Shopify is one of the most popular ecommerce platforms for quickly getting a store up and running online, but a common question that arises when businesses begin building their stores is: How much does it cost to use Shopify?
Though all fees are transparent, it is useful to have an overview and decide how much money you want to spend on the platform. As a result, continue reading to learn about all of the costs associated with using Shopify.
What are Shopify fees?
Shopify is a platform for users to create their own online stores. Because it is a 'hosted' solution, you can access the platform from any location without having to worry about hosting or crashing.
Shopify is software as a service ('SaaS,' which means you don't own a copy of the software but must pay a monthly fee to use it. This is known as a subscription fee, and Shopify offers five plans with varying subscription fees.
Other types of fees are derived from business transactions conducted on Shopify's platform. Some names are as follows:
- Transaction fees
- Credit card fees
- Processing fees
- Apps and themes purchase
- Shipping fees
Don't worry; we'll go over all of these fees in greater detail later. For the time being, let's look at five Shopify plans for online merchants.
Shopify pricing plans
There are currently five Shopify plans available, which are:
- Shopify Lite - $9/month
- Basic Shopify - $29/month
- Shopify - $79/month
- Advanced Shopify - $299/month
- Shopify Plus - negotiable, usually start at $2000/month
Check out our Shopify plan reviews to learn more about the features and differences of each plan.
These monthly fees can be significantly reduced if you pay annually or biennially; discounts can range from 10% to 25% when compared to monthly payments.
Subscription fees
Subscription fees are amounts of money you pay to use Shopify's services for a set period of time. The fees are determined by your plan and billing period. This has no bearing on the plan's features.
View Shopify Pricing to learn about all of the features available in Shopify plans.
Shopify Lite and Shopify Plus are not included because they are for specific purposes. Shopify Lite is a tool for selling on Facebook and converting your existing website into a simple eCommerce store. Shopify Plus is a solution for businesses that handle hundreds of thousands of dollars per month and a large number of visitors.
Subscription fees are determined by the features, shipping fees, payment fees, and equipment type. Understanding the platform on which your online store is built is essential for choosing the right subscription fee plan.
One thing I'd like to point out is that you should look into the point of sale tools that come with each plan, especially if you plan on opening physical stores. These can provide an excellent customer experience.
The fees are very clear on the Shopify pricing page, so we won't go into much detail here. Let us move on to the next section.
Transaction fees
Transaction fees vary by Shopify plan and are charged by the company that provides your online store service. Simply put, you must pay Shopify a fee for thoroughly processing your customer's purchase with each sale.
One thing to keep in mind is that if you use the Shopify Lite plan or Shopify's official payment processor - Shopify Payments - you won't have to worry about transaction fees. If you use an external payment gateway, you will be charged an additional fee of 2%, 1%, or 0.5% for Basic Shopify, Shopify, and Advanced Shopify plans.
Let's look at how much you'd have to pay if you used a third-party payment gateway. We accept the two most common payment methods: Stripe and Paypal.
Shopify Stripe fees
Stripe, founded in 2009, is a $20 billion company. The business sells software that enables individuals and businesses to accept online payments.
According to Stripe's website, a successful card charge using their payment platform will cost you 2.9% + 30. On the other hand, you have access to all of Stripe's features, such as payment management, financial reporting, and customer support.
So, using Stripe, you would pay approximately 3% + 30 per transaction.
Shopify PayPal fees
PayPal is a massive online payment system with 227 million active users worldwide. The account is free to open, and you can use 25 currencies from 202 different countries.
If you sell in the United States, you will be charged 2.9% + $0.30 USD on the transaction. If you make a $50 payment, you will be charged $1.45 + $0.30 = $1.75 in fees.
If you sell from outside the United States, you will be charged $.4% per transaction plus a currency-based fixed fee. So it's not ideal.
Finally, Shopify Payment is an option for lowering the majority of your transaction fees.
Shopify credit card fees
Credit card fees are imposed by your payment gateway provider based on the items purchased by your customers. In this case, Shopify displays the fees associated with your plan. For each subscription plan, the rates for an online credit card are as follows:
- Basic Shopify Plan: 2.9% + 30 cents
- Shopify Plan: 2.6% + 30 cents
- Advanced Shopify Plan: 2.4% + 30 cents
The rates for an offline (in-person) credit card are as follows for each subscription plan:
- Basic Shopify Plan: 2.7%
- Shopify Plan: 2.5%
- Advanced Shopify Plan: 2.4%
These fees are assessed per transaction rather than per item sold. This means that if a customer purchases ten items from your store in a single transaction, you will only be charged one fee.
Shopify processing fees
Basically, processing fees = transaction fees + credit card fees.
It is the fee you pay Shopify to process your store's transactions and return the revenue to you.
You won't have to worry about a high processing fee if you use Shopify Payments. And don't worry about getting confused; in the following section, we'll provide you with some calculators to help you figure out all of the fees ahead of time.
Shopify fees calculator
Use these calculators to see how much a plan would cost you per month and the associated fees.
Shopify monthly fees
The Shopify Fee Calculator, provided by EmergeTech, quickly shows what you will need to pay per month using Shopify based on your average order size, monthly in-store orders, and monthly online orders.
If you don't use Shopify Payment, it even has a calculator for external payment gateways based on your monthly sales.
Shopify fees per sale
This Shopify Pricing Calculator, provided by Ecommerce Platform, is extremely simple to use. Simply enter your monthly revenue, if you're using Shopify payment, and how frequently you want to pay, and you'll get a very detailed cost for your online store.
Aside from that, they assume a $50 average order value, so keep that in mind when looking at the fee valuation.
Domains, Themes, Apps fees
There are some other costs that you can come across when using Shopify, which are domains, themes, and apps. Let's see what they are and how much their fees are.
Domain
You get free hosting but not a domain name with Shopify. You can buy one from Shopify for $13 per year or redirect one of your existing domains to the new Shopify store.
Email accounts are not included in the purchase. You can create an unlimited number of free email addresses, but you must manage them yourself via your own email hosting provider.
Themes
You can choose or purchase a theme for your online store from the Shopify Themes marketplace if you have a Basic Shopify plan or higher. There are currently 8 free ones and 64 paid ones available.
Shopify themes are well-known for being beautifully designed, easy to navigate, compatible with all screen sizes, and highly customizable. You can search the templates by price, number of products, layout style, industry, and other criteria.
If you require additional assistance with installation or configuration, Shopify is always available, and you can also contact the developer who created the themes. Free themes, in my opinion, are a good place to start and figure out what you need from a theme.
Apps
Another advantage of Shopify is that you can easily enhance your store's functionality with apps from the Shopify App Store. These apps can help you with everything from automation to marketing, and many of them are free.
To use the apps, you are frequently required to pay a monthly fee, which varies depending on the functions. However, these fees can quickly add up, so keep track of your spending and only buy what you absolutely need.
Apps are essential for dropshipping because they can help you streamline your process. But, once again, first see if there are any freebies that can help.
Fees for shipping labels
Shipping labels are printed for free if you start with a basic Shopify plan or higher. And each plan comes with a different shipping discount rate.
According to Basic Shopify, Shopify, and Advanced Shopify, the rates can reach 64%, 72%, and 74%, respectively.
Taxes
Check your city and country policies to see if you need a business license for your online store. This determines whether you must pay tax on your earnings.
If your state requires sales tax, you must obtain a resellers sales tax certificate, which usually entails an application and a small fee.
Those are the fees you pay for using Shopify.
Thank you for reading
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