5minstore

How does Shopify work?

Shopify is a store system you rent. You pay a monthly fee and get everything an online store needs technically. Products, copy, marketing and customers are up to you.

Early AccessFree for the first 100 users.

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Profit per sale after VAT, cost and fees

Seven designs, one fits you

Short answer

Shopify is a store system you rent: for a monthly fee from $29, Shopify handles hosting, checkout, payments and tech. You take care of products, pricing, copy, marketing and customer service. You ship orders yourself or let a supplier ship them via dropshipping.

What Shopify does and what you do

Shopify handlesYou handle
Hosting, security, SSLchoosing and describing products
Checkout and paymentspricing
Themes and editorcustomizing the design
Order managementshipping or forwarding orders to suppliers
App Store for add-onsstore policies
Updates and techmarketing and customer service

How an order works in Shopify

  1. 1

    Customer orders

    They add a product to the cart and pay in Shopify's checkout by card, PayPal or Apple Pay.

  2. 2

    You get the order

    It shows up in the admin and in the Shopify mobile app.

  3. 3

    Shipping

    You ship it yourself, or with dropshipping the order goes to the supplier automatically.

  4. 4

    Tracking

    The tracking number is added to the order and the customer gets a shipping confirmation.

  5. 5

    Payout

    Shopify Payments pays your money, minus fees, into your bank account.

What Shopify costs

The Basic plan is $39 a month, or $29 on yearly billing, plus 2.9% + 30¢ per card payment (as of October 26, 2026). Apps, domain and ads come on top. The full breakdown is in our Shopify pricing guide.

There's a free trial. During it you can build the store but not sell yet.

Pros and cons in short

  • Pro: no servers, tech or security to worry about.
  • Pro: a proven checkout that works well on phones.
  • Pro: there's an app for almost everything.
  • Con: monthly costs even without sales, and apps add up.
  • Con: you still need your own products, copy and policies.

FAQ

Is Shopify legit?

Yes. Shopify is a publicly listed Canadian company and one of the largest e-commerce platforms in the world.

Is Shopify good for beginners?

Yes, it's one of the easiest store systems. The hard part is everything around it: products, pricing and marketing.

Do I need inventory to sell on Shopify?

No. With dropshipping the supplier ships directly to your customer. Shopify is the most common platform for that.

Can I cancel Shopify anytime?

Yes, monthly plans can be canceled monthly. Yearly billing runs for the year you paid.

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Updated: 26 October 2026. General information, not legal or tax advice.