Shopify vs Square: Which is Right For Your Business?

Picking the right e-commerce platform makes a big difference in today’s e-commerce marketplace. 

Shopify and Square are two popular options, each designed for different types of entrepreneurs. 

Shopify is a powerhouse for online sales, offering extensive eCommerce features that cater to businesses looking to scale their online presence. 

On the other hand, Square provides a seamless point-of-sale system that works wonders for brick-and-mortar shops, making in-person transactions straightforward and efficient.

In this blog post, we’ll explore Shopify vs Square key differences explore to help you decide which platform best suits your needs. 

Whether you focus on eCommerce or manage a physical store, understanding each platform’s offerings will help you make the right choice for your business.

Square vs Shopify: Key differences

Before we get into the specifics, this table outlines the key differences in the Shopify vs Square discussion:

Where Square Wins

Square, as an e-commerce platform, excels in these areas:

• Offering a free plan that helps new businesses accept their payments despite not having enough billing or tech experience. A free plan helps them understand how Square works before they upgrade.
• Square’s beloved user interface is partly responsible for its success, keeping it intuitive and straightforward, even for people with limited tech experience. The business doesn’t need to spend too much time training staff to use Square. 
• Square’s native hardware includes card readers, POS systems, receipt printers, and cash drawers, allowing businesses to choose whatever best suits their needs and budget.
• In-person transactions are easier with Square thanks to its several quick checkout options, integrated tipping, and easy interface.

Where Square Falls Short

For all that it’s capable of, here’s where Square falls short as an e-commerce tool:

• Square’s high transaction fees cut the bottom line, especially for smaller businesses or those with high transaction volume. High processing fees offset the free plan incentive and require careful consideration.
• Square lags behind Shopify in terms of online store features. Its capabilities aren’t as capable or sophisticated. Businesses with high sales volumes and a strong online presence will find Square’s capabilities limiting and insufficient.
• Compared to Shopify, Square has limited customization, which prevents businesses from building proper branding identities or integrating custom features. 
• Square’s inventory management features are basic compared to Shopify. Companies with large or complex inventory needs find it difficult to track stock levels, manage low stock alerts, and handle advanced inventory adjustments effectively within the Square system.

Where Shopify Wins

Shopify has been e-commerce’s biggest platform owing to its global availability and ease of use.

Many businesses exist only because Shopify offers a platform that makes building and scaling an online storefront easier. 

Shopify has several tools required for online business, including:

• Advanced online store customization offers a high degree of flexibility in designing and customizing your online store, allowing you to create a unique brand presence.   
• A powerful suite of built-in marketing tools, such as email marketing, social media integration, and abandoned cart recovery, help the business reach more customers and improve sales.   
• The Shopify app ecosystem boasts a vast app store with thousands of third-party apps that can be integrated into your store to add features like advanced shipping, accounting, and customer support.

Additionally, strong inventory management tools help businesses manage and scale inventory as the company continues to grow with features such as:

• Real-time inventory tracking helps track stock levels across multiple locations and sales channels.   
• Low-stock alerts help the company receive notifications when inventory levels fall below a certain threshold.   
• Advanced inventory adjustments are used to easily manage stock levels with features like bulk editing and automated adjustments.

Lastly, Shopify is designed to scale with the business when operations grow. It offers better plans, advanced features, and customer support to simplify everything. 

Where Shopify Falls Short

For all of the value that Shopify offers, it isn’t without its shortfalls and limitations. 

Here’s how Shopify falls short as an e-commerce platform:

• Shopify’s monthly subscription fees are a significant expense, which might be prohibitive to those with limited budgets.
• Shopify’s interface is more complex than Square’s, and new platform users experience a steeper learning curve. 
• Unlike Square, Shopify doesn’t offer its hardware. You’ll need to purchase hardware like card readers and receipt printers separately, which can add to your initial investment.

Square Vs. Shopify: Fees & Pricing Comparison

Now that we’ve compared the two platforms, it’s important to compare pricing to know which platform is fiscally better for the business.

This table compares Square vs. Shopify:

However, it is worth knowing that:

• Transaction fees vary depending on the card type, processing method, and payment plan.
• Shopify and Square both offer discounted rates for high-volume sellers.
• Shopify Payments often offers lower transaction fees compared to third-party processors.

Shopify Vs. Square: Feature Comparison

Square Vs Shopify: Hardware Compared

While e-commerce dominates modern purchasing, brick-and-mortar stores are still here to stay for at least now. 

Here’s a hardware comparison for Square vs Shopify:

Square

Square has a wide range of hardware, offering a comprehensive ecosystem of hardware, including:

• Card Readers: Free magstripe, contactless, chip, and mobile readers.   
• Registers: Square Register, Square Terminal, Square Stand.   
• Receipt Printers: Portable and countertop printers.   
• Cash Drawers: Compatible with various registers.   
• Other Accessories: Stands, cables, and more.

All Square hardware seamlessly integrates with Square’s software and payment processing, with pricing varying depending on the hardware and some options available for free or at low cost.

Shopify

Shopify does not manufacture its hardware but integrates with various third-party vendors, including cash drawers, card readers, barcode scanners, and receipt printers. 

Shopify’s global presence means businesses have several hardware options when choosing a device and vendor. 

Square Vs Shopify: Final Verdict on Which is Better

Square and Shopify each serve distinct business needs, making choosing between them crucial for your success. 

Square is a straightforward solution for brick-and-mortar businesses, offering no monthly fees and a user-friendly point-of-sale system. 

It suits those who prioritize in-person sales and require minimal online functionality. 

In contrast, Shopify stands out for e-commerce enterprises. It provides a comprehensive platform with extensive features for managing online sales, inventory, and customer engagement. 

Its monthly subscription model supports businesses aiming to scale their online presence effectively.

Ultimately, the decision hinges on your business model. 

If your operations are primarily in-store with occasional online sales, Square is the better fit. 

Shopify will serve you better if you build a robust online store with advanced capabilities. 

FAQs

Do I need Shopify if I have Square?

The business does not need a Shopify store if it focuses on in-person commerce.

Is Shopify POS cheaper than Square?

Shopify has monthly subscription fees, while Square offers a free basic plan. However, Shopify Payments often has lower transaction fees.   

Is it easy to switch from Square to Shopify?

No. Switching from Square to Shopify requires data migration, setting up new hardware, and developing a new store.