Square and Shopify have stellar reputations in the e-commerce world and for good reason. Both platforms offer users a comprehensive suite of tools to build and run their online stores. Also, both provide offline point-of-sale (POS) solutions to complement their online offerings.
When it comes to choosing between the two, it ultimately comes down to your specific needs as a business owner. To help you make the best decision, Forbes Advisor put together a side-by-side comparison of Square vs. Shopify. We considered ease of use, price, features and reporting tools.
Featured Partners
1
Wix
$17 per month
Yes
Yes
2
Web.com
$1.95 per month
Yes
Customizable templates, easy grag-and-drop technology, SSL certificate
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Squarespace
$23 per month
Yes
Yes
Square vs. Shopify: At a Glance
Both Square and Shopify offer priced fairly, comprehensive solutions for businesses of all sizes, which is why they’re both on our list of best e-commerce platforms. Square’s basic POS system is free while Shopify charges $5 per month for its entry-level plan.
However, the price difference becomes more pronounced as you move up the tiers. Shopify’s basic plan is $39 per month while Square charges for its add-ons. For example, $45 per month for loyalty and $15 per month for email marketing. If you want Shopify’s advanced POS features, you’ll need to subscribe to one of its more expensive plans, which cost $105 or $399 per month. Square is best for businesses that need a comprehensive e-commerce solution with offline POS features while Shopify is better for those that need more e-commerce-specific features.
Square
Contract
None
Team management
Yes
Buy-now, Pay-later options
Yes
None
Yes
Yes
Square is a comprehensive POS software that offers features for both online and brick-and-mortar businesses. It includes an e-commerce platform called Square Online, a POS app, inventory management, customer management, reporting and analytics, next-day business transfers and a free Square Reader for magstripe.
There are no contracts with Square. Instead, pay as you go for your add-ons and processing fees. Each Square account comes with live phone support, protection in the event of account takeover, dispute management, fraud prevention and an easy-to-use interface.
- Most features are free
- Free digital gift cards
- Set up is quick and easy
- Custom pricing only available to businesses processing of greater than $250,000 per year
- Afterpay processing fees are exorbitant at 6% plus 30 cents per transaction
- Social selling features aren’t as robust as Shopify’s
Shopify
Contract
Month-to-month and longer
Team management
Yes
Buy-now, Pay-later options
Yes
Month-to-month and longer
Yes
Yes
Shopify is an e-commerce platform that offers users the ability to create an online store, manage inventory, process payments and sell through social media. It also has a POS app that can be used in brick-and-mortar stores. Shopify’s best deal is for a 12-month contract, which offers a 50% discount if you sign up for a year in advance, but the discount applies only for the first year.
Its cheapest plan costs $5 per month and is ideal for businesses that don’t have a website or a brand because it’s all done through social media. As the business grows, users can upgrade to one of Shopify’s other paid plans, which cost $9, $29, $79 or $299, depending on the features needed. It also has an enterprise-level plan starting at $2,000 per month.
- Free three-day trial
- Shipping discounts
- 24/7 customer support
- You must pay a monthly fee whether you make a sale
- Processing fees are higher than Square in most circumstances
- Its free themes are pretty basic
How the Companies Stack Up
| Square | Shopify | |
|---|---|---|
|
Prices Start at
|
Free
|
$5 per month
|
|
Processing Fees Start at
|
2.5% plus 10 cents
|
2.4% plus $0 for in-person transactions, add 30 cents for online transactions
|
|
Secure Sockets Layer (SSL) Certificate
|
Yes
|
Yes
|
|
Integrations
|
Yes
|
Yes
|
|
Contract
|
None
|
Month-to-month and longer
|
|
Payroll
|
For a fee
|
Through third-party apps
|
|
Loyalty Rewards
|
For a fee
|
Through third-party apps
|
Shopify doesn’t offer a free plan, but it offers a free three-day trial (plus one month for $1). Its cheapest plan starts at $5 per month and is suitable for businesses just getting started because it’s meant for social selling. Square doesn’t charge a monthly fee, unless you’re paying for an add-on, such as payroll―$35 per month plus $5 per person, per month―or Loyalty rewards, starting at $45 per month. Both of these add-ons are available with Shopify, but only through a third-party integration.
At first glance, Shopify appears to have better processing rates. However, to get 2.4% plus $0 per transaction, you need its Advanced plan, which costs $399 per month. If your business processes a high volume of transactions, this might not be a big issue.
To get Square’s lowest processing rate of 2.5% plus 10 cents, a business needs the Plus or Premium plan, depending on whether it’s using Square for Retail or Square Appointments. Square for Retail’s Plus plan is $60 per month, per location, and Premium requires custom pricing. Square Appointments costs $29 per month, per location, for Plus and $69 per month, per location, for Premium.
Both Shopify and Square offer SSL certificates and have app marketplaces for integrations. Square offers a pay-as-you-go solution and Shopify offers a discount for paying for a year at a time, although you can pay month-to-month. An important distinction to understand about Shopify is that you’ll pay your monthly fee whether you make any sales, which can daunt new and fledgling businesses.
Featured Partners
1
Wix
$17 per month
Yes
Yes
2
Web.com
$1.95 per month
Yes
Customizable templates, easy grag-and-drop technology, SSL certificate
3
Squarespace
$23 per month
Yes
Yes
Bottom Line
Shopify is a great e-commerce platform for businesses that want to sell online, in-store or through social media. If you’re looking for an all-in-one solution that includes a POS, social selling and inventory management, Shopify is a good choice.
Square is best suited for businesses that need a simple way to accept payments and don’t want to commit to a long-term contract. If you’re selling online, in-person or via invoices, Square could be the right fit.
See how they compare to the competition in our full guide to the best e-commerce platforms.
Frequently Asked Questions (FAQs)
What's the difference between Square and Shopify?
The largest difference between Square and Shopify is its pricing and main uses. Square doesn’t have a monthly fee, unless paying for add-ons, such as Payroll or Loyalty, and Shopify charges a monthly fee. Additionally, Shopify is an e-commerce platform first while Square is a payment processor first.
Which company is better, Square or Shopify?
It depends on the business needs. Shopify is a better choice for businesses that want to sell online, in-store or through social media and need an all-in-one solution. Square is better for businesses that need a simple way to accept payments and don’t want to commit to a long-term contract.
Can I Use Square With Shopify POS?
There is no native integration between Square and Shopify. However, you can connect Square to Shopify’s POS through third-party apps. SkuIQ can be used to connect the two so that you can sync data between them automatically. If a product sells in store via Square, for example, you can set up an automation so it will update your inventory on your Shopify online store.
What's the best e-commerce platform for startups: Square or Shopify?
Square is the best e-commerce platform for startups because it requires no contracts, you don’t pay unless you make a sale and it integrates with a number of business tools.
Is Shopify a good fit for small businesses?
If your business primarily relies on online sales, Shopify can be an excellent fit. The platform allows an unlimited number of products and makes it easy to track inventory. Plus, the drag-and-drop website builder is very beginner-friendly, so you can create a professional-looking website yourself without needing to hire a designer.
