Shopify and Square: Which is better for you 2024?

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 2.4 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.

How Shopify works is simple yet comprehensive, making it accessible for businesses of all sizes. Merchants start by creating an account, choosing a customizable template, and adding their products. Shopify handles backend operations like payment processing, inventory management, and order fulfillment. Its user-friendly interface, paired with powerful marketing tools and analytics, makes Shopify a go-to platform for building and scaling an eCommerce store.

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

First, let's look at the latest short Shopify vs Square comparison in this video: 

While Square - Squareup 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:

In summary, the key differences between Shopify and Square can be categorized as follows:

Square vs Shopify Fees

Choosing between Shopify and Square starts with understanding their pricing structures and how they align with your business model. These platforms offer distinct fee models tailored to different types of operations, from e-commerce powerhouses to brick-and-mortar retailers.

Shopify Fees

Shopify uses a subscription-based pricing model, offering multiple plans to suit businesses at different stages of growth:

• Basic Shopify: $39/month – Best for small businesses and startups.
• Shopify Plan: $105/month – Ideal for growing brands needing enhanced features.
• Advanced Shopify: $399/month – Designed for scaling enterprises with advanced tools, such as custom reporting and international selling options.

In addition to subscription fees, Shopify applies transaction fees for third-party gateways: 2%, 1%, or 0.5%, depending on the plan. These fees are waived if you use Shopify Payments, its built-in gateway. Extra costs may arise for premium themes and app integrations that enhance store functionality.

Square Fees

Square follows a pay-as-you-go pricing model, which makes it attractive for brick-and-mortar businesses and startups:

• Payment Processing Fees: 2.6% + 10¢ per swipe, dip, or tap for in-person transactions, and 2.9% + 30¢ for online payments.
• Free Online Store: Square provides a no-cost option to build and maintain a basic online presence.
• Add-Ons: Optional tools like Square Appointments, loyalty programs, and advanced marketing features are available for an additional fee.

Square stands out with its zero subscription fees for its core offerings, making it a cost-efficient choice for businesses focused on local retail operations or hybrid sales models.

Key Differences in Shopify vs Square pricing

Shopify is geared towards e-commerce businesses prioritizing scalability and advanced features, though its costs can increase with add-ons and higher-tier plans.

Square is ideal for small retailers or businesses focused on in-person sales, offering transparent fees without the need for ongoing subscriptions.

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

The Shopify POS vs Square POS debate highlights key differences in functionality. 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

In terms of Shopify vs Square features, Square focuses on simplicity with its streamlined eCommerce tools, including an easy-to-use website builder for quick online store creation.

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. 

Understanding Shopify and Square: Strengths and Weaknesses

While Shopify leads the eCommerce space with its advanced features, Shopify competitors like Squarespace, Wix, and BigCommerce also offer unique advantages in its specific niche. This makes it a top contender in discussions of Shopify vs Squarespace vs Wix, where Squarespace excels in design and Wix prioritizes ease of use.

Read more:

• Shopify vs Wix
• Shopify Amazon Integration

Square: The POS and Retail Champion

For businesses emphasizing physical storefront operations, Square for in-person sales stands out as a powerful solution. Its intuitive design, versatile POS hardware, and support for contactless payments make it the preferred choice for small to medium-sized businesses aiming to enhance their on-site customer experience.

However, while Square excels in point-of-sale systems, Square weaknesses include limited eCommerce capabilities and scalability challenges. Its basic online store offerings may not meet the needs of businesses requiring advanced digital features, making it less suitable for enterprise-level operations or those prioritizing robust customization.

What Sets Square Apart?

• Affordable Hardware for All Business Sizes: Square’s hardware lineup, from its iconic Square Reader to NFC-enabled POS terminals, is designed to meet diverse needs. Whether you’re a mobile vendor, a pop-up shop, or a retail store, Square ensures you have access to cost-effective, durable tools for seamless operations.
• Retail-Focused Features: Square’s retail-focused features, including inventory tracking, transaction analytics, and customer loyalty tools, solidify its position as the best platform for retail businesses seeking a user-friendly and cost-effective solution. Whether managing a boutique or a service-based enterprise, Square offers tools to optimize operations and enhance customer experiences.
• Secure and Seamless Payments: With support for mobile payments, contactless methods like Apple Pay and Google Pay, and traditional card processing, Square ensures secure transactions across all channels. Its transparent pricing and automated tax calculations provide financial clarity and compliance.
• Omnichannel Selling Made Simple: Square’s free online store builder enables businesses to expand into digital commerce while maintaining a strong in-person presence. Its ability to integrate physical and online sales ensures a cohesive customer experience across all platforms.

