Checkout consists of two steps:
The first step of the checkout process is for the customer to complete the shipping address information, and to choose the shipping method. If the customer has an account, the shipping address is entered automatically, but can be changed if needed.
Checkout page (Shipping)
Review and Payment Information
The second step of the checkout process is for the customer to choose the payment method and optionally apply a discount code.
Checkout page (Review & Payments)
The progress bar at the top of the page follows each step of the checkout process, and the Order Summary shows the information entered up to this point.
The exception to a two-step checkout applies to virtual and/or downloadable products—if there are only these types of products in the shopping cart, checkout is automatically transformed to one-step procedure, because shipping information is not required.