Shopify vs Square: Pricing, Features, POS Capabilities, and Business Fit

Choosing between Shopify vs Square can make or break your selling strategy. Square excels with its free entry point and integrated POS hardware for brick-and-mortar retailers. Shopify dominates online selling with advanced inventory tools and multichannel capabilities for scaling stores.

This guide breaks down pricing structures, transaction fees, POS capabilities, and feature differences to help you decide which platform matches your business model and growth plans.

Summary

• Pricing comparison: Square offers a free plan while Shopify starts at $29/month with more powerful ecommerce features at each tier
• POS systems: Square POS vs Shopify POS reveals Square’s superior in-person hardware ecosystem versus Shopify’s online-first approach
• Transaction fees: Square charges consistent rates across plans while Shopify’s fees decrease with higher-tier subscriptions
• Sales channels: Shopify provides extensive marketplace integrations while Square focuses on seamless online-offline coordination
• Target users: Square suits retail-focused businesses needing strong POS, Shopify fits scaling online stores requiring advanced features

Shopify vs Square: Platform Overview and Core Strengths

What Is Shopify?

Shopify has dominated ecommerce since 2006, powering over 4 million stores worldwide. The platform delivers comprehensive online selling tools, from customizable storefronts to sophisticated inventory management systems. Shopify particularly shines for businesses prioritizing online growth, offering native multichannel selling across social platforms and marketplaces.

Shopify’s app ecosystem extends functionality through 8,000+ integrations, enabling everything from email marketing automation to advanced analytics. The platform’s strength lies in scalability, supporting businesses from startup phase through enterprise operations. While Shopify development can unlock additional customization, the core platform handles most selling needs out of the box.

What Is Square?

Square revolutionized payment processing in 2009 by making POS systems accessible to small businesses. The platform started with card readers but evolved into a complete commerce ecosystem. Square excels at unifying online and offline sales through its integrated payment infrastructure and hardware solutions.

Square’s true differentiator is its POS-first philosophy. Every feature connects back to simplified in-person transactions, from inventory tracking to customer management. The platform suits retail stores, restaurants, and service businesses requiring robust physical sales capabilities alongside basic online presence.

Shopify vs Square Pricing: Cost Analysis and Value Breakdown

Shopify Pricing Structure

Shopify’s transaction fees disappear when using Shopify Payments, their native processor. Without Shopify Payments, expect additional fees ranging from 0.5% to 2% depending on your plan tier. This structure rewards higher-tier subscribers with better processing rates.

Square Online Pricing Structure

Square’s pricing remains consistent across payment types, simplifying budgeting for businesses. The free plan genuinely works for testing or very small operations, though Square branding and limited features constrain professional presentation.

Hidden Costs to Consider

Beyond monthly fees and transaction costs, factor in these expenses when comparing square vs shopify:

Shopify additional costs:

• Premium themes ($100-$500 one-time)
• Essential apps ($10-$100/month per app)
• Domain registration ($14-$20/year)
• Email hosting ($5-$50/month)

Square additional costs:

• Hardware purchases ($49-$799 per device)
• Professional plan requirements for advanced features
• Third-party integrations (limited compared to Shopify)

Shopify’s modular approach means costs scale with capability, while Square bundles more features into base plans but charges for physical hardware upfront.

Square vs Shopify POS: Hardware and In-Person Selling

Square POS Capabilities

Square POS represents the gold standard for in-person transactions. The system evolved from a simple card reader into a comprehensive point-of-sale ecosystem supporting restaurants, retail stores, and service businesses.

Square hardware options:

• Contactless reader ($59): Accept tap, chip, and swipe payments
• Square Terminal ($299): Portable all-in-one device with built-in receipt printer
• Square Register ($799): Customer-facing display with integrated payments
• Square Stand ($149): iPad POS system with card reader

Square’s inventory management syncs seamlessly between online and offline channels. When you sell a product in-store, your online inventory updates automatically. The platform includes employee management, shift tracking, and advanced reporting specifically designed for physical retail operations.

Shopify POS Capabilities

Shopify entered the POS space to serve omnichannel sellers. Shopify POS works through their dedicated app, transforming smartphones or tablets into mobile payment terminals. The system integrates perfectly with online stores, providing unified inventory and customer data.

Shopify POS pricing:

• POS Lite: Included free with all Shopify plans
• POS Pro: $89/month per location (advanced features)

Shopify POS Pro unlocks features like unlimited staff PINs, advanced inventory management, and smart inventory suggestions. The system supports various hardware including barcode scanners, receipt printers, and card readers from approved vendors.

