Shopify how does it work The Complete Guide to 2022

Shopify how does it work? The Complete Guide to 2022

A detailed guide to how Shopify works and why it is one of the best eCommerce platforms.

Starting an online business is not like it used to be. Thanks to software and tools like Shopify, starting today is much easier and less expensive than ten years ago.

If you’re looking for “E-commerce” topics and articles, you’ve probably already heard of Shopify, one of the most famous platforms in the eCommerce space.

With a good idea and a product, you can start selling worldwide and turn your vision into reality.

If you are a business owner, your day-to-day is to showcase your products, attend to your customers to offer good service, receive payments from customers, mail products, and manage your operations and finances.

Some businesses use multiple tools and software to accomplish all these activities and spend time and money.

There are e-commerce platforms that offer all these tools in one place to make your life easier so you can focus on marketing and selling your product instead of trying to solve the technological maze if you decide to do it with different software and tools.

What is Shopify?

Shopify is an eCommerce platform where you can build an online store without knowing to program or having previous web development experience.

There are over 1 million merchants worldwide using Shopify as an eCommerce platform to market their products. Shopify allows you to start a business from scratch, grow and scale to multiple figures from one place.

It is completely hosted and maintained in the cloud, so you don’t have to worry about buying hosting or upgrading server software versions.

Shopify how does it work The Complete Guide to 2022

What is the history of Shopify, and who invented it?

In 2006, Tobias Lütke and Scott Lake wanted to sell snowboards online, and the platforms at the time were quite complicated to manage.

Frustrated, they decided to create their platform to launch instead of relying on the existing ones in the market.

They launched after two months and started receiving snowboard orders. Still, interestingly, other entrepreneurs, frustrated with the tediousness of their platforms, started contacting them to design a website similar to Snow Devil (Tobi and Scott’s platform).

After helping several people with their stores, they decided to make the platform available to any entrepreneur who wanted to make their eCommerce. Thus, they were born what we know today as Shopify.

Later they created the Shopify app store, a third-party application site that allows you to install different applications in your store to avoid writing code and help you with other functionalities you want to have in your web store.

What does Shopify do?

Think about the last time you bought a cell phone. When you take it out of the box, your phone takes pictures and video, surfs the internet, has apps installed like maps to get you from one place to another, tells you the weather, has a calendar for your meetings, etc.

In other words, your cell phone does all the activities you need it to do as soon as you open it. With Shopify, it’s similar; when you sign up for any plan, Shopify offers you an e-commerce platform so you can manage your business from one place.

You receive an online store with products, a payment processor with payment gateways, the ability to ship with different couriers, statistics with the most critical metrics of your store, and marketing tools such as email marketing and confirmation emails…

Shopify how does it work The Complete Guide to 2022

How much does Shopify cost?

Basic Plan (BASIC): this allows you to sell and list infinite products. This is the cheapest option and the ideal plan to start an online store. It will enable you to do most of the functions.

Shopify BASIC Plan has a monthly cost of $29 per month.

You are charged 2.9% + $0.30 for each transaction made by Shopify Payments and 2% for payment gateways other than Shopify Payments.

Shopify Plan: once you start selling and have a specific volume, you can upgrade to this plan. The main difference is the percentage charged for payment gateways other than Shopify Payments.

The Shopify Plan has a monthly cost of $29 per month. You are charged 2.6% + $0.30 for each transaction made through Shopify Payments and 1% for payment gateways other than Shopify Payments.

Advanced Shopify Plan (ADVANCED): you are already scaling your business and have multiple orders per day. This makes sense once it is in your best interest to pay less for store billing. It also has advanced reporting and more users so that you can give your team access to your store.

The Shopify Advanced Plan has a monthly cost of $399 per month. You are charged 2.4% + $0.30 for each transaction made through Shopify Payments and 0.5% for payment gateways other than Shopify Payments.

See all the pricing details to set up your online store and details of each plan.

Benefits of selling online with Shopify

Shopify has become one of the most preferred platforms for merchants worldwide. There are several reasons to explore before making a significant decision.

What businesses use Shopify?

Popular sites using Shopify as a platform

Nowadays, it’s widespread to get stores built with Shopify as a technology, which indicates that it’s a system that scales with you as you grow as a brand.

Shopify how does it work The Complete Guide to 2022

Sascha Fitness

Venezuelan fitness influencer Sascha Barboza, better known as Sascha Fitness, has her e-commerce store on Shopify.

All proteins and supplements are sold from the United States and marketed throughout Latin America, Europe, and the United States. This has allowed Sascha to bring her products to multiple countries and has allowed her to expand her portfolio in recent years.

GymShark

Fitness clothing store founded by Ben Francis in 2012. It is currently one of the most trafficked Shopify stores in the world.

They sell fitness apparel and have had exponential growth in recent years. They have their main operation and HQ in the UK but sell to almost every country globally. It is currently valued at over a billion dollars.

Allbirds

They claim to be the most comfortable shoes in the world. It became a billion-dollar-plus brand in just two years of launching.

They recently moved out of the online world and started expanding with physical stores, using Shopify POS to keep everything integrated.

Pura Vida Bracelets

In 2010, Griffin Thall and Paul Goodman founded Pura Vida Bracelets after visiting Costa Rica and having only $100 in their pocket. They saw the bracelets at local artists’ markets and decided to buy 400 to start their business.

Pura Vida went from having an e-commerce platform called Magento to Shopify Plus, which is Shopify’s platform when your store reaches the enterprise level.

