Featured image credit: shopify
Everyone's favourite online store builder Shopify is a great way to start your online business. It's more popular than other top eCommerce website platforms and offers various pricing plans for different business needs. So, how much does it cost to create a Shopify store?
The Shopify basic plan costs $29 monthly with 2.9% + 30¢. However, the prices depend on the Shopify subscription you choose.
This article details all the costs associated with using a Shopify account, from the setup fee to monthly billing and anything extra you want to add.
Understanding Shopify Fees
Shopify is an online eCommerce platform that allows merchants to manage their virtual stores. They can create and manage the store while promoting their products through the Shopify website and app store.
Shopify fees are the payments you'll be charged for using the platform. The charges can include a percentage of the products or services you sell, maintenance costs, and more.
There are different Shopify fees that you need to pay. These are:
Shopify Fees for Subscriptions
Aside from the basic Shopify. transaction fee, you also need to pay subscription fees. These are fees that are paid monthly, yearly, and annually.
The monthly fees for Shopify plans are as follows (you can save 10% on all subscriptions by choosing to pay yearly):
- Basic plan: $19
- Shopify plan: $49
- Advanced plan: $299
In addition, there are two more plans for Shopify users:
- Starter Plan (allows selling through social and messaging apps): $5/month
- Shopify Plus Plan (suitable for high-volume business needs): $2,000/month
Designs and Templates Fess
There are 70 paid and 10 free templates in Shopify's theme store. Prices for the templates vary from $150 to $350.
But when sold by third-party vendors like Pixel Union and Sandbox, the price goes as high as $500.
Shopify's Transaction Fees
When you sell an item, you need to pay a percentage of the sale to Shopify. It's called the transaction fee.
Shopify charges 2.9% + 30¢ per transaction. However, the Shopify pricing plans and transaction fees depend on the plan you’re using.
For example, when you are on the Shopify pricing plan subscription, you will be charged 2.5% + 30¢ per transaction for basic shopify plan. It will be 2.4% + 30¢ per transaction for the Advanced Shopify plan. The higher plan you choose, the lower your Shopify fees will be.
You need to pay these fees before your payment is processed. Otherwise, the transaction won't be completed.
Different payment gateway providers like PayPal, Apple Pay, and Google Pay require different charges. It also depends on the plan that you’re subscribed to. Depending on the plan, you have to pay the following:
- Credit card processing fees for online transactions: 2.9% + $0.30 (Basic), 2.6% + $0.30 (Shopify), and 2.4% + $0.30 (Advanced)
- Processing fee for in-person debit/credit cards: 2.7% + $0.30 (Basic), 2.5% + $0.30 (Shopify), and 2.4% + $0.30 (Advanced)
Though this fee is included with your plan, you can choose a custom domain name for your store. Depending on the specifics of your domain registration, this will cost you anywhere from $11 to $81.
There are some Shopify apps that you can use to make your business more efficient. These platforms are free, but some will ask for a paid upgrade.
Need accounting software for Shopify sellers? Check here.
Shopify Email Fees
Each plan includes 2,500 monthly free emails, with each additional email costing $0.001. The platform will give you a price estimate whenever you send more than your allotted free emails.
How to Calculate Shopify Fees
Paying annual Shopify fees can be complicated. When you're running a store, many expenses need to be taken into account. There is a fee for opening a store, selling products, and shipping them.
You also have to consider the cost of credit cards and other costs involved in managing your business, such as office supplies, insurance, etc.
Use Shopify's Custom Price Calculator to find the prices for customised products. This calculator is designed to help you estimate your fees based on your specific needs. However, it costs $14.99/month.
Do You Need a Business Accountant for Shopify?
You’ll be able to spend more time expanding your business instead of dealing with the hassles of setting up and managing your own Shopify store.
A Shopify accountancy will provide you with tax guidance, especially if you’re a UK business owner.
You could also reduce costs by outsourcing your bookkeeping and accounting requirements to a Shopify accountancy company.
Get guidelines about choosing the correct Shopify reports for bookkeeping.
FAQs about Shopify Fees
How do I avoid fees on Shopify?
You'll automatically save on the transaction fee by activating and using Shopify Payments and Shopify checkout.
Why do so many Shopify stores fail?
Many Shopify stores fail because the owner needs to be more experienced in running a business. Other reasons include lacking e-Commerce and digital marketing knowledge and having a poor product line.
Does Shopify charge monthly?
Yes, Shopify charges a monthly fee to use shopify payments run your store. The initial Shopify setup fee is $5 per month.
Many different Shopify fees can be applied to your Shopify store, which can get complicated. If you're unsure which to choose or need help estimating expenses for a new business idea, Link My Blog is here to help. Let me help your Shopify store run better.
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