How Much Does Shopify Cost?

As a top ecommerce platform, Shopify powers over 2 million online businesses. But before launching your own online shop, it’s essential to understand Shopify’s pricing structure and additional costs beyond the base subscription fee.

This comprehensive Shopify pricing guide examines monthly and annual plans, features, transaction fees, necessary add-ons, and ways to save. We’ll also compare Shopify’s costs to competitors, so you can make an informed decision when budgeting for your ecommerce startup or evaluating if it’s time to upgrade your existing store.

How Much Does Shopify Cost?

Shopify’s monthly cost ranges from $29 on the Basic plan up to $2,000+ for Shopify Plus, with additional costs for add-ons like themes, apps, and transactions fees.

Shopify offers five pricing tiers to support diverse business models and growth stages:

Basic Shopify – $29/month or $279/year

The starter plan provides core store features at a very accessible price point. Best for new ecommerce entrepreneurs or small-scale sellers.

Standard Shopify – $79/month or $799/year

With expanded functionality like gift cards and shipping discounts, this scales for steadily growing small businesses.

Advanced Shopify – $299/month or $2,988/year

Robust features like advanced reporting and multi-location inventory cater to high-volume mid-market brands.

Shopify Plus – Custom enterprise-level pricing

Managed scalability, volume discounts, and dedicated support for large brands. Requires application.

Shopify Lite – $9/month

For selling through channels like social media. Adds buy buttons without a full online store.

According to an article from Craftberry, as of January 2024, Shopify offers several pricing tiers: the Basic Shopify plan is priced at $29 per month, while the standard Shopify plan costs $79 per month. For larger businesses, the Advanced Shopify plan is available for $299 per month, and there is also a Shopify Plus option starting at $2,000 per month.

Another source, Website Builder Expert, provides a similar breakdown, stating that the Basic plan costs $29 per month, the Shopify plan is priced at $79 per month, and the Advanced plan is available for $299 per month. They also mention a Starter plan for $5 per month, which is suitable for side hustles but comes with limited features compared to the other plans.

A detailed overview from Wise confirms that the Basic plan costs around $39 per month when billed monthly, while annual billing reduces it to about $29 per month. The Shopify plan is listed at approximately $105 per month on a monthly basis, while the Advanced plan costs around $399 per month. This article also highlights additional transaction fees that may apply based on payment methods used.

According to an article on Forbes, Shopify’s pricing starts at about $9 per month for the Lite plan, which allows users to add a Buy Button to their existing website. The Basic plan is priced at $29 per month, while the Standard and Advanced plans are offered at $79 and $299 per month, respectively. This source emphasizes that while Shopify has a low entry price, additional costs such as domain registration and premium themes should be considered.

Transaction and Payment Processing Fees

Beyond the base subscription, Shopify charges additional fees:

Transaction Fees

• Basic Shopify – 0% + $0.30 per transaction
• Standard Shopify – 0% + $0.30 per transaction
• Advanced Shopify – 5% + $0.30 per transaction

Shopify Payments Processing

• Rates start at 4% + $0.30 per online transaction
• Brick and mortar retail rates also apply for POS
• Shopify Plus enables custom negotiated rates

Shopify Partners Program

• $39/month to access the Shopify App Store
• Required for developers publishing apps

Using Shopify Payments avoids most transaction fees but processing and partners add up.

Additional Shopify Fees

Supplementary services expand capabilities but increase subscription costs like:

Shopify POS

• $89/month per brick-and-mortar retail location
• Additional hardware costs if purchasing devices

Premium Apps and Integrations

• $5-$200+ in monthly fees per add-on
• Email marketing, inventory management, SMS marketing, etc.

Theme Store Access

• $179+ one-time fee per theme
• Required for advanced customization needs

Custom Domain Registration

• $14/year through Shopify or free if transferred

Abandoned Cart Recovery

• Built-in with Premium plans or $39+/month app

Third-party apps in particular quickly multiply overall costs far beyond the base subscription fee alone.

Monthly vs. Annual Billing

Shopify offers both monthly and annual billing options:

Monthly Billing

• More flexibility to pause or cancel your subscription
• No long-term commitment required
• Ideal for new businesses testing Shopify before fully launching

Annual Billing

• Minimum of 12 months upfront
• 10-15% discount on plans depending on tier
• Provides cost savings for established businesses confident in using Shopify long-term

Most merchants choose annual billing for the 10-15% savings on their core subscription costs.

Special Discounts and Promotions

New users can access promotional incentives like:

• Free 14-day trials to test drive Shopify
• Seasonal discounts around peak holidays that lower monthly rates
• Custom partner offers through collaborations with developers, influencers, and agencies
• Referral bonuses for getting other businesses to sign up

Activating through an affiliated link often unlocks exclusive access to partner deals and codes.

Pros and Cons of Shopify’s Cost

Benefits of Shopify’s Pricing Model

• All-in-one platform avoids piecing together standalone tools
• Scales cost-effectively from startups to large enterprises
• Built-in payment processing reduces transaction costs
• Student and nonprofit discounts available

Potential Drawbacks of Shopify’s Fees

• Monthly costs add up fast, especially with add-ons
• Advanced features like customizable checkouts require upgrading to more expensive plans
• Limited discounting for high-volume merchants compared to custom rates offered by some processors

You might also like our articles about the cost of building a website, selling on Amazon, or developing an app.

