Unveiling the Cost to Sell on Shopify: Surprising Facts Revealed

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For people and companies wishing to launch an online shop, Shopify is a more and more popular option. Shopify is a fantastic alternative for people wishing to sell online because to its user-friendly platform and variety of features. Yet, a lot of individuals frequently have questions about how much it costs to sell on the site.

The cost of selling on Shopify will be thoroughly examined in this blog post. We will discuss some of the additional charges you could incur when selling on the platform, as well as the various fees involved, such as transaction fees and payment gateway fees.

You will have a greater idea of the actual cost of selling on Shopify by the end of this article, and you will be armed with the information you need to decide for yourself whether the platform is the best option for your online store.

But let's take a minute to understand what Shopify is and how it functions before we get into the intricacies.

A fully-hosted eCommerce platform called Shopify enables both individuals and companies to launch an online store and sell their goods or services. With Shopify, you have access to a customizable shop, inventory management, payment processing, and sales tracking all in one location.

Shopify's simplicity of use is one of its primary advantages. Even if you've never used an eCommerce platform before, it's quick and simple to start up your shop on Shopify. Without the need for a web designer, the platform's selection of templates and themes makes it simple to build a storefront that looks professional.

Together with these functionalities, Shopify also provides tools for marketing and SEO, abandoned cart recovery, and customer relationship management. With Shopify, you can concentrate on expanding your company while leaving the platform to handle the technical aspects.

Let's examine the price of selling on Shopify in more detail now that we have a better knowledge of what it is and how it functions.

Understanding Shopify

It's crucial to have a solid understanding of Shopify in order to comprehend the costs associated with selling on the platform. Shopify is a fully-hosted eCommerce platform that enables you to build and run your own online store, as we already explained.

One of the main advantages of utilising Shopify is that it handles all the technical aspects of establishing and maintaining an online store. Hosting, security, backups, and software updates fall under this category. You can concentrate on managing your company because Shopify will handle all of these responsibilities.

To assist you in building an online shop with a professional appearance, Shopify also provides a number of services. You may choose from a variety of layouts and themes, and there is also a drag-and-drop website builder that makes it simple to modify your storefront.

Shopify also provides a number of tools to assist you in managing your online store in addition to these features. This involves tracking orders, managing inventories, and managing shipping and taxes. These tools make it simple to manage your orders and shipments and guarantee that your customers receive their products on schedule.

The variety of payment alternatives offered by Shopify is an additional perk. Your consumers may easily pay for their orders using Shopify because it supports a number of payment gateways, such as PayPal, Stripe, and Apple Pay.

The simplicity of use that Shopify offers is one of its main benefits. You may quickly and easily set up your shop on Shopify even if you have no prior expertise with eCommerce platforms. You can concentrate on expanding your business rather than wrangling with technical issues thanks to the platform's user-friendly and straightforward design.

All things considered, Shopify is a strong eCommerce platform that provides a number of tools to assist you in setting up and maintaining your online store. Shopify has everything you need to start a successful online business, whether you're a small business owner or a large organisation.

What Is the Cost of Selling on Shopify?

Using Shopify to sell your wares is a great method to kickstart your online store, but before you dive in, you should research the fees you'll have to pay. Shopify's monthly subscription prices are reasonable, but there are other costs besides those that need to be taken into account.

Let's start by taking a deeper look at Shopify's pricing structures. Unlimited items, storage space, and bandwidth, as well as round-the-clock access to a support team, are all included with Shopify's $24/month Basic plan. Aside from all the features available in the Basic Shopify plan, the Shopify plan (which starts at £62 per month) also includes gift cards, professional reporting, and abandoned cart recovery. The top-tier Shopify subscription, Advanced, costs a minimum of £235 a month and includes everything mentioned above plus an advanced report builder and shipping prices calculated by a third party.

Shopify adds a transaction fee on top of the monthly subscription price for any sale made on the platform. Your transaction charge may change based on the pricing tier you select. There is a 2.0% fee on all transactions with the Basic Shopify plan, a 1.0% fee with Shopify, and no fees at all with the Advanced Shopify plan.

