One of the most important factors to consider when choosing an e-commerce platform is the cost.
Shopify offers a range of pricing plans and fees, which can be confusing for new users. This article will break down Shopify’s fees, explaining what they are, how they are calculated, and how much they cost per sale.
We will cover:
- How Much Does Shopify Cost
- Does Shopify Have Transaction Fees
- Who Takes The Most Of Sales: Etsy Or Shopify
How Much Does Shopify Cost
The cost of using Shopify depends on the plan you choose:
- Shopify Basic: This plan costs $29 per month and includes basic e-commerce features, such as an online store, a shopping cart, and secure checkout.
- Shopify: This plan costs $79 per month and includes advanced features, such as professional reports and gift cards.
- Advanced Shopify: This plan costs $299 per month and includes features like advanced reporting and third-party calculated shipping rates.
In addition to the monthly subscription fee, you may also incur additional costs for things like payment processing, shipping, and the use of premium themes and apps.
It’s important to note that Shopify also charges a transaction fee on all plans except for the Advanced Shopify plan. The transaction fee is based on the payment gateway you use and ranges from 0.5% to 2%.
Shopify offers a 14-day free trial, so you can try the platform before committing to a paid plan.
Please note, that sometimes Shopify changes its pricing, you might want to quick peek on their Shopify pricing page.
Does Shopify Have Transaction Fees
Yes, Shopify charges a transaction fee on all plans except for the Advanced Shopify plan. The transaction fee is based on the payment gateway you use and ranges from 0.5% to 2%.
For example, if you use Shopify Payments, Shopify’s own payment gateway, the transaction fee is 2%. If you use an external payment gateway, such as PayPal or Stripe, the transaction fee is 0.5%.
It’s important to keep in mind that while the transaction fee may seem small, it can add up over time and impact your bottom line, especially if you have a high volume of sales.
You may also incur additional fees for using certain payment gateways, such as PayPal, and that these fees can vary based on the payment gateway you use. It’s important to compare the fees of different payment gateways to determine which one is the best fit for your business.
Who Takes The Most Of Sales: Etsy Or Shopify
The amount of sales taken by Etsy or Shopify depends on the plan you choose and the payment gateway you use.
Etsy charges a listing fee of $0.20 per item and a transaction fee of 5% on the sale price of each item. This means that Etsy takes 5% of the sale price of each item sold through its platform.
Shopify, on the other hand, charges a monthly subscription fee and a transaction fee. The monthly subscription fee ranges from $29 to $299 per month, depending on the plan you choose. The transaction fee ranges from 0.5% to 2% of the sale price, depending on the payment gateway you use.
So, which platform takes the most of your sales will depend on the specifics of your business, such as your average sale price, the number of sales you make, and the payment gateway you use.
It’s important to consider the fees charged by both platforms when deciding which one is the best fit for your business. In general, Shopify may be a better option if you have a higher volume of sales and need advanced e-commerce features, while Etsy may be a better option if you have a lower volume of sales and want to reach a large, established audience.
Shopify is the most popular e-commerce platform trusted by millions. It might be not the cheapest one out there, but its popularity is increasing every year, developers are adding more and more useful features and there are plenty of resources to learn about the platform.
One of the resources could be our Shopify blog, check it out.