Shopify Fees And Shopify Pricing Plans In 2021
If you’ve decided that Shopify is the right ecommerce platform for you and your business, you’ll need to take a look at the price plans on offer. Here at Eastside Co, we believe that Shopify is the best platform to grow your ecommerce business, so we’ve put together the ultimate guide on which Shopify price plan to choose. The information applies to Shopify UK pricing as well as internationally.
Shopify fees are on a tiered pricing structure which means merchants can choose the one most appropriate to the size of their business at the time. As businesses grow, it is easy to switch to the next Shopify price tier, moving from Shopify Lite all the way up to Shopify Plus.
If you're a new business or you’re going through a period of growth and you need to upgrade your plan, you may be wondering which Shopify pricing plan is best for you and your business. How much does Shopify cost? Read on to find out about the costs of each plan, and our recommendations.
PART 1 - Shopify Pricing: How Much Is Shopify Per Month?
So how much does Shopify charge per month? Here is a breakdown of the cost of each Shopify pricing plan.
(If you’re wondering about UK Shopify pricing, the monthly subscription fees are billed in US dollars, with credit card fees billed in your selected currency.)
If you're wondering: 'does Shopify take a cut' the answer is: yes, in exchange for the use of the platform, Shopify does take a percentage, which we will explain.
In summary, there are actually 5 options: Shopify Lite, Basic Shopify, Shopify, Advanced Shopify and Shopify Plus.
- Subscription fee: $9/month
- Subscription fee: $29/month
- Online credit card rate: 2.2% + 20p
- In person credit card rate: 1.7% + 0p
- Additional fees using payment provider other than Shopify Payments: 2.0%
- Subscription fee: $79/month
- Online credit card rate: 1.9% + 20p
- In person credit card rate: 1.6% + 0p
- Additional fees using payment provider other than Shopify Payments: 1.0%
- Subscription fee: $299/month
- Online credit card rate: 1.6% + 20p
- In person credit card rate: 1.5% + 0p
- Additional fees using payment provider other than Shopify Payments: 0.5%
- Subscription fee: prices on request but starting at approximately $2,000/month
PART 2 - What Does Each Shopify Pricing Plan Include?
1. What’s included in the Shopify Lite Pricing Plan?
Shopify Lite is the starter Shopify package and therefore has the lowest Shopify rates. It is for smaller businesses who want to add Shopify functionality to social media accounts, or to add ‘buy’ buttons to an existing website or blog such as on your WordPress site. Facebook Messenger is also included in Shopify Lite, and gives a customer support element to the service.
The idea of the Lite plan is to add functionality to your existing site or blog, as opposed to it being a fully fledged Shopify store in its own right.
How much does Shopify Lite cost?
$9 a month (approximately £7)
2. What’s included in the Basic Shopify Pricing Plan?
‘All the basics for starting a new business.’ The Shopify Basic price plan is the minimum option you’ll need to set up your own ecommerce store. You’re getting a Shopify-hosted store and blog functionality. It includes the ability to sell an unlimited number of products, gives you Shopify’s fraud risk analysis tool, the ability to add discount codes to your store, a free SSL certificate to make sure your transactions are secure, and 24/7 support.
How much does Basic Shopify cost?
$29 a month. (approximately £24).
Shopify also takes 2.2% of each online sale, and 20p.
As a comparison, eBay charges a 10% fee of the full amount you were paid, including shipping. Paypal then charges 3.4% + 20p. Amazon charges a minimum of 7% and a maximum of 45% depending on the item. Shopify has some of the lowest fees in the industry, allowing you to have complete control over your profits.
This is a perfect option for those merchants who want a great looking and fully functional online store, but are happy to go without some of the features in the Shopify Plan.
3. What’s included in the Shopify Pricing Plan?
‘Everything you need for a growing business.’ This is the most popular Shopify price plan. It comes with 24/7 support, Shopify’s fraud risk tool, discount codes and your free SSL certificate. The difference is abandoned shopping cart recovery. You can capture the contact details of people who showed an interest in your products but didn’t ultimately buy, and then follow up with them later with an email including a discount code, or a reminder to try and close the sale.
Depending on your product prices, one or two recovered sales made in this way will cover the price difference between the Basic Shopify and Shopify.
How much does the Shopify plan cost?
$79 a month (approximately £65).
Shopify also takes 1.9% of each online sale, and 20p.
This may seem like a pretty big jump from the Basic Shopify plan, but recovering those shopping carts is extremely effective and valuable. According to Shopify and the Baymard Institute, the results of over 40 studies in the years between 2012 and 2020 show that 69.89% of online transactions end with an abandoned shopping cart. Shopping cart recovery is an ideal way of taking potential customers and converting them. As a guide, if your store brings in over $5,000 per month, this plan is definitely worth considering.
4. What’s included in the Shopify Advanced Pricing Plan?
‘Advanced features for scaling your business.’ The Shopify Advanced package is a scaled up version of the core Shopify plan. The main additions are 15 staff accounts and third party shipping calculation. This is for businesses that ship enough products that it makes sense for them to outsource delivery. You also have access to advanced reporting. Again, this is for stores that sell a lot of products, and want to generate data for specific collections or types of products.
How much does the Shopify Advanced plan cost?
$299 a month (approximately £245).
