Shopify is a Canadian e-commerce platform that lets business owners create online stores to sell their products.
As of 2021, about 1.7 million businesses use Shopify POS to power their websites and online marketplaces.
Keep reading for all you need to know about the updated Shopify fees, subscriptions, and pricing plans to help your business get your store up and running.
- What Is Shopify?
- What Is Shopify Used For?
- Shopify Fees: Subscription Plans
- Shopify Fees: Transactions
- What Are Conversion Rate Shopify Conversion Fees?
- Other Shopify Fees to Note
- Is Shopify Worth Paying For?
- How to Save Money on Shopify?
- Wrapping Up
What Is Shopify?
As mentioned, Shopify is a publicly-traded eCommerce platform.
Over a million businesses use their services to run the online portions of their business.
Some even operate through Shopify as the only way of selling their courses, products, and services to keep up with their monthly revenue.
What Is Shopify Used For?
Shopify allows its users to create and manage websites for their businesses.
The service offers subscription plans at varying levels.
This flexibility enables website owners to develop their online shops as they see fit.
It also allows business owners to work with third-party shippers and third-party payment processing.
Benefits of Using Shopify
There are several benefits to using Shopify beyond just allowing business owners to sell their products.
Many of these benefits include allowing owners to use the service to sell and also gain support like website building, tech support services, and merchant services.
Here are a few benefits to using Shopify to run your online marketplace for your business:
- Easy to use online store builder and pre-made Shopify theme choices.
- Ability to add functions and features specific to your site based on your needs
- Access to tech support around the clock
- Varying levels of subscription plans to fit your budget and needs
- Free 14-day trial
- Shopify App
- Dropship options
- Easy payment processing options are available, including credit card payments
- Easy to use third-party fulfillment services along with your site
Shopify Fees: Subscription Plans
Shopify requires a subscription plan for businesses looking to use it to power their online sales.
With each plan comes a host of fees, which are important to understand before costs get out of control.
There are three levels of subscriptions to choose from, including the basic plan, the standard plan, and the advanced plan.
Every plan comes with a 14-day free trial.
No credit card is required, and there is no processing fee for any Shopify pricing.
Here are the features included with all three levels of subscription plans:
- Online store with an e-commerce website and blog
- Unlimited product listings
- 24/7 support
- Various sales channels so you can sell on the site and on social media
- Discount code capabilities
- Free SSL Certificate
- Abandoned cart recovery
- Manual order creation
- Gift card options
- Customer segmentation
- Unlimited contacts
- Marketing automation services like sending automated emails
- You can choose your domain name
1. Shopify Fee for the Basic Plan
The Shopify Basic plan is the lowest-priced plan for website owners.
This plan is $29 per month.
This option is best for new e-commerce businesses that occasionally sell products in person.
The basic Shopify plan allows for two staff accounts and up to four inventory locations.
There is a shipping discount of up to 77% for these accounts and free shipping labels.
However, there is no option for USPS Priority Mail cubic pricing.
You will not receive reports, third-party calculated shipping rates, or e-commerce automation.
Shopify Basic plan comes with fraud analysis.
The online credit card rate is 2.9% + 30 cents.
The in-person debit card and credit card fee is 2.7% + 0 cents.
If you aren’t using Shopify pay, the Shopify transaction fee is 2.0%.
2. Shopify Fees for the Standard Plan
The Standard Shopify plan offers many of the same features as the Basic plan, along with a few more.
It is $79 per month and is ideal for those looking to grow their business by selling online and in-store.
The standard plan allows for five staff accounts and up to five inventory locations.
The shipping discount on this plan is up to 88%.
You receive standard reporting and USPS Priority Mail cubic pricing but do not receive third-party calculated shipping rates or e-commerce automation.
Fraud analysis is included in the standard Shopify plan.
The online credit card rate is 2.6% plus 30 cents.
The transaction fee for not using Shopify pay is 1.0%.
In-person credit and debit card rates are 2.5% plus 0 cents.
3. Shopify Fees for the Advanced Plan
The Advanced Shopify plan is perfect for scaling businesses that require advanced reporting, which is the most premium and inclusive subscription plan Shopify offers.
It is $299 per month and includes all of the features listed above, plus 15 staff accounts and up to 8 inventory locations.
