How Shopify works for new store owners

If you’re like most people, you’ll probably agree that starting an online store can feel overwhelming.

The good news is that platforms like Shopify are designed to simplify the process for entrepreneurs at any stage. If you’re looking to start selling online, you might be wondering: How does Shopify work?.

In this guide, I’ll walk you through a step-by-step tutorial on how to use Shopify to run a successful ecommerce store. I’ll cover everything from setting up your first shop to managing day-to-day operations.

Shopify provides everything you need to get started and grow - whatever type of products you need to sell. It’s great for entrepreneurs and business owners who want to take their business online whether it’s to sell physical products, digital goods, or services.

The best part is that you don’t need a background in web development and design or prior coding knowledge to get started. Shopify handles the technical details for you, allowing you to focus on what matters most i.e. growing your business.

How Shopify stores work: A beginner’s guide

Shopify is a user-friendly platform that helps you build an online store without needing any technical skills. Powering over 5.5 million websites, it’s one of the most popular ecommerce platforms globally.

So, what can Shopify do for you?

Shopify lets you:

• Set up an online store. You can create a professional-looking ecommerce store with customizable templates.
• Manage products. Add and organize products, track inventory, and set pricing.
• Handle payments. Shopify offers integrated payment processing which allows you to accept payments via credit cards, PayPal, and more.
• Optimize shipping. If you sell physical goods, you can set up your Shopify store to automatically calculate shipping costs, generate shipping labels, and track orders.
• Market your business. There are built-in tools for Shopify SEO, email marketing, and social media integration.
• Customer support. Shopify offers 24/7 customer support via chat, email, and phone.

Shopify is built to be intuitive and user-friendly. Once you sign up, you can choose a theme for your store, customize it to match your brand, and start adding products.

Shopify’s straightforward approach helps ensure you can start selling immediately – whether you’re new to ecommerce or have prior experience with a different platform.

Related tutorial: How to build your first Shopify store step by step.

Setting up your store: Shopify vs WooCommerce features compared

While Shopify is one of the most popular ecommerce platforms out there, many users debate whether it’s better than other platforms, like WooCommerce.

Let’s break down how Shopify compares to WooCommerce in terms of factors like ease of use, customization, payment options, ecommerce features, and cost.

1. Ease of use

Shopify is known for its user-friendly interface and intuitive back-end.

It’s an all-in-one solution for entrepreneurs and business owners who want to take their store online. The platform comes with plenty of easy-to-use features like drag-and-drop store builders and customizable templates so you don’t have to start from scratch.

The platform is designed specifically for entrepreneurs with no prior coding skills. Once you sign up, you can get your ecommerce store up and running in a few hours.

WooCommerce, on the other hand, is a WordPress plugin. This means you need to have an existing WordPress site to use. While it certainly provides a lot of flexibility and customization options, the setup process can be more complicated for beginners. More specifically, you’ll need to handle some technical bits like web hosting and domain management.

2. Design and themes

Shopify offers a wide range of professional, mobile-responsive themes out of the box.

Many of these themes are customizable, as well, which means you can tweak it to get the exact look and feel you want. You can choose from free themes or premium options which typically cost anywhere between $100 to $500.

WooCommerce also offers a wide range of themes to choose from. Some are free and others require a paid subscription. At the time of this writing, the WordPress Theme Directory has over 13,000 free themes to choose from.

Keep in mind, however, that not all WordPress themes are optimized for WooCommerce. Ideally, you want to go with a WooCommerce theme for your ecommerce store. WooCommerce themes are fully customizable but you may need a developer if you want advanced customization or features.

3. Payment options

Shopify comes with a native payment processor – called Shopify Payments – that integrates directly with the platform and offers low fees.

All you have to do is enable the payment methods you’d like to offer. It also lets you set up local currencies to improve the customer experience. If you want even more payment options, you can add third-party payment gateways like PayPal, Stripe, and others.

WooCommerce supports many payment gateways including PayPal and Stripe. However, keep in mind that you may need to install additional plugins for some options. This can be a bit more technical than Shopify.

4. Inventory management and shipping options

Shopify provides a streamlined inventory management system with tools for tracking stock levels, automating reorders, and syncing products across multiple sales channels.

In addition to this, it also includes integrated shipping solutions with live rate calculations, shipping label printing, and order tracking.

WooCommerce has built-in inventory management features and integrates with various third-party tools. However, you might have to install additional plugins to configure these tools on your ecommerce store.

5. Cost

Shopify plans start at $19 per month (billed yearly) which includes hosting, security, and customer support. In addition to this, you get 10 inventory locations, localized global selling in 3 markets, and POS Lite. Additional costs may include paid apps and themes.

The WooCommerce plugin itself is free but you’ll need to set up a WordPress website before you can install the plugin on it. This means you’ll have to pay for a domain, web hosting, and security. If you choose to go with paid themes or plugins, that will cost you extra.

Verdict

For beginners who want an easy, no-hassle, fully integrated ecommerce solution, Shopify is the better choice. WooCommerce may be better suited for anyone with technical expertise or those who have existing WordPress websites.

Managing inventory with enhanced search and filtering tools

Effective inventory management is critical for ensuring your store runs smoothly. Shopify provides several tools to help you track stock levels and automate processes.

