Shopify Cost: A Complete Breakdown for 2024
October 24, 2024
If you're running an online business or considering starting one, Shopify is likely one of the first platforms that comes to mind. With its powerful features and user-friendly interface, it’s no wonder that Shopify has become the go-to solution for thousands of entrepreneurs worldwide. But while Shopify is relatively straightforward, understanding its full cost structure can be tricky. The Shopify cost extends beyond basic subscription fees, encompassing transaction fees, payment processing charges, app subscriptions, themes, and other additional expenses.
This complete guide will break down the Shopify cost for 2024 and provide insight into how you can save on fees, minimize hidden charges, and make the most of your investment.
Shopify Pricing Plans Overview
Shopify offers several pricing plans, each tailored to businesses at different stages of growth. The core plans include Basic, Standard, and Advanced, but Shopify also has solutions for both small-scale and enterprise-level businesses. Here’s a detailed breakdown of the main Shopify pricing plans:
Basic Shopify Pricing Tiers
Shopify Basic: $39/month
Best for entrepreneurs just starting out.
Includes two staff accounts and basic reporting.
Shopify Standard: $105/month
Ideal for growing businesses needing more features.
Includes five staff accounts and professional reporting.
Shopify Advanced: $399/month
Designed for scaling businesses.
Offers advanced reporting and shipping discounts.
Shopify Plus: Starts at $2,000/month
Tailored for high-volume, enterprise-level businesses.
Provides more customization, better support, and advanced features.
Key Features by Plan
Choosing the right plan is critical to managing your overall Shopify cost. Selecting a plan that’s too advanced for your current needs could mean paying for unnecessary features, while opting for a basic plan could result in higher transaction fees and missed business insights.
Quick Tip: Start with a lower-tier plan, then upgrade as your business grows. Shopify makes it easy to switch plans if you find you need additional features.
Shopify Lite & Shopify POS
Shopify Lite ($9/month)
Shopify Lite allows you to sell products on social media platforms or embed a “Buy” button on your existing website. This plan doesn’t include a full-fledged online store but is a budget-friendly way to get started.Shopify POS
For brick-and-mortar retailers, Shopify POS (Point-of-Sale) comes with additional costs depending on your hardware setup and needs. The Shopify POS app is free, but adding features like Shopify POS Pro costs $89/month per location.
Transaction Fees and Payment Processing
Shopify Payments vs. Third-Party Providers
A significant portion of your Shopify cost comes from transaction fees. These fees depend on the payment gateway you choose:
Shopify Payments: Shopify’s in-house payment processor has no additional transaction fees. You’ll only pay credit card processing fees based on your plan (details below).
Third-Party Gateways: If you use a third-party payment provider (such as PayPal or Stripe), you’ll pay additional transaction fees on top of credit card fees.
Credit Card Processing Fees
Credit card processing fees are unavoidable for any e-commerce store. With Shopify Payments, these fees are included based on the plan you choose:
Shopify Basic: 2.9% + 30¢ per transaction (online) or 2.7% (in-person)
Shopify Standard: 2.6% + 30¢ per transaction (online) or 2.5% (in-person)
Shopify Advanced: 2.4% + 30¢ per transaction (online) or 2.4% (in-person)
For businesses handling large volumes of transactions, even a small percentage difference can save significant money over time.
International Transaction Fees
If you sell internationally, expect to encounter additional fees for currency conversion. Shopify applies a 2% fee on sales made in foreign currencies unless you’re on the Shopify Advanced or Shopify Plus plans, where these fees are reduced.
Quick Tip: To avoid transaction fees, use Shopify Payments whenever possible. If you’re selling internationally, consider upgrading to a plan that reduces or eliminates currency conversion fees.
Additional Shopify Costs
While Shopify’s subscription and transaction fees are straightforward, several additional costs can sneak up on merchants. These include apps, themes, and other essential tools that help run your store more efficiently.
Shopify App Store
The Shopify App Store offers thousands of apps that enhance store functionality, from marketing to inventory management. Some are free, while others charge monthly fees. Popular apps for 2024 include tools for email marketing, SEO optimization, and video integration apps like ReelTok, which allows you to create shoppable videos for your store.
Free Apps: Many basic apps like email popups or simple SEO tools are available for free.
Paid Apps: Advanced apps with detailed analytics or automation features can cost anywhere from $5 to $50+ per month.
Quick Tip: Start with free apps and upgrade to paid ones only when absolutely necessary. Always review the ROI of each app before committing to its ongoing costs.