You will also receive advanced reporting, e-commerce automation, and a full suite of international commerce capabilities with this plan.
The online credit card rate is 2.4% plus 30 cents.
The rates for in-person debit card and credit card payments are 2.4%+ 0 cents.
The transaction fee is 0.5% if you don’t use Shopify pay.
In addition to these three main Shopify pricing plans, there are two other options with their pros and cons you may want to check out depending on your needs.
These options are the Shopify Lite plan and the Shopify Plus plan.
Shopify Fees: Transactions
As with many online marketplaces, transaction fees do occur in some instances for your Shopify store.
Keep reading for more information on what these fees are and how to avoid them.
What Are Shopify Transaction Fees?
Shopify transaction fees vary from plan to plan, but they apply if you do not use a Shopify payment.
These fees pay for the cost and maintenance of integrating third-party payment providers with Shopify.
Transaction fees do not apply for point of sale orders or manual payment methods.
These methods include cash on delivery, bank deposits, checks, test orders, and draft orders marked paid or pending.
Do Shopify Transaction Fees Include Gst?
Depending on your shop’s location, GST may or may not be included in your fees.
Here are a few places where you may be charged GST.
- India: You will be charged GST on your Shopify fees. This charge is reflected on your monthly Shopify bill. To be exempted from this, you must provide your GST identification number.
- Singapore: You will be charged GST on your Shopify fees which will be reflected on your monthly bill. There is no exemption from this at this time.
- Australia: Shopify subscriptions and shipping labels incur a GST of 10%. There are ways to get around this by registering for Australian GST, so follow the necessary steps to get this done if you want to avoid this fee.
- New Zealand: You will get a 15% charge on your Shopify bill for GST, but if you register for New Zealand GST and add your IRD number, you can get around this charge.
- Certain States and Municipalities in the US and Canada: some states and municipalities have bylaws that require GST to be charged. If you are not in one of these specific locations, you will not be charged this tax.
How to Avoid Shopify Transaction Fees
The best way to avoid transaction fees is to use Shopify payments.
If you find that you will incur a GST fee based on your location, you can try to follow the steps Shopify lays out to be sure you are registered under the right umbrella to avoid that tax.
What Are Conversion Rate Shopify Conversion Fees?
Currency conversion rates apply when you accept currency from another country other than your own.
The currency conversion rate is a market rate that Shopify must use but does not set.
It can fluctuate, so be in tune with what it is.
The currency conversion fee is 1.5% in the United States and 2% in all other countries.
These fees appear on your payout details.
Other Shopify Fees to Note
There are a few other fees to look for when using an online commerce service.
However, Shopify has minimal fees for website owners.
Startup and Cancellation Shopify Fees
Shopify does not have any startup fees.
Additionally, there is no cancellation fee for canceling or changing your subscription.
What Are Shopify Bandwidth Fees?
There is no bandwidth fee with Shopify.
It is free and included with your subscription.
What Are Shopify Shipping Fees?
You can choose from many options provided by Shopify in terms of shipping rates.
These include flat rates.
Is Shopify Worth Paying For?
Ultimately, Shopify is worth it.
The capabilities of the site and the company’s credibility are enough to instill confidence in the service for all levels of business owners.
There are also ways to save a little money using the service if you need to save up for the monthly fee or cut costs as much as possible.
How to Save Money on Shopify?
Shopify is pretty affordable as it is.
However, there are a couple of ways to shave off a few dollars from your Shopify payment when using the service.
Trying Shopify Out for Free
Every plan comes with a 14-day free trial.
These trials do not require a credit card, and it allows you to try out every feature at no cost to you.
Of course, you can cancel at any time, but we feel you will not want to after trying it out.
Does Shopify Offer Any Discounted Plans?
Yes, there are a few discounts available.
For example, annual plans receive a 10% discount, and biannual plans receive a 20% discount.
You can also upgrade or downgrade your subscription without charge.
Shopify is a popular choice for many business owners, large and small, which is the perfect service for those operating online stores.
Their helpful customer service and flexible subscription plans, including Shopify Lite or Shopify Plus, are one of the best ways to run an online marketplace for any level of business owner.
Try it out today!