How Does Shopify Work? A Simple Guide for Beginners

Three years ago, one of our client launched their e-commerce store on Shopify with zero technical experience. Last month, they hit $1M in annual revenue, still using the same platform, just scaled up.

That’s the beauty of how Shopify works: it grows with you. As someone who’s built and optimized over 100 Shopify stores at 2HatsLogic, we have seen this pattern repeat across industries, from fashion to food products.

This guide unpacks exactly how Shopify functions behind the scenes and walks you through the practical steps to transform your product idea into a working online store, whether you’re a technical novice or an experienced entrepreneur looking to simplify operations.

What is Shopify, and Why Is It So Popular?

Shopify is a comprehensive e-commerce platform that allows anyone to set up an online store and sell products. Think of it as your digital storefront, inventory manager, and payment processor, all rolled into one user-friendly system.

Since its launch in 2006, Shopify has grown to power over 4 million stores worldwide, making it the go-to solution for businesses of all sizes.

In 2025, Shopify continues to dominate the e-commerce space because it eliminates technical barriers while providing enterprise-level features. From solo entrepreneurs to D2C powerhouses like Gymshark and Allbirds, Shopify scales with your business needs.

What makes Shopify particularly attractive is its ecosystem. Beyond the core platform, there’s a vast marketplace of apps, experts, and resources that can extend your store’s functionality.

Step-by-Step: How Shopify Works

Let’s break down exactly how Shopify works, from signup to your first sale.

1. Sign Up and Choose a Plan

Getting started with Shopify begins with a 3-day free trial (no credit card required). This gives you time to explore the platform before committing.

Once you’re ready, you’ll choose from their pricing tiers:

• Starter ($5/month): For selling through social media and messaging apps
• Basic ($39/month): For new businesses starting their first online store
• Shopify ($105/month): For growing businesses needing more features
• Advanced ($399/month): For scaling businesses with advanced reporting

2. Pick a Theme for Your Store

Your theme determines how your store looks and feels to visitors. Shopify offers:

• Free themes: 9 high-quality options with multiple style variations
• Premium themes: 70+ professionally designed themes ($180-$350)

After selecting a theme, you’ll use Shopify’s drag-and-drop editor to customize it:

1. Adjust colors and fonts to match your brand
2. Arrange sections on your homepage
3. Add your logo and product images
4. Create pages (About, Contact, FAQs)

The best part? No coding required. If you can use PowerPoint, you can customize a Shopify theme.

3. Add Your Products

Now for the fun part, adding what you’re selling:

1. Navigate to Products → Add Product
2. Upload high-quality product images (multiple angles recommended)
3. Write compelling product titles and descriptions
4. Set pricing, SKUs, and inventory tracking
5. Create variants for different sizes, colors, or materials
6. Organize products into collections for easier browsing

When adding products, think like a customer. What information would you need to make a purchase decision? Include all relevant details, from materials to dimensions.

4. Set Up Payment Gateway

To accept money from customers, you’ll need to configure your payment settings:

Shopify Payments (powered by Stripe)

• Available in 17+ countries
• Accept major credit cards, Apple Pay, and Google Pay
• Lowest transaction fees (0% when using Shopify Payments)
• Funds are deposited directly into your bank account

Third-party payment providers

• PayPal
• Amazon Pay
• Alternative payment methods for international markets

Remember that third-party payment providers incur additional transaction fees (0.5%-2%, depending on your plan).

5. Configure Shipping Settings

Shipping can make or break your customer experience. Shopify makes it manageable:

1. Set up shipping zones (domestic and international regions)
2. Create shipping rates (flat rate, weight-based, or free shipping)
3. Configure calculated shipping with carriers (USPS, UPS, FedEx)
4. Print shipping labels directly from Shopify (with discounted rates)

For beginners, we recommend starting with simple flat-rate shipping until you understand your typical order weights and destinations.

6. Launch Your Store

When you’re ready to go live:

1. Connect your domain (purchase through Shopify for $14/year or connect an existing domain)
2. Test your checkout process thoroughly
3. Set up your tax settings
4. Review your store on mobile devices (over 70% of Shopify traffic is mobile)
5. Remove your password protection to make your store public

Before launching, place a test order yourself to experience the entire customer journey.

What Happens After Launch?

Once your store is live, Shopify becomes your business command center:

Order Management

• Receive notifications for new orders
• Process orders with a few clicks
• Print packing slips and shipping labels
• Track fulfillment status

Analytics Dashboard

• Monitor real-time sales data
• Track visitor behavior
• Identify your best-selling products
• Understand conversion rates

Marketing Tools

• Built-in blog for content marketing
• SEO tools for better visibility
• Email marketing campaigns
• Discount codes and promotions

What Can You Sell on Shopify?

Shopify’s flexibility allows you to sell almost anything:

Physical Products

From handmade crafts to manufactured goods, Shopify handles inventory, variants, and shipping.

Digital Downloads

Sell e-books, music, software, or printables with automatic delivery.

Subscriptions

Create recurring revenue with subscription boxes or membership services.

Services

Book appointments, consultations, or classes through your store.

Print-on-Demand

Partner with suppliers to create custom-printed products without holding inventory.

How Shopify Integrates With Other Tools

Shopify’s true power comes from its integration capabilities:

Shopify App Store With over 8,000 apps, you can extend your store’s functionality in any direction:

• Marketing and conversion tools
• Inventory and shipping management
• Customer support widgets
• Accounting and tax compliance

Popular Integrations

• Accounting: QuickBooks, Xero
• Marketing: Mailchimp, Klaviyo
• Social selling: Instagram, Facebook
• Customer service: Zendesk, Gorgias

Headless Shopify Options For businesses requiring custom experiences, Shopify can function as a “headless” commerce platform, separating your frontend experience from the backend commerce engine.

At 2HatsLogic, we specialize in building headless Shopify experiences that combine the reliability of Shopify’s commerce infrastructure with completely custom storefronts.

Shopify Mobile App: Run Your Store on the Go

One of Shopify’s underrated features is its powerful mobile app, allowing you to manage your business from anywhere:

• Process orders and print shipping labels
• Add products with your phone’s camera
• Track sales and visitor stats
• Receive real-time order notifications
• Communicate with customers

For busy entrepreneurs, the mobile app ensures you never miss an important order or customer inquiry.

Final Thoughts: Is Shopify Right for You?

After helping dozens of businesses launch and scale on Shopify, we can confidently say it’s the best all-in-one solution for most e-commerce beginners. Here’s a quick checklist to determine if Shopify is right for you:

• You want to launch quickly without technical headaches
• You need a solution that grows with your business
• You value having support and resources available
• You prefer an all-in-one platform over piecing together solutions
• You want built-in payment processing

Shopify excels by removing the technical barriers to e-commerce, allowing you to focus on what matters most, your products and customers.

Conclusion

If you’re ready to take the next step with your online store but want expert guidance, we’re here to help. At 2Hats Logic, we’ve helped businesses of all sizes build and optimize their Shopify stores, from standard setups to cutting-edge headless implementations.

Ready to launch or upgrade your Shopify store? Contact 2HatsLogic for a free consultation on how we can help you build a conversion-optimized store that stands out from the competition.

Remember, your e-commerce journey is a marathon, not a sprint. Start with the basics, focus on your customers, and improve your store iteratively as you grow.