Powering over 4 million e-commerce stores worldwide, the popularity of Shopify shows no sign of stopping. But there’s more to its appeal than just numbers. The platform stands out for its ease of setup and the flexibility it offers to run a business from anywhere. The client satisfaction rate of this platform is so high that even when you ask an existing Shopify merchant for a recommendation, they will definitely recommend it. While the platform’s features are widely recognized, new users remain curious about the Shopify fees and how they are going to be charged for using it. 

To be honest, Shopify pricing is a bit tricky, especially for those just starting out with an e-commerce business. There are monthly subscription plans, transaction fees, payment processing fees, credit card fees, and even POS charges. So, is it still profitable to use this platform? Definitely! Once you understand the Shopify fee structure, you are good to go to make your share of the profit. 

In this guide to understanding Shopify fees, we will talk about the pricing plans and other charges associated with using the platform. So, let’s get started!

What are Shopify Fees?

Shopify Fees are basically the charges that a merchant has to pay for using the platform’s services. Whether you subscribe to one of the Shopify plans or make a sale, you are subject to paying a charge for it. 

While some businesses think subscribing to Shopify plans is the only cost associated with it, there are a lot of fees and charges that you must be aware of before using this platform. These charges come in the form of transaction fees, platform fees, services fees, credit card fees, and payment processing fees. 

A Breakdown of Shopify Plans Cost

First things first, you need to subscribe to one of the Shopify monthly plans to use the platform. The Shopify monthly costs start from $39 per month. Although Shopify offers three main pricing plans, there are specialized plan options for larger businesses or specific needs that start from as little as $5. 

Here’s a breakdown of Shopify pricing plans and their features: 

Shopify Basic Plan                                       

The basic pricing plan from Shopify is ideal for businesses with little to no experience in e-commerce. It costs around $39 per month; however, if you choose to pay annually, the amount decreases to $29 per month. 

The Basic plan provides access to one digital storefront, two staff accounts, unlimited product listings, and 24×7 customer support. Apart from this, it also has the following features:  

• Free SSL Certificate
• Discount codes
• Manual order creation
• Support for multiple sales channels
• Inventory tracking for up to 1,000 global locations
• Point of Sale (POS) 
• Up to 77% shipping discounts + support for a shipping label
• Accurate sales tax calculations
• Tax liability tracking

Although the Basic Shopify plan is enough for beginner merchants, there are some limitations for pro businesses. Firstly, the data is limited to basic, and it lacks support for 3PL app integration. Additionally, there is no shipping insurance and import taxes at checkout for international purchases. 

Additionally, there are transaction fees for the Basic plan, which are as follows: 

• Domestic credit card transaction: 2.9% + $0.30
• International or American Express card sales: 3.9% + $0.30
• In-store Purchases: 2.7%
• Third-party Payment Processing Fees: 2% per transaction

Shopify Plan 

It is one of the popular and merchant favorite plans as it offers many advanced features at low cost. The Shopify plan costs around $105 per month, but if you choose to pay annually, the prices drop to $79 per month. 

The plan has it all, like a Basic plan with additional features that include up to 5 staff accounts, advanced performance reports, website loading speed and uptime testing, and more. Some of the other features include: 

• Shopify POS
• Gift card payment
• Up to 88% shipping discount 

Apart from the Shopify monthly costs, this plan has additional fees that include: 

• Domestic credit card transaction: 2.6% + $0.30
• International or American Express card sales: 3.6% + $0.30
• In-store Purchases: 2.5%
• Third-party Payment Processing Fees: 1% per transaction                      

Shopify Advanced Plan 

Shopify Advanced Plan is ideal for large e-commerce businesses with large-volume sales. The plan costs around $399 per month, but the price drops to $299 per month if it is billed annually. The best features of this plan include up to 15 staff accounts, lower transaction fees, and customized reporting. 

Additionally, the users get direct access to third-party shipping calculations, which help them compare rates from different carriers so they get the best rate in the market.         