While functional, Shopify POS clearly serves as a complement to online selling rather than the core focus. Retailers primarily operating physical stores often find Square’s purpose-built POS more intuitive and feature-rich.

Square POS vs Shopify POS Verdict

Square wins for businesses where in-person sales dominate. The platform’s hardware integration, retail-specific features, and mature POS ecosystem handle complex physical retail scenarios better. Shopify POS works best for online-first brands adding occasional in-person selling or pop-up shops.

Consider square POS vs Shopify POS based on your revenue split. If 70%+ of sales happen in person, Square makes more sense. If online dominates with occasional retail events, Shopify POS provides sufficient capability without requiring a POS-first platform.

Ecommerce Features: Online Selling Tools Compared

Shopify Online Store Builder

Shopify’s online store builder delivers professional storefronts through 200+ themes (13 free, rest $100-$500). The platform’s section-based editor allows customization without coding knowledge, though developers can access full HTML/CSS/JavaScript control for advanced modifications.

Key Shopify ecommerce features:

• Unlimited products on all plans
• Multi-currency selling (markets feature)
• Abandoned cart recovery
• Gift cards and discount codes
• Product variants (up to 100 per item)
• Digital product delivery

Shopify’s checkout converts at industry-leading rates, optimized through years of A/B testing across millions of stores. The platform handles complex scenarios like subscription products, pre-orders, and digital downloads through native features or first-party apps.

Square Online Store Capabilities

Square online store vs Shopify reveals a more basic approach to ecommerce. Square provides 34 templates (5 free on Free plan), with simpler customization options focused on getting stores live quickly rather than extensive design control.

Key Square online features:

• Integrated Square payment processing
• Basic SEO tools
• Social media selling (Instagram, Facebook)
• Pickup and delivery options
• Integrated loyalty programs

Square’s online tools work well for businesses treating their website as an extension of physical operations. The platform shines when inventory moves between online orders, in-store purchases, and delivery services seamlessly.

Multichannel Selling Comparison

Shopify’s multichannel dominance matters for brands aiming to sell everywhere customers browse. Square focuses on fewer channels but executes them well, particularly for local businesses leveraging social media for community engagement.

When evaluating is shopify or square better for online selling, Shopify clearly leads with more robust features, better scalability, and superior multichannel capabilities. Square works for simpler online needs where POS integration matters more than advanced ecommerce functionality.

Payment Processing and Transaction Fees

Shopify Payments vs Square Processing

Shopify Payments and Square both process payments natively, eliminating third-party processor fees. However, their approaches differ significantly.

Shopify Payments characteristics:

• Available in 23 countries
• Powered by Stripe infrastructure
• Eliminates transaction fees (otherwise 0.5-2% per sale)
• Supports 100+ payment methods globally
• Faster payouts (next business day in many regions)

Square processing characteristics:

• Available in 6 countries (US, Canada, UK, Australia, Japan, France)
• Proprietary payment infrastructure
• Consistent pricing regardless of plan
• Integrated with Square hardware ecosystem
• Same-day deposits available (1% fee)

Alternative Payment Options

Shopify accepts 100+ payment gateways including PayPal, Stripe (as alternative), Amazon Pay, and regional processors. This flexibility helps merchants optimize for local payment preferences and negotiated rates with specific providers.

Square limits alternatives to Cash App, Afterpay, Apple Pay, and Google Pay. While adequate for most businesses, the restricted options create dependency on Square’s payment ecosystem, which could pose challenges for international expansion.

Transaction Fee Impact on Profitability

Understanding how square up vs shopify processing affects margins requires calculating total cost per transaction:

Example: $100 sale breakdown

Shopify Basic with Shopify Payments:

• Processing: $2.90 + $0.30 = $3.20
• Subscription: $29/month (varies by volume)
• Net to merchant: $96.80

Square Plus:

• Processing: $2.90 + $0.30 = $3.20
• Subscription: $49/month (varies by volume)
• Net to merchant: $96.80

At equivalent transaction volumes, processing costs align closely. The decision point becomes plan features and monthly subscription value rather than per-transaction differences.

Inventory Management and Product Organization

Shopify Inventory System

Shopify’s inventory management scales from single-location startups to multi-warehouse enterprises. The system tracks stock levels across multiple locations, automatically syncing when products sell through any channel.

