How much does shopify cost
Shopify is a leading e-commerce platform empowering businesses of all sizes to establish and manage their online stores.
While its user-friendly interface and robust features are widely recognized, understanding the true cost of Shopify can be a puzzle for aspiring entrepreneurs.
This in-depth analysis on the Digiwallet blog will meticulously dissect the various cost components associated with Shopify, equipping you with the knowledge to make informed decisions for your online venture.
Shopify’s Pricing Structure
Shopify employs a tiered pricing structure, offering a spectrum of plans to cater to the evolving needs of your business. Here’s a breakdown of the core pricing plans and their inherent costs:
- Shopify Starter ($5 per month): This introductory plan is ideal for budding entrepreneurs who want to test the waters of e-commerce. It allows you to sell through social media platforms like Facebook and Instagram, but it lacks its own online store functionality. Transaction fees remain a significant consideration at 2.9% + $0.30 per transaction.
- Shopify Basic ($29 per month, billed annually): This plan unlocks the door to creating your own online store. You can add an unlimited number of products, manage customer accounts, and leverage basic marketing tools. However, the transaction fee remains at 2.9% + $0.30 per sale.
- Shopify ($79 per month, billed annually): This intermediate plan caters to growing businesses with a focus on inventory management and customer interactions. It offers features like abandoned cart recovery, discount codes, and gift certificates, alongside a reduced transaction fee of 2.6% + $0.30 per transaction.
- Advanced Shopify ($299 per month, billed annually): Designed for high-volume businesses, this advanced plan provides advanced reporting tools, carrier-calculated shipping rates, and lower transaction fees of 2.4% + $0.30 per transaction.
- Shopify Plus (Custom pricing): This enterprise-level solution caters to businesses with exceptionally high sales volumes and complex needs. Pricing is determined based on your specific requirements and is negotiated directly with Shopify.
Important Note: Shopify offers a 14-day free trial for all plans, allowing you to explore the platform’s functionalities before committing financially.
Additional Cost to Consider
While the monthly subscription fee forms the backbone of Shopify’s pricing structure, there are other cost factors to keep in mind:
- Transaction Fees: As mentioned earlier, Shopify charges a transaction fee for each sale processed through their payment gateway, Shopify Payments. These fees vary depending on your chosen plan, ranging from 2.4% to 2.9% per transaction, with an additional fixed fee of $0.30. Integrating a third-party payment gateway might incur additional transaction fees specific to that provider.
- Domain Name and SSL Certificate: Your online store needs a unique web address (domain name) and a security certificate (SSL certificate) to establish trust with customers. These are typically purchased separately from domain registrars and SSL certificate providers, costing approximately $10 to $15 per year for a domain name and $50 to $100 per year for an SSL certificate.
- Themes and Apps: Shopify offers a vast selection of themes and apps in its app store to customize your online store’s design and functionality. While there are free themes and apps available, premium options often range from $10 to $30 per month, with some costing even higher.
- Payment Processing Fees: If you opt to use a third-party payment gateway instead of Shopify Payments, you’ll be subject to their specific transaction fees, which can vary depending on the provider and the type of transaction.
Cost-Saving Tips:
- Choose the right plan: Carefully analyze your business needs and select the plan that offers the features you require at the most economical price point. Upgrading to a higher plan can be done seamlessly as your business grows.
- Consider paying annually: Opting for annual billing for your Shopify subscription unlocks a significant discount of up to 25% compared to monthly payments.
- Explore free themes and apps: While premium themes and apps offer advanced features, a surprising number of free options can effectively meet your basic needs.
- Negotiate with third-party vendors: Consider negotiating transaction fees with third-party payment processors, especially if you anticipate high sales volumes.
