Dropshipping business is not easy, and in this post, you are about to read the…
So, how much does Shopify cost? That’s the question that most people ask. Here, we’ll provide you with a quick guide to help you select the best Shopify pricing plan that fully suits your needs.
Shopify is one of the best ecommerce platform since it helps you set up your store very quickly.
You can get a store up and running in a matter of hours, but one of the most common questions that most people ask or companies looking to build their online store is, the kind of Shopify pricing plan that will be suitable for them.
There are 4 plans offered by the Shopify team which you can choose. These plans include:
- Shopify Lite
- Basic Shopify
- Advanced Shopify
Usually, it can be difficult trying to figure out the one you are supposed to choose, since you wouldn’t want to spend money on features you don’t necessarily require.
Therefore, learning about each and every plan with their actual costs is essential to help you choose the Shopify pricing plan that will be suitable for you. Read on to learn more and also our recommendations on each Shopify plan.
Below is the Shopify pricing plan breakdown to help you understand each plan better:
- Basic plan – It costs $29 per month plus 2.9% and 30¢ per transaction
- Shopify plan – It costs $79 per month plus 2.6% and 30¢ per transaction
- Advanced Shopify plan – It costs $299 per month plus 2.4% and 30¢ per transaction
The Shopify Lite Plan has a starting price of $9 per month and it allows you to sell on your website or social media pages. There is also the Shopify Plus, which is an enterprise plan and it starts at $200 per month plus 2.15% per transaction.
With Shopify Plus, you have a huge advantage since it provides all the tools that are needed for large operations. However, it is highly recommended to contact Shopify to help you establish a customized rate together with all the features that you need.
The good thing is that this is a very highly customized plan which means there is no need to for us to cover it. All that you need to do is talk to Shopify in case you feel that your store requires this kind of support.
All the Shopify Pricing Plan Costs per Month and Fees
Here is all the information you need to know when it comes to Shopify pricing plans per month, as well as all other fees involved on Shopify.
Hosting, Domains and Cancellations
Shopify provides domains from $11 per year. However, there are other alternatives to consider such as GoDaddy, Namecheap, HostGator, and Bluehost, among others. These are places to shop around and buy a good domain for your store.
There’s also an update, which unlike before, doesn’t require merchants to access OpenSRS if they want to change any information on their domains purchased through Shopify. There is a domain section where they will be able to access all that information.
As a merchant, there are various things you can do from the admin panel which include:
- Change your A records, CNAME, MX records, TXT records, as well as AAAA records;
- Efficiently set your Zoho and G Suite email accounts
- Enable or disable auto renew
- Add subdomains
Shopify has considerable monthly and yearly payment options, plus you can always upgrade or even downgrade your account at any time without any extra charges incurred to you. However, what we highly recommend if you are starting out is choosing the monthly plans.
The reason being, it provides you with an opportunity to modify your plan or stop using Shopify, since you won’t be stuck in a yearly cycle which would be a loss if you opt out of the plan or choose to stop using the platform.
However, if you already have an established business and you’re just looking to migrate to Shopify to make your operations easier, then a yearly plan would be the best option to consider. A yearly plan is also ideal if you’ve been operating on Shopify successfully for a full year.
But, if you are a startup or inventor, then you should probably just go with the monthly plan in case anything happens and you need to shut down.
The good thing is that with monthly plans, Shopify allows you to cancel your plan at any time without any other fees being charged on your end. However, with yearly Shopify pricing plans, your payment won’t be reimbursed and that is another reason why you need to stick to a monthly plan as you start out.
So, what Shopify plan is ideal for you? Let’s take a deeper look into all the plans so you can better understand the one that might be suitable for your needs.
Comparison of Shopify Pricing Plans – Shopify Costs
Before we get into all the Shopify pricing options, let’s first take a look at the three different options available. This is aside from the free trial option that is always available for everyone that joins Shopify for the first time.
1. Basic Shopify
The Basic Shopify plan costs $29 per month and it’s actually the cheapest option available. It includes all the basic features that one needs to start a new online ecommerce business, and these include 2 staff accounts, 24/7 customer support, unlimited products, an online store together with a blog section, as well as sales channels. There is also an abandoned cart recovery option included in this package.
The Shopify plan is the standard option and a bit more expensive. This plan is available for $79 per month and comes with everything that is included in the Basic Shopify plan. These include things such as gift cards, 5 staff accounts and professional reports.
3. Advanced Shopify
The Advanced Shopify is the most expensive plan which costs $299 per month. It features 15 staff accounts as well as everything that you get from the Shopify package. The plan also provides you with access to a report builder that is well advanced, as well as third-party shipping rates.
