Shopify – What is it and how does it work? Basic information

What will you learn from the article?

• What is Shopify and how can it help you run an online store?
• What features does Shopify offer that make managing your online store easier?
• What is the history of Shopify and how did it become one of the eCommerce leaders?
• What are the main benefits of using the Shopify platform?

Shopify is one of the most popular eCommerce platforms in the world, powering several million online stores. How does Shopify work? What are the most important things you should know? What sets Shopify apart from other platforms? What's the support and store management like? We answer these and many more questions in this article.

Shopify – what is it?

Shopify is an eCommerce platform that enables entrepreneurs from around the world to set up and run online stores. It's a tool used to sell products online, manage orders, track inventory, process payments, and many other eCommerce-related features. As a sales engine, Shopify also allows for content creation (including blogging) within the store and integration with apps from the Shopify App Store and external systems (including ERP, CRM, and PIM). Shopify's performance is the subject of numerous competitive analyses – Shopify is considered the fastest-growing eCommerce engine in the world, often setting industry trends. This is the basic information you should know about Shopify.

Shopify History

Shopify was founded in 2006 by a group of Canadian developers, led by Tobias Lütke and Scott Lake. The company was founded because they couldn't find a solution on the market at the time that met their needs. Tobias and his colleagues were the first owners of a Shopify store, which they created for their own use, selling snowboards.

From the very beginning, the company's mission has been "Making commerce better for everyone." This is why Shopify is used by businesses of all sizes, from small shops to industry-specific and global giants. When it comes to basic Shopify information and the history of this engine, it's worth mentioning three events from its inception:

• 2006 | Shopify launched
• 2006 | Liquid (written in Ruby) created, which is the foundation for all Shopify stores
• 2009 | API released, allowing developers from around the world to (and still can) create applications around Shopify, among other things

Shopify has been continuously developing since 2006 and providing entrepreneurs who use their solution with new functionalities.

How does Shopify work?

It's crucial to understand how Shopify works that its creators prioritized two things from the very beginning: ease of use and reliability. Shopify is designed to be intuitive, and its use shouldn't pose any problems for anyone (even if they're new to eCommerce). In this section, we'll focus on registering and creating a store on Shopify, the Shopify frontend, the Shopify backend, and the Shopify online store dashboard.

Registering and creating a store on Shopify

Signing up and creating a store on Shopify is simple and intuitive. Here are the steps to create an account and set up your store on Shopify:

• Registration:

• Go to the official Shopify website ( https://www.shopify.com/ ).
• Click the “Start free trial” button at the top of the page
• Enter your basic information such as email address, password and store name.
• Click the “Create your store” button.
• Store configuration:
• Once you create your account, you will be asked for some additional information to help tailor the platform to your needs.
• Personalization and customization:

• Choose a template: Choose one of the available templates to serve as the foundation for your store's appearance. Keep in mind that templates can be customized later.
• Customize the look: Add a logo, customize colors, page layout, fonts, and more in the “Customize” section.
• Add Products: Go to the “Products” section and add your products, filling out their information such as description, price, images, etc.
• Payment settings:

• In the “Settings” section, go to “Payment providers”.
• Set up payment providers to allow customers to pay for your products.
• Domain settings:
• In the “Settings” section, go to “Domains” to configure your store’s domain.
• Review your tax and shipping settings:
• In the “Settings” section, adjust your tax and shipping settings according to your local regulations and requirements.

Of course, these are the basic settings that are the foundation. At the stage of customizing the store as part of our services in the field of Shopify Poland We provide comprehensive store setup from A to Z.

Shopify Frontend

How Shopify works from a customer's perspective largely revolves around visual, front-end aspects. The Shopify front-end is the part of the platform that users see and interact with. Here are some key Shopify front-end elements for stores on the platform:

• Shop home page:
  • This is the first page visitors see. It typically contains important store information, promotions, new products, and recommended products.
• Category pages and products:
  • Product categories make it easy to navigate the store, and product pages provide detailed information about each product, along with the option to add to cart.
• Shopping cart and order process:
  • The shopping cart page allows customers to preview the products they intend to purchase before finalizing the transaction. The ordering process includes entering shipping information, selecting a payment method, and completing the purchase.
• Search and navigation:
  • Search functions make it easier for customers to find specific products. Navigation (category tree) should be intuitive and clear to customers.
• Page footer:
  • Contains links to various sections such as privacy policy, store policies, contact information, etc.

Shopify offers a variety of front-end customization options using themes and the ability to modify CSS code. This allows businesses to tailor their store's appearance to their individual needs and style.

