However, it is important to keep in mind the pros and cons of choosing this platform before making a decision. 

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Wrapping Up

Shopify is an effective e-commerce platform that is appropriate for businesses of all sizes. For small businesses looking to expand their online presence, it is a fantastic choice. Many small businesses have chosen Shopify to power their online stores due to its simplicity of use, configurable capabilities, and variety of connectors.

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