Shopify vs Square Pos Comparison

Overview

shopify vs square pos is a common comparison for entrepreneurs choosing an ecommerce and point-of-sale platform. This article compares Shopify (the hosted ecommerce platform with integrated POS) and Square POS (a free POS with integrated online store and payments) across features, pricing, hardware, payments, and growth needs. Key decision criteria include: online store capabilities, in-person payments and hardware, inventory and multi-location management, fees and margins, integrations and apps, and the technical resources you have to build and maintain the store.

Quick summary: Shopify is strongest when you need a scalable online-first store, advanced custom storefronts, global payment options, and deep app marketplace support. Square POS is strongest when you prioritize a low-friction, low-cost in-person checkout, fast time-to-launch, and simple omnichannel selling for single-location retail, food service, or service-based businesses. Both platforms can support hybrid models, but their tradeoffs on cost structure and extensibility point toward different best-fit customers.

Shopify vs Square Pos

This section gives a direct snapshot comparison to orient the deeper product sections that follow.

Feature | Shopify | Square POS — | —:|—: Pricing (entry monthly) | $39/mo (Basic) | Free (Square POS) + free online plan (transaction fees) In-person card fees (typical, US) | ~2.7% (Basic) via Shopify Payments | 2.6% + 10c (card present) Online card fees (typical, US) | 2.9% + 30c (Basic) via Shopify Payments | 2.9% + 30c (Square Online) POS software | Shopify POS (Lite included, Pro $89/mo/location) | Square POS (free; Premium modules paid) Inventory & multi-location | Built-in multi-location with advanced inventory tools (higher plans & apps) | Strong multi-location basics; Retail Plus $60/mo adds advanced features Best for | Online-first stores, brands scaling internationally | Local retail, pop-ups, restaurants, service businesses, quick setup

Shopify

Overview and Positioning

Shopify is a hosted ecommerce platform built primarily for online stores that also offers integrated point-of-sale tools for in-person selling. Shopify positions itself as a scalable solution for merchants focused on building custom storefronts, advanced sales funnels, apps, and international expansion. Shopify’s strength is its breadth of ecommerce features, app ecosystem, and flexibility for developers and designers.

Key Features and Strengths

• Full-featured online store builder with flexible themes and Liquid templating.
• App Store with thousands of integrations for marketing, inventory, shipping, subscriptions, marketplaces, and B2B.
• Built-in multi-currency and multi-language options (with higher plans and apps).
• Shopify Payments simplifies payment processing, reducing the need for third-party processors and associated extra fees.
• Shopify POS supports omnichannel features: unified inventory, customer profiles, buy-online-pickup-in-store (BOPIS), and buy-online-return-in-store.
• Strong developer tools and headless commerce options via APIs and storefront SDKs.

Limitations and Tradeoffs

• Monthly plan cost is higher than Square entry points; POS Pro is an additional $89/mo per location if you need advanced in-person features.
• Shopify charges additional transaction fees if you use a third-party payment gateway instead of Shopify Payments (typically 0.5% to 2% depending on plan).
• For simple brick-and-mortar setups, Shopify can be overkill and require more configuration and app spend.
• Hardware (card readers, terminals) tends to be more expensive than Square’s commoditized hardware lineup, and some devices are locked to Shopify Payments.

Pricing and Value

Pricing below is representative as of mid-2024 and should be verified on each vendor site.

• Basic Shopify: $39/mo — online store, 2 staff accounts, basic reports.
• Shopify: $105/mo — more staff, professional reports, better shipping discounts.
• Advanced Shopify: $399/mo — advanced reports, lower credit card rates.
• Shopify POS Lite: included (basic POS features).
• Shopify POS Pro: $89/mo per location — advanced in-person features such as omnichannel selling, detailed staff permissions, and custom receipts.

Transaction processing (Shopify Payments, US examples):

• Basic: online 2.9% + 30c; in-person ~2.7% (rates vary by plan and region).
• Shopify: online ~2.6% + 30c; in-person ~2.5%.
• Advanced: online ~2.4% + 30c; in-person ~2.4%.

Value note: Shopify’s ecosystem can add app costs (typical merchants spend $20–$200+/mo on apps), and non-Shopify Payments gateways usually incur additional transaction fees. For merchants prioritizing a powerful online presence and growth pathways, the higher platform cost often pays off.

Best For

• D2C brands prioritizing online sales and brand experience.
• Merchants needing advanced storefront customization, marketplaces, or headless commerce.
• Businesses scaling across regions, with multi-currency and multi-language needs.
• Retailers that plan to invest in apps and integrations for marketing, subscriptions, and advanced inventory management.

