What Is Shopify and How Does It Work? A Beginner’s Guide

By Harry ChuJune 13, 202518 min read
What Is Shopify and How Does It Work? A Beginner’s Guide
  • Build a website with drag-and-drop tools (no coding needed)
  • Sell products, services, subscriptions, or digital downloads
  • Accept payments and manage orders in one place
  • Run everything from a single, easy-to-use dashboard
  • Basic – $19/month: Best if you're starting solo. It gives you everything you need to launch your store and make your first sales.
  • Grow – $49/month: Great when you’re building momentum and need a few hands on deck.
  • Advanced – $299/month: Designed for growing stores that want deeper insights and lower transaction fees.
  • Shopify Plus – from $2,300/month: Built for big businesses with complex operations, high-volume sales, or custom needs.
  • Shopify Average Order Value (AOV) – how much a customer typically spends per order
  • Shopify LTV (Lifetime Value) – how much each customer is worth to you over time
  • Profit Margin – how much profit you make from each sale, expressed as a percentage. (try plugging your numbers into a free profit margin calculator to see how much you’re really making)
  • Net Profit – what you’re actually keeping after costs like ads, shipping, and product
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Harry Chu

Founder of TrueProfit & eCommerce Profitability Expert

Harry Chu is the Founder of TrueProfit, a net profit tracking solution designed to help Shopify merchants gain real-time insights into their actual profits. With 11+ years of experience in eCommerce and technology, his expertise in profit analytics, cost tracking, and data-driven decision-making has made him a trusted voice for thousands of Shopify merchants.

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