Shopify Themes
Themes determine the look and feel of your store. Shopify offers free themes, but premium themes offer more customization options and professional designs. Premium themes typically range from $100 to $180 as a one-time fee.
Free Themes: Great for those starting out on a budget.
Premium Themes: Offer advanced design flexibility and are better suited for businesses with more specific branding needs.
If you need custom designs or extensive theme modifications, hiring a web developer could add to your Shopify costs.
Domain and Email Hosting
You can purchase a domain name directly through Shopify for around $14 per year, but many opt to buy domains from third-party providers like GoDaddy or Namecheap, where costs may be lower. Email hosting is not included in Shopify plans, so you may need to pay extra for this service through providers like Google Workspace.
Shopify Shipping and Fulfillment
Shipping is another essential component of running an online store, and Shopify offers various solutions depending on your plan.
Shopify Shipping
Shopify offers discounted shipping rates through carriers like USPS, UPS, and DHL, with the level of discount depending on your Shopify plan:
Shopify Basic: Basic discounted rates.
Shopify Standard: Better discounted rates.
Shopify Advanced: The best discounted rates.
Third-Party Fulfillment Services
Many Shopify merchants outsource fulfillment to third-party logistics providers (3PLs) like Amazon FBA or ShipBob. These services come with their own fees, often based on the size and weight of the products being shipped, plus storage fees for inventory.
Quick Tip: Compare Shopify’s shipping discounts to external providers like UPS or DHL to ensure you’re getting the best deal for your shipping needs.
Hidden Costs to Watch Out For
In addition to the obvious expenses, there are several hidden costs to watch out for as a Shopify merchant. Being aware of these can help you plan your budget more effectively.
International Fees and Currency Conversion
If your business operates across borders, you’ll need to account for currency conversion fees, international payment processing fees, and other cross-border costs. These fees can be higher than domestic transactions and can quickly add up if not monitored closely.
App Subscription Stacking
With so many apps available to enhance your Shopify store, it’s easy to overspend on app subscriptions. Many merchants install multiple apps, each charging a monthly fee, without considering the cumulative cost. For example, combining video marketing tools like ReelTok with other services for email, SEO, and analytics could lead to hundreds of dollars in additional costs per month.
Quick Tip: Periodically review your installed apps and remove any that are not essential to your business. This can prevent unnecessary subscription costs.
Theme and Design Updates
While you can start with a free or premium theme, any major design updates may require hiring a web developer, which can cost hundreds or even thousands of dollars. Regularly updating your design can improve user experience but comes with additional expenses.
Cost-Saving Tips for Shopify Users
Despite all the potential costs, there are many ways to save while running a Shopify store. Here are a few tips to help you manage your expenses:
Select the Right Plan
One of the most effective ways to save is by choosing the plan that best suits your current business needs. While it might be tempting to start with Shopify Basic, upgrading to a higher plan can reduce transaction fees as your sales grow.
Leverage Free Shopify Apps
While some paid apps offer advanced functionality, many free alternatives provide the basic tools you need to run a successful store. For example, using ReelTok to create shoppable videos can be done with a free tier before committing to a paid version for more advanced features.
Negotiate Payment Processing Fees
If your store processes a large volume of transactions, consider negotiating better credit card processing rates with your payment provider. This can save you significant money over time, especially if you operate on Shopify Advanced or Shopify Plus.
Future Shopify Pricing Trends for 2024 and Beyond
The e-commerce landscape is constantly evolving, and Shopify pricing structures are no exception. Here are some trends to look out for in 2024:
Potential Changes to Shopify’s Pricing Model
As Shopify continues to grow, they may introduce new pricing tiers, particularly as more businesses go global. Keeping up with these changes can help you adapt and find the best pricing model for your business.
Shopify Markets Expansion
With the expansion of Shopify Markets, international selling is becoming easier for merchants. Shopify’s move into new regions might come with pricing incentives or reduced fees for global sellers, especially those on Shopify Plus plans.
Quick Tip: Stay informed about Shopify's pricing announcements for potential changes that could impact your store’s costs.
Conclusion
Understanding the complete Shopify cost in 2024 is essential for any business owner aiming to maximize profits. From choosing the right plan to managing transaction fees and minimizing app subscriptions, there are many ways to reduce your expenses.
With careful planning and the right strategies, such as using tools like ReelTok for shoppable videos and taking advantage of Shopify Payments, you can significantly lower your costs and optimize your Shopify experience.