Shopify Backend

The way Shopify works is largely determined by its backend. The Shopify backend is the server-side portion of the platform responsible for data management, order processing, product information storage, payment processing, inventory management, and many other aspects of an online store's operations. Shopify's backend can be defined as everything that happens "behind the scenes" of the store—what customers don't see, but which ultimately makes order fulfillment possible. Backend components include:

• Administration panel:
  • This tool is available to store owners, allowing them to manage all aspects of their store's operations. The admin panel provides access to various features, such as managing products, orders, customers, promotions, payments, and more.
• Product management:
  • Adding, editing, and deleting products. Here, you can set prices, descriptions, product images, and manage product availability (i.e., indicate their stock status).
• Order management:
  • Viewing, accepting, rejecting, and processing orders. The store owner has access to order status information, customer purchase history, and other details.
• Customer management:
  • View and manage your customer database. Add new customers, edit their details, process returns, and more.
• Inventory management:
  • Controlling inventory levels (warehouse stock), automatic notifications of low stock levels, delivery management.
• Payment processing:
  • Configuring different payment providers, monitoring transactions, managing returns and refunds.
• Integrations and applications:
  • Adding third-party apps and integrations that extend your store's functionality. Shopify has an ecosystem of apps that allow you to customize your store to meet various needs.
• Analyses and reports:
  • Access to analytical data on sales, customer behavior, conversions, etc. Helpful in making business decisions.
• Configuration settings:
  • Configure various store settings such as taxes, shipping, currencies, languages, etc.

Shopify's backend is built to make managing an online store easy and efficient, even for those without deep technical knowledge. It's a central place where store owners can control all aspects of their eCommerce business.

Online store panel on Shopify

We've already mentioned the backend components of a Shopify store. The Shopify online store dashboard is another important point in this article to understand how Shopify works. This dashboard is a tool that allows store owners to manage various aspects of their online business. It's called the Admin Panel, which users can access after logging in to their Shopify account. The Shopify online store dashboard consists of the following sections:

→ Dashboard:

This is the main page of the dashboard, which contains summaries of important information such as current orders, revenue, visitor statistics, etc.

→ Product Management:

A section that allows you to add new products, edit existing ones, manage categories, set prices, descriptions, images, etc. It is also possible to manage inventory levels here.

→ Order management:

Here, the store owner can review, accept, reject, and process orders. From here, they also have access to customer purchase histories and order details.

→ Customer Management:

Information about customers, the ability to edit their data.

→ Analyses and reports:

A section where analytical data on sales, conversions, and website traffic is available.

→ Marketing:

Discount codes, special offers.

→ Settings

Settings including payments, shipping, languages, taxes, domains, and store access.

→ Customization

Possibility to customize the appearance of the store by selecting and modifying templates (themes), as well as access to the code.

→ Applications and integrations:

This section allows you to add new apps and integrations that extend the store's functionality. From here, the store owner has access to the Shopify App Store.

→ Technical support:

Access to technical support and educational resources provided by Shopify.

Shopify's online store dashboard has been optimized for ease of use, allowing entrepreneurs to focus on growing their online business without having to delve into the technical aspects. Store owners can customize and manage everything related to their store from one place.

What sets Shopify apart from other platforms?

What's behind Shopify's enormous success? What makes millions of people choose this platform to base their businesses on? It's crucial to highlight several of Shopify's features, which have likely already emerged while reading this article: ease of use, speed and reliability, comprehensiveness (the ability to integrate with other systems and sales channels), the variety and availability of templates in the Shopify Theme Store, security, a multitude of apps in the Shopify App Store, 24/7 support, and platform scalability. Shopify not only follows industry trends but also creates them.

Shopify store functionalities

Shopify stores offer a range of features that help businesses run their eCommerce businesses efficiently and in line with the latest standards. Below are some key features available in stores that relate to Shopify's structure and operation:

• Easy store creation ( Shopify makes it quick and easy to create an online store)
• Product Management ( Adding, editing, and managing products is easy)
• Payment systems ( Shopify supports a number of popular payment gateways, including Stripe, PayPal, and others. This allows customers to easily and securely make online payments)
• Order management ( Admin Panel allows you to track orders, manage payments, generate shipping labels, and manage returns. All in one place)
• Customer service ( A Shopify store allows you to track customer purchase history, manage contact information, and send email notifications about orders)
• Customize the look ( Thanks to the variety of ready-made templates and the ability to customize HTML and CSS code, Shopify stores can have a unique and professional look)
• App integrations ( Shopify has an extensive app store that allows you to add various features to your store)
• Promotions and discounts ( Shopify store allows you to easily create promotions, discounts, coupon codes, and manage customer loyalty programs)
• SEO Optimization ( Shopify provides tools for basic website search engine optimization (SEO))
• Data analytics ( Built-in analytics tools allow you to track website traffic, conversions, average order values, and other key metrics)
• Mobile Commerce ( Shopify stores are optimized for mobile devices)
• Multilingual and multicurrency availability ( Shopify allows you to operate stores in different languages ​​and currencies, which facilitates global business expansion. Multicurrency is possible through Shopify Payments, which is currently (January 2024) not available to customers whose businesses are registered in Poland)

These features make Shopify a comprehensive solution for online entrepreneurs of all skill levels. Shopify's structure and operation are highly intuitive.

