Shopify vs Stripe: Which Fits Your Ecommerce Needs Best?

Selecting the right platform is crucial for the success of your ecommerce business. Stripe and Shopify are two prominent names in the ecommerce landscape, but they serve different primary functions.

Stripe is a powerful payment processing platform known for its developer-friendly APIs and extensive customization options.

Shopify, on the other hand, is a comprehensive ecommerce solution that allows you to build an online store with integrated payment processing, hosting, and marketing tools.

Understanding the differences in the Stripe vs Shopify comparison can help you choose the platform that best aligns with your business needs. This article provides an in-depth comparison, focusing on their distinct features, to assist you in making an informed decision.

Feature Overview of Shopify vs Stripe

Here is an overview of top features that Stripe and Shopify have in the most important categories:

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Ecommerce Considerations

When choosing between Stripe vs Shopify for your ecommerce business, it's essential to understand how each platform aligns with your operational needs, particularly regarding website development, payment processing, and overall ecommerce functionality.

Platform Scope and Purpose

Stripe is primarily a payment processing platform. It allows businesses to accept online payments through a customizable API. To use Stripe effectively, you need an existing website or application where you can integrate Stripe's payment processing capabilities.

Shopify is an all-in-one ecommerce platform that provides everything you need to start, run, and grow an online store. This includes website building tools, hosting, payment processing (through Shopify Payments, powered by Stripe), inventory management, and marketing features.

If you need a complete solution to build and manage an online store from scratch, Shopify is the more suitable choice. If you already have a website or prefer to use a different platform for your site and need a powerful payment processor, Stripe is the better option.

Website Building and Customization

Shopify offers a user-friendly website builder with a variety of customizable templates. You can create a professional-looking online store without any coding knowledge. However, customization is generally limited to what the platform allows, and deeper backend access is restricted.

Stripe does not provide website building capabilities. It requires you to have an existing website or application where you can integrate its payment processing services using its APIs.

Shopify provides an out-of-the-box solution for creating an online store, whereas Stripe requires additional resources to build or integrate with a websit

Payment Processing

Both platforms offer payment processing, but in different contexts.

• Stripe specializes in payment processing with extensive support for various payment methods, including credit and debit cards, digital wallets (Apple Pay, Google Pay), and local payment methods. It offers advanced features like subscription billing, invoicing, and support for complex payment flows.
• Shopify includes Shopify Payments (which uses Stripe's infrastructure) for processing payments directly on your store. It supports major payment methods and multiple currencies. If you choose to use a third-party payment gateway instead of Shopify Payments, additional transaction fees may apply.

Stripe provides more advanced and customizable payment processing features suitable for businesses with specific payment needs. Shopify Payments offers seamless integration within the Shopify platform but may lack some of the advanced features available directly through Stripe.

Customization and Developer Tools

Stripe is renowned for its developer-friendly APIs, allowing for high levels of customization in payment processing and checkout experiences. Businesses with technical expertise can create tailored solutions to meet their unique requirements.

Shopify offers customization primarily through its theme editor and apps. While you can modify the look and feel of your store extensively, backend customization is limited compared to Stripe. Shopify also provides APIs and development tools, but they are more constrained to ensure platform stability and security.

If deep customization of payment processes and checkout experiences is crucial, Stripe offers greater flexibility. Shopify provides sufficient customization for most businesses but within the confines of its platform.

Ecommerce Features

Shopify excels in providing a comprehensive suite of ecommerce tools, including:

• Inventory management
• Shipping and fulfillment solutions
• Marketing and SEO tools
• Customer management
• Analytics and reporting

Stripe, being a payment processor, does not offer these ecommerce features out of the box. You would need to integrate with other platforms or develop custom solutions to handle these aspects.

For businesses seeking an all-in-one ecommerce solution, Shopify offers a complete package. Stripe is suitable for businesses that already have these systems in place or prefer to integrate best-of-breed solutions for each function.

Ecommerce Features Comparison Table

This table underlines the significant features Stripe and Shopify have to offer for ecommerce. Shopify, of course, being catered specifically to online shops.

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Feature Analysis

Here is a in-depth look at the more general features as pricing, availability and more.

Pricing and Fees

Understanding the cost implications is essential for any business.