Payment gateway fees are another potential outlay. You will incur transaction fees when using a third-party payment processor like PayPal or Stripe. Provider and transaction details can affect the fees incurred. For every transaction, PayPal will charge you 2.9% plus 30p, while Stripe will charge 1.4% plus 20p for cards issued in Europe and 2.9% plus 20p for cards issued anywhere else.

It's important to keep in mind that there may be more fees associated with using Shopify to sell. Hiring a web designer to alter the store's visual motif or integrate new functionality, for instance, will increase the budget. Consider other costs associated with running an online store, such as those for marketing and promotion, packaging and shipping supplies, and server space.

Finally, Shopify can be a fantastic platform from which to establish your online store. But, you should think about the costs associated with running an online store, such as monthly subscription fees, transaction fees, payment gateway fees, and so on. Knowing these costs in advance will help you decide if Shopify is the best platform for your online store.

Shopify Pricing Plans

Shopify offers a range of price options to accommodate various needs and budgets. The Basic Shopify plan, which has a monthly price of £22, is intended for newly established businesses. It has necessary components like limitless items and storage, a free SSL certificate, and round-the-clock assistance. Two employee accounts are included in the Basic plan and can be utilised to run your shop.

Starting at £62 per month, the Shopify plan is a step up from the Basic plan. The Basic plan's features are all included, along with extras like gift cards, professional reporting, and abandoned cart recovery. Five staff accounts are included in the Shopify plan, which might be helpful if you have a bigger team working on your online business.

The Advanced Shopify plan, which is intended for high-growth companies with sophisticated needs, starts at £235 per month. It has all the capabilities of the Shopify plan in addition to extras like a sophisticated report builder and third-party computed shipping prices. For companies with a bigger staff, the Advanced plan's 15 staff accounts are appropriate.

Shopify provides a variety of connectors and add-ons in addition to these pricing tiers to help you personalise your online store. You may, for instance, spend more money on themes or apps to improve the functioning of your store. Certain add-ons might be cost-free, while others might have one-time or ongoing costs.

. a. a............................... For instance, the free SSL certificate offered with all price options can assist in safeguarding customer data and enhancing consumer confidence in your company.

In conclusion, Shopify provides a range of pricing options to accommodate various needs and budgets. The Shopify plan offers extra capabilities for businesses aiming to expand, while the Basic plan is best for small enterprises just starting started. The Advanced plan is intended for complicated, high-growth businesses. You can select the price strategy that works best for you by carefully weighing the requirements of your company and your financial constraints.

Transaction Fees on Shopify

In addition to the monthly subscription price, Shopify also levies transaction fees for each sale you make. According to the pricing plan you select, these costs change. A transaction fee of 2.0% is imposed by the Shopify plan's Basic version, 1.0% by the Shopify plan, and none at all by the Advanced Shopify version.

Particularly if you're processing a lot of sales, transaction fees can pile up rapidly. Yet, it's crucial to remember that transaction fees are only assessed on the sale price and not on any taxes, shipping expenses, or other fees.

Say you offer a product for £100 to provide an example. A transaction fee of £2 will be charged if you have Shopify's Basic plan. A £1 transaction fee will be charged to Shopify plan subscribers. No transaction costs apply if you're subscribed to the Advanced Shopify plan.

Using Shopify Payments as your payment gateway might help you cut or even eliminate transaction fees. Merchants in specific nations can use Shopify Payments, the built-in payment mechanism of Shopify. You won't have to pay any transaction costs when using Shopify Payments for online store sales.

But there is a credit card processing fee that Shopify Payments levies, and the amount varies based on the kind of credit card used. For instance, in the UK, American Express charges a processing fee of 2.2% + 20p every transaction whereas Visa and Mastercard charge a cost of 1.6% + 20p.