For lean startups, lower barriers to entry like open source alternatives may beat Shopify’s monthly fee structure initially. But Shopify becomes more cost-effective as sales volume increases.

Shopify vs Platform Alternatives

Shopify vs. WooCommerce

• WooCommerce plugin is free but requires web hosting, set up, and maintenance
• Shopify simplifies launching quickly without extensive coding skills

Shopify vs. BigCommerce

• Entry tiers priced similarly but BigCommerce offers more built-in features
• Shopify provides smoother scaling to enterprise-level via Shopify Plus

Shopify vs. Squarespace

• Squarespace limits users to only 100 products on lower pricing tiers
• Shopify designed purely for ecommerce with far more built-in functionality

Shopify vs. Wix

• Wix caps number of products without upgrading to premium business plans
• Shopify enables easy growth from small to large enterprise stores within one platform

Expert Tips

We asked experienced Shopify partners and merchants for their top money-saving tips:

• “Only install essential apps to avoid unnecessary add-on fees.” – Sarah L., Ecommerce Consultant
• “Purchase your own domain externally for lower registration/renewal rates.” – Michael C., Digital Agency Founder
• “Use the free Oberlo plugin for simple dropshipping instead of paying for an advanced fulfillment app.” – Leah R., Ecommerce Influencer
• “For custom themes, modify a free theme first before paying $180+ for a pre-made one.” – Andrew P., Shopify Developer
• “Evaluate if cheaper payment gateways like Stripe offer enough savings to be worth the transaction fees.” – James D., Merchant

Carefully auditing must-have versus nice-to-have features ensures you don’t overpay for unnecessary costs.

Is Shopify Economical for You?

When weighing if Shopify makes financial sense for your ecommerce venture, consider:

• Current monthly and projected sales volume to measure potential transaction fee impact
• Number of product variants and SKUs in your inventory to account for backend needs
• Whether you’ll require advanced customization or enterprise-level support over time as you scale
• Available business funding and cash flow – can you manage the recurring subscription costs?
• Marketing needs like email, SMS, and analytics to determine required integrations

While not inexpensive, for serious e-commerce businesses, Shopify’s robust infrastructure often warrants the monthly spend long-term by enabling smooth operations and growth.

Real-World Shopify Insights

We picked the brains of several Shopify experts for their best ecommerce cost-optimization tips:

What strategies do you recommend for minimizing fees and transaction costs on Shopify?

“Build margins to absorb processing costs or increase prices slightly rather than passing all fees to customers.” – Andrew S., Ecommerce Merchant

“Review your payment gateway monthly as your business grows. Renegotiate custom rates on Shopify Payments once achieving volume milestones.” – Sarah L., Shopify Consultant

“Install an app like Fee Scanner that calculates and optimizes your fees so you can make data-driven decisions.” – Michael C., Digital Agency Owner

How can new users get started affordably and scale up gradually as revenue increases?

“Consider a staged migration starting with Shopify Lite, then Standard, and upgrading to Advanced or Plus over time.” – James P., Ecommerce Advisor

“Only migrate existing products in batches instead of your full catalog at once to spread costs over time.” – Leah S., Ecommerce Influencer

“Use Shopify’s free themes and apps initially, then pay for customization once revenue starts flowing.” – Lisa R., Shopify Designer

What tips do you have for saving money on add-ons like shipping, themes, and apps?

“Don’t pay for shipping labels integration. Manually download orders and purchase labels on USPS/UPS sites.” – Andrew P., Shopify Developer

“Modify a free theme to create your brand style before paying for a pre-made one. You likely only need minor CSS edits.” – Samantha K., Digital Marketer

“Evaluate if you truly need a paid app before installing. Often the functionality already exists natively or workarounds exist.” – Ryan S., Tech Entrepreneur

Payment Options

If Shopify fits your needs but not your current budget, you have options:

Monthly Installments – Affirm and Zip allow spreading costs over 3, 6, or 12 months

Business Loans/Lines of Credit – Funding to cover startup costs including initial Shopify subscription

Business Credit Cards – Cards with 0% intro APR periods to pay overtime interest-free

Savings from Other Expenses – Cut costs like office space to allocate savings to tech instead

With strategic financing, Shopify becomes very feasible to launch on a tight startup budget.

Final Words

The recurring cost of Shopify does represent a notable business expense. But their integrated platform also provides immense time and money savings long-term by streamlining ecommerce operations.

By understanding all pricing factors, optimizing your plan tier and features to actual needs, and taking advantage of discounts, you can strategically budget Shopify into your business model. For committed online merchants, the breadth of Shopify’s offering makes the monthly or annual spend a justifiable and valuable investment.

Answers to Common Questions

How do I avoid fees on Shopify?

Use Shopify Payments to eliminate most transaction fees. Opt for annual billing to receive 10-15% off your subscription costs. Avoid unnecessary apps that add monthly fees.

What is the main drawback of Shopify?

The monthly subscription, even at the Basic tier, may be prohibitive for extremely lean startups. For entrepreneurs without funding, the recurring cost makes it harder to test Shopify initially.

How many people fail at Shopify?

Exact statistics are scarce but an estimated 20-25% of businesses across industries overall fail in their first year. The platform alone doesn’t predict success – factors like product-market fit, funding, and business acumen determine outcomes.