Advanced Shopify inventory features:

• SKU and barcode tracking
• Low stock alerts
• Product bundling
• Inventory transfers between locations
• Forecasting and reorder suggestions (Plus plan)
• Wholesale channel management

For businesses with complex inventory needs, Shopify’s inventory capabilities extend through apps like Stocky (Shopify’s own solution) or third-party warehouse management systems integrating via API.

Square Inventory Tools

Square’s inventory management mirrors its POS-first approach, making stock tracking intuitive for retail operations. The system handles variants, modifiers, and recipe-based inventory (useful for restaurants tracking ingredient usage).

Square inventory features:

• Real-time stock syncing
• Category-based organization
• Purchase order management
• Vendor tracking
• Inventory counts and adjustments
• Item libraries for quick setup

Square’s inventory system works beautifully for physical retail but lacks some advanced features required by large-scale ecommerce operations, like multi-location stock transfers or sophisticated forecasting.

Marketing and SEO Tools

Shopify Marketing Capabilities

Shopify includes built-in marketing tools covering email campaigns, social media ads, and SEO optimization. The platform’s marketing dashboard centralizes campaign management across channels.

Shopify marketing features:

• Native email marketing (free for first 10,000 emails monthly)
• Automatic sitemap generation
• Built-in blogging platform
• Meta tags and URL customization
• Social media integration and shopping posts
• Google Smart Shopping campaigns
• Abandoned cart recovery emails

Shopify’s SEO capabilities include automatic hreflang tag generation for international stores, optimized site structure, and fast loading speeds through their global CDN. These technical foundations help stores rank well without extensive SEO knowledge.

Square Marketing Options

Square provides basic marketing tools suitable for local businesses and simpler operations. The platform includes email marketing, social posting, and loyalty programs designed for customer retention.

Square marketing features:

• Email campaigns with templates
• Customer profiles and segmentation
• Social media posting tools
• Gift card and loyalty programs
• Review management
• Basic SEO settings

Square’s marketing tools work well for driving repeat business and local discovery but lack the sophistication needed for competitive ecommerce SEO or complex automated campaigns. Growing brands typically integrate third-party marketing platforms to fill these gaps.

Customer Support and Resources

Shopify Support Options

Shopify provides 24/7 support through multiple channels including phone, email, and live chat. Response times vary by plan tier, with Plus customers receiving dedicated account management.

Shopify support resources:

• 24/7 phone and chat support (all plans)
• Extensive knowledge base
• Shopify Academy (free courses)
• Community forums
• Email support
• Dedicated success managers (Plus plan)

The platform’s documentation consistently ranks as industry-leading, with detailed guides covering everything from basic setup to advanced customizations. Shopify’s community forums connect merchants for peer-to-peer problem-solving.

Square Support System

Square offers support tailored to plan levels. Free and Plus plans access phone, email, and chat during business hours, while Premium customers receive 24/7 phone support.

Square support resources:

• Phone support (hours vary by plan)
• Email support
• Live chat
• Square Community forum
• Help center articles
• Video tutorials

Square’s support focuses on practical guidance for physical retail operations, with strong resources around hardware troubleshooting and POS best practices. Online selling support, while adequate, doesn’t match the depth of dedicated ecommerce platforms.

Migration and Platform Switching

Moving from Square to Shopify

Businesses outgrowing Square’s online capabilities often migrate to Shopify for better scaling features. The migration process requires careful planning to maintain SEO value and customer data.

Migration considerations:

• Product data export via CSV
• Customer information transfer
• Order history migration
• URL structure mapping for SEO
• Payment processor setup
• Theme selection and customization

Shopify’s import tools handle bulk product uploads efficiently. However, maintaining SEO rankings requires proper 301 redirects from old Square URLs to new Shopify pages. Professional migration services can minimize downtime and preserve search visibility.

Moving from Shopify to Square

Less common but occasionally necessary, migrating from Shopify to Square makes sense when businesses pivot toward physical retail dominance. The process involves similar data exports but often results in simplified online presence.

Reasons to move to Square:

• Primarily in-person sales requiring superior POS
• Restaurant or retail-specific feature needs
• Desire for unified payment processing ecosystem
• Cost reduction for simpler online requirements

Which Platform Fits Your Business Model?

