It may surprise you that there are currently more than 1.7M merchants selling their products using Shopify. Amazing, isn't it?!
The platform has a lot to offer, and if you also plan to launch your online store on Shopify, naturally, you may have some questions regarding its pricing plans and fees.
As a new retailer on Shopify, one of the most common questions you might ask is, “Does Shopify take a percentage of sales?”
The answer is yes. Shopify does take a percentage of the store’s sales of products. However, it depends on the pricing plan you choose from the beginning.
The Shopify fees feature a tiered pricing structure, which provides a lot of flexibility and allows merchants to choose the one that is most appropriate for their business at the time.
Additionally, as businesses grow, switching up to the next Shopify plan is very easy, and with just a few clicks, you can upgrade from Shopify Lite all the way to Shopify Plus.
So if you are wondering which Shopify pricing plan is best for your business and whether Shopify takes a percentage of your sales? this post is for you.
You can find a guide here that helps you find your answers.
Continue reading to learn about Shopify's different plans and all the details you need to know about its fees. 💡👇🏻
Does Shopify Take a Cut?
The short answer is Yes. Shopify does take a percentage of sales of your products. 💳
However, this percentage is not so high, which in turn means merchants shouldn't worry too much about it.
It's important to know that Shopify doesn’t take a percentage of your sales on the platform. You are instead required to pay according to the plan you choose in the beginning.
Even though Shopify takes a percentage of your store's sales, this is entirely dependent on the payment plan you choose.
Merchants using this popular Canadian e-commerce platform can choose between three different pricing plans.
It is interesting to note that the higher your payment plan is, the less of a percentage Shopify charges. This is why you need to choose the right Shopify payment plan for your store.
According to Shopify's pricing plans, here are the transaction fees for online credit card rates:
- Basic Plan merchants receive a 2.9% +30c deduction from each online transaction.
- Shopify Plan users get 2.6% + 30c per transaction.
- Shopify Advanced members get 2.4% + 30c.
You can avoid additional fees by using Shopify Payments when paying for these types of plans.
Note: Paying with your credit card will cost you extra fees. Every sale you make will also be charged to you if you do not use Shopify Payments. So it’s better to use Shopify’s payment system instead.
What are Shopify's Different Plans?
Truth be told, Shopify is not the cheapest eCommerce builder you can find in the e-market, but it is one of the most trusted.
The company works tirelessly every day in order to ensure continuous improvement, and its good reputation only grows strong.
In fact, Shopify's revenue has almost doubled since 2013 as a result of rapid growth.
One of the positive points about Shopify’s pricing plans is that the platform offers competitive rates to help the merchants find one that fits their needs and budget.
Shopify offers a variety of pricing plans, each of which varies in terms of price and features available.
The following is a summary of each type of Shopify plan, which will give you a general idea of its pros and cons.
✅ Basic Plan
This plan covers all the basics you need to start a new business and, by far, is the most common plan that merchants choose.
Despite having the most affordable monthly rate, Shopify takes the highest percentage from your sales in this plan.
The pricing details are as follows:
- Subscription fee: $29/month
- Online credit card rate: 2.9% + 30¢ USD
- In-person credit card rate: 2.7% + 0¢ USD
- Additional fees using services other than Shopify Payments: 2.0%
✅ Shopify Plan
Shopify plan includes all the features you need for a growing business.
Not only will you have lower fees with this plan, but you will also have access to more advanced features.
In addition to having more admin accounts, you'll be able to customize your reports. Also, you can use Shopify Plan gift cards and recover abandoned carts.
The pricing details are as follows:
- Subscription fee: $79/month
- Online credit card rate: 2.6% + 30¢ USD
- In person credit card rate: 2.5% + 0¢ USD
- Additional fees using services other than Shopify Payments: 1.0%
✅ Advanced Plan
The advanced plan is the most expensive option for the merchants.
This plan best serves those businesses that are approaching the enterprise level.
One of the perks of an advanced plan is the minimal transaction fees of only 2.4% + 30c.
Aside from that, this plan offers the most advanced reporting features as well as super-fast shipping.
The pricing details are as follows:
- Subscription fee: $299/month
- Online credit card rate: 2.4% + 30¢ USD
- In person credit card rate: 2.4% + 0¢ USD
- Additional fees using services other than Shopify Payments: 0.5%
While the regular Shopify plans are designed for e-commerce companies that just started or are focused primarily on inventory management and competitive payment processing fees, Shopify offers a Plus plan that is considerably more expensive and a better choice for larger companies.
What is Shopify Plus?
A Shopify plus store gives you a lot more flexibility, more support options, and more access to the underlying code of your store.
Shopify Plus lets businesses set up 20 locations, leaving more for multiple stores and warehouses for larger businesses.
With multichannel analytics, Shopify Plus merchants can track data from all their channels and see how they relate to each other. Your data can be viewed across all channels, including orders, inventory, customer interactions, and more.