Automated stock updates

Shopify helps streamline your inventory management by automatically updating stock levels whenever a sale is made or new stock arrives. This real-time tracking ensures that your inventory count is always accurate and reflects the current stock.

For example, if you receive a new shipment of products or if an item is sold out, Shopify will automatically adjust the quantities in your inventory. This automation saves you time and minimizes human error. It also effectively prevents issues like selling out-of-stock items or overselling.

Inventory alerts

One of the most important aspects of inventory management is avoiding stockouts. Shopify allows you to set up notifications that will alert you whenever stock levels of a particular product run low.

These alerts ensure you have enough time to reorder products before they run out, helping you maintain a steady supply of your best-selling products. With this proactive approach, you can reduce the risk of disappointing customers due to unavailable products and avoid lost sales.

Product filtering and search

Shopify makes it easier for customers to find exactly what they’re looking for with its advanced search and filtering tools. Customers can filter products based on various attributes such as size, color, price range, category, and other custom options.

This functionality enhances the overall shopping experience by making it faster for customers to navigate your store. It also helps with the organization of your inventory, as products are grouped logically, and customers can easily browse items that match their needs.

Barcode scanning

Shopify’s mobile app includes barcode scanning, which simplifies the process of inventory management, especially during stocktaking and product fulfillment. By scanning product barcodes, you can quickly check inventory levels, track incoming stock, and ensure accurate order fulfillment.

This feature eliminates the need for manual data entry, speeding up the inventory process and reducing the chance of mistakes. It’s a particularly useful tool for businesses with large product catalogs or high-volume sales.

Third-party app integrations

As your business grows, so does the complexity of your inventory management. Shopify integrates with a wide range of third-party apps that provide advanced inventory management features. These apps can automate more complex processes like stock replenishment, multi-location inventory management, and the ability to sync your inventory across different sales channels.

For example, if you’re selling on multiple platforms like Amazon, eBay, or Etsy in addition to your Shopify store, these integrations can help keep your inventory consistent across all channels. These tools also enable better forecasting and allow you to manage large inventories more efficiently as your business scales.

Running your store: Essential operations and automation

Once your ecommerce store is up and running, Shopify offers a range of operational tools that can help you stay on top of daily tasks and keep your business running efficiently.

1. Order Management

Shopify makes it easy to manage orders with automated processes for order confirmation, invoicing, and shipping. You can view orders, mark them as fulfilled, and track their status in real-time. The platform integrates with major carriers to provide real-time shipping rates, and you can even generate shipping labels directly from the back-end.

2. Customer Management

Customer management is streamlined in Shopify. It comes with a built-in CRM (customer relationship management) system that lets you track customer details, order history, and contact preferences. This information can help you personalize marketing efforts and enhance customer service.

3. Automation

Shopify allows you to automate various store functions, such as sending follow-up emails to customers after they make a purchase, automating order confirmations, and setting up abandoned cart recovery emails. Shopify also offers workflow automation for certain tasks, such as automatically tagging customers or applying discounts.

Platform costs compared: Shopify and WooCommerce solutions

When it comes to the cost of running an ecommerce store, there are significant differences between Shopify and WooCommerce, especially when you consider ongoing expenses like hosting, transaction fees, and any additional apps or plugins you may need.

Shopify costs

• Monthly platform subscription. Shopify plans start at $19 per month for the Basic plan, which includes everything you need to run a store, including hosting and support.
• Transaction fees. Shopify charges transaction fees for sales made through third-party payment gateways (2% per transaction). If you use Shopify Payments, these fees are reduced.
• Apps and themes. Many apps for additional functionality (e.g., advanced inventory management, marketing tools) come with a monthly fee, and premium themes typically cost between $100 to $500.

WooCommerce costs

• Hosting. WooCommerce itself is free, but you need to pay for hosting your WordPress website. A good hosting plan for WooCommerce can range from $10 to $70 per month, depending on the hosting provider.
• Themes and plugins. While there are free themes available, premium themes and plugins often come with additional costs, ranging from $50 to $500 per year.
• Transaction Fees. WooCommerce doesn’t charge transaction fees, but you will need to pay fees for payment processors like PayPal and Stripe.

Verdict

While Shopify offers an all-in-one package that includes hosting and support, WooCommerce’s lower initial costs can be appealing if you already have a WordPress site or if you prefer more control over your hosting and site customization.

Choose your ecommerce path: Next steps for success

Now that you understand how Shopify works, you’re ready to take the next step and start building your online store.

To recap, here’s what you need to do to get started with Shopify:

1. Sign up for Shopify and start customizing your ecommerce store.
2. Decide on your product (or service) offerings, target audience, and marketing strategies.
3. Prioritize delivering excellent customer service, fast shipping, and an intuitive shopping experience.
4. As your business grows, optimize your store’s performance by adding new features.
5. Use Shopify’s advanced features – like custom reports, detailed analytics, and multi-channel selling – to reach more customers.

Whether you’re just starting out or are looking to grow your existing online store, Shopify provides everything you need to succeed.

Ready to set up your ecommerce store? Get started with Shopify today!