What are the Shopify Plans?

It is clear that by opting to build a store on Shopify you will be saving money on hosting and development. So what are the plans and how is Shopify making money?

More details about the Shopify plans and their features: https://www.shopify.com/pricing

Navigating the world of e-commerce platforms can be daunting, especially when understanding pricing structures. Shopify, a leading name in online business solutions, offers multiple plans tailored for different needs. This guide breaks down Shopify’s pricing, from the entry-level Basic plan to the enterprise-level Shopify Plus, highlighting the advantages of annual payments and unique features so you can make an informed decision.

Why Choose an Annual Shopify Payment?

One of the major advantages of choosing Shopify’s yearly payment option is the 25% discount, which provides substantial savings compared to monthly payments. This can be a strategic move for committed business owners seeking to maximize cost efficiency.

Savings Snapshot:

• Basic Plan: €27 EUR/month (monthly) reduced to approximately €20.25 EUR/month when paid annually.
• Shopify Plan: €79 EUR/month (monthly) drops to about €59.25 EUR/month with an annual commitment.
• Advanced Plan: €289 EUR/month (monthly) is lowered to around €216.75 EUR/month annually.

Now, let’s dive into what each Shopify plan offers.

Basic Shopify Plan

• Monthly Cost: €36 EUR/month
• Yearly Cost (with 25% savings): ~€27 EUR/month when paid annually

Key Features:

• 10 Inventory Locations: Manage your products across multiple sites.
• 24/7 Chat Support: Access customer service at any time.
• Localized Global Selling: Available for 3 markets.
• POS Lite: Supports in-person sales.

Card Rates:

• 1.9% + 1 leu 1.25 RON per online transaction.
• 1.9% + lei 0.00 RON per in-person transaction.
• 2% fee for third-party payment providers.

Ideal For: Solo entrepreneurs and small businesses starting their online journey.

The Shopify Basic Plan is the perfect starting point for new e-commerce businesses looking to establish their online presence. With its straightforward features, this plan is ideal for entrepreneurs with a low number of card-paid orders, offering essential tools at an affordable price. It includes 10 inventory locations and 24/7 chat support to manage day-to-day operations seamlessly.

Shopify Plan

• Monthly Cost: €105 EUR/month
• Yearly Cost (with 25% savings): ~€78.75 EUR/month when paid annually

Key Features:

• 10 Inventory Locations: Same as the Basic plan.
• Abandoned Cart Recovery: Aids in converting sales.
• 5 Additional Staff Accounts: More team collaboration options.
• POS Lite: Standard support for in-person sales.
• Localized Global Selling: Available for 3 markets.

Card Rates:

• 1.7% + 1 leu1.25 RON per online transaction.
• 1.7% + lei0.00 RON per in-person transaction.
• 1% fee for third-party payment providers.

Ideal For: Small teams and growing businesses looking for more advanced tools and better rates.

The Shopify Plan is a step up for businesses that have a growing team and more complex needs. Supporting up to 5 staff accounts and 10 inventory locations, this plan is tailored for merchants who need more hands on deck to manage their store. Additionally, it’s an excellent option for businesses with a higher volume of card transactions, as the transaction fee is lower than the Basic plan, leading to better savings.

Advanced Shopify Plan

• Monthly Cost: €384 EUR/month
• Yearly Cost (with 25% savings): ~€288 EUR/month when paid annually

Key Features:

• Custom Reports and Analytics: Gain deeper insights into sales and performance.
• Enhanced 24/7 Chat Support: Advanced support capabilities.
• 15 Additional Staff Accounts: Suitable for larger teams.
• 10x Checkout Capacity: Manage high-volume traffic efficiently.
• POS Lite: For streamlined in-person transactions.
• Localized Global Selling: Available for 3 markets, additional market $59/month.

Card Rates:

• 1.5% + 1 leu1.25 RON per online transaction.
• 1.5% + lei0.00 RON per in-person transaction.
• 0.6% fee for third-party payment providers.

Ideal For: Established businesses needing powerful data analytics and lower transaction fees.

For high-volume businesses with advanced needs, the Advanced Shopify Plan offers comprehensive features. This plan not only supports custom reports and enhanced analytics but also includes 3 markets for localized global selling, with the option to add more markets for $59/month each. This makes it the ideal choice for merchants looking to expand internationally and maximize their market reach.

4. Shopify Plus

• Monthly Cost: Starting at $2,300 USD/month (based on a 3-year term)
• Yearly Savings: Custom pricing with tailored benefits for large enterprises

Key Features:

• Custom Reports and Analytics: In-depth reporting for strategic decisions.
• 200 Inventory Locations: Manage inventory on a large scale.
• Priority 24/7 Phone Support: High-level support for mission-critical operations.
• Customizable Checkout with 40x Capacity: Tailored for enterprise needs.
• Unlimited Staff Accounts: Accommodates extensive teams.

Card Rates:

• Competitive, negotiable rates tailored for high-volume merchants.

Ideal For: High-volume enterprises that need maximum customization, scalability, and dedicated support.

Key Takeaways

• Annual Savings: Opt for annual payment plans to save 25% on the Basic, Shopify, and Advanced plans, making them more cost-effective.
• Feature Comparison: Higher-tier plans offer more detailed reports, additional staff capabilities, and enhanced support.
• Transaction Fees: Card rates decrease as you upgrade, which can result in substantial savings for businesses with high transaction volumes.

Choosing the right Shopify plan depends on your business’s current needs and growth strategy. Evaluate the monthly costs, potential savings, and features to find the perfect fit for your e-commerce journey.

How is Shopify making money?

Shopify is making the bulk of its money from payment processing fees.

Credit card rates range from 2.2% to 1.6% for online orders and between 1.5% and 1.7% for in-store orders. This is not something specific to Shopify. You would pay a payment processing fee on any platform you are on, just not directly to Shopify.

Shopify is making money from payment processing even if you are not using Shopify Payments.

If you opt to use a different payment processor (PayPal, Stripe, Authorize.net, etc), you will have to pay between a 2% and 0.5% fee for your orders to Shopify.

We always recommend Shopify Payments to our clients as it integrates easily, as it has Buy Now Pay Later, Apple Pay, and Google Pay built into it. Plus, no additional fees are incurred.

What Shopify plan should you choose?

We always tell our clients that it’s simple math. Are the payment processing fees you are paying more than $50? Then it makes sense to move from the Shopify Basic to the Shopify plan.

Are the payment processing fees you are paying more than $220/month? Then it’s time to upgrade to the Advanced Shopify Plan.

Are the payment processing fees reaching $1.7k/month? Get in contact with Shopify Support and ask for an offer to move to Shopify Plus.

Are there any other considerations to take into account when opting for a Shopify Plan?

Plans come with different perks like calculated third-party shipping rates, number of staff members or physical store locations, and other perks. Ultimately, payment processing will be the main driver behind upgrading your plan.

Our clients, that moved over to Shopify based on our recommendation are thrilled beyond measure with the money they saved on development alone.