There are different Shopify payments terms options included in each plan. For example, the rates of your online and credit card rates include:
- 2.2% plus 30 USD cents for the Basic Shopify plan
- 2.6% plus30 USD cents for the Shopify plan
- 2.4% plus 30 USD cents for the Advanced Shopify plan
The in-person credit card rates include:
- 2.7% for the Basic Shopify plan
- 2.4% for the Shopify plan
- 2.4% for the Advanced Shopify plan
There are also other additional fees that come from using all the payment providers apart from Shopify Payments, which include 2% for the Basic Shopify plan, 1% for Shopify, and 0.5% for Advanced Shopify.
The Basic Shopify plan also includes the Shopify POS app and also other third-party POS apps. The Shopify and Advanced Shopify plans include hardware support, staff POS pins, multiple store location options, and register shifts.
The Shopify Lite plan costs $9 per month and provides users with all the tools needed for selling on Facebook, using Buy buttons, and also accepting credit card payments.
Although it’s not really an online store with a shopping cart, it does well for small companies. It is also suitable if you are trying to make a few installations of the Buy buttons on a website, for instance on your blog or podcast site.
There is an addition which includes the Facebook Messenger app that comes with the Shopify Lite plan and it enables you to easily chat with your customers.
That is a good feature for customer support – to answer questions asked by customers or resolve any issues faster.
Who Is this Plan Suitable for?
The Shopify Lite plan doesn’t work just by you purchasing a hosting plan. The only intent of this package is to functionalities of an ecommerce business an already existing website.
Therefore, what you need to have is a website with hosting already configured, as well as a domain and other important things. A good example would be installing Shopify Lite on your WordPress website.
The Basic Shopify package involves a bit more since there is also the inclusion of a discount code engine, the ability to upload as many products as you want on your store, and tools for fraud analysis.
The main thing about this package is that you get a fully functional site and also a blog through this plan. Also, there won’t be any need for you having a separate website to make it work.
There are also other beneficial perks included in this plan which are manual order creation, free SSL certificate, 24/7 customer support, shipping labels, as well as unlimited storage of files.
Shopify pricing for this plan is $29 per month plus 2.9% and 30¢ for every transaction. That is a bit higher when you compare it with the Shopify Lite plan. However, with the Basic Shopify plan, you have the freedom of expanding your store with plenty of other products.
Who Is this Plan Suitable for?
This plan is suitable for someone who needs a well-designed and functioning online store, but they lack the funds to pay for the features included in the more advanced Shopify plans which are quite expensive.
It is also a good package if you don’t have a website to work with the Shopify Lite plan as is required. Therefore, we can simply say it is a good Shopify package.
This is the most popular Shopify plan and it goes for $79 per month plus 2.6% and 30¢ for every transaction. That is quite a huge jump from the Basic Shopify plan, but you receive every feature offered by Shopify.
With this plan you can create lot of products and also take advantage of everything you would get from the Basic Shopify plan.
There are also additional features that include having access to the Shopify POS, abandoned cart recovery, gift cards, and professional reports.
One of the primary reasons why people choose the professional plan is the fact that they will get the abandoned recovery tool.
The tool is quite efficient as it provides a great way for you to get contact information from potential buyers who weren’t able to complete making their order.
The reason being, it shows that the person who didn’t complete their order was somehow interested with your products, which means you can reach out to them to prompt for a purchase.
Another thing that makes it great is that this tool can send automated emails based on the preferences you have set.
A good example is that if a user abandons a cart on your online store, you have the opportunity of sending them a promo code or even a message to remind them to complete their purchase after 6 hours.
The feature is quite beneficial, because it is estimated that an average 67.89% of shoppers abandon their shopping carts.
However, the abandoners spend about 55 percent more when they are remarketed to.
Therefore, it is very crucial for you to reach out to customers who abandoned their carts and find out why that happened.
Who Is this Plan Suitable for?
This Shopify pricing plan is ideal for companies that are planning to scale up quickly, since there is the availability of unlimited products and storage features provided in this package.
Therefore, if you have a business that is bringing an income of $5,000 per month, then this is a good Shopify plan for you. It is also very suitable because the transaction fess drop to the volume if you are using external payment gateways.
What’s more, you will also get the coveted abandoned cart recovery tool, and this can significantly improve your sales without having to work too much on your side.
Advanced Shopify Plan
The advanced Shopify package is goes for $299 per month plus 2.4% and 30¢ for every transaction. It provides users with all the features from the other plans and also an advanced report builder, third-party calculated shipping rates, and unlimited upload of products.
