Shopify is a fully hosted eCommerce platform that allows individuals and businesses to create, manage, and scale an online store without worrying about servers, security, or technical maintenance.
Unlike traditional website builders or self-hosted systems, Shopify provides an all-in-one solution: hosting, payments, checkout, inventory management, and order processing are all handled within a single platform.
In simple terms, Shopify lets you focus on selling products — not on managing infrastructure.
A Simple Way to Understand Shopify
Shopify is best described as a “move-in-ready commercial store system.”
In one sentence:
You open a store, customers place orders on your website, you fulfill and ship those orders, and Shopify transfers the customer payments to you (after deducting a small transaction fee).
Everything else — servers, performance optimization, security updates, and system maintenance — is handled by Shopify behind the scenes.
What Can You Do With Shopify?
Although Shopify is primarily known as an eCommerce platform, it is not limited to simple online stores.
With Shopify, you can:
- Build and customize an online storefront
- Sell physical products, digital products, or services
- Manage inventory and fulfillment
- Accept payments from customers worldwide
- Handle taxes, shipping rates, and discounts
- Track orders, customers, and sales analytics
More importantly, Shopify supports both online and offline selling.
Online and Physical Store Integration (POS)
If you operate a physical retail store, Shopify can integrate seamlessly with its Point of Sale (POS) system.
This allows you to:
- Sync inventory between online and physical stores
- Manage products, pricing, and customers in one system
- Accept in-person payments using Shopify POS hardware
- Create a unified shopping experience across channels
For businesses running both online and offline operations, Shopify enables a true omnichannel commerce setup.
How Shopify Works Behind the Scenes
Shopify is a cloud-based, hosted platform. This means:
- You do not need to purchase separate hosting
- You do not manage servers or databases
- You do not handle performance tuning or security patches
All hosting, performance optimization, and security maintenance are managed centrally by Shopify.
Your store runs on Shopify’s global infrastructure, which includes:
- Built-in content delivery (CDN)
- Automatic scaling for traffic spikes
- SSL encryption for secure transactions
- Continuous platform updates
This setup is especially valuable during high-traffic events such as promotions, product launches, or seasonal sales.
Payments and Order Management
Shopify supports multiple payment methods, including:
- Credit and debit cards
- Digital wallets
- Local and international payment providers
- Third-party payment gateways
Once a customer completes a purchase:
- The order is recorded in your Shopify dashboard
- Payment is processed securely
- Shopify deposits your earnings to your connected bank account
- You fulfill and ship the order
Transaction fees vary by plan and payment method, but the process itself is fully automated.
Who Is Shopify Best For?
Shopify is commonly used by:
- First-time entrepreneurs launching an online store
- Small and medium-sized businesses
- Direct-to-consumer (DTC) brands
- Companies selling internationally
- Retailers combining physical and online sales
Because Shopify removes most technical barriers, it is especially suitable for business owners who want a reliable, scalable system without managing the technical stack themselves.
Shopify Pricing (Overview)
Shopify uses a subscription-based pricing model with multiple plans designed for different business stages.
Plans range from lightweight entry options to advanced plans for high-volume and international sellers.
Pricing is billed monthly, with discounts available for annual billing.
For the most up-to-date pricing and plan details, always refer to the official Shopify pricing page:
| Plan | Monthly Price | Best For | Online Card Rates | In-Person Rates | 3rd-Party Payments | Key Features |
|---|---|---|---|---|---|---|
| Starter | $5 / month | Social selling & simple checkout | Varies by payment provider | Varies | Varies | Sell via social media & messaging apps, lightweight online store |
| Basic | $39 / month | Solo founders & new businesses | 2.9% + 30¢ | 2.6% + 10¢ | 2% | Up to 77% shipping discounts, 10 inventory locations, 24/7 chat support, POS sales |
| Grow | $105 / month | Small teams & growing stores | 2.7% + 30¢ | 2.5% + 10¢ | 1% | Up to 88% shipping discounts & insurance, 5 staff accounts, POS sales, 24/7 support |
| Advanced | $399 / month | Scaling & high-volume businesses | 2.5% + 30¢ | 2.4% + 10¢ | 0.6% | Advanced reports, local storefronts by market, 15 staff accounts, enhanced support |
| Retail | $89 / month | Physical retail stores | Depends on payment setup | Depends | Depends | POS-focused tools, staff & inventory management, loyalty features |
What’s Next?
Now that you understand what Shopify is and how it works, the next step is learning how to actually build a store.
Next guide:
? How to Create a Shopify Store
