Shopify is a great website service used to sell products online. It is not only economically smart, but essentially necessary for a business to have an online site to sell to consumers. Therefore, many businesses and entrepreneurs alike use Shopify to sell their products and services online. Although Shopify offers great value for businesses and entrepreneurs, there are some costs to consider. This article will give you a better understanding of the Shopify merchant fees and other fees so you can decide if Shopify is the right choice for you and your business.
What is Shopify?
Shopify is an e-commerce platform to help businesses set up an online store and sell their products. Although Shopify has a 14-day free trial, it does require a monthly plan to use its platform and services. However, there are benefits and reasons why people choose the Shopify platform over competitors including free open-source ecommerce platforms. There are some Shopify merchant fees to consider. However, Shopify offers great value in terms of simplicity, products and services, and can really aid your ecommerce site grow.
Benefits of Shopify:
- Simple to use. Some entrepreneurs just want to use a platform that doesn’t require a lot of coding or experience with software. Sometimes, convenience and ease of use is best even if you have to pay a bit more. Shopify is both simple to use and low in cost for many individuals and businesses who sell online.
- Scalable. Shopify could be a better option for growing businesses. For some, it might be hard to manage various elements like the payment processing, marketing tools, website builder, data and metrics, and more. With Shopify, it’s all in a one-stop shop, and it’s a very intuitive platform.
- Web hosting is included. This is great for ecommerce business owners who are worried about needing more expensive web hosting upgrades to meet growing demand. Shopify makes things simpler and gives a peace of mind to the business owner.
- SEO and marketing tools. Shopify will help with search engine optimization so your ecommerce business is more easily found and visited. Here are the Top Shopify SEO Tips to help your ecommerce Shopify site. The marketing tools to help promote your product as well as measuring and analyzing data to grow your business are also superb for your business.
- Access to tools. The tools offered on spotify help you to sell in multiple places online and in-person. Reach more of your customers and have access to Shopify’s tools that will help you market your product and keep track of metrics as well. These are included free of charge and not part of the Shopify merchant fees.
Because Shopify is quite simple to use, helps build customer relationships, and better manages your business on an online platform, it can be a great choice. There are also additional products and services to purchase to accelerate your business’s growth such as easier access to capital for instance. Shopify merchant fees are a cost, but consider the other benefits of the platform to evaluate if it’s right for your business needs.
What are the Shopify Charges to Consider?
Before getting into Shopify merchant fees, it is important to understand Shopify’s subscription plans. First of all, if you are not sure if you’ll like the Shopify platform and what it offers, you can try Shopify’s free 14 day trial. No credit card is even required which is pretty generous since most services require one. Now your credit card won’t get charged if you forget to cancel. There are three main Shopify plans: Basic Shopify, Shopify, and Advanced Shopify. They cost $29, $79, and $299 per month respectively.
Subscription Plan Differences
The major differences between these plans are that the Basic Shopify plan is best for new businesses or online businesses new to in-person selling;. The Shopify plan, which is the mid-tier, is best for growing businesses with 1 retail store. Lastly, the Advanced Shopify plan is best for growing businesses with 2+ retail stores. Check out this part of Shopify’s page to compare Shopify’s pricing and plan features.
Essentially, Shopifylite lets you add products to any website or blog and accept credit card payments for only $9/month. This might be a more accessible or simpler option for those who want to simply be able sell online with their current website. You can’t build an online store with this plan, but if simply want to add a buy button and accept payments, this could be a great and affordable option.
Shopifyplus is enterprise-grade solutions for high-volume merchants, and large businesses. It starts at $2000 per month. This plan really is for big businesses who want great resources, processes, and really increase sales. Moreover, it helps manage your whole business, not just the store by automating discounts, campaigns, and more. If you want to learn more about what Shopifyplus is and if it’s worth it for your large business, explore the details on the Shopifyplus part of Shopify’s website.
Shopify Fees Explained
Shopify Transaction Fees
If you use Shopify Payments, Shopify charges no transaction fees. However, if you choose an external payment gateway, Shopify charges additional fees of 2%, 1% or 0.5% depending on your chosen plan. Shopify merchant fees are a downside of using Shopify over some other platforms such as open source ecommerce platforms in terms of costs. However, some of these platforms might be more difficult to use and may offer less services than Shopify. If you are trying to avoid Shopify transaction fees, be sure to use Shopify Payments only. Apart from the transaction fees, there are online credit card rates. They are 2.9% + 30¢; 2.6% + 30¢; and 2.4% + 30¢ for the Basic Shopify, Shopify, and Advanced Shopify plans respectively.
Where Do I Find Shopify Merchant Fees?
Shopify merchant fees are actually not very easy nor obvious to find. Here are the steps below for where to find Shopify merchant fees:
- First, log in to your Shopify account
- Go settings on bottom left corner
- Click on Payments section
- Then, click view payouts button
- Shopify merchant fees are located on the right in the fees column
- Click export if you wish to export these payouts and Shopify merchant fees
- You’ll be emailed the csv file and can open in Google Sheets or Excel
Other Shopify Considerations
- Keep in mind that Shopify collects sales taxes in states where it’s required. The stated prices do not include these taxes.
- Although there are Shopify merchant fees, there are no setup fees for any of Shopify’s plans.
- Shopify plans are month to month unless you sign up for an annual or biennial plan. That’s great for businesses who do not want to make a long-term commitment with the ecommerce platform
- There are discounted plans options. There is a 10% discount on annual plans and 20% discount on biennial plans when paid upfront.
- All plans include unlimited bandwidth for free.
It is very wise to develop the best e-commerce business plan. Don’t forget about the design and aesthetics for your website, and be sure to avoid these web design mistakes. If you would like help designing and creating an ecommerce website, contact us at SEO Design Chicago to get started!
- What fees does Shopify charge?
- Where are Shopify merchant fees?
- How do I avoid transaction fees on Shopify?
- Does Shopify take a percentage of shipping?
- How do I find my Shopify transaction fees?