You’ve probably heard of Shopify, one of the leading ecommerce platforms for selling online. Shopify is known for its long list of features and user friendly interface, and is often chosen by creators, businesses, and entrepreneurs of all sizes.

But if you’re going to use Shopify, you’ve got to understand Shopify plans, Shopify costs, and its fees structure. Shopify fees can be a little complicated, between its Shopify pricing plans, transaction fees, and other Shopify costs. To understand Shopify fees is to use them to your advantage - let’s learn all about them so you can maximize Shopify’s sales potential!

Why It’s Important to Understand Shopify Fees 

Whether you’re just starting with a Shopify store or managing a high-volume ecommerce business, understanding Shopify pricing plans, transaction fees, and additional costs is essential for both your budget and your profits. Shopify fees directly impact your profit margins, and also play a significant role in shaping your business strategy. 

Shopify’s main costs are its subscription fees and transaction fees. For subscriptions, Shopify offers several pricing plans, each tailored to different business needs. It’s smart to select a Shopify plan that suits the features you need for customization, growth, and scaling of your Shopify store.

Shopify’s transaction fees generally only apply if you don’t use Shopify Payments. Shopify Payments allow your shop to accept payments directly, eliminating the need for a third-party payment gateway and letting your customers use credit cards, debit cards, and some online payment methods while you only pay a small credit card processing fee. 

While you can opt out of Shopify Payments as part of your Shopify plan, you might find that the transaction fees then add up quickly, especially if you start making a lot of sales.

Conversion fees are charged by Shopify when you accept payment in a currency that differs from your payout currency. The amount you get in your customer’s local currency is converted to your payout currency, hence the fee. The conversion fee amounts are based on your stores primary country, which amounts to 1.5% in the U.S., and 2% in all other Shopify Payments regions.

Outside of Shopify’s subscription fees, conversion fees, and potential transaction fees, Shopify store owners might choose to pay extra costs for features like themes, premium apps, and optional tools like Shopify POS hardware if you’ll be doing in-person sales. But once you understand all of your Shopify Plan options, you can choose which fees your budget can handle, and set your prices accordingly, taking advantage of features like your site analytics and shipping discounts.

Shopify Pricing Plans Explained

Each Shopify pricing plan, from the Starter Plan to Shopify Plus and all the way up to Enterprise Commerce, is designed to align with specific business needs, so it’s important to evaluate your sales volume and growth goals before choosing a Shopify plan. Here’s a detailed breakdown of all Shopify plans, with all prices in USD:

Starter Plan

• Cost: $5/month
• Features: Allows merchants to sell products via social media and messaging apps without a full online store.
• Best For: Aspiring creators and new entrepreneurs testing the waters of ecommerce.

Basic Shopify Plan

• Cost: $39/month
• Features: Includes a full online store, plenty of product listings, and 24/7 chat support.
• Best For: Small businesses looking to better establish their online presence.

Retail  

• Cost: $89/month
• Features: This Shopify plan offers in-person selling tools with advanced staff, loyalty, and inventory features.
• Best For: Brick and mortar stores or merchants who frequent IRL markets or festivals.

Shopify (Standard Plan)

• Cost: $105/month
• Features: Adds insurance, advanced functionality, and 5 extra staff accounts.
• Best For: Growing creators or businesses needing more features and scalability.

Advanced Shopify

• Cost: $399/month
• Features: Insurance, shipping discounts, 15 staff accounts, and third-party calculated shipping rates.
• Best For: Established sellers and businesses with more complex operations.

Shopify Plus

• Cost: Starts at $2,300/month
• Features: Competitive rates for those selling products at high volume, with customizable checkout tools, priority phone support, and advanced integrations.
• Best For: Large-scale enterprises requiring a tailored approach.

Enterprise Commerce

• Cost: Custom pricing
• Features: Enterprise-level solutions with more agility and speed, customized upon request.
• Best For: Successful companies/businesses solidifying their place online. 