The advantage of this plan is that the transaction percentage fees are a bit lower when you opt to use external payment gateways.
What makes this plan even more beneficial is the fact that everything is unlimited, which means you get unending storage capabilities.
You have the freedom of uploading unlimited products, post as many videos as you want as well as images and drive all the traffic you need to your store.
The abandoned cart recovery also includes an unlimited package, and this ensures that you are well able to reach high sales numbers and this is what makes the increased price plan for this package worth it.
The feature for the abandoned cart comes with a handy area to help you manage all the customers that have left their carts early to see if they have received an email, or even find out why they left early.
What’s more, with the Advanced Shopify plan, you have a dashboard that allows up to 15 users, plus it comes with the best shipping discount when you compare it to other plans.
Who Is this Plan Suitable for?
Advanced Shopify plan is ideal for companies which are okay with letting third-party services handle their shipping. The plan is also suitable for companies with high-end revenue but still crave advanced reports, which allow them to test and project.
An advantage with this plan is that it has a decreased transaction fee and shipping discounts, which make it quite suitable for businesses that bring in up to $10,000 per month and above.
Pricing for Shopify Plus
The Shopify Plus plan is an enterprise level system that is suitable when you require resources to focus on things such as design and marketing, instead of order management.
Your website will be fully hosted and you won’t incur any fees from transactions. There is also the inclusion of 200TB storage which is more than enough required to handle the robust stores.
When it comes to pricing for this plan, we recommend contacting Shopify to get a personalized quote depending on your needs. However, it is estimated that this plan can cost you from around $2,000 or more per month.
Who Is this Plan Suitable for?
This plan is suitable for large companies like the Los Angeles Lakers among others. However, this doesn’t mean that this isn’t suitable for smaller companies.
Therefore, if you happen to have a large team and you want to avoid spending a lot of time managing orders, this plan can provide you with the right way to automate that. You can check out these Shopify reviews .
Monthly vs. Annual vs. Biannual Costs
All Shopify pricing plans come with a slight discount if you opt for an annual payment plan.
You will get a 10% discount from your annual plan on all the prices per month when you pay upfront. But, your biannual payment plan gets a 20% discount.
In-Depth Look at Transaction Fees and Credit Card Rates
In case you choose to use the Shopify payments processor, you won’t have to worry about fees processing.
But, in case you opt for a payment option like PayPal or any other, you are expected to pay around 3% plus 30¢ for every transaction. You will get charged by Shopify from your turnover, which may range between 0.5 – 2%.
Credit card rates and transaction fees are some of the things that are most annoying when it comes to implementing part of any sales channel or POS solution into your online store.
If that wasn’t the case, all store owners would have the opportunity of taking high volume sales and ramp them up on their monthly revenue without the need to pay even a penny.
However, you will be charged at least a basic fee for credit card payments and transactions by all eCommerce platforms and checkout tools.
The amount of money you pay from other Shopify costs, as well as all your transaction fees highly depend on what is offered in your specific plan.
Here are the common examples:
- Basic Shopify plan – The plan is available at $29 per month. This plan features everything you need to launch your business fast. It includes basic solutions for your ecommerce store. The transaction fee charged in this plan is 2.9% and an additional 30¢ for every purchase. From Shopify, that is actually the highest price.
- Shopify Plan – The Shopify standard account option has an annual plan of $79 per month and it includes credit card rates that are slightly different. If you plan on taking credit card payments when subscribed to this plan, you are required to pay 2.6% with an additional 30¢ per transaction.
- Advanced Shopify plan – This plan includes the highest monthly charges but it offers lower transaction rates. With this plan, you are required to pay 2.4% and an additional 30¢ for every transaction.
Therefore, looking at all the above plans which have different charges and features, we can simply conclude that the higher you pay for the Shopify app and POS solution, the less transaction fees you’ll incur in the long run.
What this means is that, in case you are worried that you may be paying for everything from credit card rates to shipping rates when selling plenty of products on your store, then it might be worth it to upgrade to the Advanced Shopify pricing plan to have your payment processed.
The good thing is that the advanced plan has extra features which are very beneficial to run your business.
These include features like options to customize your sales channels, social media integrations, support for high volume sales, and also advanced monthly revenue reports, among others.
Other Notable Things to Spend Your Money on Shopify
One thing you need to know is that since apps are different, they all come in various shapes and sizes, and you can get them on the Shopify App store where you can browse and select the ones that will be suitable for your business.
The apps provided on the Shopify app store, provide you with assistance with everything that you may need which include email marketing and also automated receipts, plus many others which are given out for free.
Some Shopify apps require monthly payments, although this will depend on plans in your business.
