For instance, you need to understand how Shopify works and how much you’ll be expected to pay for your store. Before you set up your Shopify store, you may be asking questions like: How much is Shopify? Which payment details should I provide? Is it profitable to sell on Shopify, and does Shopify take a percentage of sales?
It’s important to be aware of how much you’ll be charged for setting up a Shopify store so that nothing comes as a surprise. In this article, we will give you details of the percentage that Shopify takes from your sales and the various payment plans available.
What Is Shopify?
Shopify is a cloud-based e-commerce platform that allows merchants to set up and manage their online stores. The platform has numerous themes that you can use to customize your online store so that it matches your brand, and it gives you the opportunity to merge your stores into a single e-commerce platform that lets you sell your products through websites, mobile apps, in-person, physical stores, social media pages, and online marketplaces. This platform also allows you to integrate your store with reliable Shopify bookkeeping and accounting software like Synder to help you manage your financial data.
Does Shopify Take a Percentage of Your Sales?
Shopify offers three main payment plans: basic, standard, and advanced. Each plan offers certain benefits to merchants, and because the pricing structure is tiered, you can choose a plan that’s appropriate to your business.
If you wish to expand your business later on, you are free to change your current payment plan to a higher one. Here is a breakdown of the three main Shopify payment plans:
Basic Shopify Plan
This is the lowest payment option offered by Shopify, and is a perfect plan for anyone looking to start a simple online store. For this plan, Shopify will charge you $29 per month and will take 2.2% of every successful online sale and charge $0.30 per transaction. With a basic Shopify plan, you’ll get a Shopify-hosted store and a blog.
The basic plan allows you to list an unlimited number of products and gives you access to the Shopify tool for analyzing potential fraud. It also lets you add your discount codes and provides you with a free SSL certificate for your transactions. You’ll also get 24/7 online support when you choose a basic Shopify plan.
Standard Shopify Plan
This pricing plan is very popular among Shopify merchants because it offers more benefits than the basic plan. For this plan, Shopify will charge you $79 a month, 1.9% of every online sale, and $0.30 cents per transaction. This plan gives you access to 24/7 online support, discount codes, a free SSL certificate, and a fraud risk tool.
With this plan, you can get the contact details of potential customers who show interest in your products and leave your website without placing an order. This allows you to contact them and inquire about what they’re interested in; you can also use their contact info to send them discount codes as a way of encouraging them to buy your products. If they left the site before checking out, you can also send them a reminder to complete the transaction.
Advanced Shopify Plan
This is an advanced version of the standard Shopify plan, with which Shopify will charge you $299 a month, 1.6% of every online sale, and $0.30 cents per transaction. This plan comes with fifteen additional staff accounts and third-party shipment calculations, as well as 24/7 online support and access to advanced reporting.
However, the advanced Shopify plan is for well-established businesses that ship many orders and need third-party companies to whom they can outsource their shipping services, as it allows information generation for specific items and collections.
So, if your business has reached a certain level of success and you’re now selling in large volumes, you can upgrade to an advanced plan to be able to incorporate a third-party company to ship your products.
As indicated above, the percentage taken from your online sales depends on the Shopify plan you are using, so you can start with the lowest plan and upgrade as your business grows.