What expense category does Shopify fall under?

Answer

Shopify falls under the 'Software' expense category, specifically in the 'E-commerce and Retail Software' subcategory.

Role of the Expense in Business

Shopify is a popular e-commerce platform that enables businesses to set up online stores and sell products, widely used by retailers for digital sales and website management.

Practical Example

An online retail store using Shopify for its entire sales platform and inventory management would categorize these expenses under 'E-commerce and Retail Software'.

Specialized Expense

For businesses using Shopify only for a specific feature like POS systems or minor online sales, it might be categorized under 'General Sales Software'.

Conclusion

Shopify is predominantly categorized under the 'Software' expense category, specifically within 'E-commerce and Retail Software', reflecting its primary use in online retail and sales.