What Is Shopify And How Does It Work (Shopify Guide For Beginners)

what is shopify and how does it work - shopify reviews

Ready to find out what is Shopify and how does it work?

You better be, because this Shopify review will cover all of it.  And then some more, and then some more!

So, if you don't have the first clue about what Shopify Dropshipping is and how to make a fortune with it, I'll suggest that you stick around.

Because if you want to see yourself owning a super-lucrative, kick-ass online store, you'll need this ultimate guide on all things dropshipping!

This post may contain affiliate links, see my disclosure here.

A First Glance At Shopify And The Dropshipping Business 

Let's hit the breaks for a second:

We can't start a conversation about what is Shopify dropshipping before we have a brief talk about what dropshipping is first.

Assuming that a lot of you are complete beginners, I have to make sure that you're familiar with the basics of this online business.

Basically, dropshipping is a supply chain management method in which the retailer doesn't keep goods in stock.  Instead, he transfers his customer's orders to a manufacturer/another retailer/wholesaler, who then ships the goods to the customer.

Alright, some of those terms might be confusing, so let me spill it out in plain English:

In short, dropshipping is sort of a retail business.  

how to start profitable dropshipping business on shopify

Meaning, when you're a dropshipper, your profits will come from the difference between the wholesale and retail price.

Now that we cleared that out, it's time to see what is Shopify and how does it work.

What Is Shopify?

To sum up, Shopify is an e-commerce platform that will allow you to build your very own online shop and sell digital and physical products/services.

What makes it particularly attractive is that literally anyone can use it to start a dropshipping business.

Meaning, you don't need any technical skills or previous experience in dealing with e-commerce.  

what is shopify and how does it work

On the contrary, using Shopify will eliminate the potential expenses of hiring a web developer or design agency.

That being said, if you know a thing or two about HTML and CSS, you'll be happy to find out that the platform will let you edit both of them.

Also, it's really important to clarify that Shopify will host your newly created store as well.

As a result, you won't have to pay extra for a hosting service.

What Is Shopify Dropshipping?

OK, let's go deeper and really get into the whole deal of what is Shopify and how does it work.

So far, you already have a basic understanding of the platform.  And earlier I explained what dropshipping actually is.

Now, how about I show you the connection between these two?

what is shopify dropshipping

That screenshot makes it pretty obvious, doesn't it?

Generally, what Shopify does is putting you in the central position (the shopping cart with a dollar sign on it).

You create your store and choose the products you'll be selling.

Once a customer places an order, your job is basically done - the supplier will take care of all the rest.

Simply said, being a dropshipper with Shopify is no different than being a middleman who profits from the difference in prices.

Not a bad way to make money online, is it?

Considering you don't have to create your own products and you don't have to worry about shipment and inventory...

How To Use Shopify?

Honestly, it's not an overstatement to say that building your store on Shopify will be a child's play.

Here, see for yourself what the process looks like:

  1. Sign up to Shopify - you don't have to pay anything yet, the platform will allow you to test the dropshipping waters thanks to its Free trial.
  2. Choose a name for your store - if you can't decide on the perfect name, Shopify's name generator will help you do that.  Don't worry too much about it, you can always change it later.
  3. Pick your theme (template) - currently, Shopify will offer you 8 free themes to choose from.  Each one of them comes with 2 or 3 variations and is mobile responsive.
  4. Customize your store - you can add a logo, images, videos, and anything you like that will brand your business.
  5. Start selling - you can start making money from your shop immediately thanks to the platform's built-in shopping carts.

For more information about all the details within this process, feel free to read my article on How To Make Money On Shopify.

What Kind Of Products Can You Sell On Shopify?

Basically, just about everything you can think of!

Clothes, shoes, food, coffee, art...  How about tattoos?

It doesn't really matter what kind of products get your dropshipping motors running.

what kind of products you can sell on shopify

Shopify is on board with you selling whatever you want.

If you haven't decided yet, you can draw inspiration from some of the most Successful Shopify stores to the moment.

Just keep in mind - the bigger the demand for the goods you're selling, the bigger your dropshipping profits will be.

Related:  13 Simple Things You Can Sell To Make Money Fast

What Features Does Shopify Offer?

First and foremost, Shopify comes with different features depending on the plan you'll choose once the free trial is over.

We'll talk about the plans a bit later.

Before we do that, let's see the features that are included on all plans, how that sounds?

