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What Is WooCommerce? How It Works, Costs & vs Shopify (Guide)

WooCommerce is a free, open-source eCommerce plugin for WordPress that turns an ordinary website into a full online store. It adds products, a shopping cart, checkout, payments, shipping, taxes and order management on top of WordPress, so you can sell physical goods, digital downloads, subscriptions, bookings and more without paying a monthly platform fee.

Quick answer: what is WooCommerce?
WooCommerce is a WordPress plugin that adds online-store features to your site. The plugin is free, you own your data, and you extend it with themes and extensions. You pay for hosting, a domain, optional paid extensions and your payment processor’s fees.

WordPress plus WooCommerce equals an online storeDiagram showing that WordPress (content management) plus the WooCommerce plugin (products, cart, checkout, payments, shipping) equals a complete online store.WordPressPages, posts, users, SEO(the CMS)+WooCommerceProducts, cart, checkout,payments, shipping, tax=Your Online StoreSell anything, own your data,no platform fee on sales
WordPress + WooCommerce = a full eCommerce store you control.

Key takeaways

  • WooCommerce is free, but a real store still needs hosting, a domain, an SSL certificate and (usually) a few paid extensions.
  • It is a plugin, not a replacement for WordPress. WordPress runs the site; WooCommerce adds the shop.
  • Payments, shipping and subscriptions are modular. You pick gateways, shipping methods and extensions that fit your business.
  • WooCommerce vs Shopify: WooCommerce gives more control and lower platform costs; Shopify is faster to launch and fully hosted.

What is WooCommerce?

WooCommerce is the most popular eCommerce plugin for WordPress. It launched in 2011 and was acquired by Automattic, the company behind WordPress.com, in 2015. You install it like any other plugin from the WordPress plugin directory, run a short setup wizard, and your site gains the core tools of an online shop.

Because it is open source, the code is public and anyone can extend it. That is why there are thousands of themes, extensions and developers built around it. The official site, WooCommerce.com, hosts the extension marketplace and documentation. For current adoption numbers, BuiltWith’s WooCommerce usage statistics are a useful neutral reference.

If you are new to the foundation it runs on, read our guide on what is WordPress first, or see how it stacks up in our eCommerce platforms comparison.

What is WooCommerce used for?

WooCommerce is used to sell products and services online from a WordPress website. If you are still getting familiar with the basics of selling online, our explainer on what an e-commerce business is covers the models. Here is what store owners commonly build with it:

Physical products

Clothing, gadgets, furniture and food, with stock tracking, variations (size, colour) and shipping rules.

Digital downloads

Ebooks, software, themes, music and templates delivered through secure download links.

Subscriptions & memberships

Recurring boxes, SaaS-style plans and paid content, using a subscriptions extension.

Bookings & courses

Appointments, rentals and classes. See our WooCommerce course booking guide.

Affiliate products

List items that send shoppers to another store, and earn a commission.

Wholesale & dropshipping

Tiered pricing and supplier-fulfilled orders. Browse wholesale WooCommerce themes and dropshipping themes.

Want proof of what is possible? See real stores in our roundups of WooCommerce website examples and successful WooCommerce sites.

How does WooCommerce work?

WooCommerce works by adding eCommerce data and screens to WordPress. Products, orders and coupons are stored in your WordPress database, and WooCommerce creates the key store pages (Shop, Cart, Checkout and My Account) that your theme then styles. When a visitor buys something, the following happens:

How a WooCommerce order flows from product page to deliverySix steps: customer browses product, adds to cart, checks out, payment gateway charges the card, store owner gets the order, order is shipped and tracking is emailed.1. BrowseProduct pageon the Shop2. Add to cartCart totals,coupons3. CheckoutAddress, tax,shipping rate4. PaymentGateway chargesthe customer5. OrderStock updated,emails sent6. FulfilShip, track,deliver
The WooCommerce order flow, from browsing to delivery.
  1. The shopper browses a product page created from your product data (title, price, images, variations).
  2. The cart calculates quantities, discounts and totals.
  3. At checkout WooCommerce collects billing and shipping details, applies tax rules and offers the shipping methods available for that address.
  4. A payment gateway such as WooPayments, Stripe or PayPal charges the customer.
  5. WooCommerce creates the order, reduces stock, and emails the customer and you.
  6. You fulfil the order, mark it complete and the customer is notified.