How Shopify’s Transaction Fees Work 

Shopify charges third-party transaction fees for sales made through third-party payment gateways, which can include credit cards, debit cards, and some online payment methods. These transaction fees vary depending on your plan, but the rates start at around 2%.

Using Shopify Payments eliminates these transaction fees entirely, leaving only credit card processing fees. As your sales volumes grow, you may find that staying with Shopify Payments can result in substantial savings.

How Shopify Payments’ Credit Card Fees Work

Shopify Payments is Shopify’s in-house payment gateway, offering competitive credit card processing rates. Using Shopify Payments simplifies fee structures and also offers lower transaction fees, making it a preferred option for many Shopify store owners. You can view Shopify’s complete pricing charts online, but here are a few base examples of how their payments work for online and in-person (IRL) transactions using Shopify POS:

Online Transactions

• Basic Shopify: Card rates start at 2.9% + 30¢ per transaction
• Shopify: Starting at 2.7% + 30¢ per transaction
• Advanced Shopify: Starting at 2.5% + 30¢ per transaction

In-Person Transactions (Shopify POS)

• Basic Shopify: 2.6% per transaction
• Shopify: 2.5% per transaction
• Advanced Shopify: 2.4% per transaction

Comparing Shopify’s Fees to Competitors

Shopify’s pricing plans and fees are competitive compared to other ecommerce sites online, but the appeal of these comparisons may vary based on your business needs and platform preference.

Shopify vs. BigCommerce

BigCommerce’s plans start at $39 per month for their Standard Plan, $105/mo for the Plus Plan, and $399/mo for the Pro plan. All plans include no additional transaction fees, plus unlimited staff accounts, products, and file storage.

Shopify Payments also eliminates transaction fees, and Shopify’s extensive app ecosystem and Shopify POS features provide great scalability for growing sellers who are selling products both online and IRL.

Shopify vs. WooCommerce

WooCommerce is free to use but requires quite a bit of extra effort to get your site rolling, including setting up hosting, domain registration, and adding themes and plug-ins. WooCommerce provides options for shipping extensions, and offers WooPayments for 2.9% plus 0.30 for each U.S. transaction, plus another 1% for cards issued outside of the U.S.

Shopify’s all in one approach with built-in features makes a Shopify store much more accessible for non-technical users. Its card rates start at around the same rate as WooCommerce, but get less expensive as you upgrade your plan.

Shopify vs. Squarespace

Squarespace is known for visually-driven websites, with plans starting at $16/mo for Basic, $23/mo for Core, $39/mo for Plus, and $99/mo for advanced. Squarespace Commerce is Squarespace’s newish set of features for processing payments online, and can be challenging at times. 

Shopify’s advanced ecommerce tools, solid scalability, Shopify apps, and Shopify POS integrations make it ideal for businesses planning for growth. And there are many different options online for customizing the look of your Shopify store with both Shopify theme templates and page builders.

Tips to Reduce Shopify Fees

• Choose the Right Plan: Align your Shopify pricing plan with your needs. Shopify’s flexible pricing plans makes it ideal for small creators or large businesses selling on Shopify.
  
  
• Use Shopify Payments: Avoid transaction fees and benefit from competitive credit card rates by using Shopify Payments instead of third-party payment providers.
• Opt for Annual Billing: Save up to 25% by paying for your Shopify plan annually instead of monthly.
  
  
• Maximize Free Tools: Leverage Shopify’s built-in features, like Shopify apps, before investing in premium themes or third party tools.

Boost Your ECommerce Success with Fourthwall! 

While Shopify provides a reliable platform for selling online, integrating Fourthwall can help really elevate your e-commerce strategy! Fourthwall allows you to create custom storefronts, sell both physical and digital merchandise, and engage directly with your audience.

With tools for memberships, personalized merch, and seamless socials integrations (including the ability to additionally sell on YouTube Shopping, Instagram Shopping, and TikTok Shop!), Fourthwall complements Shopify by enabling you to build a loyal customer base that can really help you increase your revenue. Try Fourthwall today!