Originally, Shopify founder Tobias Lütke had the idea of ​​starting as an online retailer and selling snowboards. Since there was no suitable system back then that would meet his requirements; he quickly made one himself. That was over 14 years ago now. Today, the intuitive shop system is used by 1.7 million companies, generating 200 billion US dollars.
Before we dive deep into Shopify in this article, you should get a basic idea of ​​what Shopify actually is.
What is Shopify?
Shopify is an e-commerce software that lets you create an online store. The developer of the e-commerce system is Shopify Inc., based in Ottawa, Canada. The company founder, Tobi Lütke, who emigrated to Canada, developed his own software platform in 2006 because the shop solutions available at the time were too complicated. Ten years later, 400,000 online shops were already using user-friendly software.
Today, more than a million e-commerce providers work with the cloud-based shop system. These include top brands such as Redbull, Tesla, and Nestlé, small local companies and even dropshipping companies.
A free demo version that can be used for 14 days is available for dealers who would like to familiarize themselves with the software without obligation.
How Does Shopify Work?
Shopify helps online merchants launch their online stores in a short amount of time. Unlike other e-commerce solutions, it works using the cloud (hosted on Shopify servers). The future shop operator selects the tariff that best suits his business model.
The individual software packages differ in their range of functions and monthly prices. However, they all include the costs for web hosting (automatic updates, daily backups, and maintenance). Support is available 24/7.
The e-commerce solution is easy to use, even for non-technical traders. If you find out later that you would like to work with even more functions, this is possible without any problems because the huge developer community is constantly creating additional extensions.
External payment systems can also be easily integrated into the Shopify shop. A long-term commitment to Shopify gives you a 10% discount (annual contract) and a 20% discount (two-year contract) for the prepaid plan fees.
If you later want to cancel your Shopify account, you can do so at any time with the regular monthly subscription. You also have the option of increasing or downgrading your tariff. Lastly, there is the option to pause your Shopify store or take a break whilst building your business.
Is Shopify The Best E-Commerce Builder?
In addition to Shopify, there are, of course, other shop systems that offer similar functions and advantages. In total, there are even over 200 different ones that are suitable for different projects. In addition to the popular shop systems – WIX, Jimdo, or 1&1, which are suitable for smaller companies, Shopify, Shopware, WooCommerce, and Magento dominate the market. Shopify is also suitable for newcomers to e-commerce thanks to its ease of use, but it can be expanded to meet the requirements of a corporation like Tesla.
Shopware, WooCommerce, and Magento usually come into play as soon as a company grows and a simple system like WIX can no longer meet the increased requirements. All three systems offer many opportunities for scaling and growth potential.

What Are The Features That Make Shopify Stand Out?
It’s a mix of factors that makes Shopify so popular with merchants. Among other things, of course, this includes the functions. Shopify allows you to choose from over 70 professional themes created by well-known designers, here’s where you can get Shopify themes.
If you need functions not included in your theme packages, such as the Facebook Shopping connection or product reviews, then the Shopify App Store is available with 2,000 apps. A variety of professional tools are even completely free!
If you have started with the first sales and want an overview of your success, you can use the reporting dashboard, which is clearer for beginners than Google Analytics.
Shopify is also impressive when it comes to administration. You can easily duplicate your products, upload a CSV file or make your products SEO-ready. The order status page also offers you numerous options for managing your orders in the best possible way.
Other Shopify features include:
- Marketing page with recommendations for marketing and SEO measures
- Easy setup and management of shipping
- Direct connection to other online sales channels
- Connect to brick-and-mortar retail through the Shopify POS
- Automation of individual work steps
All these functions are only possible due to the complex technology behind the e-commerce system.
What is the technology behind Shopify?
In this section, we only want to briefly and concisely describe the technology behind Shopify. First, Shopify shops are cloud-based – you don’t need any additional software to work on your shop. Shopify also takes care of the platform’s operation, maintenance, and updates. This means that the system takes care of all administrative tasks for you.
