Ecommerce
August 1, 2024

Cost of Being a Shopify Merchant: Plans & Fees Explained

Author
Kristen Campbell

Shopify is a popular option for ecommerce businesses looking to set up an online store. Its user-friendly process and easy to use design makes it easy for anyone to set up an online storefront, whether for a large ecommerce brand or a brand new shop. Shopify merchants can accept payments online and in person, track how customers use the store, and offer a seamless checkout process. Shopify stores can even help merchants manage inventory locations, marketing, and staff. If Amazon’s biggest advantage is its market size and visibility, then Shopify’s biggest advantage is how easy it is for merchants to use – but what do users pay to use the service? 

How much does selling on Shopify cost ecommerce brands?

Businesses from Netflix to Gymshark use Shopify’s platform to build their brands, but Shopify is  also a popular option for smaller businesses. Its adaptability and ease of use appeal to businesses growing fast, and Shopify has also been part of the growing trend towards ecommerce brands experimenting with brick and mortar retail.  

This array of different Shopify use cases means merchants need a menu of plan options to choose. The cost of each option depends on the features it provides. Shopify provides an exhaustive list of plan options on its website, which merchants should review before making a decision. Shopify pricing options include:

1️⃣ Shopify Starter Plan

  • Cost: $5 per month
  • Fees: 5% fee on each in-person transaction and a 5% (plus 30 cents) fee on online sales.
  • Features: Access to Shopify’s mobile point of sale app and social media integration. Merchants can sell goods on Instagram, WhatsApp, or other social media platforms, and process card payments in person at the point of sale.
  • Best For: Ecommerce brands testing a concept or operating on a small scale. Its POS integration offers merchants the flexibility of selling in person as well as online, which is great for pop-up shops or small markets

2️⃣ Shopify Basic Plan

  • Cost: $39 per month
  • Fees: 2.6% (plus 10 cents) fee on in-person sales and a 2.9% fee plus 30 cents on each online sale.
  • Features: Access to some of the reporting functions (like inventory reports or sales reports) and a secure SSL connection to accept payments. Access to Shopify’s drag-and-drop website builder, and a blog to complement your brand.

 3️⃣ Shopify Plan

  • Cost: $105 per month
  • Fees: 2.5% fee on in-person payments (plus 10 cents) and a 2.7% (plus 30 cents) fee on online sales.
  • Features: Same as the Basic plan, plus lower credit card rates and fees to support selling at larger volumes and up to 5 staff. Option to view reports of the store’s data, which can be adjusted to the specific metrics used for your brand, although only Advanced Shopify plans can save custom reports.

 4️⃣ Shopify Advanced Plan

  • Cost: $399 per month
  •  Fees: 2.4% plus 10 cent fee in person, and a 2.5% plus 30 cent fee on online sales.
  • Features: Predictive analytics features based on previous sales, plus a number of other benefits like shipping discounts, custom reports, and inventory locations.

Additional Shopify costs

Shopify merchants can also take advantage of a number of Shopify apps or Shopify themes to customize and optimize the store. Apps range from email marketing tools and a virtual concierge to Shopify subscription apps that customize your pricing packages. All of these add-ons can be additional costs, so merchants should take some time to do research and compare options before deciding which add-on works best for the situation. 

Domain names will also tack on a small cost to your Shopify store, but Shopify does allow merchants to transfer names they already own. Paid advertising may also be beneficial, but whether ads are needed will be up to each merchant to decide. 

Shopify offers a number of plans for ecommerce merchants of different sizes and with different business needs. While it’s possible to estimate the cost of being on Shopify with one of Shopify’s plan options, there may be situations where merchants will need to add apps, upgrades, or changes to the plan – so don’t be afraid to experiment, and have fun building your new Shopify brand! 

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Kristen Campbell
Content Writer

Kristen is the co-founder and Director of Content at Skeleton Krew, a B2B marketing agency focused on growth in tech, software, and statups. She has written for a wide variety of companies in the fields of healthcare, banking, and technology. In her spare time, she enjoys writing stories, reading stories, and going on long walks (to think about her stories).