Strengths of Square

• User-Friendly Design: Minimal setup and intuitive tools make Square accessible to all skill levels.
• Cost-Effectiveness: Affordable hardware and no long-term contracts lower entry barriers for small businesses.
• Versatility: Serves industries like retail, cafes, salons, and hybrid businesses.
• Integrated Ecosystem: Tools like Square Appointments, Square Invoices, and loyalty program support streamline operations.

Weaknesses to Consider

• Limited E-commerce Capabilities: While functional, Square’s online store is not suited for businesses requiring advanced digital features.
• Scalability Restrictions: Square’s strengths lie in small to mid-sized operations, making it less ideal for enterprise-level growth.
• Square is the go-to POS champion for businesses seeking affordable, easy-to-use tools for in-person and hybrid sales. Its secure payment systems, omnichannel integration, and comprehensive retail-focused features make it an essential partner for small and local businesses aiming to thrive.

Pros and cons of Square

Shopify: The E-commerce Powerhouse

When it comes to establishing a successful digital commerce presence, Shopify strengths lie in its scalability, global reach, and extensive feature set, making it a leading choice for entrepreneurs and businesses alike. As a scalable SaaS platform, Shopify is trusted by over 2 million merchants globally for its seamless tools and features designed to simplify and enhance online selling.

Why Shopify Stands Out

• Comprehensive Customization Options: Shopify enables businesses to build a unique brand identity through its wide range of professionally designed themes and user-friendly drag-and-drop editor. Advanced tools like SEO optimization ensure your store gets noticed by the right audience.
• Powerful App Ecosystem: With an extensive marketplace of over 8,000 apps, Shopify integrates with leading tools for inventory management, marketing automation, and payment processing. Merchants can enhance their stores with functionalities like AI-powered analytics and abandoned cart recovery systems.
• Omnichannel Selling Made Easy: Shopify unifies sales across multiple channels, whether through a dedicated online store, social commerce platforms, or major marketplaces like Amazon and eBay. This integrated approach improves the customer journey and strengthens brand loyalty.
• Scaling for Future Growth: Whether you’re a startup or an established brand, Shopify’s scalability supports growth with features like fraud prevention tools, real-time analytics, and its enterprise-grade solution, Shopify Plus. These tools ensure businesses can efficiently manage operations and maximize conversions.

Strengths of Shopify

• Global Reach: Shopify supports multiple languages and currencies, making it an excellent choice for international e-commerce businesses.
• User-Friendly: Its intuitive interface caters to merchants at all skill levels, reducing the technical learning curve.
• Reliable Support: Shopify offers 24/7 support, ensuring any issues are addressed promptly, fostering confidence for merchants.

Weaknesses to Consider

• Higher Costs: Premium POS hardware and advanced tools can be expensive, posing a challenge for budget-conscious businesses.
• Limited Built-In Features: Some functionalities require additional apps, which may increase overall costs.
• Transaction Fees: Unless using Shopify Payments, transaction fees can add up, especially for high-volume businesses.
• Customization Challenges: Advanced customization may require coding knowledge or hiring a developer.

• Learning Curve for New Users: While user-friendly, some advanced features might take time for beginners to master.

Ideal Use Cases for Shopify and Square

Choosing the best e-commerce platform for scaling depends on your growth strategy and operational goals. Shopify's scalability makes it an excellent option for businesses planning to expand rapidly, with tools like Shopify Plus and advanced analytics to support high sales volumes. For small businesses or those focused on in-person sales, Square provides a simpler solution that works well at a smaller scale.

When to Choose Shopify

Online-First Businesses: Shopify is the ultimate choice for digital commerce. Its customizable e-commerce platform, SEO tools, and marketplace integrations make it ideal for creating a powerful online presence.

• Best for: Fashion brands, dropshipping businesses, and international sellers.
• Example: A boutique launching a website to sell globally while utilizing Shopify’s omnichannel tools for seamless customer experiences.