Shopify shops are based on a modular system, so you don’t need any programming knowledge. However, if you have experience in this area, it might be interesting to know that Shopify is based on the Liquid theme language.
The APIs that provide interfaces to other systems such as accounting software or ERPs also make Shopify’s technology stand out. This allows you to connect Shopify to any other system. The last special point is the apps that make your shop powerful. You have over 3,000 of these available in the Shopify App Store.
How much does Shopify cost?
Shopify offers the right solution for every type of online retailer, which is why the different plans have a wide price range. Which Shopify plan is best for you and your business depends on several factors. For example, how much you sell per month, which payment providers you use and which additional functions you need. In the end, they also decide what your shop will cost you in total each month.
There are currently four Shopify plans with the corresponding prices in the UK:
- Basic Shopify: $29/£19 per month
- Shopify: $79/£49 per month
- Advanced Shopify: $299/£259 per month
- Shopify Plus: from $2000/£1679 (approx) per month
Standard plans get cheaper if you decide to have a long-term relationship with Shopify and book and pay right away for one or more years.
The Basic Shopify plan costs $29 per month and is suitable for young start-ups and small merchants with a maximum of two employees. The transaction costs incurred when using self-selected external payment systems are 2%. Shops with up to five employees but only low sales fall back on the middle-cost plan Shopify. It’s available for $79 a month.
There are also 1% transaction costs if external payment systems are used instead of the integrated Shopify Payment. The medium plan has more e-commerce features than the basic plan. Advanced Shopify is suitable for larger and fast-growing web shops with its 15 software licenses, $299 monthly subscription costs, 0.5% transaction fees, and full e-commerce functionality. Create Circus offers a more detailed post on how much Shopify costs if you would like to find out more.
What does Shopify Plus offer?
Many well-known companies use Shopify Plus to scale their business. The system is primarily aimed at large, high-growth companies and, in broad terms, offers more options in terms of control, customization, and automation.
In concrete terms, it offers various features responsible for its scalability and strong growth. For example, better omnichannel services or the possibility of internationalization with ten additional shops. A Shopify Merchant Success Manager also helps by introducing the team to new features and suggesting how to use them best.
If you already have a Shopify store, upgrading to Shopify Plus is seamless. You can continue to use your shop in parallel while the upgrade is being carried out in the background. With Shopify Plus, you always get an individual offer tailored to your shop. You discuss this with your contact from the Shopify Plus team. A move is easier than migration and, therefore, usually cheaper.
You receive an unlimited number of licenses and benefit from the free use of external payment services. With all Shopify cost plans, you get
- manual order processing
- a free SSL certificate for secure data transfer
- unlimited storage space for an unspecified number of products and services
- an additional blog
However, creating professional annual reports is only possible from the Advanced tariff. If you would also like to present your items at trade fairs and in your shop, you should book the retail package for 49 US dollars per month. This Shopify POS app is available for Android and Apple mobile devices.
What are the pros and cons of Shopify?
Shopify has several advantages and disadvantages, below we have taken a look at both in a brief summary,
Pros
- Free features
- Detailed admin area
- It is on the cloud
- There is a plan for everyone
- Great support team
- A variety of apps
- Plenty of online resources and support
- Anyone can open a store
Cons
- Costly extras
- Challenging migration process
- Transaction costs
- Shopify branding but can be removed

Conclusion
Although Shopify was founded in 2006, it has grown significantly in the UK over the past few years. This is because it now meets all the requirements necessary to sell and become successful. Now, online retailers can fully exploit the potential of the numerous functions of the shop system. This is possible thanks to the unique technology behind Shopify, numerous apps that make the online shop individual, and the functions that enable laypeople to set up their own online business.
The flexibility of Shopify allows brand new store owners and new sellers to open a store within days and also more advanced huge corporations such as Gymshark to work on their platform makes Shopify no doubt the best choice to get started on your online business. If you decide to start your journey with Shopify we offer a post on tips for designing your Shopify store to help you launch your business in a great position.