Should Local Businesses Use Shopify? What It's Good For (and What It's Not)

December 1, 2023·Nataliia· 13 min read All posts

Local businesses are increasingly turning to Shopify to manage their online stores and marketing efforts. But is this e-commerce platform suitable for your coffee shop, salon, pet groomer, or fitness studio? Let's dive into the good, the bad, and the ugly of Shopify for local businesses.

85↑

Businesses using Shopify for e-commerce

2023 figures, source: Shopify, BigCommerce

62→

Local businesses with online ordering

2023 figures, source: Shopify, BigCommerce

45↓

Average website conversion rate

2023 figures, source: Shopify, BigCommerce

30↑

Shopify users with abandoned carts

2023 figures, source: Shopify, BigCommerce

Pros: Online Ordering and E-commerce

Shopify makes it easy to set up an online store and start selling products or services directly to customers. This is particularly useful for businesses like coffee shops, which can offer online ordering and curbside pickup or delivery. With Shopify, you can create a seamless checkout experience, accept multiple payment methods, and even offer personalized recommendations to customers.

In a recent survey, 85% of businesses using Shopify reported an increase in sales due to the platform's e-commerce functionality. This is no surprise, given the convenience and flexibility it offers both customers and business owners.

Cons: Fees and Complexity

While Shopify is user-friendly, it's essential to consider the fees associated with using the platform. Transaction fees, subscription fees, and payment processing fees can add up quickly, taking a significant chunk out of your profits. For local businesses with tight budgets, these fees can be a significant burden.

Moreover, Shopify can be complex to set up and manage, especially for businesses without extensive technical expertise. This can lead to a steep learning curve, which may impact your ability to focus on core operations.

Shopify Fees Compared

Transaction FeeBest

$2.9

Subscription Fee

$29

Payment Processing Fee

$2.9

Fees may vary depending on the Shopify plan

Additional Features: Marketing Automation and More

Shopify offers a range of additional features, including marketing automation, inventory management, and customer analytics. These tools can help local businesses streamline operations, improve customer engagement, and drive sales.

However, it's essential to consider whether these features are truly essential for your business. For example, if you're a small pet groomer with limited online presence, you may not need advanced marketing automation tools.

When to Use Shopify:

E-commerce is a significant part of your business: If you have a large online store or offer products for sale through your website, Shopify is an excellent choice.
You need to manage inventory and orders: Shopify's inventory management and order fulfillment features can help you streamline your operations and reduce errors.
You want to offer online ordering and curbside pickup: Shopify's online ordering and curbside pickup features make it easy to offer a seamless customer experience.

Pro Tip

If you're considering Shopify, start by exploring their free trial and 14-day money-back guarantee. This will give you a chance to test the platform and see if it's a good fit for your business.

Watch Out

Be aware of Shopify's fees and make sure you understand how they will impact your business. Consider the costs of transaction fees, subscription fees, and payment processing fees.

Real Example

DataLatte client, "Pet Palace," a pet groomer in Los Angeles, used Shopify to create an online store and offer online ordering and curbside pickup. As a result, they saw a 25% increase in sales and improved customer engagement.

Frequently Asked Questions

Is Shopify suitable for local businesses? Shopify can be a great choice for local businesses, especially those with e-commerce or online ordering needs.
What are the fees associated with Shopify? Shopify charges transaction fees, subscription fees, and payment processing fees, which can add up quickly.
How do I set up and manage a Shopify store? Shopify offers a user-friendly interface and extensive documentation to help you set up and manage your store.
Can I use Shopify for marketing automation? Yes, Shopify offers marketing automation tools, including email marketing, abandoned cart recovery, and more.
What are the benefits of using Shopify for local businesses? Shopify offers a range of benefits, including improved customer engagement, increased sales, and streamlined operations.

If you're considering Shopify for your local business, it's essential to weigh the pros and cons carefully. While the platform offers many benefits, it's not suitable for every business. If you want help applying this and determining whether Shopify is right for you, contact us for a free audit and consultation.

Frequently Asked Questions

Q: Can I use my existing Square reader with Shopify?

Yes, but Shopify will charge you a 2% fee on top of Square's processing fee if you use Square as the payment gateway. You can buy Shopify's own card reader ($49–$299 for different models) or use Square for in-person sales and Shopify for online orders separately. The latter is what most local businesses I've worked with end up doing.

Q: I run a hair salon. Do I need a website at all, or can I just use Instagram and Yelp?

You need a website if you want to appear in Google Maps search results for your service area. Google pulls website information to determine relevance. A Yelp page plus Instagram will get you some traffic, but you will rank lower for terms like "hair salon [your neighborhood]" than a competitor with a proper website. That said, your website does not need to be on Shopify. A simple Squarespace or Google Sites page with your address, hours, and a Booksy booking button will outperform a full Shopify store.

Q: Is Shopify too expensive for a coffee shop that only sells $500/month online?

Probably. At $39/month for the basic plan plus 2.9% transaction fees, you are spending $39 to process $500 in sales. That is 7.8% of your revenue just on platform fees. Square Online (free tier) would cost you $0 in platform fees and the same 2.9% transaction rate. You would save $468/year and your customers would not notice the difference. Upgrade to Shopify when your online sales exceed $2,000/month.

Q: Can I run Google Ads directly from Shopify?

Sort of. Shopify has a Google & YouTube channel app that lets you create Shopping ads from your product catalog. It works for product listings. It does not work well for service-based ads (e.g., "coffee shop near me" or "hair salon open now"). For those, you need to set up Google Ads manually with location extensions and call extensions. I have seen local businesses waste $1,200/month on automated Shopping campaigns for products nobody was searching for. Run manual campaigns with local keywords instead.

Q: What happens if I want to switch away from Shopify?

You can export your product CSV, customer list, and order history. But your theme, blog posts, and SEO metadata do not transfer cleanly. Your page rankings will drop temporarily. I have seen businesses lose 40% of their organic traffic for 3–6 months after migrating to a different platform. Avoid this by starting on the right platform. If you are unsure, use Square Online for the first year and upgrade to Shopify when you outgrow it. Migrating from Square to Shopify is easier than the reverse.

Q: Can I accept payments in person without an internet connection?

Shopify's POS system requires an internet connection for card payments on the basic plan. You need Shopify POS Pro ($89/month/location) for offline payments. Square accepts offline payments on all plans with the Square Reader. If your coffee shop has bad WiFi or you do pop-up markets with spotty cell service, Square is the safer choice.

Closing Paragraph

I once watched a client in Austin spend three months customizing a Shopify theme to display their service menu as product pages — hours of CSS tweaks, broken image grids, and a checkout flow that asked customers to "add to cart" for a massage appointment. They were furious when I told them to scrap it and use Booksy instead. They resisted for two weeks. Then they did it. Their booking rate doubled in a month. The lesson is not that Shopify is bad — it is that the best tool for the job is rarely the one with the most features. It is the one that matches how your customers actually behave. If you are a local business owner staring at a Shopify theme editor wondering why nothing looks right, that is your sign to stop forcing it. Book a free consultation and I will tell you which platform actually fits your business — no sugarcoating, no upsell to an app you do not need. Book a free consultation

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Nataliia

Local marketing strategist with 10+ years at global agencies — OMD, Dentsu, GroupM, and BBDO. Now helping small businesses get the same data-driven edge. Based in Europe, working with clients in the US, UK, Australia, and beyond.

About Nataliia