How to manage products in Shopify?

We mentioned in this article that managing a Shopify store is very intuitive, and products are no exception. How you manage your products in Shopify naturally depends on the changes you want to make. In the product section of the dashboard, you can:

• add new products (by clicking 'Add product')
• enter basic information (name, description, price, photos) and assign to a category
• manage product variants (e.g. specify sizes, colors and adjust the price)
• manage inventory (indicate the number of items available)
• manage tags (these are useful when they automate adding to a specific category. They can also be used to facilitate searches)
• manage delivery (indicate product weight if it is a physical product)
• manage SEO-related issues (page title, meta description, URL handle)
• manage product availability in the indicated sales channel

Managing a Shopify store (including products) focuses on the most important elements for the store's operation. Remember, the most important thing for Shopify's creators was to minimize store management. As an online store owner, you should focus on growing your sales, not figuring out how to configure a specific section, because the process is so complex. Shopify prioritizes simplicity.

Settings on the Shopify platform

The settings on the Shopify platform include these components:

• Store details (detailed information including currency, time zone)
• Plan (including information about the selected Shopify plan)
• Billing (including Shopify payment information)
• users and permissions (including information about granted access to the store and the scope of this access)
• Payments (store payment settings)
• Checkout (including information about required customer data provided at the last stage of the purchasing process)
• Customer accounts (including information on how to log into the system)
• Shipping and delivery (including in-store delivery settings)
• Taxes and duties (customs and taxes settings)
• Locations (indicating the location of the store/stores)
• Gift cards (gift card settings)
• Markets (foreign store settings)
• Apps and sales channel (access to the list of installed apps in the store)
• Domains (access to store domains and settings)
• Customer events (including adding custom pixels)
• Brand (including adding a logo and colors)
• Notifications (including settings for notifications sent to email addresses, including those related to customers and orders)
• Custom data (including metafield settings)
• Languages ​​(language settings)
• Policies (including adding regulations, returns policy, privacy policy)
• Store activity log (recent store activities of people who have access to the panel)

The settings on the Shopify platform allow you to gather in one place all the elements necessary for the proper functioning of the store.

Integrations and extensions

Shopify offers a rich ecosystem of integrations and extensions that allow store owners to customize and extend the functionality of their online stores. These integrations cover various areas, such as payments, marketing, customer service, and data analytics. Take a look at the list below, which includes examples of areas where integrations and extensions are most commonly used:

• payments (including Stripe, PayPal, Klarna)
• delivery
• marketing integrations & marketing automation (including Klaviyo)
• analysis (Google Analytics)
• social media (including Facebook, Instagram, TikTok, Pinterest)
• ERP systems (including Business Central, Comarch Optima)
• PIM systems (including Akeneo, Ergonode, Plytix)

Integrations and extensions are used to enhance your Shopify store with additional functionality, but it's worth remembering that having dozens of connections isn't an art. It's crucial to choose the systems that are essential for your store's operation.

Shopify order processing – how does it work?

Shopify's order processing process involves a series of steps, from the moment a customer places an order to the moment the product arrives. While everything is automated to the maximum extent possible, we've outlined the individual steps in the context of Shopify order processing below.

→ Customer places an order (the process begins when the customer adds products to their cart and proceeds to the ordering process on the Shopify store website. The customer enters the necessary information, such as shipping and payment details, and then confirms the order)

→ Order confirmation (after placing an order, the customer receives an automatic confirmation via email. Order information is also available to the store owner in the Shopify Admin Panel)

→ Payment processing (if the order involves online payment, Shopify processes the transaction through integrated payment gateways. After successful payment, the order moves to the next step)

→ Order preparation (the store owner receives a notification of a new order. The order preparation process then begins. Products are picked, packed, and prepared for delivery)

→ Generating a shipping label (the store owner can generate a shipping label that will be used to ship the order. The label includes information about the delivery address, as well as barcodes and other details)

→ Shipping and tracking (order shipping can be handled by a Shopify-integrated delivery provider. Customers receive tracking information, allowing them to monitor the delivery status)

→ Order Completion (once the order is delivered and delivery is confirmed, the order is considered completed. The store owner can also automatically send the customer an email with delivery confirmation)

It's worth noting that Shopify automatically updates product inventory. Baselinker is a very popular system in Poland that supports and further automates all order processing processes.

