Running a Shopify store involves various costs depending on the size of your business, feature, and level of customization you require. Shopify offers several pricing plans designed to meet different business needs and budgets, ranging from Basic to Advanced plans.
However, beyond the monthly subscription fee, there are additional costs that merchants charge for, including transaction fees, app subscriptions, themes, shipping, and marketing. Understanding these costs is crucial to ensure profitability and manage expenses effectively.
How Much Does It Cost of Running Shopify Store?
The costs to run a Shopify store depend on the type of plan you choose, additional features and apps you add, and other operational expenses.
Shopify Subscription Plans offer different pricing plans, which determine the level of access to features and tools, as well as the overall cost of store. Shopify offers three subscription plans.
- Basic.
- Shopify.
- Advanced.
Additionally, there are two others for your business.
- Starter.
- Shopify Plus.
Each plan offers a different monthly cost and level of access to Shopify features. The operational costs are determined based on a subscription plan selected by a business owner.
Furthermore, a 3-day free trial is offered by Shopify for new users to explore features before going with a paid plan. This trial period allows users to make an informed decision based on their budget and business needs.
Shopify pricing plans are country-specific, designed to reflect regional pricing. This information presented here is specific for the USA.
Basic Plan - $39/month
Shopify Basic plan is the most affordable pricing plan, designed for small businesses looking to start online stores. It is the cheapest, which costs $39/month or $29/month if billed annually. The Basic Plan provides all the essential tools required to create and manage an online store, making it a popular choice among new e-commerce with limited budget.
- Customizable website or blog.
- Unlimited listing products.
- 24/7 support.
- Discount code.
- Free SSL certificate.
- Support sales channel.
- Inventory management across up to 10 distinct locations.
- Shopify POS lite.
Additionally, this package includes Abandoned cart recovery, which automatically sends emails to customers who have left their carts, encouraging them to complete their purchase. It provides access to two staff members for store management and offers basic analytics to monitor store performance and customer behavior. Moreover, this package offers a 77% shipping discount to reduce the costs of delivering products to customers.
One of the major benefits of this is affordability and provides essential features at a low cost, making it a great option for businesses that are new to the market or have a limited budget.
The main drawback with this basic plan is it provides less features as compared to others and has high transaction fees compared to more expensive plans.
Shopify Plan - $105/month
Shopify Plan is a mid-tier subscription and costs $105/month or $79/month billed annually. It is the most popular plan designed for businesses that require more advanced tools to manage and grow their online store. This plan maintains a balance between cost and functionality, making it ideal for businesses experiencing steady growth and needing enhanced capabilities. It has almost all the features that Shopify offers.
- All the features of the Basic plan.
- Gift Cards.
- 5 staff management accounts.
With this Shopify subscription plan, your store can get 88% off shipping costs, significantly reducing expenses associated with delivering products to customers, ensure that your shipments are protected against loss or damage.
The key benefit of the Shopify plan is its combination of features and cost-effectiveness. The plan offers lower transaction fees compared to the Basic plan, save money on each sale. It includes more advanced features than the Basic plan, such as gift cards, Shopify POS, professional reports, yet remains relatively affordable compared to more expensive plans.
The main disadvantage of Shopify plan is it does not provide enough features for businesses with more complex needs, such as advanced reporting or third-party shipping rates. Additionally, the plan has higher transaction fees compared to the Advanced or Plus plans.
Advanced Plan - $399/month
Shopify Advanced plan is a premium pricing plan provided by Shopify, costing $399/month or $299/month billed annually. It offers businesses more advanced tools and features to manage and scale their online store effectively.
- Custom and advanced report builders.
- Customizable checkout.
- Lower transaction fees.
- 15 staff accounts to manage the store.
This plan offers carrier-calculated shipping rates, allowing Shopify merchants to provide real-time shipping costs to their customers during checkout, enhancing customer trust and satisfaction by providing transparent and precise shipping costs.
However, it is the most expensive pricing plan offered by Shopify, which is not suitable for businesses with limited budgets. Some businesses may not require all the advanced features included in the plan, making it a less cost-effective option.
Starter Plan - $5/month
Shopify Starter plan is designed for individuals or businesses that are new to online selling and looking for a cost-effective way to start. Price starts from $5/month, it is the most basic and affordable plan offered by Shopify, making it an excellent choice for beginners who want to test the e-commerce market without making a significant investment.
