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Thanks all. Things are clearer now. I get the point of Shopify and everything else.
I understand about having a dedicated server. The thing is, this is a REALLY lean start up. I really want to try selling without having to invest into IT infrastructure. If the host location is not detrimental to SEO, then I will probably install a shop with a WP e-commerce theme on Bluehost, where I already have an account. That’s the power of internet, isn’t it? Anyone can have a go.
Once I prove my concept, and see that I can sell the stuff I want to sell, I will be in a position to invest into a better IT setup.
I am quite tempted to setup a Shopify account as it does look so easy, but I think I will stick with my original plan of doing it myself. It will be a small, specialised store. I need to generate just a little cashflow so I can reduce my office work commitments and start working on my business in earnest. (This is just one direction for me).