Cost of Shopify
The ultimate cost of Shopify for your business hinges on a multitude of factors, including the chosen plan, transaction volume, and your reliance on premium themes, apps, and third-party services. Here’s a breakdown to simplify the cost analysis:
For Startups with Low Sales Volume:
For startups with low sales volume, the focus should be on minimizing costs while establishing a strong foundation for your online store. Here’s a cost analysis tailored for this scenario:
- Plan Selection: The Shopify Starter plan at $5 per month is the most cost-effective option. It allows you to test the e-commerce waters through social media sales channels without the overhead of a full-fledged online store.
- Transaction Fees: Given the lower sales volume, the 2.9% + $0.30 per transaction fee associated with the Starter plan might not be a significant initial hurdle. However, keeping a close eye on transaction fees becomes crucial as your sales grow.
- Themes and Apps: Leverage the free themes offered by Shopify to design your store. Explore free apps to manage basic functionalities like product listings, inventory management, and customer communication.
- Payment Processing: Consider using Shopify Payments as your primary payment gateway to avoid additional transaction fees from third-party providers.
Estimated Monthly Cost: With the Shopify Starter plan, transaction fees, and potential free theme and app usage, your monthly cost could be around $5 to $10, making it an attractive option for budget-conscious startups.
Things to Consider:
- Limited Functionality: The Starter plan lacks a dedicated online store, which might limit your branding and customer experience compared to a full-fledged website.
- Scaling Challenges: As your business grows, the Starter plan’s limitations might become apparent. Upgrading to a higher plan becomes inevitable to accommodate features like abandoned cart recovery and discount codes.
Example Cost Breakdown (Low Sales Volume):
- Monthly Shopify Starter Plan: $5
- Domain Name and SSL Certificate (Annual): $65 (estimated)
- Transaction Fees (Variable): This depends on your sales volume. Let’s assume you make 10 sales in a month, with an average order value of $20. The transaction fee would be: (2.9% x $20) + $0.30 = $0.88 per transaction. Therefore, the total transaction fee for 10 sales would be $8.80.
Total Monthly Cost: $5 (Shopify) + $0 + $8.80 (Transaction Fees) = $13.80 (estimated)
For Growing Businesses with Moderate Sales Volume:
As your sales volume increases and your customer base expands, consider transitioning to a plan that offers more features and flexibility. Here’s a cost analysis for growing businesses:
- Plan Selection: The Shopify Basic plan at $29 per month (billed annually) offers a significant upgrade. You can create a fully functional online store, manage inventory effectively, and leverage basic marketing tools to attract new customers.
- Transaction Fees: The transaction fee remains at 2.9% + $0.30 per sale, but the reduced cost per month compared to the Starter plan becomes more justifiable with higher sales volume.
- Themes and Apps: While free themes and apps can still be valuable, consider investing in a premium theme to create a more professional and visually appealing storefront. Explore premium apps to automate tasks, enhance marketing efforts, and improve customer service.
- Payment Processing: Shopify Payments remains a viable option, but if you negotiate lower transaction fees with a third-party payment processor handling high-volume transactions, it might be worth exploring the switch.
Estimated Monthly Cost: The cost for a growing business could range from $40 to $100 per month, depending on your chosen theme, app usage, and potential third-party payment processing fees.
Example Cost Breakdown (Moderate Sales Volume):
- Monthly Shopify Basic Plan (Annual Billing): $24.17 (discounted rate)
- Domain Name and SSL Certificate (Annual): $65 (estimated)
- Transaction Fees (Variable): Assuming 50 sales in a month with an average order value of $50, the transaction fee would be: (2.9% x $50) + $0.30 = $1.75 per transaction. The total transaction fee for 50 sales would be $87.50.
- Basic App (Optional): $10 per month (estimated)
Total Monthly Cost: $24.17 (Shopify) + $0 + $87.50 (Transaction Fees) + $10 (App) = $121.67 (estimated)
Things to Consider:
- Balancing Needs and Costs: Carefully evaluate the features you require and choose apps that cater to your specific needs. Don’t get overwhelmed by the extensive app store; prioritize functionality over unnecessary features to maintain cost-effectiveness.
