Shopify Fees (2022): All the Cost Information You Need!
One of the most well-known ecommerce systems, Shopify, makes it easy to launch an online store rapidly, but when companies start creating their stores, a typical question often arises: How much does it cost to use Shopify?
Even though all of the costs are open for you to see, it is still a good idea to have a general idea and decide how much money you want to spend on the platform. As a result, continue reading to learn about all the costs associated with utilizing Shopify.
What are Shopify fees?
Users of the Shopify platform can create their own online shops. You can utilize the platform from any location without concern for hosting or a crash because it is a "hosted" solution.
Shopify is referred to as software as a service (Saas), which implies you must pay a monthly charge to utilize it but don't actually own a copy of the program. This is referred to as a subscription charge, and Shopify offers five options with various subscription prices.
The transactions you make using Shopify's platform may result in additional fees. Following is a list of some names:
- Transaction fees
- Credit card fees
- Processing fees
- Apps and themes purchase
- Shipping fees
Shopify pricing plans
- Users can currently choose between five distinct Shopify plans, and they are as follows:
- 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 reviews of the Shopify plans to discover more about the features and variations of each one.
If you pay annually or every two years, you can save anywhere from 10% to 25% on these monthly expenses compared to monthly payments.
Free Trials
A free trial is a great method to try out all the features and then make a decision if you're not sure which plans or theme to acquire for your online store.
A 14-day free trial of Shopify is available, during which you can create your store and open it to the public. However, after the trial, you will need to select one of the premium plans from Basic Shopify, Shopify, and Advanced Shopify if you want to start receiving sales.
At this point, you won't be eligible for another free plan, but two weeks should be more than enough time to make up your mind about Shopify.
- Transaction fees
- Credit card fees
- Processing fees
- Apps and themes purchase
- Shipping fees
Do not fear; we will discuss the specifics of all these expenses later. Let's look at Shopify's five plans for internet business owners for the time being.
Subscription fees
For a set period of time, you must pay subscription fees in order to use Shopify's services. Your plan and the billing period will affect the costs. Nothing about the plan's features will be impacted by this.
View Shopify Pricing to see a list of all the features included in the Shopify plans.
Since they are for specific uses, Shopify Lite and Shopify Plus are not available here. Shopify Lite is a tool for turning your existing website into a straightforward eCommerce store and for selling on Facebook. For businesses that handle hundreds of thousands of dollars in monthly sales and need to manage a high volume of visitors, Shopify Plus is a solution.
The features, shipping costs, payment costs, and types of equipment are taken into account when determining the subscription costs. The secret to choosing the appropriate subscription fee plan is to understand the platform on which your online store is built.
I want to remind you to check out the point of sale tools that are included with each plan, especially if you're considering opening physical stores. Customers may have a great experience using these.
We don't need to go into great detail about the costs because they are very clear on the Shopify pricing page. Let's move on to the next chapter.
Transaction fees
Different transaction fees apply to each Shopify plan, and they are levied by the organization that manages your online store. Simply put, you will have to pay Shopify a fee for handling your customer's purchase carefully with every sale.
One thing to keep in mind is that if you use Shopify Payments, the company's official payment processor, or the Shopify Lite plan, you won't have to worry about transaction fees. For the Basic Shopify, Shopify, and Advanced Shopify plans, additional fees of 2%, 1%, or 0.5% will be charged if you use an external payment gateway.
Let's now look at the cost associated with using a third-party payment gateway. We use Stripe and Paypal as our two most popular gateways.
Shopify Stripe fees
Founded in 2009, Stripe is a $20 billion company. The business offers software that enables people and companies to handle online payments.
According to Stripe's website, a successful card charge made through their payment system would cost you 2.9% + 30. You can, however, make use of all of Stripe's features, including payment management, financial reporting, and customer support.
As a result, using Stripe would cost you about 3% + 30 per transaction.
Shopify PayPal fees
PayPal is a huge online payment system that has 227 million active users all around the world. The account setup is free, and you can use 25 currencies from 202 countries.
If you're selling in the US, you're charged 2.9% + $0.30 USD of the transaction. For example, if you have a payment of $50, you will be charged $1.45 + $0.30 = $1.75 fees.
If you are selling from outside of the US, you will be charged with $.4% per transaction plus a fixed fee based on the currency. So not really ideal.
Finally, Shopify Payment is an option to lower the majority of your transaction fees.
Shopify credit card fees
- Your payment gateway provider will charge credit card fees based on the payment method your customers used. In this instance, Shopify displays the costs according to 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 costs are per transaction rather than per item sold. This implies that you are only assessed one fee even if a customer purchases ten items from your shop in a single transaction.
Shopify fees per sale
This Shopify Pricing Calculator is offered by Ecommerce Platform and is very simple to use. If you are using Shopify payment, simply enter your monthly revenue and the frequency of your payments to get an extremely detailed cost breakdown for your online store.
Keep in mind when examining the fee valuation that they base their assumptions on an average order value of $50.
Domains, Themes, Apps fees
Domain
You receive free hosting from Shopify but not a domain. You can buy one from Shopify for $13 a year, or you can reroute one of your current domains to the new Shopify store.
Email accounts are not included in the purchase. Unlimited email addresses can be created for free, but you must manage them through your own email hosting provider.
Themes
You can choose or buy a theme for your online store from the Shopify Themes marketplace if you are subscribed to a Basic Shopify plan or higher. Currently, you have a choice of 8 free and 64 paid options.
The themes from Shopify are renowned for being exquisitely crafted, simple to browse, responsive to all screen sizes, and finely adjustable. You can use options for price, the number of products, layout style, industry, and more to filter the templates to find what you need.
Shopify is always available if you require additional assistance with installation or configuration, and you can also get in touch with the theme developer. Free themes, in my opinion, are a good place to start and determine what you require from a theme.
Apps
Adding apps from the Shopify App Store to your store will make it more functional, which is another advantage of using Shopify. These apps, many of which are free, can help you with everything from automation to marketing.
To use the apps, you frequently have to pay a monthly fee that varies depending on the features. However, these costs can quickly add up, so be sure to monitor your spending and only choose necessities.
Apps are crucial if you are dropshipping because they can help you organize your workflow. But once more, see if there are any free resources that can be helpful first.
Shipping label fees
If you start at a basic Shopify plan or higher, shipping labels are printed for free. And with each plan, you get a different shipping discount rate.
The rates are up to 64%, 72%, and 74% according to Basic Shopify, Shopify, and Advanced Shopify.
Taxes
To find out if you need a business license for your online store, check the laws in your city and country. This will determine whether you have to pay tax on your income.
You'll need to obtain a resellers sales tax certificate if your state mandates it, which typically entails filling out an application and paying a small fee.
Shopify payments Fees
The official payment method for Shopify that enables you to process customer transactions is called Shopify Payments. Since there are no transaction fees associated with using it, it is a great way to conduct business.
This is the credit card fee that we talked about above, which can add significantly to the costs of running your online store. Use Shopify Payments instead, and you'll only have to pay credit card fees, rather than transaction fees and credit card fees.
You won't pay more for Shopify Payments, and the credit card rates are lower than those charged by third-party payment processors like PayPal. All fees are upfront and predetermined; there are no monthly or international fees.
85% of users in regions where Shopify Payments are available, according to Shopify, use this service (US, Canada, the UK, Hong Kong, Ireland, Australia, New Zealand, Puerto Rico, Singapore).
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