Therefore, we would recommend you avoid apps that require you to pay monthly subscriptions as you start out. The reason being, most of the time you are well able to find a good solution even without the need to pay monthly for an app.
But, sometimes you might stumble upon a paid plan app that may be too good to pass. Therefore, if such a thing happens we suggest you try as much as possible to keep the paid apps to a minimum amount and only choose the ones that will eventually start paying for themselves as soon as possible not to end up in losses.
Additional Costs on Shopify
There are also other additional costs you need to consider beyond just what is offered in your Shopify plan. That only comes about when you want additional functionality on your Shopify store.
- Costs of Shopify app store – Some third-party app providers in the Shopify marketplace may charge a small fee for you to add other necessary functionality to your store. In case you are looking for the benefits of extra plugins and apps, for instance, an app that supports Google Analytics and Dropshipping, then you may be required to pay for them.
- Domain name – Your domain name is another cost that you will need to consider when using Shopify. Shopify allows you to register a unique domain name directly starting from $11 to $14 for a one year registration. Another good thing is that you have the option of buying your domain name from elsewhere and then migrating it into Shopify.
- Email hosting – Unfortunately, Shopify doesn’t provide email hosting as an internal option. But, you have the option of setting up email forwarding to your Shopify domain through third-party hosting. Typically, you will require paying for the email hosting service as part of a website hosting package.
Are Shopify Transaction Fees Affordable?
Although Shopify transaction fees are somewhat fair, when you consider the amount required for processing payment features that your small business will get in return, most companies may end not being happy with that.
We need to take an in-depth look at how transaction fees work to help you understand why you need to deal with them.
When a customer purchases a product from your Shopify POS, they are charged a transaction fee. The transaction fee tends to change since it highly depends on your Shopify pricing plan.
Although it may seem unfair at first, a lot of power and processing bandwidth for Shopify to handle things such as storage of files and also checkout process.
What Shopify does is to charge you for the work that it does to help keep your business up and running. That greatly helps even when there are thousands of visitors on your site at the same time purchasing products.
Although it is easy for you to assume the monthly plan you pay for with your store can cover this expense, what you need to know is that you are paying for the software and sales tools.
What your monthly fee covers is the support for unlimited number of products on your store, and also excellent support, as well as real-time hosting for store owners.
If somehow you believe the transaction fees may be unfair, you need to consider that most of the other companies charge these fees too. For example:
- Wix – It doesn’t charge you regular transaction fees, but when you sell products through their service you need to be on the VIP or ecommerce plan. What this means is that you end up paying a little more for your service each month. What’s more, you have to pay a percentage for each purchase managed to a payment gateway provider.
- BigCommerce – They don’t charge any fee for any sales that you make , but if you happen to generate more sales the usual one month, you get bumped up to higher plans automatically. That means that you will be forced to pay more for the services. Shopify doesn’t do that.
- Volusion – This platform limits the bandwidth amount that you have access to each and every month. That means that you will be restricted to the amount of people who can visit your online store. Compared to Shopify, you know that you are not limited in terms of bandwidth like Volusion does. But, the catch with Volusion is that you won’t be required to pay transaction fees, and the downside is that you will not have plenty of sales of opportunities.
You also need to know that in case you don’t want to deal with the Shopify transaction fees, you have the opportunity of switching to Shopify payments, which will make Shopify completely remove the fees.
Shopify payments enable you to process payments from your clients and then move it into your bank account. Using this application, Shopify is able to earn the fees charged on credit cards, meaning that the transaction fees can be waived.
Therefore, instead of having to pay fees plus the credit card fees, you only for the fees charged on credit cards.
In simple terms, it means that Shopify payments help you save money in the right ways. The credit card rates that you pay with Shopify on its own are normally a bit lower compared to the fees you would get from a payment gateway like PayPal. Therefore, that significantly helps to keep your costs very low.
Is Shopify Payments Idea?
If you are looking for the right way to upgrade your strategy for sales from selling products on eBay and Amazon, then Shopify can be a great option to consider.
The platform includes its own app store and plenty of other delightful Shopify apps to help you customize all the transactions. What’s more, currently Shopify is among the most reliable and secure solutions in the marketplace.
But, since you only have the chance of using Shopify for free for a very short time, you need to ensure that you come to terms with all the associated costs before you consider starting to run your online store entirely from the platform.
If you are someone that hates transaction fees, then you can consider opting for Shopify Payments to avoid them. The reason being, with shopify Payments you will end up saving more money than you would while using other ecommerce website builders.
Thing such as unlimited bandwidth from Shopify provide you with a great opportunity to scale your business in a flexible manner, as long as the services provided by Shopify are appealing to you.