  1. Unlimited Products - there is no restriction on the number of products you'll be selling in your store.
  2. Unlimited Bandwidth And Online Storage - the price that you'll be paying to use Shopify will not depend on the number of visitors you're getting or how many photos you upload.  Meaning, you won't be charged extra even if your store has an insane amount of visitors.
  3. Shopify Point Of Sale (POS) - the platform will allow you to sell in a physical store or pop-up setting.  POS is an app that will let you process orders and accept payments in person.
  4. Online Sales Channels - what this means is that when you use Shopify, you can sell online through different channels.  Such as an online store, Facebook Shop and Pinterest.  Each of these platforms connects to Shopify and you'll be able to track your products and orders.
  5. Fraud Analysis - if you use Shopify Payments, you're receiving a built-in fraud analysis feature automatically.  The feature will flag orders that are potentially fraudulent and will bring them to your attention.
  6. Manual Order Creation - you can create new orders and enter payment details straight from your Shopify admin.
  7. Discount Codes - it's a really smart idea to offer discount codes, they will help you build a customer base faster.
  8. Abandoned Cart Recovery - this features will send automatic emails to all of the customers that are leaving your store before completing the checkout process.  
  9. Staff Accounts - this feature exists to allow your staff to do basic admin tasks while their access to sensitive information is restricted.
  10. Overview Dashboard - that's where you'll be able to see key analytics like sales, orders, and online store visitor data.
  11. Finance Reports - you'll see an overview of your sales, payments, and pending sales data.
  12. Customer Support - any kind of question you may have will be answered by phone, email, or chat.  The live chat works 24/7 and the phone support is available only in English.

Needless to say, those features are doing an excellent job explaining what is Shopify and how does it work, right?

How Much Does Shopify Cost?

Now, let's have a look at the Shopify pricing, shall we?

As you already know, the platform offers a free trial.  You'll be able to use the Shopify website free of charge for a total of 14 days.

But what kind of plans you can choose from when that trial is over?

Currently, there are 3 of them - Basic Shopify, Shopify, and Advanced Shopify.

pricing plans of shopify

In my opinion, if you still have a lot to learn about dropshipping, your best option is to start with the Basic Shopify.

It's the cheaper one you can use and it will provide you with everything you need to get your first online store going.

Ultimately, if you feel like the advanced plans are a better fit for your business, you should know that Shopify offers discounts.

There is a 10% discount on annual plans and a 20% discount on biennial plans when they are paid upfront.

Above all, you can always change the plan you're using.  And you'll have 2 weeks to decide on a plan, considering starting with Shopify doesn't even require your credit card info.

Pros And Cons Of Using Shopify For Your Dropshipping Business

For starters, let's do a quick summary of everything you know about Shopify up until now:

  • What is Shopify and how does it work
  • How to set up your online store
  • The kind of features Shopify comes with

So far, the platform looks more than promising, doesn't it?

That being said, I think it would be helpful if you can see it's pros and cons collected in one place.


  1. Pretty simple and easy to use online store builder.
  2. No previous coding or e-commerce experience required.
  3. It will get your first store built in minutes.
  4. Tons of features and tools provided to help you develop a profitable dropshipping business.
  5. There is no need to pay extra for hosting.
  6. Pre-built, free templates.
  7. Mobile-responsive.
  8. 24/7 support.
  9. Free trial available.


  1. You'll have to pay at least $29/month when your free trial is finished.

Who Will Have The Best Use Of Shopify?

Quite frankly, anyone who is interested to build a lucrative dropshipping online business.

In other words, if you're just starting to work online or already have some dropshipping experience, Shopify is the platform that will take you to the next level.

It's the industry leader and you can't ask for a better partner on your dropshipping journey!

By the way, did you know that Shopify is a partner with eBay as well since 2017?

And what means for you is that having a Shopify store will give you the chance to reach 170 million potential buyers.

Is Shopify A Scam?

Seriously, I probably shouldn't even include such a paragraph in this review.

Because Shopify is definitely not a scam.

On the contrary, it's a legit online platform that more than 1 million people are already using for their online stores.

thumb up

Not to mention, Shopify has generated almost $200 billion in sales!

Related Read About Dropshipping:

My Closing

OK, I don't think that there is anything left to say about what is Shopify and how does it work.

Do you feel like I'm missing something on the topic?

Or maybe you have your own experience with Shopify that you would like to talk about?

Either way, let me know in the comments below and we can have a chat!

6 thoughts on “What Is Shopify And How Does It Work (Shopify Guide For Beginners)”

  1. Thank you for this comprehensive insight into Shopify. Ther is a lot I did not know and I am very excited to see how easy it is to launch an online store with Shopify.
    A quick question please, what is the situation with orders placed during the lockdowns in many countries due to Covid-19? Will the order still go through and then delivery take place once the areas are opened up again? In other words, is now a good time to build an online store or should we rather wait until everything has settled down?
    Blessings always

    1. Hey, Louise.
      I’m so happy that my article was able to help you.
      Doing dropshipping is an awesome way to make money online.
      Unfortunately, not this exact moment.
      With everything that’s going on around the world, now is probably not the best time to open an online store.
      As you said, a lot of deliveries are being delayed, nothing we can do about that.
      If dropshipping is what you would really like to do, the best advice I can give you is to wait until things go back to normal.
      Hope that helps, best of luck!

    1. Thank you so much, Kris.
      I’m glad that you feel that way.
      Building your own online shop is a really smart idea.
      Wish you all the success moving forward with it!

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