- Sell products through social media.
- Sales and Product Tracking.
- 24/7 customer support.
The user-friendly interface ensures that even beginners with no prior experience easily set up and manage their online store, and plan is highly cost-effective. Additionally, the flexibility to sell on multiple platforms, such as social media, email, and messaging, helps expand the reach of the business.
The plan offers fewer features compared to the high-tier plans, which might restrict the scalability of the business as it grows. Customization options for the online store are also limited, which is the drawback for those wanting a more personalized or unique storefront. Additionally, transaction fees are higher compared to more advanced Shopify plans, potentially reducing profit margins.
Shopify Plus - $2300/month
The Shopify Plus plan is an enterprise-level e-commerce platform designed for high-volume businesses and large enterprises that require advanced features, customization options, and dedicated support to manage and grow their online store effectively. All the features of the advanced plan are included, and provide business a scalable and flexible platform to handle large volumes of traffic and transactions.
- Advanced Customization.
- 24/7 Priority Support.
- Advanced Security Options.
- Multi-channel selling.
This plan includes advanced automation tools, such as Shopify Flow, to streamline and optimize various business processes, improving overall efficiency.
This plan has no set costs. You have to contact customer support to get a price quote. The plan begins at approximately $2,000 per month and increases based on business needs.
In addition to the subscription plan, Shopify charges various fees for using its platform. These fees include transaction fees, payment processing fees, and fees for using third-party apps or themes.
Transaction fees are imposed on each sale made through a Shopify store, and the rate varies depending on the subscription plan chosen by the business owner. The Basic Shopify plan charges 2% transaction fee for each sale, Shopify plan charges 1% transaction fee, while the Advanced Shopify plan charges 0.6% transaction fee. Payment processing fees are applied when using Shopify Payments, the built-in payment processing system. These fees also vary depending on the subscription plan chosen by the business owner.
What Are the Hidden Costs of Running a Shopify Store?
Hidden costs are the expenses that are not immediately clearly visible when initially setting up the store, but increase over time, affecting the overall budget and profitability.
Website Structure Costs vary depending on complexity of design and functionality required.
Domain Name is a unique web address that directs customers to your online store. By default, Shopify comes with subdomain myshopify.com in the URL, which may not appear professional. To enhance your store branding, you must purchase a domain from Shopify or any other domain provider. This allows you to replace the myshopify.com URL with a custom domain.
If you already have a registered domain name, you can connect it to your Shopify store at no additional cost.
If you already own a domain, you connect a custom domain to Shopify store at no extra cost.
Design And Development of Shopify store involve creating and customizing visual layout, functionality, and user experience of your store. This includes purchasing premium themes from Shopify theme store or third-party providers, which typically range from $150 to $350 and more. Customization costs may depend on the complexity of design and need of additional features or integrations.
Shopify Apps are software applications integrated with store to add additional features. The needs of every business cannot be satisfied by only one app. Shopify offers more than 8000 apps to enhance the functionality of your business store. Some of them are free or others are paid.
Shopify Transaction Fees are charges applied to each sale made on through your store, comprising a percentage of the sale amount along with a fixed fee per transaction.
The standard transaction fee is charged at 2.9% + 30¢ per transaction. However, these fees depend on the chosen Shopify subscription plan.
For instance, on the Shopify plan, fee is reduced to 2.7% + 30¢ per transaction, and on the Advanced Shopify plan, it further decreased to 2.5% + 30¢ per transaction. This tiered pricing structure ensures that lower transaction fees are offered with higher-tier Shopify plans, providing flexibility based on business needs and sales volume.
Shopify Credit Card Fee is the fee charged for processing credit card payments through Shopify Payments. This fee is the percentage transaction amount charged by credit card companies.
These fees are based on Shopify subscription plan and type of card used, including domestic credit and debit cards, as well as international and American Express (AMEX) credit cards.
With Basic Plan, a fee of 2.9% + 30¢ is charged per transaction for each domestic card used for online purchase and 2.6% + 10¢ per transaction for each purchase physically using a point-of-sale (POS) system.
Shopify Plan charges a fee of 2.7% + 30¢ per transaction for each online purchase made with a domestic card, and 2.5% + 10¢ per transaction for each physical purchase made in-store using Shopify POS.