Another advantage is that Shopify Payments helps you to completely avoid pesky transaction fees.
These are among some of the main reasons why Shopify states that approximately 85 percent of their users end up using Shopify Payments when they have it available as an option.
Shopping Pricing FAQs
In this section, we are going to talk about some of the most common questions and their answers about Shopify fees, together with their answers from experts.
Is Shopify expensive?
When it comes to Shopify pricing, there are 3 primary tiers of Shopify pricing and they include:
1. Basic Shopify plan – $29 per month
2. Shopify – $79 per month
3. Advanced Shopify – $299 per month
You stand to get a good discount if you sign up for a whole year or more upfront. The discounts include:
- 10% off when you sign up with Shopify for an annual plan
- 20% off when you sign up for 2 years
- 25% off when you sign up for 3 years upfront
Aside from just the main fee, there are also other separate fees on transactions, as well as credit card processing.
Are there transaction fees on Shopify? What are the processing fees and credit card rates?
The answer to this question is yes and no. When you are using Shopify Payments, there aren’t any transaction processing fees. However, when you use external payment gateways, for instance PayPal, Stripe or any other, you will end up paying additional fees depending on your subscription plan.
- Basic Shopify plan – 2% for every transaction
- Shopify plan – 1% for every transaction
- Advanced Shopify plan – 0.5% for every transaction
No matter the payment gateway you choose to use, you will still be charged to credit card processing fees if your customer decides to use a credit card when paying for purchased items. You also need to know that the specific rate is highly dependent on the subscription plan that you have. This includes:
- Basic Shopify – 2.9% plus 30¢ for every transaction
- Shopify plan – 2.6% plus 30¢ for every transaction
- Advanced Shopify plan – 2.4% plus 30¢ for every transaction
What is “Shopify Payments”?
Shopify Payments is the Shopify payment processing gateway. Using it will help you avoid additional fees brought about by customer transactions such as credit card processing fees.
However, if you decide to use an external payment gateway like Stripe or PayPal, you will incur additional fees based on the subscription plan that you have. That includes:
- Basic Shopify plan – 2% for every transaction
- Shopify plan – 1% for every transaction
- Advanced Shopify plan – 0.5% for every transaction
Are there Shopify setup fees?
The answer to this question is, no. You will not incur any additional fees on top of your regular Shopify monthly cost and the per-transaction fees when setting up your Shopify store.
Is Shopify fee to use?
Unfortunately, Shopify is not free to use. But, there is a free trial period which you can get started with, and it will greatly enable you to build your store and make it available to the public as soon as possible.
However, if you want to keep on receiving sales after you trial period is done you are required to select one of the paid plans:
- Basic Shopify plan which only costs $29 per month
- The Shopify plan which costs $79 per month
- Advanced Shopify which costs $299 per month
Currently, there isn’t any free plan offered by Shopify.
Do I need a credit card in order to start a Shopify trial?
No, currently Shopify offers a 14-day free trial which doesn’t require you to have a credit card. This provides you with an opportunity to test the system and see if you like it, plus you can even build your store and make available to the public very fast. It is only at the end of the trial period when you want to upgrade to a paid plan that you’ll need to have a credit card to pay for it.
Which Shopify plan is suitable for a new store?
Usually, the Basic Shopify plan is always the most suitable one for a new store which is just getting started and hasn’t made any sales yet. The Basic Shopify plan costs only $29 per month and if you choose to pay for an entire year you will get a 10% discount. If you choose to pay for 2 or 3 years, you will get a 20% or 25% off respectively.
Is Shopify cheaper compared to WooCommerce?
No, generally speaking Shopify is not cheaper compared to WooCommerce. However, when it comes to setup with both of them, you get what you pay for.
Can my whole team work on the store?
Yes, you can have a team working on the store. However, your team number will depend on your Shopify plan. For instance:
- You get 2 staff accounts for the Basic Shopify plan
- 5 staff accounts for Shopify plan
- 15 staff accounts for the Advanced Shopify plan
How many products am I allowed to sell on Shopify?
The good thing is that Shopify does not limit the number of products you can sell on your store. You have the ability to sell unlimited products.
How much sales and web visitors can I receive?
Still, there are no restrictions or fees associated with the popularity of your store. You can receive as much visitors as possible and also unlimited orders on all the Shopify plans.
Shopify Pricing : Conclusion
Shopify pricing is one of the main things that most business owners find it hard to deal with when building their online stores.
However, when you know what you need and all the features that will be suitable for your store, you will eventually have the right option to choose from all the Shopify plans offered on the platform.
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