An in-depth Guide on Domain Name and Hosting

A simple search on the internet would show you that companies shell out thousands and millions of dollars for a few letters of the alphabet, which when strung together becomes the custom domain for your e-commerce store.

In fact, Gordon Companies, retailers, and wholesalers of Christmas-related accessories purchased ‘christmas.com’ for $3,150,000.

But why do companies pay thousands and millions of dollars? What is a custom domain? Why is it important for your e-commerce store? Let’s break it down.

What is a custom domain? 

Custom domain names link human-readable characters to IP addresses, which helps you locate websites easily. It becomes a unique branded label for your e-commerce store

For example, if you’re looking for the Vitals website, it would be impossible to remember the string of numbers (IP address). Instead, shoppers can type in the custom domain name - vitals.app, to easily locate the website. 

Apart from ease of access, domain names help establish ownership over the website address. Once you claim a custom domain, nobody else can use it. 

‍

Do I really need a custom domain? 

Shopify offers a default myshopify.com URL when you set up an e-commerce store. But setting up a custom domain is a better idea for your business. If you have multiple Shopify stores, then each store requires its own domain name. Here’s why:

• It boosts credibility and trust among the visitors. 
• It helps in establishing your brand identity and creates a differentiation from your competitors.
• It helps boost your search authority if you invest in quality content, backlinks and internal links. 

‍

How do I choose a domain name? 

Buying a domain is not tricky, but it cannot be a hasty decision. Here is a list of things that you need to keep in mind before you click the purchase button: 

1. Make it easy to remember

The custom domain should be the name of your company or associated with your product. Keep the spelling and pronunciation simple, so that it is easy to remember. 

2. Select the correct extension

When people try to remember a URL, they’re 3.8 times more likely to assume it ends in .com; making it the top choice. But if it is unavailable or too pricey try other extensions like .io, .net, .co, .org, etc. 

3. Avoid trademark infringement

You need to make sure that your custom domain name does not infringe on any existing copyrights or trademarks. Such cases can be easily avoided with the help of AI tools like tmsearch.ai, husky.ai, etc. They combine AI, ML, and big data analytics to identify potential trademark conflicts, saving both time and effort. 

‍

What to do if your desired custom domain name is already taken? 

But what if your choice of domain wasn’t available? Pardon our language, but that sucks. But here’s what you can do instead: 

1. Find add-on words

Think of short words that could differentiate your brand, or you could always take the help of AI tools like Claude, Chat GPT, or Gemini; for alternatives. For example, Oscar, an insurance company did not get their choice of domain (hello film awards!), so they added a prefix of hi; and their current domain name reads as hioscar.com

2. Negotiate with the current owner

You can try negotiating with the current owner to transfer ownership over to you. Only do this, if they are willing to sell it at a reasonable price. You could look up their contact information on the ICANN’s lookup tool. However, the caveat is that some domain owners keep their information private, while some domains could be purchased via LLC or any other business entity.

3. Use AI domain name generators 

With the help of AI domain name generators, you can generate unique names in less than 10 seconds. User inputs like product, industry, personality etc allow extensive data analysis to generate options quickly.  It also offers real-time checks on domain availability. Namelix’s free AI business name generator helps you in 3 simple steps. Watch this loom video to find out how:

How to AI domain name generators

‍

How do I buy a domain for Shopify?

Now that you have settled on a domain name, here are 10 easy steps to buy a custom domain from Shopify: 

1. Log into your Shopify account and go to the admin dashboard.
2. Go to Settings > Domains.
3. Click ‘Buy new domain’. 
4. Search for and select your desired domain name. 
5. Select the auto renew feature, to automatically renew domain ownership before it expires. 
6. Review all contact information given. (P.S. The postal code should not include spaces and the first 0 in your phone number can't be included.
7. Choose a payment method. 
8. Review the ICANN policy and the Domain Registration Agreement.
9. Purchase the domain. 
10. After buying the domain, verify your email address to complete registration. 

What to remember before buying a domain?

Remember, we told you that buying a custom domain cannot be a hasty decision? Here are a few things that you need to keep in mind:

• Check whether your domain name has WHOIS Privacy, which keeps your personal contact information hidden from public domain registration records.
  
• Domain extensions may have specific residency or business registration requirements. To verify your custom domain registration, you will need to produce those documents. Inability to do so, may get your domain suspended. 
  
• TLS/ SSL certificate is automatically created upon purchase of a domain through Shopify.
  
• Custom domains can take up to 48 hours to activate, becoming your store's main address if it's your first, or redirecting to your primary domain if you already have one.
  
• Verify your email address within 15 days of purchase; or risk getting your domain suspended. (P.S. Don’t forget to check the spam folder). 

• Connect your Shopify-managed domain to a third-party email hosting service, since no email plans are provided by Shopify.
  
• You need to renew your domain subscription every year, which is different from the monthly subscription charges.
  
• Domain hosting is included with paid Shopify plans; transfer your domain before deactivating to retain ownership.

‍

Can I use my own domain with Shopify?

While you can obviously buy a domain from Shopify, you may have a custom domain already. Here’s what you can do then:

• If you bought a domain from a third-party provider, then you can easily connect the custom domain to your Shopify store. You can choose to manage domain settings, payments, and renewals from the third-party provider. 

‍

Here are the steps to connect your domain to Shopify:

1. Go to Online Store > Domains in Shopify admin and click "Connect existing domain."
2. Enter your domain and follow the prompts to connect.
3. Update DNS settings: A record to 23.227.38.65, www CNAME to shops.myshopify.com.

4. Alternatively, transfer domain management to Shopify for centralized control.

‍

How much does a custom domain cost for Shopify?

Domain prices may vary, depending on the domain's desirability. Sometimes they may cost between $10 and $20 per year (subscription) or sometimes premium domains like  “business.com”—can sell for thousands of dollars too.

Now why does such a huge difference exist? 

The price of a domain is dependent on multiple factors including: 

• Length and popularity: Shorter, memorable domains cost more than niche, specific ones.
• Extension type: Common extensions (.com, .co) are pricier than specialized (.tv, .io) or location-specific ones.
• Availability: Pre-owned domains may require higher costs, especially if sold through auctions.

‍

Pro tip: Make sure that you are ready to bear the domain subscription cost yearly, or opt for multi-year plans, since they will be significantly cheaper. Also, claim this as a business expense to offset your taxes.