This plan is ideal for businesses looking for a solution that integrates with shipping fulfillment and tracks analytics for omnichannel sales.
- Shopify plus subscription prices are on request but start at approximately $2,000/month.
What is Shopify Lite?
The Shopify Lite is a great plan that allows you to create a simple ecommerce store within minutes and at a very low price.
Shopify Lite plan sells for only $9 per month. Among Shopify's offerings, this plan is the cheapest one that even undercuts other ecommerce platforms.
Moreover, Shopify takes no percentage of your sales with this plan.
Instead, it's a simple way to add a "Buy" button to existing pages and blogs. So if you already have a website, it’s a very affordable way to start selling products.
Shopify Lites Core Features
- Overview dashboard
- Finances reports
- Customer profiles
- Order management
- Product management
- Mobile POS and hardware accessories
- Email carts
- QR code product details
- In-store inventory
- Gift cards
- Split bill
- Custom discounts and discount codes
You don't get a complete online store with a shopping cart with Shopify Lite, which is the primary difference. Consequently, you can't build a home page for your brand on Shopify.
Instead, Shopify Lite integrates with an existing website or social media page. So, for example, if you're running a blog on WordPress and want to sell some custom products, you can use the Shopify Lite plan to keep the blog and easily integrate the products you want to sell.
Having Shopify Lite:
- You can sell an unlimited number of products on your existing website.
- It allows you to sell on Facebook and other sales channels (Instagram, eBay, Amazon, etc.)
- You can also use Shopify as a point of sale (POS) system for selling products in physical locations — market stalls, concerts, retail outlets, etc.
When comparing Shopify Lite to regular Shopify pricing plans, keep in mind that the regular plan comes with a full online store and shopping cart features, while the Lite plan only offers website integration.
The Shopify Lite platform is best suited for merchants who want to:
🟢 Integrate ecommerce / dropshipping features into an existing website.
🟢 Start selling on Facebook or other platforms like Instagram and eBay.
🟢 Seek an easy way to solve VAT MOSS problems.
🟢 Need a platform to accept payments and manage stock at events and markets.
🟢 Looking for a cheap way to save abandoned carts saving features.
Shopify Lite Pricing
- Subscription fee: $9/month
Choose the Right Shopify Payment Plan for Your Store
All in all, you have learned that Shopify does charge a percentage for selling products online.
However, it is important to mention that it will only take a small transaction fee.
At first glance, this may seem like a disadvantage to e-commerce shop owners since there are other payment platforms that only charge a small percentage.
However, if you think about long-term costs and benefits, Shopify takes the lead over competing platforms in terms of everything else that comes with having an e-commerce store.
Overall, Shopify is a great way to start an online store without needing technical expertise.
Frequently Asked Questions
Is Shopify Free?
No Shopify is not a free eCommerce platform. However, you can try the service for 14 days for free. In the trial period, you can create your store and open it to the public.
How Much Does Shopify Cost?
- Basic Plan: $29/month
- Shopify Plan: $79/month
- Shopify Advanced: $299/month
- Shopify Lite: $9/month
- Shopify Plus: $2,000/month
Does Shopify Have Transaction Fees?
Shopify does not charge transaction fees for stores that use Shopify Payments, their own payment gateway. However, payment processing fees still apply and vary depending on the pricing plan. If you choose to use a third-party payment provider instead of Shopify Payments, Shopify will charge an additional transaction fee of 2%, 1% or 0.5% for Basic Shopify, Shopify, and Advanced Shopify plans, respectively, on top of the payment processing fees charged by the provider. This means that if you want to avoid transaction fees, it's best to use Shopify Payments.
Can I Skip the Shopify Fees?
No, you can’t. You can only try Shopify for free until 14 days; after that, you need to choose one of the available pricing plans to continue using the platform.
When Should I Switch Between Shopify Plans?
You can start with a basic plan, and after a while, when you begin to grow more and need to assign inventory to multiple locations, you can upgrade to other plans.
For the Basic plan, you can have access to up to 4 locations, while in the Shopify plan, the limit is up to 5, and for the Advanced plan, you will have access to 8. Also, it’s good to note that the higher your payment plan is, the less of a percentage Shopify charges you.
Which Shopify Plan is Best for a New Store?
The Basic plan is the best pricing plan to start with if you are a new merchant in the game. Basic Shopify charges $29/month, plus 2.9% and 30¢ per transaction. Shopify's Basic plan is the platform's entry-level plan and gives you an ecommerce website and all the core features you need to build up your online store.
What is the Difference Between Shopify and Shopify Plus?
Ultimately, the main differences between Shopify and Shopify Plus depend on your operating budget and philosophy. If you like having a lot of things under control and you care about cost-efficiency, then Shopify is probably your best bet. But if money isn't as much of a concern, then it may be worth upgrading to the Plus version to have more options, more access to your store's underlying code, and better support.
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