Shopify has long been the platform of choice for online sellers, powering over 4 million ecommerce websites worldwide. But a lot has changed in the world of ecommerce over the past few years. Consumer behaviors have shifted, new technologies have emerged, and competitors have upped their game.
So the question is – is Shopify still the best option for building an online store in 2024? In this in-depth Shopify review, we‘ll take a close look at the platform‘s features, pricing, pros and cons to help you decide if it‘s the right solution for your ecommerce needs.
What is Shopify?
For the uninitiated, Shopify is a fully hosted ecommerce platform that enables anyone to set up an online store and sell products. It was founded in 2006 and has since grown to become the leading ecommerce solution, with a 32% market share according to data from BuiltWith.
One of the key reasons for Shopify‘s popularity is its ease of use. The platform is designed to be beginner-friendly, with a simple drag-and-drop website builder, straightforward product management tools, and seamless integration with payment gateways. But at the same time, it offers powerful features and customization options to support the needs of larger, fast-growing businesses.
Another major factor in Shopify‘s success has been its app store. The Shopify App Store contains over 8,000 apps that extend the functionality of the platform, enabling merchants to add features like customer reviews, email marketing, subscription billing, and much more. This flexibility has made Shopify adaptable to the needs of a wide variety of online businesses.
Key Shopify Features
Let‘s take a closer look at some of Shopify‘s standout features:
Online Store Builder
Shopify‘s online store builder allows you to create a professional-looking ecommerce website without any coding or design skills. It offers 11 free and 106 paid website themes, all of which are mobile-responsive and optimized for conversions.
The themes are highly customizable, letting you change colors, fonts, layout and more without editing code. You can also easily add pages, blog posts, contact forms, and other content. For more advanced customization, you have full access to edit HTML/CSS.
Inventory and Order Management
Shopify makes it easy to manage your product catalog and inventory. You can add an unlimited number of products, configure product variants (e.g. size, color), and set inventory levels for each SKU. As orders come in, Shopify automatically adjusts your inventory and notifies you when stock is low.
Shopify‘s order management system lets you view, edit, and fulfill orders from your admin dashboard. You can also generate invoices, create manual orders, and issue refunds. For businesses with multiple staff members, Shopify supports user permissions to control access to sensitive data.
Payment Processing
Shopify offers its own payment gateway called Shopify Payments, which allows you to accept credit cards directly on your website with no setup fees or monthly charges – you only pay a per-transaction fee. Rates start at 2.9% + 30¢ per transaction for Basic plan.
If you prefer to use a third-party payment provider like PayPal or Stripe, Shopify supports over 100 external gateways. However, you will pay an additional transaction fee on top of the gateway‘s fees (0.5% to 2% depending on plan).
Order Fulfillment
When it comes to shipping and order fulfillment, Shopify offers several options:
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Manual fulfillment: You can fulfill orders yourself and generate shipping labels from within Shopify. The platform integrates with major carriers like USPS, UPS, DHL and calculates real-time shipping rates.
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Shopify Fulfillment Network (SFN): This is Shopify‘s own fulfillment service that provides pick, pack and ship services from strategically located warehouses. Pricing is quote-based.
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Third-party fulfillment: Shopify integrates with dozens of third-party logistics providers (3PLs) like ShipBob, Shipmonk, etc. to automate order fulfillment.
Sales Channels
In addition to your online store, Shopify allows you to sell across multiple channels, including:
- Social media: Sell directly on Facebook, Instagram, TikTok
- Marketplaces: Sync inventory with Amazon, eBay, Walmart
- In-person: Use Shopify POS to accept payments at retail stores, pop-ups, etc.
- B2B: Create a separate storefront for wholesale customers
Having a centralized platform to manage products, inventory, and orders across all your sales channels can be a huge time-saver.
Shopify App Store
Perhaps Shopify‘s greatest strength is its vast app ecosystem. The Shopify App Store has over 8,000 apps that can add features and functionality to your online store, such as:
- Email marketing
- Product reviews
- Loyalty programs
- Subscriptions and recurring billing
- Upsells and cross-sells
- Referral marketing
- Live chat and customer support
- Accounting and tax management
Using apps, you can extend the native capabilities of Shopify to build a powerful, feature-rich ecommerce website. While some apps are free, most charge a monthly fee. Costs can add up quickly, so it‘s important to be selective about which apps you install.
Shopify Pricing
Shopify offers three main pricing plans:
- Basic ($29/month): Includes all the core ecommerce features with up to 4 inventory locations and 2 staff accounts
- Shopify ($79/month): Adds features like gift cards, professional reports and up to 5 staff accounts
- Advanced ($299/month): Supports up to 8 inventory locations, 15 staff accounts and advanced report building
Additionally, Shopify has a ‘Starter‘ plan ($5/month) with very limited features and Shopify Plus (custom pricing), an enterprise solution for high-volume merchants.
One thing to keep in mind is that Shopify charges transaction fees (0.5% to 2%) on top of your payment gateway fees unless you use Shopify Payments. So be sure to factor that into your costs.
Also note that the monthly subscription is not the only cost involved. You will also likely need to purchase apps, pay for a custom domain, and potentially buy premium themes or development services. These costs can add up, so proper budgeting is crucial.
Shopify Pros and Cons
As with any ecommerce platform, Shopify has its strengths and limitations. Here are the main pros and cons to consider:
Pros
- Beginner-friendly: Setting up a professional online store is easy, even with no tech skills
- Feature-rich: Shopify offers all the core features you need to run an online business
- Scalable: The platform can support businesses of all sizes, from startups to enterprises
- Large app store: Extensive third-party integrations to extend functionality
- Reliable hosting: Shopify takes care of website security, maintenance and backups
- Multi-channel: Sell on your website, social media, online marketplaces and in-person
- 24/7 support: Get help anytime via phone, email or live chat
Cons
- Transaction fees: Shopify charges extra transaction fees unless you use Shopify Payments
- App costs: Many essential features require paid third-party apps which increase monthly costs
- Strained customization: Customization options can feel limited without coding knowledge
- Content limitations: Blogging features are fairly basic compared to platforms like WordPress
Shopify Alternatives
If you‘re not sold on Shopify, here are some other leading ecommerce platforms to consider:
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BigCommerce: Shopify‘s biggest competitor, offering robust built-in features aimed at larger businesses. Pricing starts at $29.95/month.
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WooCommerce: A popular open-source ecommerce plugin for WordPress. While it‘s free to install, costs can add up for hosting, extensions, security and maintenance.
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Wix: An easy-to-use, drag-and-drop website builder with ecommerce capabilities. Ecommerce plans start at $27/month.
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Squarespace: Another beginner-friendly website builder that supports ecommerce. Pricing starts at $18/month for ecommerce.
Ultimately, the "best" ecommerce platform will depend on your specific needs and budget. We recommend making a list of your must-have features, trying out free trials, and calculating the total cost of ownership before making a decision.
Bottom Line
So, is Shopify still the king of ecommerce in 2024? Based on our analysis, the answer is a resounding yes.
While the platform isn‘t perfect, it continues to innovate and adapt to the changing ecommerce landscape. Its ease of use, extensive feature set, and scalability make it a top choice for online sellers of all types.
Of course, Shopify isn‘t the ideal solution for every business. If you‘re on a tight budget, you may find the transaction fees and app costs too high. And if you want complete control over your store‘s appearance and functionality, an open-source platform like WooCommerce may be preferable.
But for most people looking to start an online store quickly and scale it over time, Shopify is an excellent option. Its market-leading position looks secure heading into 2024 and beyond.