Hence, while selling on Shopify, transaction fees are a crucial expense to take into account. Even though they quickly pile up, they are only applied to the sale amount and not to any taxes, shipping fees, or other fees. Using Shopify Payments as your payment gateway can help you cut or even get rid of transaction fees. Shopify Payments does, however, charge a fee for processing credit cards, so keep that in mind.

Payment Gateway Fees on Shopify

Payment gateway costs are a significant expense to take into account when selling on Shopify. Payment gateways that handle transactions on your behalf, like PayPal or Stripe, incur a fee. These costs can change based on the service provider and the kind of transaction being handled.

PayPal, for instance, levies a fee of 2.9% + 30p every transaction for UK-based online sales. For overseas transactions or transactions in different currencies, this cost could be larger. Another well-known payment gateway is Stripe, which levies fees of 1.4% plus 20p for European credit cards and 2.9% plus 20p for non-European cards.

It's crucial to take into account the features and functionality given in addition to the costs charged when selecting a payment gateway. To help shield your company from fraudulent transactions, some payment gateways could provide extra fraud protection or chargeback protection.

Shopify provides customers with a selection of payment channels, including Shopify Payments, PayPal, Stripe, and others. To choose the payment gateway that best suits your company's demands, it's crucial to conduct thorough research on your possibilities.

If you live in a nation where Shopify Payments is accessible, it could be wise to use that as your payment channel. The Shopify platform includes Shopify Payments, which makes it simple to set up and utilise. Moreover, Shopify Payments doesn't charge transaction fees for purchases made through your online store. However, bear in mind that Shopify Payments levies a fee for processing credit cards.

It's also vital to remember that some payment gateways could have extra costs or setup procedures. PayPal, for instance, offers various account kinds with potentially varied features and costs. Before authorising you to process payments, Stripe may need further proof or paperwork.

Finally, while selling on Shopify, payment gateway costs are a significant expense to take into account. Make sure you thoroughly investigate the features and functionality given as well as the fees associated with each payment gateway choice. It might be worthwhile to think about lowering or doing away with transaction fees if you're selling in a nation where Shopify Payments is offered.

Additional Costs to Consider When Selling on Shopify

There are more expenses to think about if you plan on selling on Shopify in addition to the ones we've already covered. Depending on your company's specific requirements, these expenditures may include:

Shopify's huge app store provides a broad variety of paid apps that may be used to expand your online company's capabilities. Some of these applications have a monthly fee, but the majority are free to download. You should think about the apps you require and the money you want to spend very seriously.

There will be marketing expenses if you want people to see your online store. This could include things like social media ads, PPC campaigns, and SEO (SEO). More money may be needed for things like advertising or search engine optimization (SEO) services.

When planning a budget, don't forget to factor in the price of shipping and handling if you'll be sending out any physical goods. Everything from boxes to mail is fair game for this category.

Expenses related to meeting tax regulations may arise if your company or its clients operate in jurisdictions with different tax requirements. This may involve obtaining a VAT number or, in some areas, implementing a sales tax.

While Shopify does provide a number of templates that can be altered to suit your needs, you may still want to invest in expert website design and development if you want your store to stand out from the crowd. Additional design and development fees may result.

Having a thorough grasp of your business expenses necessitates that you factor in all the costs connected with selling on Shopify. It can be good to make a budget that accounts for all of these fees, as well as any potential additional expenses.

Finally, there are other expenses that may be incurred while using Shopify for online sales, in addition to the basic monthly price. App fees, marketing costs, shipping and handling costs, tax compliance costs, and website design and development costs are just some of the many potential expenses that must be taken into account. Putting together a budget that accounts for all of these costs will help your business succeed financially in the long run.

Comparing the Cost of Selling on Shopify to Other Platforms

While Shopify is a well-liked platform for online product sales, it's crucial to weigh your options and compare pricing to choose the solution that best suits your company's demands. Here are some additional platforms to take into account along with how much they vary in price:

With the help of the well-liked WordPress plugin WooCommerce, you can convert your website into an online store. Although the plugin is free, you will still need to pay for web hosting and any further themes or add-ons. These prices may change based on your demands.