The transaction fees for Shopify Advanced plan are as follows: 

• Domestic credit card transaction: 2.4% + $0.30
• International or American Express card sales: 3.4% + $0.30
• In-store Purchases: 2.4%
• Third-party Payment Processing Fees: 0.5% per transaction    

Shopify Starter

The Shopify Starter is one of the lowest and most affordable e-commerce plans out there, with a monthly cost of just $5. It is best for businesses that want to sell through social media with a checkout link and a simple checkout. Under this plan, you can’t make a Shopify website. The transaction fee for the Shopify Starter Plan is 2.4% on credit card payments and 2% on third-party payment processing. 

Shopify Retail

Shopify’s Retail plan is designed for offline stores with a brick-and-mortar-first strategy. Just like the Starter plan, you get a simple storefront with additional features like unlimited POS logins, up to 2 admin accounts, and one POS Pro. 

The transaction fee for Shopify Retail is quite lower than that of the Starter plan. There is a flat 2.7% transaction fee for in-person purchases and 2.9% + $0.30 per online sale. The plan is priced at $89 per month, which is quite affordable. 

Shopify Plus

Shopify Plus is a premium plan designed with enterprise-level e-commerce business in mind. It has a custom pricing that typically starts from $2,000 per month. 

As you know, that’s one of the expensive Shopify plans; its features make it worthy for large-scale businesses. The best part about this plan is its automation capabilities. Yes, you can automate your business processes, such as order management and shipping. It can save you a lot of time and money. 

Under this plan, you get 24/7 customer support and a dedicated success manager who can help you with every aspect of your business, whether technical or non-technical.  As this plan is highly customizable, you need to contact Shopify to get the exact price quote. 

Shopify Enterprise Commerce

For enterprises that need even more customized and scalable services than Shopify Plus, there’s a plan called Shopify Enterprise Commerce. This plan offers advanced features with dedicated technical and production account management support. 

The core features of this Shopify plan include enhanced infrastructure for D2C (Direct-to-Customer), unlimited retail locations, and wholesale and retail support. This account is highly customizable, and its pricing depends on the business’s specific requirements.          

Additional Shopify Fees to Consider

Apart from plans, there are some additional costs, often referred to as fees by Shopify, that you should know about before using this platform. 

Here are some common Shopify fees:

Shopify’s Transaction Fees

Whenever you make a sale on Shopify, you are entitled to pay the platform a percentage of the selling price. The Shopify fees per sale are around 2.9% + $0.030 per transaction. However, the Shopify transaction fees greatly depend on your pricing plan. For instance, it is 2.9% + $0.30 for the Basic Plan, 2.6% + $0.30 for the Shopify Plan, and $2.4% + $0.30 for the Advanced Plan.  

Shopify Payment Processing Fees

The payment processing fees on Shopify vary based on your chosen payment methods. Whenever your customers pay via Shopify payments, they are charged a processing fee for the transaction. However, if they choose to pay with a different payment gateway, be ready to pay extra fees on transactions. Additionally, the plan you are subscribed to greatly impacts these fees.  

Here’s  a breakdown of Shopify payment processing fees: 

• For credit card payments, it is 2.9% + $0.30 for the Basic Plan, 2.6% + $0.30 for the Shopify Plan, and $2.4% + $0.30 for the Advanced Plan.  
• For debit card and in-person payments, it is  2.7% + $0.30 for the Basic Plan, 2.5% + $0.30 for the Shopify Plan, and $2.4% + $0.30 for the Advanced Plan.

Shopify Shipping Fees                                                                                                                                                                                      

The best part about using Shopify is its integrated shipping solutions that let you deliver products to your customers without worrying about hiring delivery partners. The platform has partnered with major carriers like UPS, DHL Express, and USPS, offering up to 77% discounts. 

Additionally, the platform has recently introduced a beta feature where merchants can get up to $200 converge for each shipping label. This feature ensures both merchant and customer stay safe from potential shipping mishaps. 

Shopify Point of Sale (POS) Fees

Shopify offers Point-of-Sale (POS) systems for both online and offline sales. However, this service isn’t free, and the platform charges a decent fee for using it. The starting version, i.e., Shopify POS Lite, is suitable for small businesses, while its advanced version, i.e., Shopify POS Pro, offers features like detailed inventory reports and enhanced staff permissions, which cost around $89 per month for a single location.                 