Square POS

Overview and Positioning

Square POS is a payments-first company that offers a free POS app, accessible hardware, and an integrated online store. Square positions itself as a simple, low-cost option for local retail, pop-ups, restaurants, and service businesses that need fast setup and reliable in-person payments. Square’s ecosystem focuses on making payments, invoicing, appointments, and basic ecommerce easy to adopt.

Key Features and Strengths

• Free core POS app with features for sales, tipping, receipts, digital invoices, and basic inventory.
• Affordable and widely available hardware: Square Reader for contactless and chip, Square Stand, Square Terminal.
• Integrated payments with simple, flat-rate fees and same-day or next-day deposits.
• Square Online lets you create a free online store that syncs inventory with the POS.
• Strong vertical functionality via add-ons: Square for Retail (Retail Plus $60/mo), Square for Restaurants, Square Appointments with tiered plans.
• No monthly fee to start; easy for pop-ups and micro-merchants.

Limitations and Tradeoffs

• Online store capabilities are more limited compared with Shopify for deep customization, complex storefronts, or large catalogs.
• Advanced ecommerce features (subscriptions, complex shipping rules, advanced discounts) are weaker or require workarounds.
• More limited app marketplace compared with Shopify; integrations exist but are fewer and sometimes less flexible.
• For larger multi-location retailers with complex inventory needs, some features require paid Square Plus modules.

Pricing and Value

Representative pricing as of mid-2024; confirm current rates on Square’s site.

• Square POS app: Free (core features).
• Square Online (free plan): Free to start; paid site plans commonly include Professional ~$16/mo, Performance ~$29/mo, Premium ~$79/mo (exact names and tiers may vary).
• Square for Retail: Free basic plan included; Retail Plus $60/mo per location adds advanced inventory and reporting.
• Square for Restaurants: Free core; Plus and Premium tiers for more features.
• Hardware: Square Reader ~$49, Square Terminal ~$299, Square Register ~$799.

Transaction processing (US examples):

• In-person card present: 2.6% + 10c.
• Contactless and chip with some readers: 2.6% + 10c.
• Keyed-in transactions: 3.5% + 15c.
• Online card transactions (Square Online): 2.9% + 30c.

Value note: Square’s free POS and clear processing fees make it very attractive for small retailers, restaurants, and service providers. Additional modules add functionality as business needs grow, and hardware is priced to be accessible.

Best For

• Single-location retailers, cafes, food trucks, and pop-ups needing quick setup.
• Service businesses like salons and appointment-based services using Square Appointments.
• Merchants prioritizing low upfront costs and easy-to-use in-person checkout.
• Businesses that want integrated payments and simple online stores without heavy customization.

How to Choose

Choose based on where most of your revenue will come from, how complex your operations are, and how much you plan to scale.

Checklist:

1. Sales channel focus: If online-first with heavy customization needs, prefer Shopify. If in-person/local-first or simple omnichannel, prefer Square.
2. Budget and fees: If you need low upfront cost and straightforward per-transaction fees, Square is attractive. If you can absorb monthly platform and app costs for richer features, Shopify offers higher growth capacity.
3. Inventory and locations: For complex multi-location inventory and advanced fulfillment rules, Shopify scales better. For simple multi-location or single-location retail, Square’s inventory and hardware are easier to manage.
4. Hardware and payments: If you want inexpensive readers and fast deposits, Square’s hardware and flat fees are convenient. If you need integrated global payments, currency control, or advanced checkout customizations, Shopify Payments plus POS hardware may be preferable.
5. Integrations and apps: If you need lots of third-party apps (marketing automation, marketplaces, subscription billing), Shopify’s app store wins. If you need a compact stack built around payments, Square’s ecosystem is simpler and lower maintenance.

Use-case examples:

• A direct-to-consumer apparel brand selling online, using warehouses and marketplaces, with planned international expansion: Shopify.
• A neighborhood cafe or boutique with a single location, pop-up events, and limited online sales: Square POS.
• A multi-location retail chain that needs advanced inventory rules and custom integrations: Shopify (or Square with Retail Plus and added tooling depending on complexity).
• A beauty salon managing appointments, card-on-file, and simple online booking: Square Appointments.

