Square Vs. Shopify (2024 Comparison) – Forbes Advisor INDIA

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.

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 INR 413.36 ($5) per month for its entry-level plan.

Shopify offers users to get started at INR 20 for three months. However, the price difference becomes more pronounced as you move up the tiers. Shopify’s basic plan is INR 1,499 per month while Square charges for its add-ons.

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.

FEATURED PARTNER OFFER

Square

Buy-now, Pay-later options

Buy-now, Pay-later options

Why We Picked It

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.

Pros & Cons

• 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

FEATURED PARTNER OFFER

Shopify

Contract

Month-to-month and longer

Buy-now, Pay-later options

Contract

Month-to-month and longer

Buy-now, Pay-later options

Why We Picked It

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.

Shopify allows users to get started at INR 20 for three months, and opt for any Shopify plan as per their requirements. Its cheapest plan costs INR 1,499 per month for annual subscription, 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 annual plans, which cost INR 5,599 per month to INR 22,680 per month depending on the features needed. It also has an enterprise-level plan, or Shopify Plus starting at INR 1.9 lakh per month for annual subscription.

Read More: Shopify Review

Pros & Cons

• Free 14-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

Shopify allows users to get started at INR 20 for three months, and opt for any Shopify plan as per their requirements. Shopify offers a 14-day free trial, with the cheapest plan starting at INR 1,499 per month for annual billing cycle 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―INR 2893.50 ($35) per month plus INR 413.36 ($5) per person, per month―or Loyalty rewards, starting at INR 3720.22 ($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 INR 22,680 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 INR 2,397.47 ($29) per month, per location, for Plus and INR 5,704.33 ($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.

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.

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