Shopify Fees: What are the Costs Involved in a Shopify Store?

When choosing an eCommerce platform to run your reselling business on, it’s vital to take into account the associated fees and costs. Shopify, known for its user-friendly interface and array of features, is a go-to for many online sellers. However, like any eCommerce platform, it comes with its own fee structure that every potential user should understand before jumping in. With that in mind, in this article, we will take a look at the costs associated with setting up a Shopify store and Shopify fees.

Shopify Pricing Plans and Transaction Fees

Shopify offers three different pricing plans, each of which offers its own perks and notably transaction fees. Below we have detailed the basics of each plan and the transaction fees associated with each.

Basic Shopify: At $29 per month, the Basic Shopify plan is the entry point for new businesses. The plan comes with all the basic core features needed to set up a new online store. This includes an online store itself (obviously), unlimited products, 2 staff accounts, 24/7 support, sales channels, manual order creation, discount codes, a free SSL certificate, and abandoned cart recovery. Regarding fees, if you use Shopify Payments, you’ll be charged 2.9% + 30¢ per online transaction. Meanwhile, for in-person transactions, the rate is slightly lower at 2.7% + 0¢. However, if you opt to use an external payment gateway, a transaction fee of 2.0% applies on top of your gateway’s fees.

Shopify: For $79 per month, the Shopify plan offers everything from the Basic plan plus some additional features. It allows for more staff accounts (up to 5), provides professional reports, and enables gift card creation. The transaction fees for this plan are slightly lower if you’re using Shopify Payments, at 2.6% + 30¢ for online transactions and 2.5% + 0¢ for in-person transactions. The external payment gateway fee meanwhile is reduced to 1.0%.

Advanced Shopify: The Advanced Shopify plan comes in at $299 per month and is ideal for larger businesses that need more advanced features. This plan allows for up to 15 staff accounts, provides an advanced report builder, and offers third-party calculated shipping rates. Transaction fees are further reduced with this plan. For Shopify Payments users, online transaction fees are 2.4% + 30¢, and in-person transactions are 2.4% + 0¢. If you’re using an external payment gateway, the transaction fee is once again reduced to 0.5%.

In addition to all this, it’s worth noting that a shipping discount comes with each plan. This discount increases as you move up in tiers. The Basic Shopify plan offers up to 64% shipping discount, the Shopify plan offers up to 72%, and the Advanced Shopify plan offers up to 74%.

Additional Costs

Whilst it may seem like the above-mentioned plans contain what you need to set up your Shopify store, the likelihood is that you will have extra costs, especially if you plan on taking your business seriously and scaling it. Below we have listed some of these costs.

Theme Costs: While Shopify provides free themes, these may not meet the unique needs of every business. As such, many different premium themes are available. However, these come with a one-time cost, typically ranging from $140 to $180.

App Costs: To enhance your store functionality, you will almost always need to install additional apps. Shopify’s App Store hosts thousands of apps, both free and paid. The costs can vary greatly depending on the functionality provided.

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Domain Costs: Shopify offers a free myshopify.com domain to all users. However, to present a professional image, you’ll probably want to buy a custom domain. These can be purchased through Shopify themselves, with prices starting at $11 per year.

Development Costs: If you have a big business and are looking for a more customized store, you may need to hire a developer, leading to additional costs. However, for many sellers, Shopify’s out-of-the-box functionality will suffice, particularly in the early stages.

Conclusion

Running a Shopify store can be an expensive venture, though it is arguably worth it. Ultimately, the size of your business will determine whether you believe these expenses are worth it or not. While the various costs can seem overwhelming at first, it’s important to remember that these are investments in your online business’s functionality and professionalism. We hope that this article has helped in your understanding of the cost breakdown, so you can make a more informed decision about whether Shopify is the right platform for you.