Shopify vs Square: Which is Ideal for Expanding Your Online Business?

Choosing the right eCommerce platform is crucial for expanding your online business. Shopify and Square are two popular options, each offering unique features and benefits. While Shopify is known for its powerful tools and flexibility, Square is popular for its affordability and user-friendly interface. In this article, we will compare Shopify and Square to help you decide which platform is ideal for growing your online business.

Overview of Shopify and Square

What is Shopify?

Shopify offers a comprehensive eCommerce solution that allows businesses of all sizes to quickly launch and manage online stores. According to BuiltWith, Shopify powers 4.7 million stores all over the world, making it one of the largest eCommerce platforms globally.

Shopify provides everything needed to run an online business effectively. This includes over 160 professionally designed templates and over 8,000 diverse apps to customize your store. It features smart inventory management, a point-of-sale system, automated sales tax calculation, and numerous other tools to streamline operations.

What is Square?

As a leading payment provider, Square expanded into eCommerce by acquiring Weebly in 2018. This move led to the introduction of Square Online Store, a cloud-based website builder tailored for small businesses. Currently, there are 259,220 active stores operating on the Square Online platform.

Square Online offers new features and a free eCommerce plan. It seamlessly integrates with Square POS (Point-of-Sale) systems, automatically syncing inventory across stores. For brick-and-mortar businesses seeking value and efficiency, Square Online is an excellent choice.

Shopify vs Square: Pros & Cons

While both Shopify and Square offer essential eCommerce features, each platform excels in different areas.

Square is ideal for small businesses focused on in-person sales (like pop-up shops or brick-and-mortar stores). It features straightforward POS hardware tailored for specific business types.

On the other hand, Shopify is well-suited for larger businesses selling primarily online to a broad international audience. It boasts extensive inventory management, shipping capabilities, and a wide array of integrations.

Explore the table below for a detailed comparison of the pros and cons of each platform.

	Shopify	Square
Pros	* Easy setup and start selling * Flexible pricing plans * Customizable themes * Comprehensive reporting and analytics * Multi-currency and multi-language capabilities * Multi-channel and omnichannel selling * Over 100 payment processors 8000+ apps * Automatic sales tax calculation * Built-in email marketing tool * Strong security features * 24/7 customer support via live chat, phone, and email	* Easy setup and start selling * Affordable pricing, including a free plan * Support for various product types * Seamless integration with Square POS for online and in-person sales * Effective inventory tracking for both online and brick-and-mortar stores * Integration with other eCommerce platforms * Good security features * Decent customer support
Cons	* Higher costs for new businesses * Additional transaction fees unless using Shopify Payments * Limited free themes (only 12 available) * Reliance on add-ons for certain features * Limited product options and variants * Basic blogging features	* Limited website templates and customization options * Fewer payment processor options * Smaller selection of add-ons and third-party apps * Limited features for medium to large businesses

In the latter part of this comparison, we’ll delve deeper into what both Square and Shopify have to offer. Which platform is better suited for your needs - Shopify or Square?

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Comparison Between Shopify and Square

Feature	Shopify	Square Online
Pricing	Starts at $25 per month	Starts at $29 per month
POS System	2 built-in options: Shopify POS Starter & POS Retail	4 options: Retail, Restaurants, Appointments, Point of Sale
Ease of Use	Drag-and-drop design, visual cues	Requires more time to learn
Marketing Features	Robust built-in marketing & analytics	Basic analytics features
Themes & Templates	12 free themes, 160+ premium themes ($140-$400 each)	Same templates as Squarespace 7.1
eCommerce Features	Wide range of sales tools & payments	Stronger options for digital products
Dropshipping	Various dropshipping apps	Fewer options for fulfillment services
Internationalization	Multi-language support, multiple currencies	Multi-language support, single currency
Apps & Extensions	8000+ apps	31 extensions
Support	Email, Live Chat, Phone, Help Center, Forum	Email, Live Chat, Contact Page, Help Center
Security	SSL Certificates available, comprehensive security	SSL Certificates available, robust security

1. Pricing

Shopify Pricing

Shopify lets you explore its platform with a 3-day free trial, extendable for three months for just $1/month. After trying it out, choose from three main plans: Basic Shopify, Shopify, and Advanced Shopify, ranging from $25 to $2,300 per month. Annual plans save 25%.