Shopify also takes 1.6% of each online sale, and 20p.
You are getting a lot for your money. This is for established businesses that have achieved a certain amount of ecommerce success, and want to grow further. It is a great option for those companies that are selling in volume and need a third party to take care of product shipping. We’d recommend considering this option if you fit that criteria and have inbound monthly revenue of over $10,000.
5. Shopify Plus Pricing?
‘Enterprise-grade solutions for high volume merchants, and large businesses.’ With the Plus solution, there aren’t any transaction fees. For Shopify Plus pricing plans, there isn’t a standard price as with the other tiers; it’s scoped and quoted on a case by case basis. However, as an indicator, the Shopify Plus pricing starts at around $2,000 per month (approximately £1,640). As one of the original Shopify Plus Partners, Eastside Co has the expertise and seal of approval from Shopify to work with merchants on creating their Shopify Plus stores that look beautiful and are designed to maximise conversions.
PART 3 - Other Considerations When Choosing Your Shopify Plan
When should you switch between Shopify plans?
If you are just starting up your business, we recommend that you start with the Basic Shopify price plan and progress through the plans as your business scales, when your ecommerce store requires better features - and your sales and revenue prove that you can afford to. If you already own a store and you want to switch to Shopify because it is cheaper and packed with great features, then take a look at our recommendations.
Which Shopify plan is best for you?
If your monthly revenue is up to $5,000 then you should stick with the Basic Plan. Above $5,000 per month you should move up to the Shopify Plan. Over $10,000 you should consider upgrading to the Advanced Plan.
Choosing a payment gateway
Another consideration is which payment gateway your store is going to use. Shopify has Shopify Payments which keeps costs down for store owners.
If you decide to go with an outside gateway to process your credit cards, you will pay their fees plus an additional transaction fee from Shopify.
However, you can have Shopify Payments for your credit cards enabled AND PayPal express at the same time - if that's the case Shopify won't charge you those additional transaction fees.
Here’s a breakdown of third party charges:
Paypal - 3.4% + 20p
Worldpay - 2.75% + 20p
Sagepay - there are three price plans: £19.95/month for up to 350 transactions, £45/month for 500 transactions, and a bespoke pricing plan for bigger companies.
As you can see from the features listed in the various Shopify price plans, the platform has a lot of built-in functionality. However, there is also a thriving apps ecosystem, thanks to the worldwide network of app developers and Shopify agencies. If you check out the Shopify app store you’ll find hundreds of free and paid apps to enhance and personalise your store in a whole host of ways. Eastside Co have built a range of apps to do just that. It’s worth considering the many apps available as part of your store’s running costs, as while many are free, some of the apps are purchased on a subscription basis.
Buying a Pre-Built Shopify Store
As well as the options of subscribing to one of the five plans we’ve detailed in this article, the Exchange Marketplace allows you to buy a Shopify store that is already trading. These stores are vetted by Shopify before they are listed. Price-wise, these stores can be anything from a couple of hundred dollars up to millions - it depends on the sales it’s generating and its existing customer base.
PART 4 - Shopify Pricing: Frequently Asked Questions
1. Is Shopify free?
It’s not free but there’s a 14 day free trial, during which you can create your store and make it available to customers. You can’t make any sales until you have chosen one of the paid plans.
2. How much does Shopify cost?
Shopify pricing depends on the plan that you choose, as follows:
Shopify Lite Subscription fee: $9/month
Basic Shopify Subscription fee: $29/month
Shopify Subscription fee: $79/month
Advanced Shopify Subscription fee: $299/month
Shopify Plus Subscription fee: prices on request
3. What are Shopify Payments?
Shopify’s payment gateway. Using this means that you won’t get charged additional fees on top of credit card fees. Using third party gateways will result in additional charges (see next question).
4. Does Shopify have transaction fees?
If you use Shopify Payments, there is no transaction fee. If you use a third party payment gateway and do not have Shopify Payments, you will be charged 2% on Basic Shopify, 1% on Shopify and 0.5% on Advanced Shopify.
5. How long are the Shopify contracts?
Month to month, unless you sign up for an annual or two year plan.
6. Are there discounts on plans?
If paid upfront, 10% discount is available on annual plans, and 20% on two year plans.
7. Is it easy to change plan?
You can upgrade or downgrade your Shopify plan at any time.
8. Which Shopify plan is best for a new store?
If your monthly revenue is between $0 and $5,000, you should start with the Basic Plan. Above $5,000 per month you should move up to the Shopify Plan. Over $10,000 you should consider upgrading to the Advanced Plan.
9. Is Shopify cheaper than Magento?
Magento is free - however it’s not that straightforward. Read our Magento vs Shopify blog for more detail on comparisons between the two platforms, including price.
10. How many people on my team can use the Shopify store?
Basic Shopify allows 2 staff accounts. Shopify allows 5 staff accounts. Advanced Shopify allows 15 staff accounts.
11. Is there a limit to how many products I can sell on Shopify?
You can sell an unlimited number of products on every plan. No restrictions.
12. Are there restrictions on number of sales and site visitors?
No - number of sales and number of visitors are not restricted. The more the merrier!
You should now have a good idea about the different levels of Shopify pricing available, and the features included within each tier. If you need any further advice about Shopify, website design, development, app support or marketing strategies, drop us a line and we’ll be happy to help!