What Is Shopify and How Does It Work? Simple Explanation

Shopify

Thinking of starting an online store but don’t know where to begin? Shopify is one of the easiest and most powerful platforms for building an online store. In this article, we’ll break down what Shopify is, how it works, and how you can get started even if you’re a total beginner.

What Is Shopify?

Shopify is a cloud-based eCommerce platform that allows anyone to create and run their own online store. It provides tools for building a website, managing products, processing payments, and more—all in one place.

A quick background: Shopify was founded in 2006 by Tobias Lütke, Daniel Weinand, and Scott Lake. Originally, they wanted to launch their own online snowboard store but couldn’t find a good platform. So they built their own—and that’s how Shopify was born.

Shopify today:

  • Powers over 4.6 million businesses worldwide (as of 2025)
  • Used in 175+ countries
  • Trusted by brands like Gymshark, Kylie Cosmetics, and Allbirds

How Does Shopify Work?

Shopify is a hosted platform, which means you don’t need to buy web hosting or worry about technical maintenance. It’s a Software as a Service (SaaS) product: you pay a monthly fee to access all the tools.

Here’s how it works step-by-step:

  1. Sign up for a Shopify account (starts with a free trial)
  2. Choose a store name and plan
  3. Pick a template from Shopify’s Theme Store
  4. Add your products with photos, prices, and descriptions
  5. Set up payment gateways (like Shopify Payments, PayPal, etc.)
  6. Configure shipping and tax settings
  7. Launch your store!

Once your store is live, you can manage everything from your dashboard—orders, inventory, marketing, and more.

How does Shopify help beginners start an online store?

Shopify helps beginners start an online store by offering an all-in-one, user-friendly platform that requires no technical or coding skills. Here’s how it makes the process simple:

  • Easy Sign-Up Process
    You can create a Shopify account in just a few minutes. The platform offers a free trial, so beginners can explore before committing to a paid plan.
  • Pre-designed Store Themes
    Shopify provides hundreds of professional templates that are mobile-friendly and customizable using a simple drag-and-drop editor.
  • Step-by-Step Setup Wizard
    Shopify guides users through every step—adding products, choosing a theme, setting up payments, and launching the store—with helpful tips and tutorials.
  • Built-in Hosting and Security
    Shopify takes care of website hosting, SSL certificates, and PCI compliance. Beginners don’t need to worry about technical setup or security updates.
  • Integrated Payment Options
    Accepting payments is easy with Shopify Payments, PayPal, credit/debit cards, and more—no third-party integrations required.
  • App Store for Added Features
    The Shopify App Store has thousands of apps (many free) for marketing, dropshipping, reviews, shipping, analytics, and more.
  • 24/7 Customer Support
    Beginners can reach out via live chat, email, or phone support, and access a large library of help docs, forums, and video tutorials.

In short, Shopify simplifies every part of launching and managing an online store so even someone with zero experience can succeed.

Is Shopify only for selling physical products?

No, Shopify is not just for selling physical products it’s a versatile platform that supports a wide variety of business models and product types.

Shopify goes beyond just physical goods. Whether you’re a creator, educator, coach, or digital seller, Shopify is flexible enough to power nearly any kind of business.

Key Features of Shopify

  • Drag-and-drop website builder: No coding needed
  • Beautiful, mobile-ready themes
  • Secure checkout and PCI-compliant payment processing
  • SEO tools and marketing automation
  • Real-time order tracking and inventory control
  • Apps and integrations via the Shopify App Store
  • POS system for physical store sales
  • 24/7 customer support

Shopify Pricing Plans

PlanMonthly Price (USD)Best For
Starter$5Link-in-bio & small-scale selling
Basic$39New businesses
Shopify$105Growing stores
Advanced$399Scaling brands
Shopify PlusCustom pricingLarge enterprises

All plans include:

  • SSL certificate
  • Unlimited products
  • 24/7 support
  • Abandoned cart recovery (except Starter)

Pros and Cons of Using Shopify

Pros:

  • Very beginner-friendly
  • All-in-one platform (hosting, design, payments)
  • Clean and responsive themes
  • Great support and community
  • Scales easily with your business

Cons:

  • Monthly fees add up
  • Transaction fees if not using Shopify Payments
  • Limited customization vs. open-source platforms like Magento

Shopify vs Other Platforms

PlatformBest ForProsCons
ShopifyAll eCommerce businessesEasy setup, secure, scalableMonthly fees
WooCommerceWordPress usersHighly customizable, free coreRequires hosting & tech know-how
WixBeginners & creativesDrag-and-drop builder, affordableLess robust for large-scale stores
BigCommerceLarge, complex catalogsNo transaction fees, built-in featuresLess intuitive UI

Who Should Use Shopify?

Shopify is great for:

  • Small business owners who want to go online
  • Dropshippers using apps like Oberlo or DSers
  • Digital product sellers (ebooks, courses)
  • Local shops expanding to eCommerce
  • Influencers or creators launching a brand

Real Examples of Shopify Stores

  1. Gymshark: A UK-based fitness brand that scaled into a global business
  2. Kylie Cosmetics: Uses Shopify Plus to handle high-volume traffic
  3. Allbirds: Eco-friendly shoes and apparel with a clean, simple layout

These brands use Shopify to handle sales, product management, and customer experiences across multiple channels.

Getting Started with Shopify: Step-by-Step Guide

  1. Go to Shopify.com and sign up
  2. Choose your store name and plan
  3. Set up your domain and logo
  4. Add products with detailed descriptions and images
  5. Pick a theme and customize it to match your brand
  6. Set up payments (credit cards, PayPal, etc.)
  7. Configure shipping, taxes, and legal pages
  8. Preview, test, and launch your store

Tips for Success on Shopify

  • Use high-quality images to attract customers
  • Write clear product descriptions with SEO keywords
  • Install useful apps like reviews, email marketing, and upsells
  • Run Facebook and Google ads to bring in traffic
  • Offer excellent support and fast shipping to build trust

Conclusion

Shopify makes it easy for anyone—even complete beginners—to start an online store. It’s an all-in-one platform that gives you everything you need to run a business from home.

If you’ve ever dreamed of launching a brand or selling online, there’s no better time to start than now.

FAQs (Frequently Asked Questions)

Is Shopify good for beginners?
Yes! Shopify is designed to be user-friendly, even if you have no coding or design skills.

Do I need coding skills to use Shopify?
No. Everything is drag-and-drop. Advanced users can edit code, but it’s not required.

Can I use my own domain with Shopify?
Yes, you can connect an existing domain or buy one through Shopify.

What can I sell on Shopify?
Physical products, digital goods, services, subscriptions, and more.

Is Shopify free to use?
No, but there’s a free trial and promotional pricing to get started.

What happens after the free trial?
You’ll need to choose a paid plan to keep your store live.

Does Shopify support dropshipping?
Yes, Shopify fully supports dropshipping and is actually one of the most popular platforms for starting a dropshipping business. Shopify is not just compatible with dropshipping, it’s built for it. Whether you’re launching your first product or scaling to multiple suppliers, Shopify makes the entire process smooth and begin.

Disclaimer

This article is for informational purposes only and does not constitute financial or business advice. Please consult with a professional before making any investment or business decisions

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