Behind the scenes, WooCommerce exposes hooks and filters and shortcodes so developers can change almost anything, and a REST API so other tools (like shipping or accounting software) can read and write orders. Developers can explore the WooCommerce developer resources for details.

What is the difference between WordPress and WooCommerce?

WordPress is a content management system (CMS) for building websites. WooCommerce is a plugin that runs inside WordPress and adds eCommerce. You cannot run WooCommerce without WordPress, but you can run WordPress without WooCommerce.

Feature WordPress WooCommerce
What it is Website and content management system eCommerce plugin for WordPress
Main purpose Blogs, business sites, portfolios, news Selling products and services online
Core features Pages, posts, media, users, themes, plugins Products, cart, checkout, orders, coupons, shipping, tax
Works on its own? Yes No, requires WordPress
Cost Free software Free plugin
Typical add-ons SEO, caching, security plugins Payment, shipping, subscription and booking extensions

New to building the site itself? Follow our walkthrough to create a WordPress website before adding the shop.

How does WooCommerce payment work?

WooCommerce does not process cards itself. It connects to payment gateways, which securely collect card details, charge the customer and send the money (minus fees) to your bank account. WooCommerce stores the order and payment status, not the card number.

How WooCommerce payments workThe customer enters payment details at checkout, the gateway processes the card with the bank, and funds are paid out to the merchant bank account while WooCommerce marks the order paid.CustomerPays atcheckoutWooCommerceSends order totalto the gatewayGatewayWooPayments, Stripe,PayPal, othersCard network + bankApproves, then paysout to your accountResult returns to WooCommerce, which marks the order Processing or Completed.
Payment flow: the gateway handles the card, WooCommerce records the result.

Popular WooCommerce payment gateways

Gateway Best for Typical fee (US cards)
WooPayments Payments, payouts and disputes managed inside WooCommerce About 2.9% + $0.30, no monthly fee (check current rates)
Stripe Cards, wallets and many local payment methods About 2.9% + $0.30
PayPal Customers who prefer paying with a PayPal balance PayPal’s own fee schedule
Bank transfer, cheque, cash on delivery Offline or manual payments No gateway fee

Fees change and vary by country, so always confirm on the gateway’s own pricing page. WooCommerce itself takes no cut of your sales. Make sure your store runs on HTTPS; here is how to install an SSL certificate, and keep it protected with our WordPress security checklist.

Want to speed up buying? A shorter checkout converts better. See WooCommerce one page checkout plugins.

How does WooCommerce shipping work?

WooCommerce shipping is built around shipping zones, shipping methods and optional shipping classes.

  • Shipping zones are geographic regions (for example, your country, Europe, or the rest of the world).
  • Shipping methods are the options inside each zone: flat rate, free shipping (optionally above a minimum order value) and local pickup.
  • Shipping classes group products (for example, heavy or fragile items) so they can have different rates.
  • Live carrier rates and labels come from extensions or services that connect to carriers such as UPS, FedEx, USPS or DHL.

At checkout, WooCommerce matches the customer’s address to a zone and shows only the methods available there. The customer picks one, the cost is added to the order, and you ship and mark it complete. Configure this at WooCommerce β†’ Settings β†’ Shipping.

How does ShipStation work with WooCommerce?

ShipStation is a shipping software service that sits between your store and your carriers. According to ShipStation’s own WooCommerce guide, orders sync into one dashboard, rules sort them, rates are compared, and tracking goes back to your store after the label is created.

How ShipStation works with WooCommerceWooCommerce sends paid orders to ShipStation, ShipStation applies rules and compares carrier rates, prints the label, then sends the tracking number back to WooCommerce and emails the customer.WooCommercePaid orderis createdShipStationImports order, appliesrules, compares ratesLabelPick carrier,print and shipTrackingSent back tostore + customer
ShipStation automates labels and tracking for WooCommerce orders.

Connect WooCommerce to ShipStation

  1. Create a ShipStation account and add a new store, choosing WooCommerce.
  2. Install the ShipStation plugin for WooCommerce on your site (ShipStation currently asks for version 4.9.1 or later).
  3. Enter your store URL and the WooCommerce REST API credentials requested.
  4. Choose which order statuses (for example, Processing) should be imported.
  5. Set automation rules, compare carrier rates, print labels, and let ShipStation push tracking details back to WooCommerce.

