What Is WooCommerce and How It Works?

What Is WooCommerce in WordPress?

According to our recent search, many eCommerce merchants already know WordPress pretty well but are not as familiar with WooCommerce. Let us explain more about the nature of this plugin and what you can use it for.

About WooCommerce

First of all, what is WooCommerce used for? In simple terms, WooCommerce is an open-source eCommerce platform that helps turn your WordPress site into an online store.

Since it's free to download, anyone familiar with WordPress can install WooCommerce on a preferred host and customize their stores to meet other specific needs. You can even use third-party integrations with additional plugins/ APIs to scale your WooCommerce business or meet customers' more niche demands.

As of our writing, over 14 million websites are currently using WooCommerce, which further proves its booming popularity in the eCommerce world.

History of WooCommerce

Since its 2011 release, WooCommerce has come a long way to become a leading eCommerce platform. So, what is WooCommerce website's journey from the start? Let's have a quick look at some important milestones:

For the next few years, WooCommerce plans to make its platform even more beginner-friendly than it already is via ongoing updates to its core features.

One major change is the gradual transition from raw code to a block-based ecosystem so that even non-coders can take full advantage of the platform. Additionally, there will be new newsletter programs that focus on extra tips and roadmaps to smooth out the store setup process.

How Does WooCommerce Work?

Now that we have addressed your most urgent question, "What is WooCommerce plugin in WordPress?", let's discuss how it actually works.

For starters, you must already have a WordPress site; only then can you install the WooCommerce plugin through the WordPress dashboard. Once the installation is completed, WooCommerce will guide you through the initial setup to establish your store's location, currency, payment methods, etc.

From then on, the rest of the process is similar to most basic eCommerce platforms, as you can:

• Choose a theme that fits your brand and improve the user's experience.
• Adjust shipping methods and tax calculation.
• Add products directly to the WordPress interface.
• Leverage tools to track inventory, manage orders, and handle customer information, all from the Wordpress dashboard.

What Is WooCommerce Pricing?

The next question to discuss is, "What is Wordpress WooCommerce pricing?" As we already mentioned above, the WooCommerce plugin itself is free to download. No extra steps are required if you already have a WordPress website with WordPress hosting.

But what if you don't have WordPress hosting yet or are planning to move your store to WooCommerce from another platform? In that case, you need to select a host for your store first before downloading the plugin. Depending on your chosen provider and needs, it usually costs from $3.99 to about $5000.

Plus, you also need to register a domain (the web address people will use to find your site), which typically starts with a low introductory price that goes up over time. On average, you can expect to pay about $15 per year for a domain name, but some high-value or privately held ones can be much more expensive.

In summary, while the WooCommerce plugin is free, you may need to prepare for these costs:

• Hosting: About $120 per year on average, but this can vary widely.
• Domain registration: Around $15 per year on average

What Is WooCommerce's Reason for Popularity?

It's quite clear that WooCommerce stands out as one of the most successful WordPress plugins. Its steady popularity results from a wealth of competitive edges, though most eCommerce merchants agree that the three advantages below play the biggest roles:

Key Features

What is WooCommerce's most outstanding upside? The answer is its robust suite of features that reportedly meet varying eCommerce needs. Indeed, for the past decade, both small and large online stores on WordPress have benefited from the following:

• Product options: With WooCommerce, you can sell basically anything — from physical items to digital content, from single products to bundles or goods with more than one variation. It even supports members-only content and subscription services.
• High level of customization: The Woo Marketplace gives you access to hundreds of both paid and free extensions, covering everything from store enhancements and POS features to multichannel sales and marketing tools. As your business grows, you can expand and adapt your store with these extensions to stay competitive and up-to-date.
• Global extension: It's quite a known fact that WooCommerce aims to be an international platform, meaning you can easily reach customers worldwide. Prices can be displayed in multiple currencies, while other content is fully translated into 24 languages.
• Dynamic product listing: Another highlight among eCommerce merchants is the Woo Blocks feature, which allows you to display your products more modularly to keep customers engaged. You can add sections like On-sale Items, New Products, Top-Rated, Best Sellers, or similar categories to any post or page.

