Shopify has become synonymous with online selling, providing a powerful infrastructure for businesses of all sizes to create, manage, and scale their digital storefronts. For anyone asking “how does Shopify work,” the answer lies in a finely tuned balance of user-friendly interfaces, robust backend technologies, and flexible customization options. Whether you’re a solo entrepreneur or part of a large eCommerce operation, Shopify simplifies complex processes so you can focus on selling. In this article, we’ll explore how Shopify works from both a technical and operational standpoint, including the technologies that power it, like Ruby on Rails and Liquid.

The Foundation of Shopify: Ruby on Rails
At its core, Shopify is built using Ruby on Rails, a high-level web application framework written in the Ruby programming language. Ruby on Rails (often abbreviated as Rails) emphasizes convention over configuration, allowing developers to build applications faster by following standard practices and patterns.
This foundation allows Shopify to be both highly scalable and customizable. The framework handles everything from URL routing and session management to database interactions and background jobs. You can learn more about Ruby on Rails on their official site.
For store owners, this backend architecture is invisible but critical. It ensures fast loading times, seamless functionality, and the flexibility to scale from a side project to a multimillion-dollar eCommerce business without changing platforms.
The Power of Liquid: Shopify’s Templating Language
Shopify uses a proprietary templating language called Liquid. Developed by Shopify and open-sourced for the wider community, Liquid is what controls the dynamic content that appears on Shopify store pages. Liquid bridges the gap between the raw data (like product names and prices) and the HTML code that structures the page.
Liquid files typically use placeholders wrapped in double curly braces, like {{ product.title }}
. These placeholders are replaced with actual data when the page is rendered in a user’s browser.
This gives developers and designers the power to:
- Display dynamic content such as product details, collection listings, and user accounts.
- Build custom themes tailored to specific industries or branding guidelines.
- Create reusable and modular code blocks for faster development.
Developers can dive deeper into Liquid documentation on Shopify’s developer site.
Shopify Admin Dashboard: Your Business Command Center
The Shopify Admin is the central dashboard for running your store. This interface gives you complete control over your inventory, sales channels, customer information, orders, marketing, and analytics. It’s designed for both simplicity and power.
From here, you can:
- Add and edit products
- Process and manage orders
- View real-time analytics and reports
- Customize the look and feel of your storefront
- Install apps for added functionality
Whether you’re fulfilling orders or running marketing campaigns, the admin area is your mission control for everything Shopify.

Shopify Themes and Customization
Shopify’s front-end design system is built around themes. You can choose from free and premium themes in the Shopify Theme Store, each of which can be customized through the Theme Editor or directly in code via Liquid and JSON templates.
The Theme Editor lets you:
- Modify layout and structure
- Update color schemes and typography
- Add homepage sections like slideshows, product grids, and testimonials
Custom code edits can unlock more flexibility, allowing experienced developers to build entirely custom experiences. Businesses working with partners like Best Website Builder Group can benefit from advanced theme customizations that elevate brand presence and usability.

Shopify App Store: Extend Functionality
To add advanced features, Shopify offers a vast App Store with thousands of integrations for marketing, sales, customer support, shipping, and more.
Apps allow you to:
- Connect with email marketing platforms like Klaviyo
- Implement loyalty programs
- Offer advanced search and filtering
- Sync inventory with suppliers
While some apps are free, others require monthly fees. It’s important to evaluate app reviews, features, and compatibility before installing.

Payment Processing with Shopify
One of the most crucial aspects of any eCommerce business is accepting payments. Shopify supports a wide variety of payment gateways, including its native Shopify Payments.
With Shopify Payments, you can:
- Accept all major credit and debit cards
- Enable accelerated checkouts via Apple Pay, Google Pay, and Shop Pay
- Avoid third-party transaction fees
You can also integrate PayPal, Stripe, or other gateways if you prefer, although they may incur additional costs.

Shipping and Fulfillment Features
Shopify simplifies order fulfillment through native tools and third-party integrations. You can set shipping rates by weight, price, or location, and offer options like local pickup, flat rate, or real-time carrier rates.
Fulfillment workflows include:
- Printing shipping labels directly from the dashboard
- Sending order confirmations and tracking numbers to customers
- Integrating with dropshipping or 3PL providers like Printful or ShipBob
Businesses with more complex needs can use Shopify Fulfillment Network or external warehouse integrations for a more hands-off logistics process.
Multi-Channel Selling Made Easy
Shopify makes it easy to sell across multiple channels from one unified platform. In addition to your online store, you can connect:
- Facebook and Instagram Shops
- Amazon and eBay marketplaces
- Google Shopping
- Point-of-sale (POS) systems for physical retail locations
These integrations keep inventory synced and sales data consolidated, making Shopify a central hub for your entire business.

Shopify Analytics and Reports
Built-in analytics help you track performance in real time. You can view:
- Daily sales and revenue
- Conversion rates
- Traffic sources
- Customer behaviors and retention
Advanced reports become available on higher-tier plans, and you can integrate Google Analytics for more in-depth tracking. Understanding this data helps businesses refine their marketing, optimize product listings, and improve the user journey.

Security and Hosting Infrastructure
Shopify takes care of all web hosting, performance optimization, and security. Every store includes:
- Unlimited bandwidth
- Level 1 PCI-compliant servers
- 99.98% uptime
- Free SSL certificates for every domain
This fully managed infrastructure means you don’t have to worry about server updates, downtime, or data breaches—it’s all handled behind the scenes.
Support and Community
Shopify offers 24/7 customer support via chat, phone, and email. Their Help Center is full of guides and tutorials, and their Community Forums allow users to connect and share advice.
For developers, Shopify provides robust developer documentation and API access, enabling advanced integrations and custom applications.

Conclusion
Understanding how Shopify works is the first step toward building a successful online store. From its robust Ruby on Rails foundation to the Liquid templating system, Shopify combines back-end power with front-end ease. Its modular structure and wide range of features make it an ideal solution for businesses of all sizes. For entrepreneurs looking to launch or upgrade their eCommerce presence, Shopify’s flexibility, scalability, and ease of use make it a leader in the market.
If you’re seeking help to get the most out of Shopify’s capabilities, Best Website Builder Group specializes in Shopify development, helping brands unlock the full potential of their online stores through thoughtful design and expert implementation.