Scaling Businesses: If growth is a priority, Shopify provides tools like Shopify Plus, AI-powered analytics, and advanced marketing automation to handle scaling efficiently.

• Best for: Established merchants expanding into new markets or managing higher sales volumes.
• Example: A regional retailer scaling internationally with Shopify’s localized payment gateways and multi-currency support.

Omnichannel Sellers: Shopify bridges the gap between online storefronts, social commerce, and marketplaces. It integrates all sales channels into one ecosystem for better control and consistency.

• Best for: Brands selling across Instagram, Amazon, and their own website.
• Example: A skincare brand using Shopify to manage inventory across multiple platforms while delivering a consistent customer experience.

When to Choose Square

In-Person and Retail Businesses: Square’s POS systems are designed for brick-and-mortar stores, with tools like contactless payments, inventory tracking, and customer loyalty programs.

• Best for: Cafes, pop-up shops, and local retail stores.
• Example: A coffee shop streamlining its payment processes with Square’s mobile card readers and intuitive POS hardware.

Small and Budget-Conscious Businesses: With its free software and affordable hardware like the Square Reader, Square provides cost-effective solutions for startups.

• Best for: Entrepreneurs or small businesses with limited budgets.
• Example: A food truck using Square’s mobile app and reader for efficient payment processing without hefty upfront costs.

Hybrid and O2O Models: Square’s integration of in-person and online-to-offline (O2O) sales allows small businesses to expand into digital commerce seamlessly.

• Best for: Businesses combining physical and online operations.
• Example: A bakery offering online ordering and in-store pickup through Square’s integrated tools.

Success Stories and Case Studies: Real Businesses Thriving with Shopify and Square

Real-world examples of businesses leveraging Shopify and Square demonstrate their transformative potential in e-commerce and retail operations. These case studies highlight the platforms' scalability, seamless integrations, and ability to drive customer engagement and revenue growth.

Shopify Success Story: Death Wish Coffee

Founded in 2012, Death Wish Coffee transformed from a small operation into a multi-million-dollar direct-to-consumer brand by utilizing Shopify's e-commerce platform.

The company leveraged Shopify's multi-channel selling capabilities, abandoned cart recovery, and customizable themes to build a distinctive digital presence. By integrating Shopify’s retail analytics and automated workflows, Death Wish Coffee managed high traffic volumes and scaled globally, doubling its revenue within a year.

Square Use Case: Crepes Bonaparte

Crepes Bonaparte, a gourmet food truck and catering service, adopted Square POS to streamline operations and enhance the customer experience. Utilizing Square’s self-service kiosks, the business reduced labor costs, improved order accuracy, and increased efficiency by 20%.

Square’s inventory management and sales analytics tools enabled the team to optimize stock levels and identify peak demand times, elevating the overall retail operation.

Shopify and Square Integration Example: Mirror Tea and Sake House

Mirror Tea and Sake House combined the strengths of Shopify and Square for a hybrid business model. Using Shopify’s online store capabilities and Square’s POS system, the business created a unified omnichannel commerce strategy.

Real-time inventory tracking ensured seamless synchronization between online and offline channels, while Square’s QR code payments and Shopify’s marketing automation tools boosted customer satisfaction. This integration led to a 60% increase in revenue and strengthened the brand’s market position.

These success stories underline the adaptability and power of Shopify and Square. Whether scaling an e-commerce business, enhancing in-person sales, or combining both for a hybrid model, these platforms offer essential tools to drive growth, optimize operations, and enhance the customer journey. Their synergy creates opportunities for businesses to thrive in competitive markets.

Shopify vs. Square: Which one is right for you?

When conducting a Shopify or Square comparison, the decision depends on your business's specific needs and structure:

• Shopify excels in supporting large eCommerce enterprises with advanced features for online sales, including inventory management, customizable themes, and scalability for business growth.
• Square is ideal for brick-and-mortar businesses, offering integrated payment processing and POS solutions that seamlessly connect physical and digital operations. It also provides tools like invoicing, scheduling, and loyalty programs to enhance customer experience.

Choose Shopify if you need robust e-commerce capabilities and scalability, or Square for an all-in-one, in-person sales-friendly solution. It depends on your specific business needs!