Advanced Plan charges a fee of 2.5% + 30¢ per transaction for each online purchase made with a domestic card, and 2.4% + 10¢ per transaction for each physical purchase made using a point-of-sale.
Shopify POS (Point of Sale) rates refer to the fees charged for processing in-person transactions through Shopify POS system. Two options are offered for in-person payments.
- Shopify POS Lite.
- Shopify POS Pro
Shopify POS Lite is compatible with all Shopify subscription plans at no additional cost. It provides essential tools to process transactions, manage inventory, and track customer data in a retail setting.
Shopify POS Pro is available in all plans for $89 per month. It offers a comprehensive set of features to efficiently manage in-person sales, inventory, staff, and customer interactions.
However, standard credit card processing fees will still be charged by merchants for in-person transactions. The pricing for Shopify POS Pro varies by location. These rates apply to transactions where payments are physically processed using Shopify POS system, involving a card reader for swiping, inserting, or tapping credit or debit cards.
API Rate Limit refers to the restrictions imposed on the number of API requests that are made to Shopify servers within a specific time period. If a business frequently hits or exceeds the set rate limits, they may need to invest in higher-tier plans and increased API usage.
Shopify Tax Fees are the costs associated with managing, calculating, and remitting taxes for sales made through a Shopify store. Shopify provides tools to help automate the calculation of sales tax, VAT, and other applicable taxes based on the customer location.
For the first $100,000 sales per year is free. Beyond this threshold, a fee of 0.35% is charged for transactions where taxes are calculated.
How Much Does Shopify Charges Per Sale?
Shopify charges a transaction fee for each sale made through its platform, in addition to any payment processing fees charged by third-party payment providers. The payment transaction fees depend on your subscription plan and whether the purchase is made online or offline.
In Basic Shopify Plan, a fee of 2.9% + 30 is charged per transaction for online purchases made with domestic cards, 2.6% + 10¢ cost per transaction for in-store purchases, 3.9% + $0.30 for international or American Express cards and flat 2% is applies for payments made through third-party payment providers.
The Shopify plan charges fees of 2.7% + 30¢ per transaction for online purchases made with domestic credit cards, 2.5% + 10¢ for physical in-store purchases using a point-of-sale (POS) system, 3.6% + $0.30 in transaction fees for international or American Express credit cards, and 1% transaction fee for payments processed through third-party payment providers.
The Advanced plan involves a payment fee of 2.5% + 30¢ for online purchases made by credit card, a fee of 2.4% + 10¢ per transaction for purchases made physically in-store, a fee of 3.4% + $0.30 for transactions involving international and American Express credit cards, and 0.6% flat of for payments processed through third-party payment providers.
What Are the Signs of Overspending on Shopify Stores?
Identifying the signs of overspending is crucial to ensure efficient resource allocation and maintaining balance between expenses and revenue.
- Shopify store owners often integrate too many third-party apps without their necessity. They install and rely on numerous external applications beyond what is needed for basic functionality or business needs.
- Businesses spend on premium themes, custom designs, or extensive redesigns without enhancing user experience, conversion rates, or brand identity.
- Not having a clear budget and fully understanding your Shopify store expenses.
- Poor inventory tracking and management lead to overstocking or understocking issues.
How to Manage the Cost of Running Shopify Store?
Manage the cost of Shopify stores by optimizing the expenses, while maintaining the effectiveness and efficiency of the store operations. This includes controlling costs like subscription fee, transaction fees, app subscription, marketing and advertising expenses, inventory cost.
Subscription plan: Select the right plan range from $29 to $299 which one better aligns with your business need and budget. Each plan offers different features, transaction fee and support levels. With annual billing you get a discount on the subscription plan.
Transaction fee: Minimize the transaction fee by using Shopify payment gateway, which eliminates additional fees that third-party charge. For high volume store upgrade plan to lower the transaction fee.
App subscription: Select the right Shopify app essential for optimizing store performance. Take advantage of free trial before taking a subscription. Instead of relying on more apps, consider the custom app development to meet the unique need of business. Shopify development experts can help build tailored solutions, reducing long-term dependency on paid third-party apps.
Advertising expenses: Allocate your marketing budget to channel wisely by focusing on getting high-return on investment. Use Shopify analytics to track the performance of marketing campaigns.
