How Shopify Charges Work
Shopify is undoubtedly the most popular eCommerce platform on the web. Shopify comes with many tools and features that will make it simple to launch an online store.
Shopify is an attractive option for large brands like Tesla, GymShark and Allbirds.
Have you ever wondered what it costs to open and manage a Shopify store?
It is logical to find out all costs associated with a business that you are considering starting.
There are many factors that influence the cost of operating a Shopify shop. These include the costs associated with setting up the store, the Shopify pricing plan that you select, and the extra features you want.
This article will discuss the Shopify fees structure and the factors that impact the running costs.
Let’s get started right away!
Shopify Plans and Pricing
Shopify’s total operating cost is heavily dependent on which pricing plan you choose. Shopify offers three pricing plans. They are:
- Basic Shopify
- Shopify
- Advanced Shopify
Every plan has a different set features.
Before you begin using any plan, you get a 14-day trial period.
How do you decide which plan is right for your business? Let’s take a look at all the Shopify plans available and their unique features.
1. Basic Shopify
Basic Shopify costs $29 per month and is the most affordable plan. This plan is ideal for small businesses as it includes many useful features.
One such feature is a branded eCommerce site.
You will also find other important features that you need to manage an online shop for your business. These include:
- An online shop that can be customized
- 2 accounts for staff
- 24/7 customer support
- Sales channel support
- Unlimitless product listings
Shopify Basic plans include abandoned cart recovery emails and discount codes. You also get a free SSL certificate.
This plan allows you to manage physical stores from one location, even if they are scattered across multiple locations.
The main drawback to the Basic plan is the inability to access features such as performance reports.
It allows for enough growth to make it an ideal tool for new businesses. The Basic Shopify plan is the best option if you’re starting a new eCommerce company and have a tight budget.
Shopify charges 2.9% + $0.30 per transaction on all online orders made under the Shopify plan. For physical purchases, however, there is a 2.7% transaction fee. Shopify Payments is not the only payment gateway that will be used. Every transaction will incur a 2.7% fee.
2. Shopify
Shopify is the most popular plan and it costs $79 per monthly. This plan is a substantial upgrade to the Basic Shopify plan, which costs $29 per month. However, it includes almost all of the Shopify features.
Shopify’s standard plan is best suited for businesses with greater needs.
This plan includes all of the features included in the Basic Shopify Plan and more.
From the two that you receive on the Basic Shopify plan, five additional staff logins are available. This plan allows you to assign inventory to five different retail stores or warehouses.
You can track your sales performance as well as your visitors’ buying habits with ease. This allows you to make informed decisions.
Additional features include Shopify POS and Shopify POS payment support, as well as the ability to recover abandoned carts.
Shopify store owners choose the standard Shopify plan because of its abandoned cart recovery feature. This is one reason why many Shopify store owners prefer the standard Shopify plan. It increases conversions and sales from customers you wouldn’t otherwise lose forever.
You can use the abandoned cart recovery email feature to follow up with customers who have expressed interest in purchasing products by adding them to their cart, but not completing their checkout.
This feature allows you to prompt your customers to make their purchases via automated emails.
The plan charges a 2.5% + $0.30 fee for every online credit card transaction. On all card transactions made in person, a 2% fee is charged. You will be charged a fee for every transaction if you choose to pay with Shopify Payment.
Shopify’s standard plan is the best solution for businesses that want to quickly scale up their operations.
Shopify’s transaction fees are also lower than those of the Basic plan.
3. Advanced Shopify
Advanced Shopify is the best option for eCommerce companies with large inventories. It costs $299 per month.
The plan includes all features of the Shopify Basic and Shopify Shopify plans. This plan also includes a minimum transaction fee, amazing shipping features such as third-party calculated rates and reporting that’s even more advanced than the Shopify plans.
Third-party shipping rates can be integrated with the third-party calculated feature. These third-party shipping providers can calculate the shipping cost for each customer’s order at checkout.
Customers, on the other hand, have the option to select the shipping rates that they prefer. You can also avail the best Shopify shipping deals.
You can get a bird’s eye view of the performance of your business with the more advanced report maker. This feature allows for you to modify your default reports or create new ones.
Advanced Shopify is different from plans in that it offers unlimited storage and no limitations on the features available. You get unlimited storage, unlimited product listing, unlimited space for uploading videos and images, as well as unlimited storage.
You also get emails to recover abandoned carts. You can also create up to 15 employee accounts. You can also assign inventory at up to 8 different warehouse locations and retail stores.
Although this plan might seem expensive, it is possible to recoup the cost by using advanced features and avoiding additional charges.
This plan has transaction fees as low as 2.4% + $0.30 per in-person or debit card transaction. You only pay 0.5% instead of a 1% fee for third-party payment services providers with lower plans.
Advanced Shopify is therefore the best choice for large companies looking to improve order fulfillment and store management.
Advanced Shopify is the best plan for businesses with more than $10,000 in monthly revenue.
4. Shopify Lite, Shopify Plus
Shopify has two pricing plans that are different from the rest. These are Shopify Lite or Shopify Plus.
