'shop-based' originates from a combination of Old English and later medieval Romance/English elements: 'shop' from Old English 'sceoppa' meaning 'booth, stall', and 'based' from Middle English 'base' ultimately from Old French 'base' (from Late Latin/Greek 'basis'), where 'basis' meant 'foundation'.

'shop' changed from Old English 'sceoppa' (meaning 'booth, stall') to Middle English 'shoppe' and then modern English 'shop'. 'Base' entered Middle English via Old French ('base') from Latin/Greek 'basis'; the past-participial/adjectival form 'based' and the compound 'shop-based' arose in modern English to describe something founded in or operating from a shop.

Initially, 'shop' meant 'booth or stall' and 'base' meant 'foundation'; over time the compound evolved to mean 'located in or operating from a shop (store)'.