What is Shopify and How Does it Work? Sell and Make Money on Shopify

What is Shopify?

Shopify is an all-in-one eCommerce software that allows anyone to set up an online store and sell products. It is popular due to its low startup cost, user-friendly interface, and versatility. Over the years, Shopify has evolved into an eCommerce platform that helps you customize your store by connecting to APIs and accessing over 6,000 apps on the Shopify App Store.

In the Shopify App Store, you can find apps for sourcing products, store design, marketing, fulfillment, shipping, customer service, store management, and more. These powerful apps make Shopify a comprehensive online store platform that you can use to run your entire business.

Shopify is ideal for those who want to sell products online, whether you already have a product or are looking to source one. You can sell anything on Shopify — clothes, makeup products, electronics, furniture, or even digital products like eBooks. Shopify provides the ultimate solution for setting up an online store, sourcing products, and processing payments. The best part is that you don’t need any web design or programming knowledge. Anyone can start an online store with Shopify.

How Does Shopify Work?

Shopify works as a Software as a Service (SaaS) tool that allows users to build their online stores through a monthly subscription. It is cloud-based, meaning you don’t need to worry about upgrading or maintaining the software. Additionally, you can access and manage your online store from anywhere with an internet connection.

Shopify Pricing

Shopify offers three subscription plans:

Basic: $29 per month, best for new eCommerce businesses

Shopify: $79 per month, best for growing businesses

Advanced: $299 per month, best for businesses that need advanced reporting

All plans include an online store and blog, unlimited products, 24/7 support, multi-channel sales (e.g., Facebook marketplace and Amazon), free SSL certificate, abandoned cart recovery, and more. The main differences between the plans are the number of staff accounts, inventory locations, reports, payment processing fees, and global selling support. Regardless of which plan you choose, all orders are subject to payment processing fees like credit card rates, which vary by location.

Pros of Shopify

Low Setup Cost

It costs only $29 per month to start with Shopify, making the setup cost very affordable.

Easy to Use

Shopify is straightforward and user-friendly. You can set up a store in just a few minutes, even without technical skills.

All-in-One Solution

Shopify provides a comprehensive eCommerce solution that handles every aspect of running an online business, from sourcing products and marketing to processing payments and shipping.

Excellent for Dropshipping

Shopify directly connects to hundreds of dropshipping suppliers who stock, pack, and deliver products for you with little to no upfront cost.

Sell on Multiple Channels

With Shopify, you can connect your store to sell on other channels like Facebook, Amazon, and Etsy, expanding your reach and sales opportunities.

Cons of Shopify

Some Add-Ons are Expensive

If you want to extend the functionalities of your Shopify store, you may need to pay for add-ons. Some of these add-ons can be expensive. For example, Shopify POS Pro costs $89 per month per location.

Transaction Costs

Depending on your location, there are transaction fees of around 3% plus a fixed fee (about $0.30) per transaction for accepting major credit cards like Visa and Mastercard.

How to Sell and Make Money on Shopify

Now, let's get to the key part: how to start selling and making money on Shopify.

Sign Up on Shopify

Sign up for a Shopify 14-day free trial here! No credit cards are required. Click the link to go to the Shopify website and fill in your email address, password, and store name to start your 14-day free trial immediately. There’s no credit card required, so there’s no cost or risk to try what Shopify can offer.

Add Products to Your Shopify Store

Once you sign up, you will be redirected to the admin panel of your new online store. Here you can start customizing your store and uploading products to sell. If you have not yet decided what products to sell, consider dropshipping. Check out our Dropshipping 101 guide for more information.

Connect to a Domain

When you’re ready to launch your site, go to the dashboard and navigate to ‘Add a Domain’. Here, you can either transfer an existing domain or register a new one through Shopify. We recommend buying a domain from NameCheap as it often offers better prices and a wider selection of domain names.

Add Payment Gateways

Finally, go to the “Payments” tab on the dashboard and select your desired payment processors. This will allow you to accept payments from your customers.

Conclusion: Is Shopify the Right Online Store Builder for You?

Is Shopify the right platform for you? The best way to find out is to test it. Sign up for a Shopify 14-day free trial here! No credit cards are required. Shopify offers almost all the tools you need to sell and make money online. From one single platform, you have access to product sourcing, packaging, marketing, payment processing, and setting up your online store with absolutely no coding knowledge required.

We like Shopify for its ease of use, ability to connect to social media and online marketplaces, and being an excellent online store builder for dropshipping. It is suitable for all kinds of businesses, whether big or small.

In summary, Shopify is an excellent choice for anyone looking to start an online store. It provides a comprehensive, user-friendly platform that allows you to manage all aspects of your business in one place. With its wide range of features and integrations, Shopify makes it easy to create a professional online store, attract customers, and process payments efficiently. Whether you are just starting out or looking to grow your existing business, Shopify has the tools and resources to help you succeed.

We hope we’ve answered your question of “What is Shopify and how does it work?” If you have any thoughts or questions about Shopify, feel free to let us know in the comment section below.