If you have ever bought something from a small brand online, there is a good chance the checkout page ran on Shopify. It quietly powers everything from one-person side projects to companies the size of Heinz and Mattel. So what is Shopify, how does it actually work, how much does it cost in 2026, and which of the biggest brands are using it today?
This guide answers all of that in plain English. You will also see a fair Shopify vs WooCommerce comparison, because that is the decision most store owners really face.
Quick answer: Shopify is a hosted ecommerce platform. You pay a monthly subscription and get a store builder, hosting, checkout, payments, shipping tools and an app store in one place, with no servers to manage. It lets you sell online, in person, on social media and in marketplaces from a single dashboard. Well-known brands on Shopify include Gymshark, SKIMS, Allbirds, Heinz, Kylie Cosmetics, Mattel and Fashion Nova.
What is Shopify?
Shopify is a commerce platform that lets anyone build and run an online store without writing code. It is a software-as-a-service (SaaS) product, so you rent it instead of installing it. Shopify takes care of hosting, security updates, uptime and payment compliance, and you focus on products and customers.
People often search for “shopify what is it” expecting a website builder. It is closer to a full retail operating system. One account covers your storefront, product catalog, inventory, orders, discount codes, email marketing, analytics and shipping labels. If you also run a physical shop or pop-up, Shopify POS keeps in-person and online stock in sync.
If you are brand new to selling online, our guide on what an ecommerce business is and what you can sell online is a useful warm-up before you pick a platform.
What is Shopify and how does it work?
Here is the short version of how Shopify works. You sign up, choose a theme, add products, connect a payment method and publish. Shopify then handles the heavy lifting every time a customer buys.
1. Build your online store
Shopify’s store editor is drag-and-drop. You can start from a pre-built theme or describe your brand and let the built-in AI generate a design. Themes are mobile-friendly and customizable without coding. Shopify says its theme store has more than 900 industry themes, and you can browse them in the official Shopify Theme Store.
2. Add or source products
Sell your own products, or connect print-on-demand and dropshipping apps so a supplier ships directly to your customer. Shopify Collective also lets you import products from other Shopify brands.
3. Take payments at checkout
Shopify Checkout accepts all major payment methods from day one, and Shop Pay lets returning shoppers pay in a tap. Shopify’s own pricing page claims its checkout converts 15% better on average than other platforms, which is a vendor claim, so test it on your own traffic.
4. Ship and fulfil orders
Buy and print labels inside the dashboard, send tracking emails automatically, and use negotiated shipping discounts (up to 87% off on current plans, according to Shopify). As volume grows you can hand storage and returns to a third-party logistics partner.
5. Get paid and grow
Money lands in your bank account by payout. Add apps from the Shopify App Store for reviews, subscriptions, loyalty and more as you grow.
Key Shopify features
| Feature | What it does for you |
|---|---|
| Store builder and themes | Visual editor, mobile-ready themes, no code required. |
| Shopify Payments and Shop Pay | Built-in card processing with fast one-tap checkout for returning shoppers. |
| Inventory and orders | Track stock across locations and manage orders in one dashboard. |
| Sales channels | Sell on your site, Instagram, Facebook, TikTok, Google, marketplaces such as Amazon and Etsy, and in person. |
| Marketing tools | Email campaigns, discount codes, abandoned checkout recovery and customer segments. |
| Analytics | Reports on traffic, conversion and customer behavior. |
| Sidekick (AI assistant) | Helps write product descriptions and answer store questions. |
| Shopify Markets | Local currencies, translations and duties for international selling. |
| App Store | Thousands of extensions for reviews, subscriptions, loyalty, returns and more. |
What can you sell? Physical goods, digital downloads, subscriptions, memberships, event tickets, print-on-demand items and services. Check Shopify’s acceptable use policy for restricted categories.