Amazon: You can offer goods to their enormous consumer base through Amazon's online marketplace. Although Amazon does charge a referral fee for each transaction, there is no monthly fee to sell on the site. The referral fee can vary depending on the product category from 6% to 45%.

Etsy: If you provide handmade or vintage goods for sale, Etsy can be an excellent choice. They take a 5% transaction fee from each sale in addition to a listing cost of 20p per item.

It's crucial to take into account not only the fees but also the features and functionality provided when evaluating the prices of various platforms. For instance, Shopify provides a variety of adaptable designs and apps that can improve the functioning of your online business. They also offer strong customer service choices that are accessible 24/7.

But, because WooCommerce is based on WordPress, it provides additional customization and flexibility choices. Although Amazon provides access to a big user base, other platforms may allow for more branding and customization. If you sell handmade or vintage goods, Etsy might be a nice alternative, but it might not be as appropriate for other types of things.

The ideal platform for your company will ultimately depend on your unique requirements and top goals. Before choosing a platform, make sure to thoroughly investigate and contrast the prices, features, and functionality of each. Consider making a budget that accounts for all prospective costs, including any unforeseen or variable charges that might occur. By doing this, you can make sure that your online shop is long-term financially viable and successful.

Tips for Reducing the Cost of Selling on Shopify

Even though selling on Shopify might be an expensive endeavour, there are several easy actions you can take to save expenses and boost revenue. Here are some recommendations for lowering Shopify selling costs:

Reduce the quantity of things you sell as a means to cut costs. Simplify your product offers. You can lower your inventory costs and increase your profits by concentrating on your best-selling products. By focusing on particular items and customer groups, you may also cut back on advertising expenses.

Use social media: Social media is an economical approach to market your goods and establish your brand. Without spending a lot of money on advertising, you can improve sales by providing compelling content and focusing on your audience.

Improve your business for speed: A slow-loading store might drive customers away and affect your search engine rankings. You can enhance customer experience and increase conversions by speeding up your shop. You may need less expensive paid advertising as a result of this.

Strategically use discounts and promotions to boost sales: Discounts and promotions can be a powerful tool for bringing in new clients. To prevent damaging your margins, it's crucial to utilise them wisely. To increase sales, take into account providing discounts for particular products or during slow times.

Negotiate with suppliers: If you work with suppliers, you might try to cut your upfront costs by negotiating cheaper rates or longer payment terms. To find better offers, you can also seek for different vendors.

Choose the appropriate payment gateway: As payment gateways charge fees for handling transactions, it's critical to select the appropriate one for your company. Although Shopify Payments is a practical choice, you should also think about using third-party payment gateways to cut costs.

In conclusion, proper preparation and strategy are necessary to lower the cost of selling on Shopify. By reducing your product offerings, utilising social media, optimising your store for speed, using discounts and promotions intelligently, negotiating with suppliers, and choosing the correct payment gateway, you may cut expenses and boost revenues.


In conclusion, selling on Shopify doesn't have to be an expensive endeavour. It may be. You may boost your profitability and develop a long-lasting online business by being aware of the expenses related to selling on Shopify and taking action to lower them.

Prior to anything else, it's critical to comprehend the charges related to selling on Shopify, such as transaction fees, payment gateway fees, shipping prices, and other costs. You can decide on pricing, product options, and marketing tactics with knowledge of these expenses in mind.

Finally, you may take action to cut costs by speeding up your store, promoting your products on social media, negotiating better prices with suppliers, and selecting the appropriate payment gateway for your company.

To make sure that your firm is financially viable, it's also critical to routinely track your spending and income. You can find places to cut costs and increase profitability by using accounting software to manage your sales and spending.

The customer experience should not be sacrificed in the name of cost cutting, it is crucial to keep in mind. You may create a devoted customer base and gradually raise revenue by offering high-quality products and first-rate customer service.

In conclusion, rigorous monitoring, strategic planning, and wise decision-making are all necessary to lower the cost of selling on Shopify. The advice provided in this article can help you create a profitable internet business while lowering your expenses.

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