You’ve probably heard of Shopify, one of the leading eCommerce platforms for selling online. Shopify is known for its extensive feature set and user-friendly interface and is often chosen by creators, businesses, and entrepreneurs of all sizes.

But if you’re going to use Shopify, you’ve got to understand Shopify plans, Shopify costs, and its fee structure. Shopify fees can be a little complicated, with its Shopify pricing plans, transaction fees, and other Shopify costs.

To understand Shopify fees is to use them to your advantage. Let’s learn all about them so you can maximize Shopify’s sales potential!

Why It’s Important to Understand Shopify Fees 

Whether you’re just starting a Shopify store or managing a high-volume eCommerce business, understanding Shopify's pricing plans, transaction fees, and other costs is essential to your budget and profits. Shopify fees directly impact your profit margins and also play a significant role in shaping your business strategy. 

Shopify’s main costs are its subscription fees and transaction fees. For subscriptions, Shopify offers several pricing plans, each tailored to different business needs. It’s smart to select a Shopify plan that suits the features you need for customization, growth, and scaling of your Shopify store.

Shopify’s transaction fees generally only apply if you don’t use Shopify Payments. 

Shopify Payments lets your shop accept payments directly, eliminating the need for a third-party payment gateway and letting your customers use credit cards, debit cards, and other online payment methods, while you pay only a small credit card processing fee. 

While you can opt out of Shopify Payments as part of your Shopify plan, you might find that the transaction fees then add up quickly, especially if you start making a lot of sales.

Conversion fees are charged by Shopify when you accept payment in a currency that differs from your payout currency. The amount you receive in your customer’s local currency is converted to your payout currency, which is why there's a fee.

The conversion fee amounts are based on your store's primary country: 1.5% in the U.S. and 2% in all other Shopify Payments regions.

Outside of Shopify’s subscription fees, conversion fees, and potential transaction fees, Shopify store owners might choose to pay extra for features like themes, premium apps, and optional tools like Shopify POS hardware if they plan to do in-person sales.

But once you understand all of your Shopify Plan options, you can choose which fees your budget can handle, and set your prices accordingly, taking advantage of features like your site analytics and shipping discounts.

Shopify Pricing Plans Explained

Each Shopify pricing plan, from the Starter Plan to Shopify Plus and all the way up to Enterprise Commerce, is designed to align with specific business needs, so it’s important to evaluate your sales volume and growth goals before choosing a Shopify plan.

Here’s a detailed breakdown of all Shopify plans, with all prices in USD:

Starter Plan

• Cost: $5/month
• Features: Allows merchants to sell products via social media and messaging apps without a full online store.
• Best For: Aspiring creators and new entrepreneurs testing the waters of eCommerce.

Basic Shopify Plan

• Cost: $39/month
• Features: Includes a full online store, plenty of product listings, and 24/7 chat support.
• Best For: Small businesses looking to better establish their online presence.

Retail  

• Cost: $89/month
• Features: This Shopify plan offers in-person selling tools with advanced staff, loyalty, and inventory features.
• Best For: Brick and mortar stores or merchants who frequent IRL markets or festivals.

Shopify (Standard Plan)

• Cost: $105/month
• Features: Adds insurance, advanced functionality, and 5 extra staff accounts.
• Best For: Growing creators or businesses needing more features and scalability.

Advanced Shopify

• Cost: $399/month
• Features: Insurance, shipping discounts, 15 staff accounts, and third-party calculated shipping rates.
• Best For: Established sellers and businesses with more complex operations.

Shopify Plus

• Cost: Starts at $2,300/month
• Features: Competitive rates for those selling products at high volume, with customizable checkout tools, priority phone support, and advanced integrations.
• Best For: Large-scale enterprises requiring a tailored approach.

Enterprise Commerce

• Cost: Custom pricing
• Features: Enterprise-level solutions with more agility and speed, customized upon request.
• Best For: Successful companies/businesses solidifying their place online. 

How Shopify’s Transaction Fees Work 

Shopify charges third-party transaction fees for sales made through third-party payment gateways, including credit cards, debit cards, and some online payment methods.

These transaction fees vary depending on your plan, but the rates start at around 2%.

Using Shopify Payments eliminates these transaction fees entirely, leaving only credit card processing fees. As your sales volumes grow, you may find that staying with Shopify Payments can result in substantial savings.

How Shopify Payments’ Credit Card Fees Work

Shopify Payments is Shopify’s in-house payment gateway that offers competitive credit card processing rates.

Using Shopify Payments simplifies fee structures and also offers lower transaction fees, making it a preferred option for many Shopify store owners.

You can view Shopify’s complete pricing charts online, but here are a few base examples of how their payments work for online and in-person (IRL) transactions using Shopify POS:

Online Transactions

• Basic Shopify: Card rates start at 2.9% + 30¢ per transaction
• Shopify: Starting at 2.7% + 30¢ per transaction
• Advanced Shopify: Starting at 2.5% + 30¢ per transaction

In-Person Transactions (Shopify POS)

• Basic Shopify: 2.6% per transaction
• Shopify: 2.5% per transaction
• Advanced Shopify: 2.4% per transaction

Comparing Shopify’s Fees to Competitors

Shopify’s pricing plans and fees are competitive with other eCommerce sites, but the appeal of these comparisons may vary depending on your business needs and platform preferences.

