Are you confused between Shopify and Square? Both platforms offer robust e-commerce solutions, but which one is right for your business?
Don't worry, everything you need is covered in this article. From features and customization to scalability and ease of use, we’ll guide you to make an informed decision and discover which platform aligns with your business needs for 2024!
Shopify and Square at a glance
An interesting fact: Shopify powers over 1.7 million businesses worldwide, known for its strong community and extensive app marketplace. Meanwhile, Square continues to innovate with features like QR code payments, which enhance the in-person shopping experience, and advanced inventory control tools that simplify operations for small to medium-sized businesses.
To delve further into details, Shopify stands out as a cloud-based commerce platform empowering entrepreneurs with a plethora of features to design and manage their online stores effectively. These features include:
- Customizable Online Stores
- Marketing and SEO Tools
- Payment Processing
- Inventory Management
- Analytics and Reporting
On the other hand, Square is a financial technology company that provides software and hardware solutions for businesses to accept payments, manage sales, and track inventory. Their key features include:
- Point-of-Sale (POS) Systems
- Online Store Integration
- Payment Processing
- Inventory Management
- Analytics and Reporting
Both Shopify and Square offer robust inventory coordination, payment processing, and analytics and reporting features. With Shopify and Square inventory management, users can monitor stock levels, set up automatic restock alerts, and manage product variants efficiently.
Source: Shopify
Square vs Shopify: Key differences
While Square account shines with its seamless integration of online and offline sales, Shopify app store stands out as the ultimate destination for building captivating online stores. Let’s explore their differences:
Square | Shopify | |
Analytics and reporting | Features are restricted. You need to use an industry-specific POS package. | Features are restricted. An upgrade to the $105/month subscription is needed to access all features. |
Customer management | Available tools include:
| Available tools include:
|
Marketing | Available features include:
| Available features include:
|
Cost | You can access standard features and a free eCommerce website at no cost, with Square account options to upgrade:
| There are no free options for accessing features. Shopify has 4 pricing plans:
|
Commitment | No contract required | Contract durations vary, with the choice of monthly arrangements or optional longer terms. |
POS features | Payments can be processed offline, with a wide selection of card readers and POS system setups, including a Tap to Pay feature. | Payments can't be processed offline, but there's a good range of Shopify POS system setups to choose from. |
eCommerce features | Square account for Retail offers advanced inventory and shipping features, accepts 8 currencies, but provides an inflexible and basic website. | The Basic plan offers advanced inventory and shipping features, accepts 136 currencies, and provides a highly customizable website. |
Integrations | Offers over 200 app integrations and seamlessly connects with Zapier | Offers over 2,000 app integrations and seamlessly connects with Zapier. |
Support |
|
|
Payment processing |
| Shopify Payments for POS; also works with third-party processors |
Online store | Free plan includes basic website builder with limited customization options. | The lowest plan includes a simple online Shopify store |
Hardware options |
|
|
In summary, the key differences between Shopify and Square can be categorized as follows:
Square vs Shopify Fees
With Square, you can access standard features and a free eCommerce website at no cost. This provides an accessible entry point for businesses looking to establish an online presence without immediate financial investment.
On the other hand, Shopify operates on a subscription-based model with no free options for accessing features.
Payments
Shopify and Square both offer robust payment solutions, but they differ in their approach.
Square provides a straightforward payment processing system that is seamlessly integrated with its other business tools. With Square, businesses can accept payments in-person, online, and via mobile devices. Square's pricing is transparent, with no hidden fees or long-term contracts. Merchants pay a simple transaction fee for each payment processed, with options for flat-rate pricing or custom rates for larger businesses.
Shopify offers a more comprehensive eCommerce platform that includes payment processing as one component. It requires a subscription to one of Shopify's pricing plans. While this provides access to a wide range of eCommerce features beyond payment processing, it means that there are no free options for using Shopify's payment services. Additionally, Shopify allows merchants to integrate with third-party payment gateways for additional flexibility, although this may incur additional fees.
Shopify and square payment?
Retail POS Features
Square POS system is renowned for its simplicity and ease of use. It offers a range of features tailored specifically for retail businesses, including inventory management, sales reporting, employee management, and customer relationship management (CRM). Square POS is highly customizable.
In contrast, Shopify provides a more comprehensive eCommerce platform that includes POS capabilities as part of its offering. Shopify POS system is designed to seamlessly integrate with its online Shopify store, allowing merchants to manage inventory, process orders, and track sales across both online and offline sales channels from a single dashboard. They may be more suitable for businesses looking for a unified solution for their online and offline operations.
