Square vs Shopify: Find the Perfect Fit for Your Online Store

In the competitive world of ecommerce, choosing the right platform is vital for creating a successful online store.

Square and Shopify are two popular platforms that offer robust solutions for businesses looking to sell products online and in-person. While both platforms provide tools for ecommerce and payment processing, they differ in their approaches, features, and target audiences.

Understanding the nuances between Square and Shopify can help you choose the platform that best aligns with your business needs.

This article provides an in-depth comparison of Square and Shopify, focusing on their similarities and differences to assist you in making an informed decision.

Overview of Shopify vs Square

Here is an overview of the main features both Shopify and Square summed up in a table:

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Ecommerce Considerations

When comparing Square and Shopify for your ecommerce business, it's essential to examine how each platform addresses key aspects such as website building, payment processing, in-person sales, and overall ecommerce functionality.

Platform Scope and Purpose

Square started as a payment processing and point-of-sale (POS) solution for in-person transactions and has expanded to include ecommerce capabilities. It offers a free online store builder and integrates seamlessly with its POS systems, making it ideal for businesses that operate both online and offline.

Shopify, on the other hand, is an all-in-one ecommerce platform designed specifically for online retail. It provides comprehensive tools for building an online store, managing products, processing payments, and marketing to customers.

If your business operates both a physical store and an online presence and you want a unified system, Square may be more suitable. If you're focusing primarily on online sales and need advanced ecommerce features, Shopify might be the better choice.

Website Building and Customization

Square offers a free website builder with a selection of templates to create a basic online store. The customization options are limited, focusing on ease of use rather than extensive design flexibility.

Shopify provides a powerful website builder with a wide array of professionally designed themes. It allows for significant customization, both through its intuitive editor and by editing code for more advanced changes.

Shopify offers greater flexibility and design options for creating a unique and branded online store. Square's website builder is suitable for simple stores but may not meet the needs of businesses seeking a highly customized site.

Payment Processing and Transaction Fees

Both platforms offer integrated payment processing, but there are differences in fees and capabilities.

• Square charges a flat rate of 2.9% + 30¢ per online transaction. There are no monthly fees for the basic ecommerce plan, making it cost-effective for small businesses.
• Additional fees apply if you use a third-party payment gateway instead of Shopify Payments.
  • Basic Shopify: $29/month, 2.9% + 30¢ per transaction
  • Shopify: $79/month, 2.6% + 30¢ per transaction
  • Advanced Shopify: $299/month, 2.4% + 30¢ per transaction

Square may offer lower upfront costs with no monthly fees, suitable for businesses starting out or with lower sales volumes. Shopify's tiered pricing provides access to more advanced features as you scale but requires a monthly commitment.

In-Person Sales and POS Integration

Square is renowned for its POS solutions, offering a range of hardware options like card readers, terminals, and registers. Its POS system seamlessly integrates with its online store, providing unified inventory and sales data.

Shopify also offers POS solutions, but they are available at an additional cost and may not be as robust as Square's offerings. Shopify POS integrates with your online store, but hardware options and features may be more limited.

If in-person sales are a significant part of your business, Square's integrated POS solutions provide a clear advantage. Shopify's POS system is suitable for businesses primarily focused on ecommerce with occasional in-person sales.

Ecommerce Features and Tools

Both platforms offer essential ecommerce functionalities but differ in depth and sophistication.

• Square provides basic ecommerce features, including product management, order fulfillment, and basic reporting. Its tools are straightforward and cater to small to medium-sized businesses.
• Shopify excels in advanced ecommerce features, such as:
  • Comprehensive inventory management
  • Advanced shipping and fulfillment options
  • Detailed analytics and reporting
  • Abandoned cart recovery
  • Extensive SEO and marketing tools

For businesses requiring advanced ecommerce capabilities and scalability, Shopify offers more robust tools. Square is suitable for businesses needing essential features without the complexity.

Third-Party Integrations and App Marketplaces

Shopify has a vast App Store with thousands of apps to enhance your store's functionality, including email marketing, customer reviews, dropshipping, and more.

Square offers a smaller selection of integrations through its App Marketplace, covering essential areas like accounting, marketing, and inventory management.

Shopify provides greater opportunities to expand and customize your store's capabilities through integrations. Square focuses on simplicity and may lack some specialized apps that certain businesses require.

