What Is Shopify and How Does It Work? (2024)

Every day, millions of people use Shopify to power their businesses. From online side hustles to global retail giants, Shopify makes commerce better for everyone.

So what is Shopify, and how does it work? Explore the essential Shopify features that help you make sales and manage your store.

What is Shopify?

Shopify is a commerce platform that helps you sell online and in person. Entrepreneurs, retailers, and global brands use Shopify to process sales, run stores, and grow their businesses.

With Shopify, you can start your first ecommerce website or manage a world-leading retail business.

Start your business journey with a free trial.

How Shopify works

Shopify’s tools and products work together as a unified system to help you sell to people everywhere.

Build an online store

Use AI to create product collections and informational pages.

The Shopify store builder with its drag and drop interface and simple menu options

Build your online store in minutes with Shopify’s store editor. Choose from industry-tailored store themes that spark joy with dynamic scrolling and hover effects.

Themes are ready for use, mobile-friendly, and customizable without any coding.

Add features to your website with third-party apps or use Shopify Magic—the built-in AI—to write product descriptions and manage content.

Find out more about building your store on Shopify.

Turn browsers into buyers

With the world’s highest-converting secure checkout.

Shopify checkout processes the sale of a pot plant

When you’re ready to start selling, Shopify Checkout gives your customers a safe, ultra-fast checkout experience designed to maximize conversion rates. Accept all major payment methods as soon as your store launches.

Adding Shop Pay, the internet’s highest-converting checkout option, lets shoppers place orders in a single tap.

Find out more about selling on Shopify.

Automate shipping

When orders come in, get them out the door.

A seller packages a baseball cap to send using Shopify Shipping

Shipping on Shopify is simple, fast, and cost-effective. Automatically generate labels, give customers detailed tracking information, and receive discounts of up to 88% on shipping rates.

As orders increase, outsource inventory storage, fulfillment, and returns to the Shopify Fulfillment Network. Offer local delivery for nearby customers, and give the ultimate peace of mind with verified delivery dates through Shop Promise.

Find out more about Shopify Shipping.

Sell everywhere

Selling products through your website is just the beginning.

A merchant sells matcha tea through their online store, social media, and marketplaces

Use Shopify to promote and sell on social platforms like Facebook, Instagram, TikTok, and YouTube.

Extend your reach by serving international customers, and connect your catalog with marketplaces including Amazon, Walmart, Target Plus, and Etsy.

For in-person sales, Shopify POS keeps inventory synced across your online and physical storefronts.

Discover Shopify sales channels.

Market your brand

Know your audience to boost shelf appeal.

A Shopify report shows a five percent increase in sales attributed to marketing campaigns

Use reports to understand what leads people to your website—and what converts them into customers.

Generate audience lists for targeted marketing campaigns and abandoned cart emails, or partner with influencers through Shopify Collabs to make your products go viral.

Find out more about Shopify’s marketing tools.

Integrate 8000+ apps

Everything from dropshipping to AI-powered customer support.

The Shopify App Store search bar hovers before hundreds of app logos

Expand your stores’ features with third-party apps developed by Shopify partners.

Visit the Shopify App Store.

Manage your finances

A business account built into Shopify.

A seller checks their sales and expenses using Shopify Balance

Shopify helps manage your business finances, ensuring you’re collecting the right sales tax and monitoring your store’s expenses.

Keep bestsellers stocked and ads running with funding from Shopify Capital. Or boost your cash flow with Shopify Credit for 3% cashback on eligible marketing, shipping, or wholesale purchases.

Find out more about Shopify’s financial services.

Keep growing

Entrepreneurship is an infinite game where there’s always room to grow.

A Shopify merchant processes a sale using a point-of-sale system, while another monitors product manufacturing

Shopify enables business growth for even the biggest retailers. Brands like Staples, Converse, and Glossier choose from Shopify’s components and use APIs to integrate them with existing systems.

Find out what Shopify offers growing businesses.

Plans and pricing

Four Shopify plans, each designed to support different business needs.

Basic: The most popular plan for solo entrepreneurs.
Shopify: For small teams.
Advanced: Supports businesses as they scale.
Plus: For complex business needs.

See all plans and pricing.

How To Start an Online Store in 2024 (10-Step Guide)

Follow this step-by-step guide to set up an ecommerce website and start selling to customers today.

First sale to full-scale

Every 28 seconds, an entrepreneur makes their first sale on Shopify.
Among millions of global Shopify merchants are household brands such as Mattel, Gymshark, Heinz, FTD, Netflix, Kylie Cosmetics, SKIMS, and Supreme.
Shopify powers around 10% of US ecommerce, serving 675 million online shoppers in 2023 alone.
In total, Shopify merchants have generated more than $1 trillion in revenue.

Compare Shopify to other commerce platforms.

How Stellar Eats cooked up a sweet conversion rate

When baked goods brand Stellar Eats switched to Shopify's one-page checkout, they reduced friction for customers, lifted conversions by 3.5%, and increased revenue over the next two years.

Start selling today

With the internet’s best-converting checkout, an AI commerce expert, and deep shipping discounts, Shopify helps businesses give the ultimate shopping experience to customers everywhere.

From self-made TikTok stars to heritage brands, Shopify’s tools and features are built to support your business journey.

What is Shopify FAQ

Is Shopify good for beginners?

Shopify is designed to be easy for beginners to use. With Shopify, you can create an online store using drag-and-drop templates and no coding. Start accepting payments immediately with the built-in payment processor.

What does Shopify cost?

Shopify has several pricing plans, starting at $5 per month. The most popular Shopify plan is Basic, which includes everything needed to run a business and costs $29 per month when billed annually. Shopify users can expand their stores’ features with third-party apps, which may carry additional costs.

What countries can I use Shopify in?

Shopify powers online stores and retail businesses in more than 175 countries. You can use Shopify in more than 20 languages and accept payments with Shopify’s native payment processor in Australia, Austria, Belgium, Canada, Czechia, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Business owners in countries where Shopify Payments is not available can use Shopify with approved third-party payment gateways.

What can I sell on Shopify?

You can sell a range of products and services on Shopify, including physical products, digital products, memberships, subscriptions, ticketed experiences, and consulting services. Certain products are prohibited from sale on Shopify. Consult Shopify’s acceptable use policy to see which products and services are not permitted.

Where can I sell with Shopify?

With Shopify, you can sell everywhere your customers are, including through an online store, on the Shop App, in person at a retail store, on marketplaces such as Amazon and Etsy, on social media channels like TikTok and Instagram, and via wholesale.

Shopify is a cloud-based and hosted platform, which means you can safely access your admin and data from any compatible device with an internet connection.

Is Shopify the same as Amazon?

Unlike Amazon, which is an online marketplace, Shopify supports businesses with tools to create a store and sell products. Shopify users run websites and retail stores, controlling their branding, design, and management. Shopify users can list their products on Amazon, as one of many sales channels.