What Does Shopify Do? A Beginner’s Guide

Shopify is an online platform that helps businesses sell products online and in-person, simplifying the process with tools for creating, managing, and growing stores. It handles technical tasks like hosting, payment processing, and inventory management so you can focus on running your business. Here’s what you need to know:

• Ease of Use: Drag-and-drop templates make store setup simple.
• Features: Includes inventory tracking, payment options, and marketing tools.
• Scalability: Works for small businesses and large brands alike.
• Impact: Powers 10% of U.S. e-commerce and supports over 675 million shoppers.

Shopify also offers built-in payment options, analytics tools, and thousands of apps to help grow your business. Whether you’re just starting or looking to expand, Shopify provides the tools to succeed in e-commerce.

How to Use Shopify for Beginners – Crash Course Tutorial

Store Setup Steps

Set up your Shopify store step by step to get it ready for launch.

Account Setup

Start by creating your Shopify account using their 14-day free trial. This trial includes a setup guide to help you configure key settings.

The process is divided into three main stages:

After completing these steps, you’ll be ready to focus on designing your store.

Store Design

Your store’s design is crucial for making a strong first impression and keeping customers engaged. Shopify’s theme editor lets you customize your store’s look without needing any technical skills.

Before making changes, duplicate your selected theme as a backup. The theme editor allows you to adjust:

• Colors, fonts, and layouts
• Homepage sections and featured collections
• Navigation menus and footer content
• Mobile-friendly settings

Product Setup

Adding products to your store is a key step. Make sure to provide clear details and organize them effectively.

Focus on these important aspects when adding products:

1. Product Details: Write clear descriptions, set pricing, and define variant options.
2. Image Quality: Use high-resolution photos taken from multiple angles.
3. Inventory Tracking: Define stock levels and assign SKU numbers.

To make it easier for customers to browse, organize your products into collections. Shopify offers two types:

Start with broad categories and add subcategories as your inventory grows. This approach helps shoppers find what they need quickly and keeps your store organized.

Daily Store Operations

Stock Management

Shopify’s inventory system ensures you don’t accidentally sell out-of-stock items by keeping track of inventory levels and sending alerts when it’s time to reorder. Key features include:

• Stock level tracking to monitor availability
• Low stock alerts for timely restocking
• Inventory adjustment history for better record-keeping
• Performance analytics to evaluate inventory trends

Using Shopify’s inventory reports, you can review changes in stock levels and plan restocking effectively. Staying on top of inventory helps streamline order fulfillment.

Order Handling

Streamlined order processing is crucial for keeping customers happy and operations running smoothly. Shopify simplifies this process with a clear workflow:

"Efficient order processing moves from one stage to the next smoothly and accurately so that the right products end at their destination quickly. This can make a good impression on the order recipients, who can become repeat customers." – Shopify Staff

Pairing smooth order handling with proactive customer service completes the experience and encourages repeat business.

Customer Service Tools

Shopify Inbox, a free app for iOS and Android, centralizes customer inquiries from multiple channels. With Shopify Inbox, you can:

• View complete customer profiles and order histories
• Share product links or discount codes during conversations
• Assign specific conversations to team members
• Automatically label inquiries by topic for better organization

Additionally, Shopify allows you to set up contact points like forms, phone numbers, and email addresses to address inquiries quickly and professionally. To save time, the search feature helps you find conversations using customer names, email addresses, or keywords. These tools ensure you handle customer interactions efficiently and effectively.

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Payment Processing

Shopify Payments Basics

Shopify Payments is Shopify’s built-in payment system, eliminating the need for third-party processors. Once activated, it manages payment capture, fraud checks, and deposits seamlessly.

Here’s how to set it up:

1. Go to Shopify admin > Settings > Payments
2. Click "Complete account setup" or "Activate Shopify Payments"
3. Enable two-step authentication

Payout times depend on your location:

After setup, explore the payment options available to ensure you’re meeting customer preferences.

Available Payment Options

Studies show that 11% of customers abandon their carts when their preferred payment method isn’t available.

"Payments on Shopify are one of the most critical aspects of your online business." – Ekin Ozcan

Fee Structure

Transaction fees depend on the type of payment and the location of the transaction.

Standard Online Transactions:

• Domestic cards: 2.9% + $0.30 per transaction
• In-person payments: 2.7% per transaction
• Currency conversion: 1.5% additional fee

If you opt for a third-party payment provider instead of Shopify Payments:

• An extra 2% transaction fee per order applies
• You’ll also pay the provider’s processing fees and any international surcharges

Note: Transaction fees are not refunded if a return is processed. However, stores using Shopify Payments avoid third-party transaction fees on orders made through Shop Pay, Shop Pay Installments, and PayPal Express Checkout.

Sales Growth Tools

Marketing Tools

Shopify comes with built-in features to help you reach more customers and increase sales. You can connect with your audience through email campaigns, direct interactions, and social media.

• Email Marketing with Shopify Email
  Shopify Email offers tools to create and send campaigns efficiently:
  • Send up to 10,000 emails monthly for free.
  • Use branded templates that integrate with your products.
  • Automate campaigns and segment customers for personalized outreach.

"The amount of time that it takes for me to build an email campaign and get it into my customer’s inbox is so quick …we’re able to do a better job of communicating our important promotions in a timely manner".

• Customer Engagement
  Shopify Forms helps gather leads, Shopify Inbox manages inquiries, and integrations with platforms like Facebook, Instagram, and TikTok let you connect directly with your audience.

"[When I installed Forms] I really quickly jumped from something like 700 subscribers to over 900 subscribers".

To refine your marketing efforts, Shopify’s analytics tools allow you to review your store’s performance and make informed adjustments.

Store Performance Data

Tracking your store’s metrics is essential for improving sales. Key areas to monitor include:

For deeper insights:

• Examine high-traffic pages with low conversions.
• Identify product combinations that perform well together.
• Track seasonal trends to fine-tune inventory.
• Keep an eye on customer acquisition costs.

Adding the right app extensions can further improve your store’s functionality and build customer confidence.

App Extensions

The Shopify App Store offers tools to expand your store’s capabilities:

• Building Customer Trust
  • ModeMagic: Increase sales with product badges (reported boost of up to 15%).
  • Yotpo: Highly rated (4.9/5) for customer reviews.
• Optimizing Sales
  • Hextom: Ultimate Sales Boost: Rated 4.8/5 by over 10,000 users.
  • SP Sales Pop up Social Proof: Another popular choice with a 4.8/5 rating from 4,646 users.

Merchants often see better sales and engagement after using these apps. Shopify Audiences, for instance, can cut customer acquisition costs by up to 50% while doubling retargeting conversion rates.

Summary

Shopify drives over $1 trillion in revenue and supports 10% of U.S. e-commerce, with a new entrepreneur making their first sale every 28 seconds. Here’s a look at some of Shopify’s standout features and their impact:

"Shopify is designed to be easy to use while being flexible enough to meet the needs of growing small businesses and established enterprise businesses".

Shopify also offers critical features to support and secure businesses:

• Security: Every store includes a free 256-bit SSL certificate.
• Analytics: Built-in tools provide insights into sales and customer behavior.
• Support: Merchants have access to 24/7 dedicated assistance.
• Scalability: Plans range from $5/month for startups to advanced options starting at $105/month.

"Having access to a dedicated support team at any time of day or night gives our clients the assurance they need to focus on growing their business." – Steve Pogson, First Pier

With integrated payment options, automated shipping, and over 8,000 apps, Shopify equips businesses with the tools they need to succeed in today’s e-commerce landscape.

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