Square vs. Shopify: A High-Level Comparison for Businesses
- mindmeshbiz
- Mar 13
- 3 min read
When choosing an eCommerce or point-of-sale (POS) solution, Square and Shopify are two of the most popular platforms available. Both offer robust tools for businesses to sell in-store and online, manage inventory, and process payments. However, their core strengths differ, making them better suited for different business needs. This blog provides a high-level comparison of Square vs. Shopify to help you determine which platform is best for your business.
1. Overview of Square and Shopify
Square
Square started as a mobile payment processor and has grown into a full-fledged POS system and eCommerce provider. It’s best known for its easy-to-use card readers, seamless in-person transactions, and free POS software. Square is ideal for businesses that prioritize in-person sales but want online selling as a secondary option.
Shopify
Shopify is a leading eCommerce platform designed for businesses that want to sell online. While it also offers POS solutions, Shopify’s strength lies in its powerful online store builder, app integrations, and extensive customization options. Shopify is best suited for businesses focused on scaling their online presence.
2. Key Differences
Feature | Square | Shopify |
Best For | Brick-and-mortar businesses, restaurants, and small retailers | Online-first businesses, eCommerce stores, and growing brands |
POS System | Strong POS features with free software | Advanced POS, but primarily focused on eCommerce |
eCommerce | Basic online store via Square Online | Fully customizable online store with powerful features |
Payment Processing | Integrated with Square Payments (flat-rate pricing) | Shopify Payments (or third-party providers) |
Pricing | Free POS plan; transaction fees on payments | Monthly subscription + transaction fees unless using Shopify Payments |
Customization | Limited store customization | Highly customizable with apps and themes |
Inventory Management | Good for small businesses; built-in tools | Advanced inventory management with integrations |
Customer Support | 24/7 support via chat, email, and phone | 24/7 support with more extensive online resources |
3. Strengths of Square
Best for in-person sales: Square’s POS system is easy to use and integrates well with retail stores, food businesses, and service providers.
No monthly fee for POS: Unlike Shopify, Square offers a free POS system, making it cost-effective for small businesses.
Built-in payment processing: Square handles all transactions in-house, ensuring flat-rate pricing and no third-party fees.
Quick and easy setup: Square is perfect for small businesses that want a simple, no-fuss way to start accepting payments.
4. Strengths of Shopify
Best for online-first businesses: Shopify provides a fully customizable online store with advanced eCommerce features.
Scalability: Shopify is great for businesses that plan to grow online and need advanced features like multi-channel selling and automation.
Extensive customization: Shopify offers thousands of apps, themes, and integrations to enhance store functionality.
Robust inventory and order management: Shopify provides more advanced tools for handling high volumes of products and customers.
5. Limitations of Each Platform
Square Limitations
Limited eCommerce features: While Square Online works well for small stores, it lacks Shopify’s advanced customization and scalability.
Higher processing fees for certain transactions: Square charges a flat 2.6% + 10¢ per swipe, which may be costly for high-volume businesses.
Less customization for POS: While Square’s POS is user-friendly, it doesn’t have the same level of customization and advanced inventory tools as Shopify.
Shopify Limitations
Monthly subscription cost: Shopify requires a paid plan, which can be expensive for small businesses just starting out.
Transaction fees unless using Shopify Payments: If you use a third-party payment processor, Shopify charges additional transaction fees.
More complex to set up: Shopify’s extensive features mean that setup can take longer than Square, which is more plug-and-play.
6. Which Platform Is Right for Your Business?
Choose Square if:
Your business is primarily in-person (e.g., retail, restaurants, salons, or small local businesses).
You want a free POS system with built-in payment processing.
You need a simple online store but don’t rely heavily on eCommerce.
Choose Shopify if:
You are an eCommerce-first business looking for advanced online selling features.
You need a highly customizable store with third-party app integrations.
You plan to scale and expand your online presence over time.
Final Thoughts
Both Square and Shopify offer powerful tools for businesses, but the right choice depends on your needs. If you’re looking for an easy-to-use POS system with basic online selling, Square is a great option. However, if you need a robust eCommerce platform with advanced customization and scalability, Shopify is the better choice.
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