Square vs Shopify: Which is Better?

Choosing the right platform in a rapidly evolving e-commerce world can significantly impact your business’s success. If we talk about Square vs Shopify, these are two of the most popular solutions, each catering to different business needs. Square provides simple, cost-effective point-of-sale (POS) systems ideal for brick-and-mortar establishments. 

At the same time, Shopify stands out with its robust online selling features and extensive customization options. This blog will delve into the strengths and weaknesses of each platform to help you determine which one aligns best with your business goals.

We explore pricing, ease of use, available features, and customer support. Whether a small business owner or an entrepreneur, understanding these platforms’ unique offerings will empower you to make an informed decision. 

Square vs. Shopify: At a Glance

In the e-commerce world, Shopify is often considered the king of the hill because of it simple setup process and widespread adoption. Square is a recent entrant into the e-commerce store market, having started differently.

What Is Square?

Before expanding its offerings, Square started by offering a point-of-sale (POS) system for brick-and-mortar businesses. It now provides services for creating online stores, payment processing, and inventory management tools. 

Square’s main features include its POS system and online store builder. These stores also come with Square’s renowned payment processing built into them. This is a welcome expansion by Square, which took the online payment world by storm.

What Is Shopify?

Shopify is among the best e-commerce platforms in the world and has been a staple in this industry for a long time. Businesses often use Shopify due to its simplicity and diverse feature set that make it a great option for businesses of all sizes. 

Shopify particularly stands out thanks to its highlight customizable online store builder. There are various themes and templates to pick from, allowing stores to build their unique brand identity. The Shopify app store extends functionality with various apps and add-ons, e.g., payment processors, marketing automations, and others. 

Square vs Shopify Comparison

To see how the two stack up against each other, this section contains a Square vs Shopify comparison. We cover three essential areas that sway user opinions, i.e., cost, features, and customer service. This is the Square vs Shopify comparison:

Costing

Both platforms charge the business to use their services and their pricing sways customers either way. This is the costing breakdown for Square vs Shopify:

Square

Their transaction fees are 2.6% + $ 0.10 per transaction for online payments and in-person transactions. Stores can pick from three subscription plans:

• The free plan with basic features for online and in-person selling.
• Square for Retail at $29/month with advanced features like employee management and inventory tracking.
• Square Premium at $79/month for larger businesses with advanced needs.

Fees for Square hardware and software are separate from this but are often a one-time cost. This makes it a great investment for most brands. 

Shopify

Their transaction fee depends on which payment gateway the store is using. There are three Shopify subscription plans for monthly subscription to pick from:

• Basic at $25/month for basic Shopify store features.
• Shopify at $65/month for advanced features and unlimited product listings.
• Advanced at $399/month for enterprise-level features.

Fees for customizations, Shopify applications, domain names, and custom Shopify development can increase these costs. Shopify’s modularity allows companies to build unique stores with a strong front and back end. 

Features

Square and Shopify have captured such a large market share because of their comprehensive feature suites. There are various areas that both platforms excel in, some even besting the other. Here’s how both stack against each other:

Square

Square’s main features include:

• POS system that integrates with the online store, making it ideal for businesses with both physical and online presence. Excelling in both is essential in the modern e-commerce landscape.
• Inventory management with basic tracking and management tools. Online businesses need robust inventory management tools to ensure the business and customers face no hurdles.
• Payment processing with Square uses its own payment gateway that is accepted globally.
• Customer management with simple tools to manage customer information and orders. Businesses with reliable customer management stay on top of important matters, allowing it to remain competent.
• Marketing tools such as email marketing and social media integration. Square offers the minimum essentials but can leave the user wanting more from the platform.

Shopify

Shopify’s main features include:

• Online store builder used to build highly customized stores  with various themes and templates. It does not require extensive development experience and with a little learning, anyone can do it. 
• Shopify App store offers a vast marketplace of apps to extend functionality. Stores can use it to improve the form and functionality of an online store. 
• Payment processing supports multiple payment gateways. E-commerce caters to a global audience that want the best shopping experience available. 
• Marketing tools for SEO, email marketing, and social media help marketing teams get the right eyes on the business. More attention translates to better sales numbers. 
• Customer management with advanced tools for managing customer data and loyalty programs. Robust customer management is essential for business success.
• Shipping and fulfillment with integrated shipping options and fulfillment services. It isn’t enough to have a good store, the product also needs to get to the customer when promised. 

Customer Support

Shopify and Square top-tier customer support to businesses using their platforms. However, there are some differences between the two platforms.

Square

• Square customer service is available via phone, email, and online chat.
• Customer service availability depends on store location and plan.
• Square customer service is highly rated and known for effective problem solving

Shopify

• Shopify customer service is available via phone, email, and online chat.
• Customer service is accessibly 24/7, ensuring your concerns are addressed at all times.
• Shopify customer service is renowned for its high-quality, knowledgeable support team.

Pros

Companies picking between the two want to know whether their preferred platform is the right choice. Here are the pros of each platform:

Square

• A user-friendly interface that is easy to set up and use, even for beginners. 
• An integrated POS system that is ideal for businesses with both online and physical stores.
• Affordable pricing thanks to Square’s great pricing plans.
• High quality customer support with helpful and responsive support.

Shopify

• Shopify is highly customizable with a wide range of themes and templates to create unique online stores. Building brand identity is easy with Shopify.
• The Shopify app store is a vast marketplace of apps to extend both form and functionality.
• Advanced features that is suitable for businesses of all sizes, including large enterprises.
• Excellent customer support renowned for its high-quality and responsive support.

Cons

As powerful as these platforms are, they aren’t without their qualms and limitations. Here are the cons of each platform:

Square

• Limited customization options that aren’t suitable for businesses that require highly customized online stores.
• With fewer advanced features compared to Shopify, Square lacks some advanced features for larger businesses. 
• Higher transaction fees for online transactions, Square’s transaction fees are often higher than some competitors.

Shopify

• Shopify has a steeper learning curve compared to square and requires more time and effort to learn and master the platform. It isn’t overly complicated but isn’t a walk in the park either. 
• Subscription plans and additional fees can be more expensive compared to Square. Users get more value but they need to pay more money to make it happen. 
• While Shopify offers POS solutions, they aren’t as tightly integrated as Square’s.

Conclusion

The choice between Square vs Shopify hinges on your business’s specific needs and sales strategy. Square is cost-effective solution suited for brick-and-mortar businesses that need straightforward point-of-sale systems and an easy transition to online sales.  

Shopify excels in providing advanced e-commerce features, extensive customization options, and robust international selling capabilities. Businesses focused on building a professional online presence and scaling their operations rely on Shopify as the superior choice. 

Before picking either, assess your priorities carefully to determine which platform aligns best with your vision for growth and success in the competitive eCommerce landscape. We pick Shopify as the best e-commerce platform between the two. 

FAQs

Can I Use Square with Shopify POS?

No. Square cannot be used as a native payment processor on Shopify. However, Square can be integrated with third-party apps.

What’s the Best E-commerce Platform for Startups: Square or Shopify?

Square is the better options for startup businesses because of its low upfront cost and no-contract model. Fewer strings attached makes it easier to implement. 

Is Shopify a Good Fit for Small Businesses?

Yes. Shopify is one is very commonly used by small businesses as their e-commerce platform.