Square Pricing

Square offers a free plan to start building your eCommerce site, including essential features with no hosting or monthly fees. Advanced features like site statistics and reporting come with Plus for $29/month or Premium for complex operations. However, Square charges higher transaction fees than Shopify.

2. Point-of-Sale System

Both Shopify and Square offer top POS systems for retail businesses, but how do they compare? Let’s see who comes out on top in the battle of Shopify vs. Square for point-of-sales.

Shopify POS System

Shopify’s POS system is packed with features to help merchants manage products, employees, and inventory easily. The software allows store owners to add unlimited items, automatically categorize products, and create variations based on material and color. It also includes advanced reporting and analytics tools to track store performance and develop effective sales strategies.

There are two pricing options for Shopify POS: Starter and Retail

• Shopify Starter
  • $5/month
• Shopify Retail
  • $89/month per location
  • Ideal for busy retail businesses with large inventories and staff
  • Free for Shopify Plus users

Square POS System

Square offers four POS options: one general app and three specialized for restaurants, retail, and appointments. These come with robust features for inventory tracking, customer and order management, and real-time analytics.

Square POS is favored by new businesses for its simple and transparent pricing. There are no monthly or setup fees, and a free card reader is included. Transaction fees start at 2.6% + 10¢ per payment.

3. Ease of Use

Shopify Ease of Use

Shopify manages to blend powerful features with a user-friendly interface. Even those with little to no technical knowledge can start an online store by following the platform’s Get-Started checklist.

Shopify guides you through each step, with everything laid out clearly. Day-to-day use is also simple. If you ever get stuck, the Shopify Help Center is there to assist.

Square Ease of Use

While Shopify takes time to develop, customize, and set up an online store, Square simplifies the process by handling most of the work. You just need to enter your business name and address, select features, upload a logo, and choose colors. Your store appears with these details, and a few more texts and products will have your online business ready to go!

Square also has a drag-and-drop editor, allowing you to quickly and easily make changes. This is something Shopify’s section-based editor doesn’t offer.

4. Payment Gateways & Transaction Fees

Shopify Payment Gateways & Transaction Fees

Shopify supports over 100 payment processors, including Stripe, PayPal, Google Pay, and Apple Pay. Using Shopify Payments, available in 23 countries, eliminates transaction fees and provides access to Shop Pay. Credit card processing fees apply based on your plan and order volume.

Square Payment Gateways

Square Pay is the main option, accepting major credit cards and supporting Google Pay and Apple Pay. Transaction fees are 2.9% + $0.30 for online payments and 2.6% + $0.30 for in-person payments, with higher fees for invoices or manual entries.

5. eCommerce Features

eCommerce features are crucial when building an online store. Shopify has been a well-known leader for years, while Square is a newbie in the market. Can Square compete? Let’s see how they stack up:

	Shopify	Square
Online Store
Website design	100+ themes (free & paid)	Limited themes
Inventory Management
Number of products	Unlimited	Unlimited
Product variations	Up to 100 per product	Up to 250 per product
Auto sync with POS	Yes	Yes
Stock management	Yes	Yes
Checkout
Abandoned cart recovery	All plans	Performance plan and higher
Gift cards	All plans	Performance plan and higher
Automatic tax calculation	Yes	Yes
Checkout options	100+ payment gateways	Limited
Order & Fulfillment
Shipping label printing	Yes	Yes
Shipping rate discount	Up to 88%	Up to 55%
In-store and curbside pickup	Supported	Supported
Dropshipping	Supported	Not supported
Marketing
SEO	Basic SEO tools	Basic SEO tools
301 Redirect	Yes	Yes
Google Analytics	Yes	Yes
Blogging	Basic blogging features & SEO	Basic blogging with "Stories" tool
Social media integration	Yes	Yes
Built-in email marketing tool	Yes	Yes
Third-party apps	Mailchimp, Klaviyo, Campaign Monitor...	Mailchimp

6. Multichannel Selling

It’s important to sell your products on multiple channels as customers shop on various platforms. Let’s see how Shopify and Square support multichannel selling.