This is a list of the 500 largest stores globally using Shopify ranked by order or by order of growth (trends).

Is Shopify the platform I need to sell online?

It’s important to ask yourself this question before you get started, and the answer is that it depends on the type of operation you’re primarily doing.

Shopify is not ideal for the following businesses:

Content generation: Blogging and monetizing using ads or affiliate links, Shopify is not the right platform. There are better solutions like WordPress or Webflow, which do that job better. While Shopify has a CMS or internal blog, the primary purpose is to sell physical products.

Create an Online Course: Selling knowledge through videos on a secure site where people pay for access, then Shopify is not the right platform for you.

There are platforms like Kajabi, Thinkific, or Youtube that are better for doing that to create online courses.

Sell eBooks or digital content: Shopify allows you to sell digital products, but it is not the ideal platform to do this.

Other platforms like Kajabi or Sendowl make this process more accessible since they are tools developed.

Shopify how does it work The Complete Guide to 2022

Shopify is ideal for these types of businesses

Now, if you plan to Sell Physical Products online where someone buys a product from your store and is shipped from your warehouse or via dropshipping, then Shopify is an ideal platform.

Shopify also has a solution in some countries called Shopify POS, especially for brick and mortar stores or stores with physical locations such as clothing stores or vitamin and supplement stores.

Entrepreneurs made Shopify for entrepreneurs.

Unlike other e-commerce platforms, Shopify was designed from the ground up by entrepreneurs like you and me. Therefore all the solutions are designed with you as the business operator.

There is, for example, the Shopify App, which you can download from the App Store or Google Play Store and allows you to see the most relevant information about your business at any time.

It is a pleasure to hear the “ping” it makes when a new order comes in when you first start. This pleasure lasts until you start receiving multiple orders per minute and cancel the sound.

It is also interesting to see the faces of the people around you when a command comes in. In my case, they have been a reason to start a conversation with someone I don’t know because they ask me.

Do you sell on Shopify, and what do you sell?

Source: Style Factory

Shopify Apps and the App Store

Aside from the CORE or core platform that Shopify offers, there is an App Store that you can visit to get apps – paid and free – and install them on your store.

Shopify’s App Store has many apps as it has more than 6,000 apps. Apps help your store add functionality that the CORE platform doesn’t have, or your store talks to external apps like Zendesk or Klaviyo.

Now I imagine you’re wondering, why do I need to install an app if I already have Shopify? Imagine you want to add something specific to your business model; I’ll give you a couple of examples from my stores.

Subscriptions, i.e., offer that the system charges your customers every month, and they can cancel or increase the frequency of their subscriptions. All this is done through an application.

Upsells: Once your customers buy, what happens if a window pops up and asks them: do you want to add this other product Y to the cart for only X$?

Instead of having to do a development with a programmer through Fiverr or Upwork, you install the app you want, and with a single click, that app functionality is enabled in your store.

On the other hand, if you use other software to support your business, for example, Mailchimp for emails, Shipstation for offices, or Quickbooks for your accounting, you can install these apps to your store to integrate and talk to them each other via API.

The applications or apps are separate from the templates or themes. These are the ten most popular templates in Shopify.

Payment Gateways

You can choose from over 100 different payment gateways or use Shopify Payments to offer in your store.

The ideal payment gateway for Shopify stores is Shopify Payments. Unfortunately, it is not available for all countries. If you have your business in one country that offers Shopify Payments, you are better off since you spend less on fees than with an external payment gateway.

Shopify how does it work The Complete Guide to 2022

Shop Pay

Shop Pay is an application developed directly by Shopify to speed up checkout and increase your store’s conversion. The app securely stores emails, credit cards, shipping, and billing addresses so they can checkout with the click of a button.

According to Shopify, it increases conversion by 1.72 times compared to checkouts without the service.

Sell on TikTok, Instagram, and Facebook.

You can enable your store directly on Instagram Shop or Facebook Shop with a single click.

When you integrate your store with services like Instagram Shop, the system shows your products on Instagram so your followers can shop without leaving the app.

Once you receive the order on Instagram, it shows you the order directly in your admin panel and updates the inventory automatically.

Source: PageFly

Integrations with Amazon and Walmart

It not only integrates with apps but also with Marketplaces like eBay, Amazon, and Walmart.

If you have an account, you can integrate your store to those marketplaces, and when you receive an order, it is automatically updated in the control panel. You can sync your product portfolio across these platforms and become a multi-platform brand.

There are many benefits of having your brand everywhere, as it makes it have more visibility, and you have more chances for potential customers to get you.

Can Shopify be set up in English?

Shopify can be set up in different languages. From the control panel to your entire store. It can even have other languages to make it native to your potential customers.

Can I try Shopify for free?

Yes, Shopify has a free trial period. If you are interested in opening a Shopify store, take a 14-day free trial.

How do I choose a good theme or template for my Shopify store?

There are thousands of themes that you can pre-install on your eCommerce store. You can choose from several, and it’s all going to depend on how you want your website to look and what style you want.

Indeed you have something you want to share with the world, knowledge, some extraordinary gift or skill, and to tell the truth, if this is your case, the best way to influence people and have scalability is through an online course.

Now, where to start?… what platform to choose to be able to focus on generating content instead of dealing with different software that talks to each other and not lose your head in the attempt?

That’s where Kajabi comes in. Kajabi is all-in-one software to help you make all those connections and dedicate almost all your time to what you do best, which is generating that quality content.

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