Community

Another key point behind WooCommerce's popularity is its supportive network to help beginners start and grow their eCommerce businesses. There are three primary channels for you to choose from:

• Local Meetups: Here, you can connect with other store builders or owners (both online and in-person) to exchange ideas and seek/provide support.
• Slack Community: Once you join the community, there will be various channels covering popular topics like jobs, marketing, meetups, announcements, and more. There's also a Developer channel where everyone can solve problems together.
• Facebook Group: Likewise, WooCommerce's Facebook Group is a community hub of over 55,000 store managers/owners, WooCommerce enthusiasts, and WordPress developers. If Facebook is your preferred social media, then this group would be a more fitting choice than Slack or Local meetups.

Analytics

Lastly, there's the WooCommerce Analytics tool, which offers 9 detailed reports to give you further insights into the store's key performance metrics, including:

• Sales
• Revenue
• Orders
• Categories
• Products
• Taxes
• Coupons
• Stock levels
• Downloads

Furthermore, if necessary, you can use Advanced Filters or Quick Filters to customize the data you see or focus on just one specific category/ customer group/ time frame. At the same time, the customizable dashboard keeps all important metrics in one place to make sure you always have a clear view of your store's ongoing performance.

How to Set up A WooCommerce Store

At this point, our article has already covered how WooCommerce works and why it has become increasingly popular. As we wrap things up, let's discuss one more crucial topic: What is WooCommerce's store setup process? Here are 6 simple steps to guide you through it:

Step 1. Complete the Setup Wizard

After installing the WooCommerce plugin, follow the Setup wizard to configure your store's basic settings (currency, product types, and store location). Then, choose a WooCommerce-ready theme to ensure your store looks professional and is optimized for sales.

Step 2. Add products

Next, select the Add my products task on the setup guide to add your first product. Remember to provide as many product details as possible, including:

• Title
• Category
• Detailed description
• Product data (shopping, pricing, type, etc.)
• Images

After reviewing everything, click Publish.

Step 3. Set up payments

Now, go to WooCommerce > Home and click Set up payments. You can choose any payment processor you like (such as Stripe or Paypal) and follow the rest of the instructions to set it up. For future additions, simply navigate to WooCommerce > Settings > Payments.

Step 4. Configure taxes

In the WooCommerce setup guide, choose the Set up tax option. Next, go to WooCommerce > Settings > Tax to enter your tax details manually. Remember to save your chances once done.

Step 5. Set up shipping

In Step 5, return to the WooCommerce setup guide and click Set up shipping. This option allows you to:

• Enter shipping costs or offer free shipping.
• Set up shipping zones for different regions if necessary.
• Optionally enable WooCommerce Shipping for printing labels.

Don't forget to double-check everything before moving on to the final step.

Step 6. Install extensions and add-ons

You are in complete control here; feel free to boost your store with extra plugins and functionalities. Here are some of our suggestions:

• MonsterInsights: Integrating Google Analytics to track landing pages, products, and categories
• AIOSEO: All-in-one SEO functionalities
• SeedProd: Drag-and-drop builders
• WPForms: Creating forms and surveys

That's it; your store is now up and running! You can start planning future campaigns or marketing tactics to improve its online presence.

Notable WooCommerce Success Stories

Given WooCommerce's popularity, it's no surprise that many businesses have used it to boost their profits. Let's take a look at two small businesses that have achieved incredible success over the years, both through their own hard work and common WooCommerce features:

Monique Bernstein and Eli Zauner, the founders of Universal Yums, started their successful subscription snack business with just $2,000.

Over time, the two managed to grow their business to a seven-figure revenue, thanks to WooCommerce's customizable design with strong recurring billing features (perfect for subscription services).

Plus, the extra WooCommerce plugins also helped the business handle sudden traffic surges from social media and forums like Reddit.

Gegessen Wird Immer, an online business based in Berlin, successfully uses WooCommerce to bring artisan food to the everyday lives of Germans. The key features that contributed to their success include:

• An easy-to-use WooCommerce theme that makes quality food accessible to everyone.
• Detailed product pages (built via WooCommerce plugins) that help build customer trust.
• Stunning in-house photography to boost the food's visual appeal
• Dedicated producer pages that transparently connect customers with the origins of their food.

FAQs

Final Words

This article addresses the big question, "What is WooCommerce?" to give you a straightforward overview of its benefits and store setup process. We hope to clear up any confusion you might have as a beginner before you start your big business.

And if you're considering moving your existing store from another platform to WooCommerce, our team is here to assist!

As the top migration experts, we've helped hundreds of thousands of stores, from small personal shops to large enterprises, with their WooCommerce migration. You need zero coding or technical skills throughout the entire process, and our support team is available 24/7 to help you anytime, anywhere.

For more information, check out our WooCommerce guides and join our Facebook Community Group.