Multichannel Selling with Shopify

Shopify supports multichannel selling, making it easy to manage and sell products on various platforms. In addition to your online store, Shopify provides Point of Sale (POS) systems for in-person sales and Buy Buttons to turn any website or blog into an online store. You can also add other sales channels through apps and integrations from the Shopify App Store, allowing you to connect with online marketplaces and social media.

Multichannel Selling with Square

Square also supports multichannel selling. With Square Online, you can create a free online store, add checkout buttons to existing websites or blogs, and generate payment links or QR codes for easy transactions without a website. Square also integrates with social media and Google Product Listings, allowing customers to find and order your products through Google Search, Shopping, or Images.

7. Globalization

Shopify Globalization

Shopify supports millions of businesses in 170+ countries, making it a top choice for global selling. With Shopify Plus, you get features designed for international growth:

• Ship worldwide in 1-5 days with discounted rates.
• Customers can prepay VAT, duties, and local taxes.
• Local payment methods are accepted.
• Automatically convert prices to 130+ currencies.
• Provide language translations and region-specific content.

Square Globalization

Square Online allows you to ship products globally by setting up an international shipping profile. Choose countries and set shipping rates easily. Partners like EasyShip, Shippo, and ShipBob help automate shipping and offer discounted rates.

8. SEO & Marketing Features

SEO and marketing are key for online business success. Let’s see how Shopify and Square compare.

Shopify SEO & Marketing Features

Shopify offers strong SEO tools. You can easily add titles, meta descriptions, images, and customize URLs to avoid errors. The platform supports blogging, allowing content creation without third-party apps. Email marketing is robust, with up to 10,000 free emails per month and automation tools.

Read more:

1. 15 Important Strategies to Improve Shopify SEO for Your Store
2. Shopify SEO Tutorial 2023: A-Z Guide to Rank #1 [PDF CHECKLIST INCLUDED]

Square SEO & Marketing Features

Square also provides solid SEO tools, allowing customization of page titles, meta descriptions, alt text, and headings. Square Email Marketing integrates with Square POS, using AI for campaign creation. However, Square lacks blogging options, and the site speed is slower.

9. Help & Support

Shopify Help & Support

Shopify offers 24/7 support via phone, live chat, and email. The Help Center and community forum provide additional resources.

Square Help & Support

Square offers live chat, phone, and email support, but not 24/7. The Help Center has a large knowledge base for self-help.

10. Security

Shopify Security

Shopify ensures security with SSL certification, secure credit card processing, and internal fraud analysis.

Square Security

Square provides secure card readers, encrypted payment data, fraud monitoring, and risk management.

Which Platform is Suitable for Your Business: Shopify or Square?

It’s tough to pick a clear winner between Shopify and Square. Shopify offers robust features for businesses of all sizes, while Square is budget-friendly and great for startups.

Choose Shopify if you want to:

• Build a scalable and flexible eCommerce store
• Use Shopify’s many integrations
• Get 24/7 phone support
• Have a strong POS system available on multiple devices

Choose Square if you:

• Have a tight budget and need essential features
• Are familiar with Square’s payment processing
• Sell in-person and want an easy transition to online sales with strong POS capabilities

Conclusion

In the end, the choice between Shopify and Square depends on your specific business needs and goals. Shopify offers extensive features, scalability, and 24/7 support, making it perfect for businesses looking to grow and integrate seamlessly. On the other hand, Square is ideal for startups and entrepreneurs on a budget, providing essential tools and strong POS capabilities. Assess your priorities and select the platform that best aligns with your vision for expanding your online business.