Because requirements are updated from time to time, check ShipStation’s current setup instructions before you connect. If you manage a lot of stock, pair this with our guide to WooCommerce inventory management.

How does WooCommerce subscriptions work?

The core WooCommerce plugin sells one-time purchases. To charge customers on a schedule you add the official WooCommerce Subscriptions extension (Woo lists it at roughly $279 per year at the time of writing, so confirm the current price).

WooCommerce subscription lifecycleA customer subscribes, the first payment is taken, renewal orders are created automatically each billing period, and the subscription can be paused, cancelled or fail and retry.SubscribePick a plan atcheckoutFirst paymentCard or methodsaved securelyAuto renewalsRenewal order eachweek, month or yearManagePause, cancel,retry failed payment
A WooCommerce subscription renews automatically until it is paused or cancelled.
  • Products: you mark a product as a subscription and set the price, billing interval (for example, monthly), optional sign-up fee and free trial.
  • Payments: the customer’s payment method is stored by the gateway, and renewal orders are charged automatically when your gateway supports recurring payments (WooPayments and Stripe do).
  • Customer control: shoppers can view, pause, switch or cancel from the My Account page.
  • Store owner control: you can edit subscriptions, handle failed payments and see recurring revenue.

Key features, pros and cons of WooCommerce

Pros

  • Free core plugin and no platform transaction fee
  • Full ownership of data and design
  • Huge library of themes and extensions
  • Excellent SEO via WordPress, plus blogging built in
  • Sells almost any product type

Cons

  • You manage hosting, updates, backups and security
  • Costs add up with paid extensions
  • Slower sites without good hosting and caching
  • Steeper learning curve than hosted builders

Most stores improve results with the right add-ons. Start with our list of essential plugins for WooCommerce, then look at product filters, product search and variation swatches. For layout, see WooCommerce product tables and product slider plugins.

How much does WooCommerce cost?

The plugin costs nothing, but a live store has running costs. WooCommerce’s own pricing page describes a $0 platform fee, extensions at roughly $29 to $299 per year each, and card processing around 2.5% to 2.9% plus 30 cents with WooPayments.

Cost Typical range Required?
WooCommerce plugin $0 Yes
Domain name About $10 to $20 per year Yes
Hosting From a few dollars per month for small stores to a few hundred for large ones Yes
SSL certificate Free with most hosts Yes
Theme Free or about $20 to $100+ per year Optional
Extensions (subscriptions, bookings, shipping) About $29 to $299 per year each Optional
Payment processing About 2.5% to 2.9% + $0.30 per sale Per sale

Good hosting matters most for speed. See our picks for the fastest WooCommerce hosting, and start on a budget with the best free WooCommerce themes or a simple WooCommerce theme.

WooCommerce vs Shopify (Shopify vs WooCommerce)

Both platforms can run a serious store. The real question in the Shopify vs WooCommerce debate is whether you want a fully hosted tool that is quick to launch, or an open-source system you control. For a deeper look at Shopify itself, read what is Shopify and the biggest brands using it.

WooCommerce vs Shopify at a glanceSide by side summary: WooCommerce is self-hosted, open source, with high customization and no platform fee; Shopify is fully hosted, with monthly plans, easy setup and an app store.WooCommerceSelf-hosted on WordPressFree, open-source core pluginMaximum customizationYou manage hosting and updatesGreat for content + SEOShopifyFully hosted SaaSMonthly subscription plansFast, guided setupHosting and security includedLarge app store
WooCommerce vs Shopify: control and flexibility versus convenience.
Factor WooCommerce Shopify
Hosting You choose and pay for it Included
Software cost Free plugin Monthly plans (check Shopify pricing; core plans have recently been listed from about $39 per month billed monthly)
Transaction fees None from WooCommerce; gateway fees only Extra fee (listed around 0.6% to 2%) if you do not use Shopify Payments, plus card fees
Customization Nearly unlimited (code, themes, plugins) Strong via themes and apps, but within the platform
Ease of setup Moderate Easy
Subscriptions Paid Woo Subscriptions extension Via apps
Content and SEO Full WordPress blogging and SEO control Good, with a simpler blog
Maintenance You (or your host) handle updates and security Shopify handles it
Data ownership You own everything Held on Shopify’s platform

Which should you choose?

  • Choose WooCommerce if you already use WordPress, want content marketing and SEO control, need custom features, or want to avoid recurring platform fees.
  • Choose Shopify if you want the quickest launch, prefer not to manage servers, and are happy to pay a monthly fee for convenience.

