How Does Shopify Work for Sellers? A Simple Guide for Beginners
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Many people wonder, “How does Shopify work for sellers?” when they first explore this e-commerce platform. Shopify truly supports sellers in building their online stores. Let’s find out what it brings to sellers and how it operates.
How does Shopify work for sellers?
Shopify works as a platform that helps sellers create their own online stores to sell goods. Sellers can offer their own products, find items from suppliers or use dropshipping (which means products are shipped directly from suppliers to customers).
Basically, Shopify runs on its own servers and doesn’t require installing any software or finding web hosting. This means you can easily create and manage your own store through a web browser, so you can run your own business and make money from anywhere as long as you have internet access.
The platform provides everything you need to start and promote your online store right away, including ready-made templates, payment processing, a content management system, a blog, and hosting.
In addition, while Shopify includes many built-in features for most sellers, you can also customize your store further by adding apps or using custom code.
However, since Shopify is a Software as a Service (SaaS), you don’t own the software. Instead, you pay a monthly fee to use it.
Is selling on Shopify worth it?
Whether Shopify is worth your business or not depends on what you need and what your goals are.
If you want to sell products online and need a user-friendly platform, Shopify could be a great choice. It is one of the leading e-commerce platforms that offers everything you need to sell online.
With different pricing plans available, Shopify is suitable for businesses of all sizes. Whether you’re just starting out or looking for ways to grow your existing store, Shopify has options that can work for you.
However, Shopify still has its own drawbacks. Although it provides free themes, there aren't many options to choose from. Also, you might need to use additional apps and plugins to really improve your business’s features. In addition, it requires a monthly subscription fee, which can vary based on the plan you choose and the features you need.
In the end, whether Shopify is worth it for you will depend on your budget, how many products you plan to sell, your technical skills, and your business goals.
A step-by-step guide to selling on Shopify for beginners
Now that you know the answer to the question “How does Shopify work for sellers?”, let’s explore some simple steps for beginners to start selling on Shopify:
Step 1: Create an account
To begin, visit Shopify.com and sign up using your email by clicking “Start free trial.” You'll need to provide some basic information but can skip questions about your business if you want.
Next, create your Shopify ID. Your free trial will start, and you'll access your new store without needing to enter credit card details. If you want to use Shopify’s $1/month offer later, you can choose a plan then.
Once on your store's homepage, take a moment to explore. Before adding products or making customizations, complete these key tasks:
- Name your store
- Connect a domain
- Set up payment options
- Configure shipping settings
This way, you’ll be ready to go live and start selling once you add your products.
Step 2: Add a domain name
If you have already had a brand name, use that name as your domain. In your Shopify dashboard, click “Domains” Now you can:
- Keep the default “myshopify” domain (not recommended because it looks less professional).
- Connect a domain you already own.
- Transfer a domain from another registrar.
- Buy a new domain from Shopify.
If your first choice is taken, try different names until you find one you like. To buy a new domain, click “Buy new domain” and enter your desired name.
Once you find an available domain, click “Buy,” enter your payment details, review your order, and click “Buy domain.” Now you have a custom domain name for your store!
Step 3: Complete payment and account setup
In this step, you need to set up how you’ll get paid for your Shopify orders. On the homepage, click on “Payments.”
You can choose from several payment options, including Shopify Payments, PayPal Express Payments, Amazon Pay, or other third-party services. Offering multiple payment methods can make it easier for your customers to shop.
Once you've selected your payment options, click “Activate Shopify Payments.” You’ll need to provide some important business information, like your EIN, business type, address, SSN, customer billing statement, and bank details. Make sure to fill out all the required fields so you can receive your payments correctly.
Step 4: Register for sales tax collection
If your business is in the US, you might need to collect sales tax based on your store's location.
Before setting up sales tax in Shopify, register with your state. If you're unsure about your tax obligations, consult a tax professional for guidance on obtaining a sales tax ID.
Step 5: Shipping settings
To set up your shipping details, go to “Settings” in the bottom left corner, then select “Shipping and Delivery.”
Here, you can enter your shipping address and choose the shipping speeds, rates, and carriers you want to use. You can easily add, change, or remove shipping rates based on your products' size or weight.
If you’re using a third-party fulfillment service, you can connect it to your store. Additionally, you can use FBA to fulfill your Shopify orders.
Step 6: Design your own store
To start designing your online store, select “Customize theme” on the homepage.
You’ll start with a default theme, but you can change it or find a new one that fits your brand. Shopify has free themes and premium options available for purchase.