Choose Square If:

• Physical retail dominates: Your business generates 60%+ revenue from in-person sales
• Restaurant operations: You need tableside ordering, kitchen display systems, and recipe tracking
• Budget constraints: The free plan lets you start selling online immediately
• Hardware integration matters: You require seamless POS hardware ecosystem
• Local business focus: Your customer base primarily shops locally without expansion plans

Square excels for businesses where ecommerce complements physical operations rather than driving growth. The platform’s simplicity and POS strength make it ideal for retailers, restaurants, and service businesses with straightforward online needs.

Choose Shopify If:

• Online growth is priority: Your business strategy focuses on digital expansion
• Multichannel selling: You want to sell across marketplaces, social platforms, and your site
• International expansion: You need multi-currency, language, and market support
• Large inventory: Your catalog exceeds 1,000 SKUs with complex variants
• Advanced features: You require sophisticated automation, reporting, and customization

Shopify fits scaling ambitions, supporting businesses from launch through enterprise operations. The platform’s investment in advanced features pays off when growth demands more than basic selling tools.

Hybrid Approach Considerations

Some businesses use both platforms simultaneously. A common scenario involves running Shopify for online sales while using Square for in-person transactions. This approach requires careful inventory synchronization through third-party apps but leverages each platform’s strengths.

Key Takeaways

• Square’s free plan and superior POS make it ideal for retail-focused businesses needing strong in-person capabilities with basic online presence
• Shopify dominates online selling with advanced features, multichannel integration, and scalability supporting growth from startup to enterprise
• Transaction fees align closely between platforms, making feature differences more impactful than processing cost variations
• Square POS vs Shopify POS reveals Square’s hardware expertise versus Shopify’s online-first approach with capable but secondary POS functionality
• Consider your revenue split, growth trajectory, and feature priorities rather than just monthly subscription costs when choosing platforms

Conclusion

The Shopify vs Square decision ultimately reflects your business model and growth strategy. Square delivers unmatched value for retail and restaurant operations prioritizing in-person transactions with supplemental online selling. Shopify excels for businesses building online-first brands requiring sophisticated ecommerce tools and multichannel reach.

Evaluate where your revenue comes from today and where you want it to come from tomorrow. For most scaling ecommerce operations, Shopify’s investment in advanced features justifies higher costs through better conversion and operational efficiency.

Ready to make the right platform choice for your business? Contact our team to discuss which solution aligns with your specific needs and growth plans.

Frequently Asked Questions

Can I Use Both Square and Shopify Together?

Yes, you can run both simultaneously. Use third-party sync tools to maintain unified inventory across platforms. This works best when Square handles in-person sales and Shopify manages online operations, keeping each platform focused on distinct sales channels.

Does Shopify Charge Transaction Fees on Top of Shopify Payments?

No additional transaction fees when using Shopify Payments. If you use alternative gateways like PayPal or Stripe, Shopify adds 0.5% to 2% extra fees depending on your plan, on top of the gateway’s processing fees.

Is Square or Shopify Better for Dropshipping?

Shopify is significantly better for dropshipping. It integrates with major suppliers through apps like DSers, Spocket, and Modalyst, with automated order fulfillment and inventory syncing. Square lacks dropshipping infrastructure and focuses on businesses managing their own inventory.

Can I Switch from Square to Shopify Without Losing SEO Rankings?

Yes, through proper 301 redirects. Map old Square URLs to new Shopify pages using Shopify’s URL redirect feature or apps like Redirect Ninja. Maintain similar URL structures when possible and export all product data before migration.

Which Platform Has Lower Total Cost of Ownership?

Square costs less for small retail businesses using the free or Plus plan. Shopify becomes more cost-effective for scaling online stores despite higher base fees because built-in features reduce third-party tool expenses. Calculate total costs including apps, themes, and processing fees, not just monthly subscriptions.

Does Square Online Work as Well as Shopify for International Sales?

No. Shopify offers native multi-currency support, automatic tax calculations for 100+ countries, localized domains, and language translations. Square’s international features are limited, with payment processing in only six countries and minimal localization options.

Can I Accept In-Person Payments on Shopify Like Square?

Yes, Shopify POS enables in-person payments through mobile app and compatible hardware. However, Square’s POS system offers more sophisticated retail features including advanced inventory management, detailed employee permissions, and specialized restaurant tools that Shopify POS doesn’t match.

Which Platform Offers Better Inventory Management?

Shopify delivers more powerful inventory management for complex operations with multi-location tracking, forecasting, and warehouse integrations. Square’s inventory system excels for straightforward retail with integrated POS but lacks advanced features needed for managing thousands of SKUs across multiple warehouses.