- Optimizing Transaction Fees: As your sales volume grows, the impact of transaction fees becomes more significant. Negotiating lower rates with Shopify Payments or a third-party processor can lead to substantial cost savings.
In Conclusion:
Shopify empowers entrepreneurs to establish and manage their online stores, but it’s crucial to approach the platform with a clear understanding of the associated costs, carefully considering your business needs, sales volume, and strategic use of free and premium resources, you can leverage Shopify’s functionalities to achieve sustainable growth while maintaining financial prudence.
FAQ
How much does Shopify cost a month?
Pricing
| Plan | Monthly fee | Online transaction fee |
|---|---|---|
| Shopify Starter | $15 per month. | 5% plus 30 cents. |
| Basic | $29 per month (when paid annually). | 2.9% plus 30 cents. |
| Shopify | $79 per month (when paid annually). | 2.6% plus 30 cents. |
| Advanced | $299 per month (when paid annually). | 2.4% plus 30 cents. |
How much does a Shopify website cost?
How much does it cost to have a Shopify store?
| Shopify Plans | Cost per month | Fees for using payment provider other than Shopify Payments |
|---|---|---|
| Basic Shopify | $29 | 2.0% |
| Shopify | $79 | 1.0% |
| Advanced Shopify | $299 | 0.5% |
How much does Shopify cost in Nigeria?
Basic Shopify Plan – NGN 48,000 Per Month
The Basic Shopify Plan is a great starting point for your online business journey. Priced at $32 per month which is equivalent to NGN 48,000, it’s affordable and gives you the tools you need to sell things online and in-person.
Can I use Shopify in Nigeria?
Shopify is an online platform that allows you to create and manage your own e-commerce store easily. It’s like having your own virtual shop where you can sell products to customers all over the world. One of the best things about Shopify is that you can set up your store from anywhere, including Nigeria.
Is Shopify $1 a month?
While Shopify’s pricing for ecommerce starts at $29 per month when billed annually – or $1 for the first month with its current deal – its prices can exceed $2,000 per month for larger sites.
What’s better than Shopify?
The Best Shopify Alternatives of 2024
- Shift4Shop: Best for sellers on a budget.
- BigCommerce: Best for established businesses.
- Squarespace: Best for visual designers.
- Wix: Best for do-it-yourself (DIY) sellers.
- Ecwid: Best for existing websites.
- WooCommerce: Best for WordPress users.
- Sellfy: Best for print-on-demand.
Which is better, Shopify or WordPress?
Shopify has a simple, user-friendly interface that makes it easy for businesses to establish their online store. WordPress is a little bit more technical and might be better for businesses that require greater options when it comes to customization. Shopify offers built-in payment gateways and shipping options.
How to start Shopify in Nigeria?
- Start your business. Build your brand.
- Create your website. Online store editor.
- Customize your store. Store themes.
- Find business apps. Shopify app store.
- Own your site domain. Domains & hosting.
- Explore free business tools. Tools to run your business.
How much does Shopify take per sale?
Shopify charges 2.9% + 30¢ per transaction. However, the Shopify transaction fees depend on the plan you’re using. For example, when you are on the Shopify pricing plan subscription, you will be charged 2.5% + 30¢ per transaction.
How do I receive payment from Shopify?
Shopify offers several ways of receiving payouts, including PayPal, Bank Account, and Wire Transfer. Access to specific payout methods depends on your country or region and the currency that you want the payout converted to.
Which payment provider is best for Shopify in Nigeria?
Online payment gateways and payment provider integrations
- JPMorgan Chase.
- 1 Razorpay.
- 1Cashfree Payments(UPI,Cards,Net Banking,Wallets)
- 2 Advanced Credit/Debit Card – UseePay.
- 2C2P.
- 2Checkout Convert Plus (by Verifone)
- Adyen.
- Adyen Payments – Credit Cards.