Ecommerce Features
Square's ecommerce features are more focused on providing a simple and streamlined solution. It offers an easy-to-use website builder that allows merchants to create customizable online stores quickly.
With Shopify, merchants can create and customize their online Shopify stores with ease, utilizing a range of professionally designed templates and intuitive drag-and-drop tools. Shopify offers robust inventory management, order processing, and payment processing capabilities, along with built-in SEO tools and marketing features.
Multichannel Sales Features
Shopify excels in integrating with diverse sales channels, including online stores, social media platforms, and third-party marketplaces. Its robust app ecosystem facilitates seamless expansion and management across channels. In contrast, Square focuses on providing unified solutions for both online and offline sales, with seamless integration between its ecommerce platform, point-of-sale system, and payment processing services.
Ease of Use
Square offers a simplified approach to ecommerce, focusing on providing essential features and functionality in a user-friendly package. Square's interface is designed to be intuitive and easy to navigate, with straightforward options for setting up an online retail store and managing inventory. However, it lacks some of the advanced customization options found in Shopify.
Shopify is known for its user-friendly interface and intuitive design. Its straightforward dashboard helps users to easily navigate between different sections, such as products, orders, and customers.
Review Score
Shopify POS has a rating of 4.4 out of 5 stars from 316 reviews, while Square Point of Sale rates slightly higher at 4.7 out of 5 stars from 788 reviews. Both platforms cater primarily to small businesses, with Shopify POS serving 79.7% of that market segment and Square POS serving 91.5%.
Besides, several Square vs Shopify Reddit discussions highlight various user experiences and preferences. Many users appreciate Square's simplicity, ease of use, and free entry-level pricing. Square's seamless integration of online and offline sales is also frequently praised.
Hardware
Square provides a range of hardware solutions tailored to businesses of all sizes, including card readers, terminals, and registers. Square's hardware offerings are known for their reliability, ease of use, and affordability, making them a popular choice among small businesses and entrepreneurs.
Shopify does not offer its own branded hardware devices. Instead, Shopify provides integrations with third-party hardware providers. While this provides merchants with greater flexibility and choice, it may require additional setup and configuration compared to Square's all-in-one hardware solutions.
Pros and Cons of Square vs Shopify
Knowing about the strengths and weaknesses of each platform can help you make a better decision.
Pros and Cons of Square
Pros:
- POS features: Square's POS features are more robust as they're not restricted by subscription plans, making them available for free.
- More affordable price: Square proves to be more economical due to its absence of monthly fees, relying solely on processing charges.
Cons:
- Limited Customization: Square's ecommerce platform and point-of-sale system may lack some advanced customization options compared to other solutions like Shopify.
- Support: Some users have reported issues with Square's customer support, citing delays in response times and difficulty resolving issues.
Pros and cons of Square
Pros and Cons of Shopify
Pros:
- Online store feature: Shopify ensures that online store features are accessible across all plans, eliminating the need for additional payments.
- Salable plans: Owners can expand their businesses seamlessly across multiple plan options without the risk of losing essential features. They can upgrade to the next plan to access additional features.
- Cheap processing rates: Shopify offers reduced processing rates with its higher-tier plans, enabling businesses to save money while accessing a wider range of features.
Cons:
- Higher cost: Shopify's pricing plans may be higher compared to some other ecommerce platforms, particularly for businesses with higher sales volumes.
- Transaction Fees: Depending on the pricing plan chosen, Shopify may charge transaction fees on top of credit card processing fees, which can add up for businesses with high sales volumes.
Shopify pros and cons
Shopify vs. Square: Which one is right for you?
When deciding between Shopify and Square, it ultimately comes down to your business's specific needs and format.
Shopify is a robust platform well-equipped to cater to the needs of large eCommerce enterprises. It boasts an array of advanced features tailored for online sales, including sophisticated inventory management, customizable themes, and a wide range of apps to enhance functionality. Additionally, Shopify offers scalability, allowing businesses to grow and expand their online presence seamlessly.
On the other hand, Square is particularly convenient for brick-and-mortar businesses. Its integrated payment processing system simplifies transactions, making it ideal for retail establishments. Square's point-of-sale solutions seamlessly integrate with its online platform, enabling businesses to bridge the gap between their physical and digital operations effortlessly. Moreover, Square offers a suite of additional tools such as invoicing, appointment scheduling, and loyalty programs, enhancing the overall customer experience.
Wrap-up
Ultimately, the choice between Shopify and Square depends on your specific business needs. If you prioritize extensive e-commerce functionalities and scalability, Shopify might be the better option. However, if you need an all-in-one solution that integrates well with in-person sales and offers simplicity, Square could be the right choice!
