Business Software & Marketing

Shopify

Also known as: Shopify store, Shopify Plus, Shopify POS

Shopify is a subscription-based e-commerce platform for building and running online stores.

Merchants use it to list products, accept payments, manage inventory, and fulfill orders. Shopify handles the technical infrastructure (hosting, payment processing, checkout security) so business owners can focus on selling. It's the dominant platform for direct-to-consumer e-commerce and works for businesses ranging from solo entrepreneurs to large brands.

Shopify, explained at three levels

At home

Shopify is the platform that most independent online stores are built on. If you want to sell products online (whether it's handmade jewelry, digital downloads, or clothing), Shopify gives you a ready-made store, a checkout, and payment processing without needing to know how to code. You pay a monthly subscription and a small fee on each sale.

At work

Retailers and brands use Shopify as their entire online selling system. The admin dashboard shows orders coming in, inventory levels, customer information, and revenue summaries. Shopify processes credit cards, manages refunds, and integrates with shipping carriers to print labels and track packages, all from one place.

Real-world examples

At home

Aisha made custom candles and sold them locally. She signed up for Shopify, uploaded photos of her 12 products, set prices, and had an online store running in a weekend. She shared the link on Instagram and received her first online order the following week.

At work

Fatima managed e-commerce operations for a fashion brand with 3,000 SKUs. She used Shopify Plus to run the online store, integrated it with their 3PL warehouse system via the Shopify Fulfillment API, and set up Shopify Flow rules that automatically tagged VIP customers (over $500 lifetime spend) and enrolled them in a special email program.

How it compares

featureShopifyWooCommerceBigCommerce
Setup easeVery easy, guided setupModerate (WordPress required)Moderate
HostingFully hosted (Shopify manages it)Self-hosted (you manage)Fully hosted
Transaction fees0% with Shopify Payments0% (your payment gateway fees only)0% on all plans
CustomizationStrong (theme + apps + Liquid)Unlimited (open source)Strong built-in features
Best forMost DTC brands, fast setupWordPress sites, developersComplex product catalogues

Shopify is the best choice for most direct-to-consumer brands that want a managed, reliable platform with minimal technical overhead. WooCommerce gives more control but requires managing WordPress hosting and plugins. BigCommerce has stronger built-in B2B features but a smaller app ecosystem than Shopify.

For analysts

When a client asks whether to build on Shopify or a custom platform, the answer is almost always Shopify unless their requirements are genuinely unusual. The time and cost to maintain a custom e-commerce system far exceeds Shopify's subscription fees for most businesses. Reserve custom builds for businesses with truly unique ordering or fulfillment workflows that no platform can handle.

History & origin

Shopify was founded in 2006 by Tobias Lutke, Daniel Weinand, and Scott Lake in Ottawa, Canada. Lutke originally tried to build an online snowboard store but was frustrated by existing e-commerce software, so he built his own. The platform was released publicly in 2006 and went public on the Toronto Stock Exchange and NYSE in 2015. Shopify's App Store and partner ecosystem, web developers who build Shopify stores for clients, became major growth drivers. By 2024, Shopify powered over 1.7 million businesses in 175 countries.