Everyone's favourite online store builder Shopify is a great way to start your online business. It's more popular than other eCommerce platforms and offers various pricing plans for different business needs. Whether you’re a seasoned seller, or completely new to all things Shopify, you’ll have a million and one questions about Shopify fees. In today's blog post, we’re going to give you a whirlwind guide (covering everything from the setup fee to monthly billing) so you can quickly become a Shopify fee extraordinaire.
Understanding Shopify Fees
Shopify fees are the payments you'll be charged for using the platform. The charges can include a percentage of the products or services you sell, maintenance costs, and more.
So, how much does it cost to create a Shopify store?
The Shopify basic plan costs $29 per month plus 2.9% of the selling price plus 30¢. However, the prices depend on the Shopify subscription you choose.
There are different Shopify fees that you need to pay. These are:
Shopify Fees for Subscriptions
Firstly, Shopify charges a subscription fee. These are paid monthly, yearly, or annually.
The monthly fees for Shopify plans are as follows (you can save 10% on all subscriptions by choosing to pay yearly):
- Basic plan: $19
- Shopify plan: $49
- Advanced plan: $299
In addition, there are two more plans for Shopify users:
- Starter Plan (allows selling through social and messaging apps): $5/month
- Shopify Plus Plan (suitable for high-volume business needs): $2,000/month
Regardless of the plan you’re on, Link My Books can automate your Shopify bookkeeping and save you upwards of 6+ hours per month in doing so. Learn more here.
Designs and Templates Fess
There are 70 paid and 10 free templates in Shopify's theme store. Prices for the templates vary from $150 to $350.
When sold by third-party vendors like Pixel Union and Sandbox, the price can increase to as much as $500.
Shopify's Transaction Fees
When you sell an item, you need to pay a percentage of the selling price to Shopify. It's called the transaction fee.
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. It will be 2.4% + 30¢ per transaction for the Advanced Shopify plan. As you can see, the higher your Shopify plan, the lower your Shopify fees will be.
Shopify Payment Fees
Think of these as payment processing fees. When your customer pays via Shopify Payments, you’ll be charged a payment processing fee. (Different payment gateway providers like PayPal, Klarna, and Clearpay require different charges.)
These charges also vary depending on the plan that you’re subscribed to. These fees are calculated as follows:
- Credit card processing fees for online transactions: 2.9% + $0.30 (Basic), 2.6% + $0.30 (Shopify), and 2.4% + $0.30 (Advanced)
- Processing fee for in-person debit/credit cards: 2.7% + $0.30 (Basic), 2.5% + $0.30 (Shopify), and 2.4% + $0.30 (Advanced)
Shopify Domain Fees
Though this fee is included with your plan, you can choose a custom domain name for your store. Depending on the specifics of your domain registration, this will cost you anywhere from $11 to $81.
Shopify Apps Fees
There are some Shopify apps that you can use to make your business more efficient. Some apps are free and some are paid. Apps are a great way to upgrade your stores marketing, reporting, accounting and general efficiency too.
Need accounting software for Shopify sellers? Check here.
Shopify Email Fees
Each plan includes 2,500 monthly free emails, with each additional email costing $0.001. The platform will give you a price estimate whenever you exceed your monthly allocation of free emails.
How to Calculate Shopify Fees
Paying annual Shopify fees can be complicated. When you're running a store, many expenses need to be taken into account. There is a fee for opening a store, selling products, and shipping them.
You also have to consider the cost of credit cards and other costs involved in managing your business, such as office supplies, insurance, etc.
Use Shopify's Custom Price Calculator to determine the fees for customised products. This calculator is designed to help you estimate your fees based on your specific needs. However, it costs $14.99/month.
Previously on the blog we’ve suggested a few free methods for calculating all these complicated fees. These tools will help you set up proper pricing structures to match your business requirements and get the most out of your online store.
Do You Need a Business Accountant for Shopify?
You’ll be able to spend more time expanding your business instead of dealing with the hassles of setting up and managing your own Shopify store.
A Shopify accountant will provide you with tax guidance, especially if you’re a UK business owner.
You could also reduce costs by outsourcing your bookkeeping and accounting requirements to a Shopify accountancy company.
We recently wrote an article with guidelines about choosing the correct Shopify reports for bookkeeping so you could always give the bookkeeping a go yourself first but hiring an accountant is pretty much a given when running an e-commerce business.
FAQs about Shopify Fees
How do I avoid fees on Shopify?
You'll automatically save on the transaction fee by activating Shopify Payments and Shopify checkout.
Why do so many Shopify stores fail?
Many Shopify stores fail because the owner lacks experience in running a business. Other reasons include little e-Commerce and digital marketing knowledge and a poor product line.
Does Shopify charge a monthly fee?
Yes, Shopify charges a monthly fee to run your store. The initial Shopify setup fee is $5 per month.
Final Words
Selling on Shopify is a great way to grow your own brand online and be in control of your customer base, unlike selling on marketplaces such as Amazon, eBay or Etsy where you’re essentially playing in their sandpit.
With that comes a more complex fee structure, but that doesn’t mean you should be put off. Link My Books works with thousands of Shopify store owners who are running very profitable businesses and who use Link My Books to ensure that they know that.
With Link My Books doing all the hard work for you in terms of bookkeeping, you can focus on growing your store on Shopify and benefit from accurate financials so that you make better business decisions and ensure that you’re paying the correct taxes too.
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