Shopify, renowned for its ease of use and scalability, is a popular e-commerce platform chosen by many individuals and business owners worldwide. 

However, when starting a new business, costs are a crucial factor. 

In this article, we’ll thoroughly explain Shopify’s pricing plans and costs, and offer strategies to reduce expenses. We will cover the features of each plan, the transaction fees of Shopify Payments, and a comparison of fees with other platforms. This information will help you decide which plan is the best when setting up your online Shopify store.

Shopify

The user-friendly e-commerce platform Shopify is an e-commerce platform that allows anyone to easily establish an online shop and is used in over 175 countries. Even those without technical knowledge can launch their online stores, contributing to Shopify’s popularity as the second-largest e-commerce site after Amazon in terms of total sales.

The platform’s main attractions are its abundance of apps and high extensibility. 

With numerous apps and plugins available, you can customize and enhance your shop’s functions to meet business needs, allowing you to create an optimal online store.

Additionally, the low cost of starting an e-commerce site on Shopify is a significant reason for its widespread support.

For those considering starting their own online store, Shopify is currently a very attractive option.

Shopify costs and pricing plans

Shopify offers various pricing plans tailored to the size and needs of your business, including a basic plan and Shopify Payments, a monthly fee paid by site operators to Shopify.

Basic Plan Plan

| Monthly | Annually (per month) Starter | $5 | –| $33 | $25 | $92 | $69 Premium | $399 | $299 Shopify Plus | $2,000 | –

*Exchange rate used: $1 = 140 yen

Shopify provides different pricing plans, with the option of annual payment available for three plans excluding the “Starter” and “Shopify Plus,” offering a 25% discount.

Next, we detail the five main pricing plans.

Starter Plan (from $5) 

The Starter Plan, available from $5 per month, is the most accessible plan on Shopify. 

It allows you to set up an online store using social networks and messaging apps, making it ideal for simple business ventures. 

This plan enables you to quickly establish a starter store within minutes, perfect for individuals and small businesses just beginning their operations.

*As of June 2022, this plan has been renamed from “Shopify Lite” to the “Starter Plan.”

The Basic Plan (from $25)

The Basic Plan starts at $25 per month and is designed for freelancers and small businesses.

In this plan,

-Creating an Online Store

-Managing Product Delivery

-Processing Payments

These essential features for running an e-commerce site are all available with this plan. Additionally, the plan supports up to two accounts, making it ideal for small team operations.

Standard Plan (from $69)

The Standard Plan starts at $69 per month and includes all the basic features of the Basic Plan, with the addition of advanced reporting tools useful for business analysis. 

This plan supports up to five accounts, accommodating slightly larger team operations.

Premium Plan (from $299)

Starting at $299 per month, the Premium Plan allows the use of Shopify’s advanced filtering and editing tools to create custom reports. 

This plan is designed for large-scale businesses, offering the lowest transaction fees and supporting up to 15 accounts. 

It is recommended for large organizations or business owners seeking high customization and scalability.

Shopify Plus Plan (from $2,000)

The Shopify Plus Plan begins at $2,000 per month and represents the highest tier within Shopify’s offerings. 

It is intended for large-scale e-commerce usage and comes equipped with features designed to optimize efficiency. 

This plan stands apart from the usual ‘Basic’, ‘Standard’, and ‘Premium’ plans by allowing you to build and manage up to ten sites without any additional fees.

Furthermore, account creation is unlimited, enabling smooth operations for large teams.

Shopify Payments (Transaction Fees)

Shopify provides its official payment service, Shopify Payments, which eliminates the need for transaction fees and transfer fees that typically arise when using external payment services. 

If you opt not to use Shopify Payments, transaction fees will apply according to your Shopify plan.

Here are the typical transaction fees if you don’t use Shopify Payments.

If transaction fees are a concern, actively using Shopify Payments is advisable. 

In addition to credit card payments, it also supports the following.

-Apple Pay 

-Google Pay 

-Amazon Pay 

-Shop Pay 

-PayPal

Comparing Costs with Other Platforms: Shopify, BASE, and STORES 

Shopify offers various pricing plans suitable for different needs, but let’s compare it with two other major e-commerce platforms.

All three platforms offer easy starts with no initial fees. 

However, while BASE has no monthly fees, Shopify and STORES do charge monthly fees. For those new to online store management and looking to minimize costs, BASE might be a good choice. 

However, for high-volume online stores, the zero fees on transactions and deposits with Shopify Payments can be a significant advantage.

With STORES, choosing the paid Standard Plan allows you to reduce the transaction fee to 3.6%. However, if you are making many transactions, Shopify’s zero-fee policy is very appealing.

If you plan to operate a high-volume business or are looking to expand, Shopify’s pricing plans may offer the best cost-performance ratio.

Ways to Reduce Costs on Shopify 

Shopify allows you to open an online store economically, but there are further ways to minimize costs.

If you’re starting small or want to reduce initial costs, consider the following tips.

Opt for an annual payment 

Shopify offers both monthly and annual payment plans.

By choosing the annual plan, you can get a 25% discount compared to the regular monthly fees, significantly reducing costs by paying for a year in advance.

This discount is particularly beneficial for operators of large-scale e-commerce sites who choose more expensive plans.

However, note that if you cancel mid-year, refunds are not available.

If you are considering short-term operation or if your business outlook is uncertain, a monthly plan might offer more flexibility.

Consider using options 

Shopify offers many optional features and apps that can add various functionalities.

Therefore, it’s advisable to hold off on upgrading your plan just to add features.

Upgrading your plan increases fixed monthly costs, potentially leading to higher long-term expenses.

If optional features or apps can solve your needs, they often involve a one-time fee or a lower monthly cost.

Review the costs of the features you need and compare long-term operational costs before deciding.

Frequently Asked Questions About Shopify Costs and Payments 

Here, we address more detailed questions about Shopify’s costs and payment methods.

Q: Is there a free trial period? 

A: Shopify offers a 3-day free trial period. No credit card is required, and after the free period ends, you can choose the plan that best fits your business. Additionally, the main three plans—Basic, Standard, and Premium—are available for just $1 per month for the first three months.

Q: How many countries’ currencies can be used? 

A: Shopify Payments supports payment currencies from 23 countries, including the Japanese yen.

Q: When is the exchange rate determined? 

A: The exchange rate and conversion fees are applied when a payment is confirmed. You can check the rate via the ‘Payment Services’ section in the admin panel (login required) and can also review details in the order timeline history.

Summary

Shopify offers plans ranging from Starter to Shopify Plus, with prices ranging from $5 to $2,000, allowing you to flexibly choose according to your needs. Especially notable is Shopify Payments, which offers transaction fees at no cost—a unique strength not found in other major e-commerce platforms. Focusing solely on features can lead to unnecessary expenses. Choose the most suitable plan based on the scale and purpose of your business, and aim for an efficient and cost-effective online store operation.