Still undecided? Compare more options in our guides to Shopify competitors, the best platform for SEO and WooCommerce Storefront alternatives. If you go with Shopify, browse the best free Shopify themes and most successful Shopify stores.

How to start a WooCommerce store

  1. Get hosting and a domain. Pick a host that supports WordPress and WooCommerce well.
  2. Install WordPress, then go to Plugins β†’ Add New, search for WooCommerce, install and activate.
  3. Run the setup wizard. Enter store details, currency and the types of products you sell.
  4. Choose a theme. Try a free WooCommerce theme or a WooCommerce Elementor theme.
  5. Add products, set up payments, shipping zones and taxes.
  6. Add key extensions for the features you need, such as a side cart, bulk discounts or points and rewards.
  7. Test an order end to end, then launch and promote.

Also useful: how to build a WordPress store, bulk edit plugins for large catalogues, and custom fields in WooCommerce for extra product data.

Ready to design your store?

Explore ready-made, WooCommerce-friendly designs from Athemeart, or browse the best selling WordPress themes.

Frequently asked questions about WooCommerce

What is WooCommerce?

WooCommerce is a free, open-source WordPress plugin that adds eCommerce features such as products, a cart, checkout, payments and shipping to a WordPress site.

How does WooCommerce work?

WooCommerce adds store pages and order management to WordPress. Customers browse products, add them to a cart and check out. A payment gateway charges them, WooCommerce records the order and updates stock, and you ship the goods.

What is the difference between WordPress and WooCommerce?

WordPress is the website platform (CMS). WooCommerce is a plugin for WordPress that adds online-store functionality. WooCommerce needs WordPress, but WordPress works without WooCommerce.

How does ShipStation work with WooCommerce?

You connect your WooCommerce store to ShipStation with its plugin and your store’s API credentials. Orders import into ShipStation, where you apply rules, compare carrier rates and print labels. Tracking numbers are then sent back to WooCommerce and the customer.

How does WooCommerce payment work?

WooCommerce passes the order total to a payment gateway such as WooPayments, Stripe or PayPal. The gateway charges the customer’s card and pays you out, minus its processing fee. WooCommerce does not take a percentage of your sales.

How does WooCommerce shipping work?

You create shipping zones, then add methods like flat rate, free shipping or local pickup to each zone. At checkout, customers see the methods that match their address. Extensions can add live carrier rates and label printing.

How does WooCommerce subscriptions work?

With the WooCommerce Subscriptions extension, you set a billing interval for a product. The customer’s payment method is saved with the gateway, renewal orders are created automatically, and customers can manage their plan from My Account.

What is WooCommerce used for?

It is used to sell physical products, digital downloads, subscriptions, memberships, bookings and affiliate items from a WordPress website.

WooCommerce vs Shopify: which is better?

WooCommerce is better for control, customization, content marketing and avoiding platform fees. Shopify is better for fast, fully hosted setup with less maintenance. The best choice depends on your skills, budget and growth plans.

Shopify vs WooCommerce: which is cheaper?

WooCommerce has a free core plugin, so costs come from hosting, extensions and payment fees. Shopify charges a monthly plan plus card fees, and extra fees if you use an outside gateway. For small stores the totals can be similar, so price out your own setup.

Is WooCommerce really free?

The plugin is free, but you still pay for hosting, a domain and any premium themes or extensions you choose.

Is WooCommerce good for SEO?

Yes. It runs on WordPress, works with major SEO plugins and gives you control over URLs, titles, meta descriptions and content. Rankings still depend on content quality and site speed. Our best platform for SEO guide goes deeper.

Conclusion

WooCommerce is a flexible, cost-effective way to build an online store on WordPress. It handles products, payments, shipping, ShipStation integrations and subscriptions through a modular system, and gives you full ownership of your store. If you want control, customization and strong SEO, WooCommerce is hard to beat. If you want the simplest hosted setup, Shopify is a strong alternative. Either way, start small, choose reliable hosting, and add features as your store grows.

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Saiful Islam

By Saiful Islam

Saiful Islam, the founder of aThemeArt, is a successful freelancer, a father of two boys, and an enthusiast in coding, YouTube, and gaming. Connect with me on Twitter, Facebook, and Instagram to stay updated with my latest endeavors.

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