Once you find a theme you like, click “Customize” to start editing your store. It may take some time to get used to the editor, so be patient!
Step 7: Add items to your store
Go back to your homepage and find the “Products” tab on the left side of the screen. Then, click on “Add product.”
You’ll be taken to a page where you can enter details for each product one at a time. Fill in the product title, description, images, quantity, price, and any variations like color or size. Once you’ve added all the information, click “Save” in the top right corner.
Remember that optimizing your listings is important for selling on Shopify. Therefore, you should use relevant keywords, write engaging descriptions, and include high-quality images to help increase your sales.
Step 8: Fulling customer’s orders
When a customer places an order, it will appear in the “Orders” section as Unfulfilled. Click on the order to view the items, shipping address, and to purchase a shipping label.
Once you buy the label, mark the order as “Fulfilled” and ship it. The customer will automatically receive their order and tracking information.
If you’re dropshipping, you can use an app to help fulfill orders from your suppliers.
Step 9: Grow your business using Shopify apps
One of the great features of Shopify is its app store, where you can find many helpful tools to boost your business. There are apps for everything, like email marketing, upselling, managing Facebook ads, dropshipping, print-on-demand services, SEO, and much more.
Take some time to browse the app store and find tools that will help your business succeed. You can use them to set up plans to advertise your online store as well.
Step 10: Keep track of your analytics
It's important to monitor how well your store is doing so you can make changes to increase traffic and sales. Shopify provides useful analytics that show you key information, including:
- Total sales
- Conversion rate
- Average order value
- Returning customer rate
- Sessions
- Traffic sources
- Top visited pages
It's important to monitor your store’s analytics. If many visitors look at your product pages but don’t buy, there may be issues like wrong audience targeting, high prices, slow shipping, or unappealing images and descriptions.
If your conversion rate is high but traffic is low, focus on attracting more visitors through social media or ads.
Helpful tips to run your Shopify store successfully
Shopify makes online business simple and quick, even for beginners. Here are some tips from successful Shopify stores that you can use to improve your current store or help you set up a new one for better growth:
Make your store more mobile-friendly
When you set up an online store, it’s easy to focus on making it look good on a desktop because that’s how you’re likely working. However, as most customers now shop on their phones, you should prioritize making your store mobile-friendly.
Thankfully, most platforms like Shopify are designed to work well on mobile, so you just need to make sure the layout looks good and is easy to navigate on smaller screens.
Sell more new products
Surprisingly, selling more products can be essential for your Shopify store's success. One good way to do this is by regularly adding new products or different versions of what you already sell. This encourages customers to return and helps attract new shoppers.
Improve your packaging
While packaging might not be the first thing you think about when setting up your online store, it can’t be denied that attractive packing can really influence whether someone decides to buy your product.
For example, in the cosmetics business, good packaging can help you stand out in a crowded market. Your packaging will likely be featured on your product pages, in advertisements, and in promotional emails, making it an essential part of your brand image.
On the other hand, many customers look forward to the unboxing experience. The way you package your products is a chance to make them feel valued and happy, so putting some effort into making it special is worthwhile.
Attractive packaging can make good impression on your customers
Run regular giveaways
Everyone loves free stuff, which is why giveaways are a great way to grow your Shopify store. They can be an inexpensive marketing strategy because most people need to share the giveaway to enter.
The specific giveaway plan depends on what you want to achieve. For example, if you want to increase brand visibility, an Instagram giveaway that encourages participants to tag friends and follow your account can be a good idea. On the other hand, if you want to gain more followers, consider a giveaway aimed at collecting email subscribers.
Create a loyalty program
A loyalty program helps customers feel valued and gives them a sense of belonging to a special group, which can encourage them to keep coming back.
One simple approach is to use a points system where customers earn points for their purchases, which they can redeem for discounts or free products once they reach a certain amount. If you want to enhance exclusivity, offer special rewards only for members so that they will need to join the program to access unique gifts and benefits.
Avoid extra fees
Hidden fees can drive customers away, and among which shipping costs are usually the biggest surprise. To avoid this situation, you should show these fees clearly on your homepage - perhaps with a banner.
You can offer free shipping on orders over a certain amount. One small tip that many sellers use is to include the shipping cost in the product price. In addition, you can use shipping software to get better rates.
Shipping costs often make customers reluctant to buy your products
Wrapping up
Hopefully the above has provided a satisfactory answer to the question "How does Shopify work for sellers?" If you have any useful experiences related to selling on this platform, please feel free to share them with us and other readers!
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