Shopify vs. BigCommerce

BigCommerce’s plans start at $39/mo for the Standard Plan, $105/mo for the Plus Plan, and $399/mo for the Pro Plan. All plans include no additional transaction fees, plus unlimited staff accounts, products, and file storage.

Shopify Payments also eliminates transaction fees, and Shopify’s extensive app ecosystem and Shopify POS features provide great scalability for growing sellers who are selling products both online and IRL.

Shopify vs. WooCommerce

WooCommerce is free to use, but it requires quite a bit of extra effort to get your site rolling, including setting up hosting, registering a domain, and installing themes and plugins.

WooCommerce provides options for shipping extensions and offers WooPayments at 2.9% plus 0.30 for each U.S. transaction, plus an additional 1% for cards issued outside the U.S.

Shopify’s all-in-one approach, with built-in features, makes a Shopify store much more accessible to non-technical users. Its card rates are around the same as WooCommerce's, but get cheaper as you upgrade your plan.

Shopify vs. Squarespace

Squarespace is known for visually driven websites, with plans starting at $16/mo for Basic, $23/mo for Core, $39/mo for Plus, and $99/mo for Advanced.

Squarespace Commerce is Squarespace’s new set of features for processing payments online, and it can be challenging at times. 

Shopify’s advanced ecommerce tools, solid scalability, Shopify apps, and Shopify POS integrations make it ideal for businesses planning for growth.

And there are many options online for customizing the look of your Shopify store, including Shopify theme templates and page builders.

Tips to Reduce Shopify Fees

• Choose the Right Plan: Align your Shopify pricing plan with your needs. Shopify’s flexible pricing plans make it ideal for small creators or large businesses selling on Shopify.
• Use Shopify Payments: Avoid transaction fees and benefit from competitive credit card rates by using Shopify Payments instead of third-party payment providers.
• Opt for Annual Billing: Save up to 25% by paying for your Shopify plan annually instead of monthly.
• Maximize Free Tools: Leverage Shopify’s built-in features, like Shopify apps, before investing in premium themes or third-party tools.

Boost Your eCommerce Success with Fourthwall! 

While Shopify provides a reliable platform for selling online, integrating Fourthwall can help really elevate your eCommerce strategy!

Fourthwall allows you to create custom storefronts, sell both physical and digital merchandise, and engage directly with your audience.

With tools for memberships, personalized merch, and seamless socials integrations (including the ability to additionally sell on YouTube Shopping, Instagram Shopping, and TikTok Shop!), Fourthwall complements Shopify by enabling you to build a loyal customer base that can really help you increase your revenue.

Try Fourthwall today!

FAQ: Shopify Pricing

What Shopify plan is best for beginners?

The Shopify Starter Plan is the most affordable option at $5/month, making it ideal for new merchants testing the waters of eCommerce. 

It allows you to sell through social media, messaging apps, and custom product links without building a full online store. 

As your business grows, upgrading to the Basic Shopify Plan unlocks more tools for managing inventory, analytics, and Shopify themes.

How does Shopify pricing work?

Shopify pricing is based on a monthly subscription model, with Shopify pricing plans ranging from $5/month (Starter) to $399/month (Advanced), and Shopify Plus starting at $2,300/month for large-scale eCommerce businesses. 

Each Shopify plan includes access to your own Shopify store, built-in payment processing, and Shopify apps to extend your store’s functionality.

What’s included in each Shopify pricing plan?

Each Shopify pricing plan offers a unique feature set:

• Starter ($5/month): Sell via links and social media.
• Basic ($39/month): Full online store, Shopify themes, and 24/7 support.
• Shopify ($105/month): Lower credit card rates, additional staff accounts, and advanced reporting.
• Advanced ($399/month): Custom checkout, shipping discounts, and more staff accounts.
• Shopify Plus: Enterprise-level customization, scalable infrastructure, and dedicated account management.

Choosing the right Shopify plan depends on your store size, sales volume, and business goals.

What is Shopify Plus, and how is it different?

Shopify Plus is an enterprise-level Shopify pricing plan designed for high-volume eCommerce stores and large online businesses. 

Starting around $2,300/month, it offers advanced checkout customization, multi-channel integrations, API access, and priority support. 

It’s ideal for merchants who need scalability, custom workflows, and global selling capabilities.

Are there transaction fees on Shopify?

Yes, Shopify charges transaction fees if you use a third-party payment provider instead of Shopify Payments. 

These fees vary by Shopify plan, ranging from 2% on Basic to 0.5% on Advanced. 

By using Shopify Payments—Shopify’s own payment gateway—you can avoid extra fees and simplify your payment processing setup.