Shopify pricing in 2026
Shopify offers four main plans. Prices below are from Shopify’s pricing page on the day this guide was written, and they change, so confirm on the official Shopify pricing page before you buy.
| Plan | Yearly billing | Monthly billing | Online card rate | Best for |
|---|---|---|---|---|
| Basic | $29/mo | $39/mo | 2.9% + 30¢ | Solo entrepreneurs |
| Grow | $79/mo | $105/mo | 2.7% + 30¢ | Small teams (up to 5 extra staff accounts) |
| Advanced | $299/mo | $399/mo | 2.5% + 30¢ | Global reach (up to 15 extra staff accounts) |
| Plus | From $2,300/mo | Not applicable | 2.25% + 30¢ | Complex, high-volume businesses |
New stores start with a 3-day free trial, then pay $1 per month for the first three months on most plans. There are no setup fees. If you use an outside payment provider instead of Shopify Payments, Shopify adds a third-party transaction fee of 2% on Basic, 1% on Grow, 0.6% on Advanced and 0.2% on Plus.
Shopify fee estimator
Use this quick tool to estimate your yearly Shopify cost from plan fees and card processing. It uses the online card rates in the table above and ignores apps, taxes and international fees.
Shopify by the numbers
GMV means the total value of goods sold on the platform, before Shopify takes its share. Figures are from Shopify’s published results as summarized by third-party trackers and from Shopify’s own pricing page. Market-share numbers vary by who is counting: Shopify describes itself as powering around 12% of US ecommerce, while some trackers put its US share above 14%. Treat any single percentage as an estimate.
Biggest brands using Shopify
This is the section most people searching “biggest brands using shopify” want. The list below is built from Shopify’s own customer mentions and public case studies, plus agency research that tracks which stores run on Shopify and Shopify Plus. Revenue figures are approximate and come from public reporting, so use them as context rather than audited numbers. Platforms also change, so a brand’s current setup can differ.
Fashion and apparel
Beauty and personal care
Food, drink and nutrition
Media, toys, tech and retail
Want to go deeper on what these stores do right? Read our breakdown of the most successful Shopify stores, and compare it with real examples in our WooCommerce website examples and successful WooCommerce sites guides.
Why big brands pick Shopify Plus
Most of the household names above do not run on a standard $29 plan. They use Shopify Plus, the enterprise tier that starts from $2,300 per month. Four patterns show up again and again in public case studies:
- Traffic spikes. Influencer-driven launches and Black Friday can crush a weak stack. Kylie Cosmetics’ 2016 launch is the classic example.
- Speed to launch. Heinz shipped its first direct-to-consumer store in roughly three weeks during the 2020 lockdown.
- Escaping slow or fragile platforms. Gymshark and BBC are reported to have moved from Magento, and JB Hi-Fi from a custom build, after performance problems.
- Plus-only tooling. Automation with Shopify Flow, scheduled drops, custom checkout logic with Functions and multi-market selling. Plus also includes fully customizable checkout and unlimited staff accounts.
Do not copy a big brand’s platform just because it is famous. Charle Agency’s analysis makes the same point: pick the two or three capabilities you actually need, then choose the platform that delivers them. If you are weighing several options, our ecommerce platforms comparison and list of Shopify competitors are good next reads.
Shopify vs WooCommerce
This is the question behind many “what is Shopify” searches. Both can run a serious store, but they are built differently. Shopify is a hosted, all-in-one subscription. WooCommerce is a free, open-source plugin that turns a WordPress website into a store. You own and host it yourself. If you are new to it, start with our explainer on what WooCommerce is and how it works, and if WordPress itself is unfamiliar, read what WordPress is first.
| Factor | Shopify | WooCommerce |
|---|---|---|
| Type | Hosted SaaS platform | Open-source WordPress plugin |
| Ease of use | Beginner friendly out of the box | Needs a WordPress site, hosting and some setup |
| Payments | Shopify Payments, plus 2% to 0.2% fee if you use another gateway | Many gateways, no platform fee from WooCommerce itself |
| Content and SEO | Good basics, blog is simple | WordPress is a stronger publishing system |
| Customization | Themes and apps, deeper work needs developers or Plus | Open code, thousands of themes and plugins |
| Maintenance | Shopify handles updates and security | You manage updates, backups and security |
| Ownership | You rent the platform | You own the site and data |
Which should you choose?
Choose Shopify if you want to launch quickly, prefer one monthly bill, and do not want to manage servers. Choose WooCommerce if content and SEO matter a lot, you want full control of design and data, or you already run a WordPress site. Many content-led brands pair WooCommerce with the right host, and our list of the fastest WooCommerce hosting and essential WooCommerce plugins shows what that stack looks like. Search matters too, so see our take on the best platform for SEO.