• Stripe charges a flat rate of 2.9% + 30¢ per successful card charge in the U.S., with additional fees for international cards and currency conversion. There are no setup or monthly fees.
• If you use a third-party payment gateway instead of Shopify Payments, additional transaction fees of 0.5% to 2% may apply.
  • Basic Shopify: 2.9% + 30¢ per transaction
  • Shopify: 2.6% + 30¢ per transaction
  • Advanced Shopify: 2.4% + 30¢ per transaction

Key Difference: Stripe may be more cost-effective for businesses that primarily need payment processing without the additional features provided by Shopify. Shopify's pricing includes the ecommerce platform and hosting, which can be a better value for businesses needing a complete online store solution.

Global Availability and Multi-Currency Support

Both platforms support international operations but differ in scope.

• Stripe is available in over 40 countries and supports payments in 135+ currencies. It offers localized payment methods, which can enhance the checkout experience for international customers.
• Shopify is available worldwide and supports multi-currency transactions through Shopify Payments. However, multi-currency support may vary depending on your plan and location.

Stripe offers broader support for various currencies and localized payment methods. Shopify provides sufficient international capabilities within its platform, especially when using Shopify Payments.

Third-Party Integrations

Integrations can extend the functionality of your ecommerce operations.

• Stripe integrates with numerous platforms and services, including ecommerce platforms like WooCommerce, Magento, and BigCommerce. This allows you to choose the best tools for your business and integrate Stripe for payment processing.
• Shopify has an extensive App Store with thousands of apps to add functionality to your store, such as email marketing, customer reviews, and inventory management.

Stripe offers flexibility in integrating with various platforms, while Shopify provides a centralized ecosystem of apps designed to work seamlessly within its platform.

Customer Support

Access to reliable support is crucial for resolving issues promptly.

• Stripe provides support via email, chat, and phone, with extensive documentation and developer resources.
• Shopify offers 24/7 support through chat, email, and phone, catering to both technical and non-technical users.

Shopify may provide more comprehensive support for non-technical issues related to running an ecommerce store, while Stripe's support is geared towards payment processing and developer assistance.

Choose the Payment Solution for You

Choosing between Stripe and Shopify depends on your business's specific needs, technical capabilities, and strategic goals.

Consider Stripe if:

• You already have a website or prefer to use a different platform for your online presence.
• Advanced payment processing features and customization are essential.
• You have technical expertise or developer resources to integrate and customize Stripe's APIs.
• You need flexible payment solutions without the additional ecommerce features.

If Stripe seems like the right choice for you, ensure there are no competitors that might suit you better by checking out these 10 Stripe alternatives.

Opt for Shopify if:

• You need an all-in-one solution to build, manage, and grow your online store.
• Ease of use and quick setup are priorities, without the need for extensive technical knowledge.
• You prefer integrated ecommerce features like inventory management, shipping solutions, and marketing tools.
• You value having a centralized platform for all your ecommerce operations.

Assess your business requirements, existing infrastructure, and long-term objectives when deciding on Stripe vs Shopify. If you need a comprehensive ecommerce platform with built-in tools and hosting, Shopify is likely the better choice. If you require a powerful payment processing solution to integrate with your existing website or prefer more control over your payment workflows, Stripe may be more suitable.

By aligning your choice with your specific needs, you can enhance your ecommerce operations, improve customer experiences, and support your business's growth in the competitive online marketplace.

Frequently Asked Questions

Here are some commonly asked questions about Stripe vs Shopify

Can I use Stripe with Shopify?

Yes, you can use Stripe as a payment gateway with Shopify, but not directly. Shopify Payments, the default payment gateway on Shopify, is powered by Stripe. However, Shopify does not allow direct integration with Stripe due to their policy of promoting Shopify Payments. If you prefer not to use Shopify Payments, you can choose from other third-party payment gateways that Shopify supports.

Which platform is better for a new ecommerce business?

If you're starting from scratch and need a complete solution to build and manage your online store, Shopify is the better choice. It provides all the tools necessary to set up your store, manage products, process payments, and market to customers.

Is Stripe suitable for businesses that already have a website?

Yes, Stripe is ideal for businesses that already have a website or prefer to use a specific platform for their online presence. You can integrate Stripe's payment processing capabilities into your existing site to accept payments securely.

What are the benefits of using Shopify Payments over Stripe?

Shopify Payments is fully integrated into the Shopify platform, providing a seamless setup and management experience. It eliminates the need for third-party payment gateways, potentially reducing transaction fees and simplifying your operations. However, it lacks some of the advanced features and customization options that you might get by using Stripe directly.

Can I customize the checkout experience with Shopify?

Shopify allows for some customization of the checkout experience, especially on higher-tier plans. However, customization is limited compared to what you can achieve with Stripe, which offers extensive APIs for creating a tailored checkout process.