Ecommerce Features Comparison Table

Here is a table/checklist, that shows whether or not Square and Shopify contain the critial feature a payment processing system should have for ecommerce.

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Feature Analysis

Here we go in-depth with the more general features that Square and Shopify provide.

Scalability and Growth Potential

Shopify is designed to scale with your business. As you grow, you can upgrade your plan to access more advanced features, support higher sales volumes, and integrate more complex functionalities.

Square is ideal for small to medium-sized businesses but may present limitations as your ecommerce needs become more sophisticated. Its feature set is more basic, and scaling may require integrating additional platforms or switching to a more robust solution.

For long-term growth and scalability, Shopify offers more flexibility and advanced features. Square is suitable for businesses that plan to maintain a simpler operational model.

Ease of Use

Both platforms prioritize user-friendly interfaces, but there are nuances.

• Square offers a straightforward setup with guided steps, making it easy for beginners to launch an online store quickly.
• Shopify provides a more comprehensive setup process due to its extensive features. While still user-friendly, it may require more time to configure all aspects of your store.

Square may be more accessible for those looking for a quick and simple setup. Shopify offers more depth, which may involve a steeper learning curve but results in a more powerful store.

Customization and Design

Square provides limited customization options, focusing on simplicity and ease of use. The templates are clean but may lack the uniqueness some brands desire.

Shopify offers extensive customization through its themes and the ability to edit HTML and CSS for advanced users. This allows businesses to create a unique and branded storefront.

If having a distinctive and customized online presence is important, Shopify provides the tools to achieve that. Square is suitable for businesses content with a more standard design.

International Selling

• Shopify supports international selling with multi-currency capabilities, language translation apps, and global shipping options. It allows businesses to reach a worldwide audience effectively.
• Square's international capabilities are more limited, operating primarily in the United States, Canada, Australia, the United Kingdom, Japan, and a few European countries.

For businesses aiming to sell internationally, Shopify offers more comprehensive support and tools. Square is better suited for businesses operating within its supported countries.

Choose the Right Payment Solution for Your Business

Choosing between Square and Shopify depends on your business's specific needs, operational model, and growth plans.

Consider Square if:

• You operate both online and in-person and need integrated POS solutions.
• Simplicity and ease of use are priorities.
• You prefer lower upfront costs with no monthly fees for basic ecommerce.
• Your business operates within the countries supported by Square.

If you believe that Square is the one for you, make sure you are not missing out on other Square alternatives, that might be a better fit.

Opt for Shopify if:

• Your focus is on building a robust online store with advanced ecommerce features.
• Extensive customization and design flexibility are important.
• You plan to scale your business and require features that support growth.
• You aim to sell internationally and need comprehensive global selling tools.

Assess your current operations, future goals, and the specific features that will enhance your ecommerce strategy. Square offers a cohesive solution for businesses combining physical and online sales with straightforward tools. Shopify provides a powerful platform for creating a feature-rich online store with scalability in mind.

By aligning your choice with your business objectives and customer needs, you can create a seamless shopping experience, improve operational efficiency, and position your business for success in the competitive ecommerce landscape.

Frequently Asked Questions

Here we have answered some of the commonly asked questions in the Square vs Shopify debate.

Can I use Square's payment processing with Shopify?

No, Shopify does not support Square as a payment gateway. Shopify has its own integrated payment system, Shopify Payments, and supports various other third-party payment gateways, but Square is not among them.

Which platform is better for brick-and-mortar stores wanting to expand online?

Square is an excellent choice for brick-and-mortar stores looking to expand online due to its strong POS solutions and seamless integration between in-person and online sales. It allows businesses to manage inventory and sales data across both channels effectively.

Is Shopify suitable for businesses with physical stores?

Yes, Shopify offers POS solutions that enable businesses to sell in physical locations. However, the POS hardware and features may not be as extensive as Square's offerings, and additional costs may apply.

How do transaction fees compare between Square and Shopify?

• Square charges a flat rate of 2.9% + 30¢ per online transaction with no monthly fees for the basic plan.
• Shopify's transaction fees vary by plan and may include additional charges if not using Shopify Payments. Monthly fees also apply, ranging from $29 to $299.

Which platform offers better customer support?

Both Square and Shopify offer robust customer support.

• Square provides support via email, chat, and phone during business hours.
• Shopify offers 24/7 support through chat, email, and phone, which may be beneficial for businesses needing assistance outside of standard hours.