What is Shopify and how does it work?

Author: Published

In brief: Shopify is a subscription-based platform for building and running an online store. It provides hosting, a product management dashboard and order management tools, but you still need to prepare your product range and organise sales yourself. You can connect your own domain to the store, including one bought from another provider. Alternatives include WooCommerce, PrestaShop, Shoper and IdoSell.

How Shopify works and what your subscription includes

Shopify uses the SaaS model, meaning software delivered over the internet as a service. Instead of installing a store on your own server, you create an account and use a dashboard in your browser. The provider maintains the platform’s infrastructure and updates its core software.

In the dashboard, you add products, photos, prices and variants, such as T-shirt sizes. You configure the store’s appearance using a theme—a ready-made template—then set up payments and shipping. There are also tools for managing orders, customers and promotions.

However, Shopify is not a marketplace: a shared site featuring offers from multiple sellers, such as Allegro. You create your own store and need to attract customers to it. A subscription alone does not guarantee traffic, sales or visibility in Google.

The features available depend on your plan and the apps you use—add-ons that extend the store’s capabilities. A ready-made theme helps you launch faster, but a custom product configurator or complex integration with a warehouse management system may require extra tools and specialist work.

How much it costs to run a store

Shopify costs do not end with the subscription. When planning your budget, account for payment processing, a domain, and any paid theme or apps. Setup, content creation, advertising and integrations with accounting systems, warehouses or courier companies may incur separate costs.

For example, a handmade candle store might start with a simple theme and a small catalogue. But if it needs custom gift sets, automatic invoicing and shipping to multiple countries, add-ons and configuration can increase the budget significantly. Compare the cost of the complete solution you need, not just the cheapest plan.

Check Shopify’s official pricing and documentation for current prices, plan limits, payment terms and any additional transaction fees. The availability of payment providers and individual features may depend on the country where your business operates. Do not assume that a particular integration for the Polish market is available or included in the subscription—confirm this with its provider.

Can you connect your own domain?

Yes, a Shopify store can use your own domain. You do not have to transfer it to Shopify: it can remain with your current registrar, the company that handles its registration and renewals. You will continue paying that provider for the domain.

Connecting it involves changing DNS records: entries that specify which services the domain points to. The typical procedure is as follows:

  1. Add your domain in your Shopify store’s domain settings.
  2. Check the platform’s current instructions for the required DNS records.
  3. Update the relevant entries in the dashboard of the provider managing your domain’s DNS.
  4. Wait for the changes to propagate and confirm the connection in Shopify.
  5. Set the primary address and check that the domain works both with and without www, and that HTTPS connections work.

Do not copy record values from an old tutorial—use those specified by Shopify. Incorrect or conflicting entries can prevent the store from connecting properly.

Connecting your website does not transfer your email. If you already use a business email address on this domain, preserve the records that support email, particularly MX and the required TXT entries. Shopify does not automatically replace your email hosting service. Save your current DNS configuration before making changes.

What are the alternatives to Shopify?

The main difference is who is responsible for the store’s technical maintenance. You can choose a subscription service or software installed on hosting of your choice.

SolutionHow it worksWhat to check before choosing
ShopifySubscription-based platform with hostingCost of apps, payment processing and required integrations
Shoper or IdoSellOnline store platforms offered as a serviceWhat the plan includes, integrations and service terms
WooCommerceAn online store extension for WordPressHosting, updates, security and plugin maintenance
PrestaShopSoftware installed on your hostingCost of setup, modules and technical support

WooCommerce and PrestaShop give you more control over your store’s environment, but also bring more technical responsibilities. Free access to the core software does not mean running the store is free. A subscription platform, meanwhile, reduces some administrative work but ties your store to the rules and capabilities of a particular service.

How to check whether Shopify suits your store

Shopify is a reasonable option if you want to launch your own store without administering a server and are comfortable with recurring fees. It may be less suitable if your sales process requires many unusual features or a crucial integration is unavailable.

Before deciding, test one real-world scenario: add a product with variants, configure the shipping you need, test payment and check how orders are passed to your accounting system. Also assess whether you can easily export the data you need if you later switch platforms.

Make a list of the features essential to your first sale and calculate their total monthly cost in two solutions you are considering. This test will tell you more than simply comparing how the templates look.

See also: What is Linux?

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