Shopify pros and cons
| Pros | Cons |
|---|---|
| Quick setup and a clean dashboard | Monthly fees plus app costs add up |
| Hosting, SSL and security included | Extra transaction fee if you skip Shopify Payments |
| Strong checkout and Shop Pay | Deep checkout customization is mostly limited to Plus |
| Sell across web, social, marketplaces and in person | You rent the platform rather than own the code |
| Large app and theme ecosystem | Blogging and content tools are simpler than WordPress |
| Scales from first sale to enterprise | Switching platforms later takes planning |
Who should use Shopify?
Shopify fits first-time sellers, dropshippers, print-on-demand shops, direct-to-consumer brands and retailers that also sell in person. It is less ideal if you need a heavy content site with a small shop attached, or if you want to own every line of code. For those cases, a WordPress and WooCommerce build is often the better match. You can also compare other builders, such as the one in our what is Wix guide.
Shopify themes and apps worth knowing
Your theme sets the look and a lot of the conversion rate of your store. Start with free options in our guide to the best free Shopify themes, then explore niche picks:
- Single product Shopify themes for focused brands and one-hero-product launches
- Home decor Shopify themes for furniture and interior stores
- Shopify themes for jewelry
- Bakery Shopify themes and candle shop themes
- Toy store themes and pharmacy themes
- Warehouse and wholesale themes
For apps, browse the Shopify App Store and install only what you need. Every extra app can add cost and slow your store.
How to start a Shopify store in 6 steps
- Define your niche and product. Check demand and margins before you build anything.
- Start a free trial from the pricing page and pick the Basic plan to begin.
- Choose a theme and set your logo, colors and navigation.
- Add products with clear photos, honest descriptions and accurate shipping details.
- Set up payments, taxes and shipping and place a test order.
- Launch and market. Connect social channels, email capture and a simple SEO plan.
Shopify FAQ
What is Shopify in simple terms?
Shopify is an online platform that lets you create a store, take payments, manage orders and ship products, all from one dashboard, without needing to code or manage servers.
What is Shopify and how does it work?
You pay a monthly subscription, choose a theme, add products and connect payments. Shopify hosts the store, processes checkout, tracks orders and provides shipping and marketing tools. You pay plan fees plus card processing on each sale.
Is Shopify free?
No. There is a short free trial, then most plans start at $1 per month for three months before moving to the standard price. Plans currently start at $29 per month on yearly billing.
Who are the biggest brands using Shopify?
Widely reported examples include Gymshark, SKIMS, Allbirds, Fashion Nova, Kylie Cosmetics, Heinz, Mattel, Netflix, Supreme, Converse, BBC and Red Bull’s merchandise store. Many of the largest run on Shopify Plus.
Is Shopify better than WooCommerce?
Neither is better for everyone. Shopify is easier and more hands-off, while WooCommerce gives you more control and stronger content publishing through WordPress, with more setup and maintenance on your side.
What is Shopify Plus?
Shopify Plus is the enterprise plan for complex, high-volume businesses. It starts from $2,300 per month and adds fully customizable checkout, unlimited staff accounts, lower card rates, B2B catalogs and priority support.
Can I use Shopify in my country?
Shopify supports businesses in more than 175 countries, but Shopify Payments is only available in some of them. In other places you can use approved third-party gateways, which may carry an extra fee.
What can I sell on Shopify?
Physical products, digital downloads, subscriptions, memberships, tickets and services, subject to Shopify’s acceptable use policy.
Final thoughts
Shopify is a hosted, all-in-one way to sell online, and its range, from a first sale to global brands, is the main reason so many well-known companies use it. The right choice still depends on your goals: Shopify for speed and simplicity, WooCommerce for control and content. Start with a clear niche, test the trial, and compare your options using our ecommerce platforms comparison before you commit. If you build on WordPress instead, explore our best free WooCommerce themes.
Sources and further reading: Shopify: What is Shopify, Shopify pricing, Charle Agency: biggest brands on Shopify, Wise: What is Shopify. Brand and revenue details come from public reporting and may change.
