What is Shopify and how does it work


You may know what Shopify is and how it works, or at least it will ring a bell, but what you may not be so sure of is its history. And that’s why we are here 😉

What is Shopify: the origin

This CMS was founded a few years ago, specifically in 2004 by Tobias Lütke, Daniel Weinand and Scott Lago after an attempt to open an online store for snowboarding called Snowdevil. And we say “attempt” because in the first instance they were not able to find any e-commerce product that covered the needs that their store demanded.

Maybe it would be easier to build their own software – said and done! Luke, a computer programmer, built his own online product sales software to be able to launch Snowdevil’s online store after a couple of months of development.

Shopify was founded in 2004 but the platform was launched two years later in 2006.
In June 2009, Shopify launched a platform API and the App Store. From then on, growth was unstoppable.

In 2007 it was a finalist in the CNET Webware Awards and increased its workforce from 40 people in 2010 to 140 in 2102 and then further expanded to 300 in 2013. In 2020 it reached 5,000 employees in 17 offices in twelve countries. More than one million vendors already use Shopify worldwide.

Shop, the latest evolution of Shopify

In April 2020, Shopify announced the launch of Shop, a new app that functions as a marketplace.

With Shop, users can still track their shipments, but it also allows them to browse a recommended product feed, learn about new brands and make purchases directly from the app.

Stores can integrate the Shop Pay payment system that allows consumers to pay with just one click. This allows them to improve the customer experience and reach new potential consumers.

Under the “Stores” tab, consumers can find a personalized shopping feed, which displays product selections, special offers and new products to discover. This feed is fed from the consumers’ purchase history and the brands they follow in Shop.

Shop also shows if the online store is physically located near the user, and if it offers an in-store order pickup option. This way customers can find local businesses if they prefer not to wait for the parcel service.

But… how does Shopify work?

Shopify is a CMS for eCommerce which allows you to design your online store to your liking without the need for any programming knowledge – it’s that simple. You can make your own online store in a few minutes with total ease. The interface is very flexible and the process of building the store is very intuitive and effective without losing time in navigation. It is a CMS that will make your management tasks easier from the beginning.

How much does Shopify cost

Basic Plan (29 usd/month, about 26 euros per month). The simplest plan to create unlimited products and categories, with 2 accounts for employees.
Shopify plan (79 usd/month, about 72 euros per month), which reaches 5 accounts and includes the possibility of creating performance reports.

Advanced plan (299 usd, or about 273 euros in total) for large businesses, with the possibility of up to 15 employees can access your control panel.

Please note that in addition to these prices, you will have to add the fee (between 2.4% and 1.8%, depending on the plan you have chosen) for each payment you receive by credit card in the case of using Shopify Pay, Shopify’s native payment processor.

And what are its advantages?

Easy to create and manage your online store. It will be very easy for you to create, personalize and prepare your online store to start selling in a short time, and you can also design a blog to promote your store with it.

Hosting is included so you don’t have to worry about the speed of your store.
Good customer service. Support through forums, email or even chat. It also has Shopify Academy, a platform with free courses to help you manage your business.
Customer statistics (for higher payment plans), which will help you to guide your sales strategy.

Payment facilities, as they have more than 70 international payment currencies that allow you to sell locally and in other countries.
You can sell even without having the product itself since it integrates to Dropshipping sites with apps such as Ordoro or Inventory Source.

Automatic tax system, so you don’t have to worry about anything since Shopify automatically takes care of state and country taxes from the location.

Unlimited products that can be varied according to characteristics, with the possibility of importing or exporting the products with csv files or one of the apps for importers/exporters in the store.

Accept and manage orders in seconds, as you will receive an email or mobile notifications every time you receive a new sale. Customers like the immediacy of the service.

And now that you know the advantages of Shopify and how easy it is to use, are you going to use it to create your online store?

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Jose Limardo

Jose Limardo

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