Shopify customer service – how does it work?

Shopify customer service includes a range of tools and features that help businesses effectively manage customer communications and provide high-quality service. Some highlights include:

1. Order management:

• The Shopify admin panel features a dedicated section for managing orders. Store owners can view and update statuses, generate shipping labels, and track orders.

2. Customer data:

• The “Customers” section allows you to view information about customers, their purchase history, contacts and manage personal data.

3. Email notifications:

• Shopify allows you to automatically send email notifications related to orders, confirmations, delivery updates, and other important information.

4. Contact forms:

• A Shopify store can include contact forms that make it easier for customers to contact customer support with questions or problems.

5. Live chat:

• Businesses can use live chat applications that allow for real-time interaction with customers directly on the store website.

6. Ticket system:

• In your Shopify store, you can use a ticketing system to track customer requests and inquiries, making it easier to assign and monitor ongoing issues.

7. Returns management:

• Shopify offers a returns management feature that allows you to effectively handle situations in which a customer decides to return a purchased product.

8. Ratings and reviews:

• Store owners can encourage customers to leave reviews and ratings for products, which helps build trust and improve the shopping experience.

9. Integration with customer service tools:

• Shopify integrates with many customer service tools, such as Zendesk and Gorgias, that facilitate customer service on various levels.

10. Instructions and FAQ:

• Your Shopify store can include user manuals, frequently asked questions (FAQs), and other helpful information that customers can verify themselves without having to contact store support.

Of course, these are just examples of actions you can take as part of Shopify's customer service approach. It's crucial to tailor your communication style and overall service model to your specific target group.

What support does Shopify offer for online store owners?

Shopify offers a range of tools, resources, and services to support online store owners at various stages of their business, including:

• 24/7 technical support:
  • Shopify provides 24/7 access to technical support. You can use live chat, email, or phone to get answers to questions or troubleshoot issues. Support depends on the Shopify version your store is running. Shopify Plus this scope is more extensive.
• Shopify Help Center:
  • It contains a rich knowledge base of guides, articles, videos and instructions on various aspects of using the platform.
• Shopify Community Forum:
  • A discussion platform where users can share experiences, ask questions, and get help from other entrepreneurs and Shopify experts.
• Shopify Blog:
  • The regularly updated blog contains information about new features on the platform, eCommerce guides, inspiration for entrepreneurs, and case studies.
• Shopify Academy:
  • An educational platform offering a range of online courses that help entrepreneurs gain knowledge in eCommerce, marketing, customer service and more.
• Online events and webinars:
  • Shopify organizes regular online events and webinars that allow entrepreneurs to gain additional knowledge and exchange experiences with other platform users.
• Shopify Experts:
  • The Shopify Experts program is a group of specialists, including designers, developers, marketers, and others, who offer their services to help you customize and develop online stores on Shopify.
• Reports and analyses:
  • Shopify provides data analytics tools that allow businesses to monitor store performance, track sales trends, and make informed decisions.
• Support on social media platforms:
  • Shopify actively provides support on various social media platforms like Twitter, Facebook, and Instagram, where entrepreneurs can submit questions.

Data analysis and sales report generation

Analyzing data and generating sales reports is particularly important because ongoing statistics enable us to make improvements and better understand how Shopify and its customers are performing. The analytics section provides the following reports:

• total sales
• sales by channel
• online store sessions
• online store conversion rate
• total orders
• average order value
• top selling products
• customer cohort analysis
• returning customer rate
• sales attributed to marketing
• sessions by location
• sessions by device type
• sessions by social source
• sales by social source
• top referrers by sessions
• sessions by traffic source
• sales by traffic source
• top landing pages by sessions
• fulfilled orders over time
• customers over time (first time vs returning)
• product by sell-through rate

Reports can be customized and adjusted. You can specify specific time periods from which you want to retrieve data and compare them with data from other periods.

Summary

• Shopify is one of the most popular eCommerce platforms, offering comprehensive tools for creating and managing an online store.
• It allows for easy store design, integration with various payment systems, and offers marketing and analytical features.
• Shopify's history begins in 2006, when the company was founded with the idea of ​​a simple online store for snowboarding enthusiasts. Since then, it has grown into a global platform.
• Shopify allows you to sell both physical and digital products, making it a versatile platform.
• The main advantages of Shopify are ease of use, flexibility, support for international markets and various integrations.

We hope this article has given you the most important basics about how Shopify works. If you're still wondering if it's the right platform for you, feel free to contact us. Let's talk Shopify!