Quick Comparison

Feature | Shopify | Square POS — | —:|—: Pricing (entry monthly) | $39/mo (Basic Shopify) | Free (Square POS) + free online; paid add-ons Online transaction fees (US) | ~2.9% + 30c (Basic via Shopify Payments) | 2.9% + 30c (Square Online) In-person card fees (US) | ~2.7% (Basic via Shopify Payments) | 2.6% + 10c (card present) POS software cost | POS Lite included; POS Pro $89/mo per location | POS free; Retail Plus $60/mo/location for advanced features Hardware cost | Shopify card readers and terminals; higher-priced | Square Reader ~$49; Terminal ~$299; Register ~$799 Inventory & multi-location | Advanced multi-location features; strong for larger catalogs | Good for simple multi-location; Retail Plus adds advanced features Custom storefronts & apps | Deep customization; large app ecosystem | Limited storefront customization; smaller app ecosystem Best for | Online-first brands, large catalogs, scalability | Small/medium brick-and-mortar, pop-ups, services

Pricing Breakdowns

Shopify example monthly cost scenarios (approximate, US):

• Small online-first merchant:

• Basic Shopify: $39

• Shopify Payments (transaction fees): pay per sale

• Apps: $0–$50

• Estimated monthly total (platform + apps): $39–$100 (plus transaction fees)

• Omnichannel retailer with staff and in-store complexity:

• Shopify plan: $105

• POS Pro (1 location): $89

• Apps & integrations: $50–$200

• Estimated monthly total: $244–$400+ (plus transaction fees)

Square example monthly cost scenarios (approximate, US):

• Simple local seller:

• Square POS: Free

• Square Online (free plan): Free

• Hardware (one reader): one-time $49

• Estimated monthly total: $0 (plus transaction fees)

• Growing retail with advanced inventory and reporting:

• Square POS: Free

• Square for Retail Plus: $60/mo per location

• Square Online (Performance): $29/mo (if chosen)

• Estimated monthly total: $89+ per location (plus transaction fees)

Notes on fees:

• Both platforms charge per-transaction processing fees; the exact rates depend on plan, card type, and country. Shopify may impose extra transaction fees when not using Shopify Payments.
• Hardware costs vary; Square’s hardware tends to be lower-cost and widely available.

Implementation and Migration Considerations

• Time to launch: Square can often launch a basic online store and POS in hours. Shopify stores typically take days to weeks if you customize themes and set up apps.
• Data migration: Moving from Square to Shopify or vice versa requires exporting/importing products, customers, and orders; consider inventory SKU mapping and sales history. Third-party migration tools exist but may add cost.
• Integrations: If you rely heavily on a specific CRM, shipping partner, or marketplace, test integration compatibility before committing. Shopify’s app ecosystem typically has more direct integrations.
• Payments and payouts: Square tends to offer simpler and faster payouts for small businesses; Shopify Payments has robust fraud protections and broader payment options for global merchants.

FAQ

Which Platform Has Lower Overall Costs for a Small Brick-and-Mortar Shop?

Square POS typically has lower upfront and monthly costs due to its free core POS and low-cost hardware, making it cheaper for small, single-location shops. However, total cost depends on processing volume, add-on modules (Retail Plus), and whether you need advanced online features.

Can I Use Shopify POS Without Shopify Payments?

Shopify POS works with third-party payment processors, but Shopify charges additional transaction fees if you do not use Shopify Payments. That can increase your per-transaction cost, so many merchants prefer Shopify Payments where available.

Which Platform is Better for Large Catalogs and Multi-Location Retail?

Shopify generally scales better for large catalogs, complex shipping rules, and multi-location inventory management, especially when combined with apps and advanced plans. Square can handle multi-location setups but may require Retail Plus and supplementary tools for complex workflows.

Is Square Good for Restaurants and Delivery Businesses?

Yes. Square for Restaurants is built for quick service and full-service dining with table management and kitchen routing. Square also supports online ordering and delivery integrations, making it a solid choice for many foodservice businesses.

How Do Refunds, Chargebacks, and Disputes Compare?

Both platforms handle refunds via their payment processors and have dispute processes. Square is known for straightforward seller support for small volumes; Shopify Payments integrates chargeback protection plans for a fee and provides comprehensive fraud analysis tools via Shopify Protect (available on certain plans or regions).

Can I Run a Headless Storefront or Use Advanced Developer Workflows?

Shopify supports headless commerce via robust APIs, Storefront API, and Hydrogen (React-based framework) for advanced developer workflows. Square has APIs for payments and catalog management but is less focused on advanced headless storefronts compared to Shopify.

Further Reading

• Shopify vs Stripe Comparison
• Shopify vs Squarespace vs Wix Ecommerce Comparison
• Shopify vs Ecwid Comparison for Ecommerce Owners
• Launch Shopify Store Guide for Entrepreneurs