Shopify Lite
The Shopify Lite plan is only $9 per month. This makes it the cheapest Shopify plan. There is one catch: it doesn’t come with an online shop or shopping cart, as you would with the Advanced Shopify, Shopify and Basic Shopify plans.
Shopify Lite instead gives you the tools to promote your products on a website or social media platform. You simply need to add a “Buy” button to your preferred platform.
You can also sell in person using Shopify POS Lite. Shopify Lite plans also include access to Shopify Admin, which allows you to view reports and issue gift cards.
You will be charged a 2.4% per-transaction fee on credit card payments in addition to the $9 monthly charge. Shopify Payments is not available to you. You will be charged a 2% transaction fee if you use third-party payments service providers.
Shopify Lite is the perfect plan for anyone looking to get started in eCommerce.
Shopify Plus
Shopify Plus was created for large-scale eCommerce businesses, as you may have guessed.
This plan includes all of the advanced features, as well as additional features like automation which can save you time. Advanced security features, support for multiple currencies, and third-party software integrations are all included.
Shopify Plus offers enhanced features such as personalized support, dedicated project managers, launch managers, merchant success managers, account managers, and more. Shopify Plus’ greatest advantage is its ability to automate nearly everything.
Shopify Plus allows you to process 10,000 orders in one minute and manage multiple stores from the same place.
AI (artificial Intelligence) allows you to customize the shipping process and even improve the user experience in your store.
Shopify will provide a price quote. Shopify Plus pricing is usually tailored to each company’s needs. The cost is at least $2000, and will increase depending on your needs.
Shopify Pricing: Monthly or Annual? Shopify Pricing: Monthly vs. Annual
The Shopify rates that we have discussed so far are based upon the assumption that you will be paying monthly. Shopify offers discounts when customers purchase annual, biannual, or three-year Shopify plans.
The annual plan costs 10% less than the annual plan. For the biannual plan, you receive 25% off and for the three-year plan, 30% off. This is a great way to cut down on subscription costs.
If you’re new to Shopify, or just trying out the platform, you might want to consider a monthly plan. So that you can decide which plan is best for your business and whether to upgrade, downgrade or keep the current plan in place, you can do this.
Once you’re certain, you can cut costs by buying an annual, biannual or three-year plan, depending on your budget and your business’s needs.
Additional Shopify Costs
When you get your Shopify store up and running, there are certain costs that will not change. These are just a few:
1. Website Building Cost
It costs money to set up Shopify. Branded domain names, themes, apps, and other costs will be incurred.
Domain Name
Shopify doesn’t require store owners install or host their own domains. All plans include domain names. Store owners have the option to choose from any free myshopify.com domains.
A custom domain can be purchased for an additional cost. This domain will cost approximately $11 per annum and can be up to $81 depending on what type you choose.
You can link your domain name to Shopify if you already own it.
Themes and design
When it comes to eCommerce, good design is important.
Shopify has themes that you can customize to match your website’s style, colors, and layout. There are over 100 themes available for free and 70 premium themes. Premium themes are available for $150-$350.
Apps
Shopify, like most software, is not always able to meet every business’s needs. This is why Shopify add-ons or integrations are so important. Apps let you add features that Shopify does not offer.
Shopify offers over 3000 apps to help you improve the functionality of your store. Some apps cost money while others are completely free.
2. Shopify Transaction Fees
The transaction fees are another cost that Shopify can impact on your overall operating costs. Transaction fees are charged for every transaction that is made with third-party payment services providers.
The Shopify plan that you are enrolled in will determine the percentage of the fee. All Basic Shopify plan transactions will incur a 2% charge, 1% for the standard Shopify plan and 0.5% for the Advanced Shopify program.
These extra fees can be avoided if you use Shopify Payments’ payment gateway Shopify Payments.
3. Get the best credit card rates at Shopify
When calculating the cost of operating a Shopify shop, you should also consider credit card rates. Because it directly impacts your profit margin.
Shopify charges a fee every time you accept credit card payments. Because credit card payments are more risky than other payment options, this fee is often higher than others.
You can also choose the Shopify plan that you want to subscribe to for your credit card rates. Online and offline credit cards payments will be charged at 2.9% + $0.3 & 2.7% respectively on the Basic Shopify Plan. 2.6% + $0.30 & 2.5% respectively for online credit card payments are on the Standard Shopify Plan. 2.4% + $0.30 et 2.5% on the Advanced Shopify Plan. 2.4% + $0.30 et 2.4% respectively for online credit card payments.
4. Shopify POS Payments
Shopify has two options for you if you wish to receive in-person payments via Point of Sales (POS).
- Shopify POS Lite
- Shopify POS Pro
Shopify offers the POS Lite option for all plans. This allows you to manage your orders, customers profiles and products. Transactions made using POS Lite are subject to in-person credit card fees.
Shopify POS Pro can be accessed on all plans at an additional $89 per month per location. Credit card transactions will be charged at the regular rate.
Conclusion
Hopefully you now have a better understanding of the actual cost to launch and operate a Shopify store.
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Our app includes many tools and features that will help you convert visitors to paying customers.
These include pop-ups for email opt-in, cart abandonment recovery, and many promotional campaign templates.
Adoric is simple to use, affordable and will increase your sales.
Install Adoric today in your Shopify store.