Shopify Credit Card Fees

The Shopify credit card fees are as follows: 

• Domestic credit card transaction: 2.9% + $0.30
• International or American Express card sales: 3.9% + $0.30
• In-store Purchases: 2.7%
• Third-party Payment Processing Fees: 2% per transaction

Shopify Tax Fees

Tax calculation is no less than a hassle for e-commerce businesses. However, the Shopify Tax feature has made it simple through its accurate sales tax calculations. This feature ensures the correct tax amount is collected at checkout based on customer address and product-specific rates. 

It even helps sellers monitor their tax liabilities and get automatic notifications for rate changes, tax holidays, and regulation changes. The first $100,000 per calendar year is free for US online sales. After that, there’s a fee of 0.35% per transaction. 

Designs and Templates Fees

Although Shopify offers plenty of free and paid themes for store customization, you may still need the help of a Shopify website design agency. However, if you are still stuck with paid Shopify themes, expect to pay around $150 to $350. 

Shopify Domain Fees

While Domain fess is generally included in your base plan, you can still choose to have a custom one. Depending on the specifics of your domain and your choice of name, it may cost anywhere between $11 to $81. 

Shopify App Fees

There are numerous apps available on the Shopify App Store, and these apps work as stepney to your store. Some of these Shopify apps are free, while others are paid. With these apps, you can better manage your store, market it, have detailed reporting and accounting, and experience enhanced efficiencies.                          

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 exceed your monthly allocation of free emails.

Shopify Marketplace Connect Fees

Shopify Marketplace is a value-added feature for merchants that helps them integrate their stores into various marketplaces. The first 50 orders synced with these marketplaces are free per month. However, there is a 1% transaction fee above this limit. Additionally, you will not be charged beyond $99 per month, irrespective of the order numbers. 

Shopify VAT

For merchants focusing on European customers, it is important to understand Shopify VAT (Value Added Tax) on fees. It helps them calculate the VAT rates based on the customer’s precise location and the type of product being sold. This ensures sellers remain compliant with the tax regulations in European countries, significantly reducing the risk of legal issues and incurring penalties. 

Conclusion

So, by now, you might have understood and be better aware of the Shopify fees and pricing plans. This blog was intended to provide a clear overview of how much Shopify costs for merchants. 

In our opinion, Shopify fee structure is quite complex and it’s slightly on the higher side. But we won’t do a comparison here as the features this platform offers are just outstanding and the best in the industry. 

So, if you’re starting out with Shopify, this guide will help you a lot. But if you still have doubts or need help related to e-commerce business, you can trust the best Shopify development company, Malicy App Developers. We have proven experience in developing and maintaining Shopify websites both affordably and efficiently. 

FAQs

What are the Fees on Shopify? 

Shopify charges various fees, including subscription fees for their plans, transaction fees for using third-party payment gateways, and credit card fees. Depending on your usage, there are also additional fees for apps and themes.

Does Shopify Take 2%? 

Yes, Shopify charges a 2% transaction fee for using third-party payment gateways. This fee is in addition to the fees charged by the payment gateway itself.

How Much Does a Shopify Website Cost? 

The cost of a Shopify website depends on the plan you choose. Plans start at $29 per month (billed annually), with higher-tier plans costing up to $2,300 per month for enterprise-level businesses.

Is Shopify Paid or Free? 

Shopify offers both free and paid plans. The free plan, called Shopify Starter, allows you to create a simple store and sell products through social media and messaging apps. Paid plans offer more features and capabilities.

Is Shopify Paid Monthly?

Yes, Shopify plans are paid monthly. You can choose to be billed monthly or annually, with a discount for annual billing.

Can I Use Shopify for Free? 

Yes, you can use Shopify for free with the Shopify Starter plan. This plan allows you to create a simple store and sell products through social media and messaging apps.

How Do I Avoid Fees on Shopify? 

To avoid fees, you can use Shopify Payments, which eliminates the 2% transaction fee for using third-party gateways. Additionally, you can look for apps and themes that offer free versions or discounts.