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Shopify Fees Calculator - How Much Does It Cost to Run A Shopify Store?
Updated:
7
minutes read
Are you looking to better understand and manage the costs of running your online store? Enter the Shopify fee calculator – a vital tool to help you make smart financial decisions and optimize your business expenses.
In this guide, we'll demystify the Shopify fee calculator by teaching you how to use it effectively, providing a clear breakdown of expenses involved in managing a Shopify store, and sharing expert tips on cost optimization.
For those considering Shopify Plus, check out our Shopify Plus Pricing article.
How Much Does It Cost To Open A Shopify Store?
Opening a Shopify store involves various costs, such as subscription plans, transaction fees, payment processing fees, domain costs, and app costs.
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Subscription Plans: Shopify offers three main subscription plans: Basic Shopify ($25/month), Shopify ($65/month), and Advanced Shopify ($399/month). Each plan comes with different features and benefits, with higher-tier plans offering reduced Shopify transaction fees and better Shopify payment rates. To compare regular Shopify plans with Shopify Plus, read our Shopify vs Shopify Plus blog.
- Transaction Fees: Shopify transaction fees are charged when you use a third-party payment gateway instead of Shopify Payments. These fees vary depending on your subscription plan: 2% for Basic Shopify, 1% for Shopify, and 0.5% for Advanced Shopify. Using Shopify Payments will help you avoid these transaction fees.
- Payment Processing Fees: Payment processing fees are charged by Shopify Payments or other payment gateways to deal with customer transactions. With Shopify Payments, the fees depend on your chosen plan: 2.9% + $0.30 for Basic Shopify, 2.6% + $0.30 for Shopify, and 2.4% + $0.30 for Advanced Shopify. Other payment gateways may have different fee structures.
- Domain Costs: To set up a custom domain for your Shopify store, you can either purchase a domain through Shopify (starting at $14/year) or connect an existing domain purchased elsewhere. The cost of a domain can fluctuate based on the provider and the domain extension you choose.
- App Costs: Shopify offers a wide range of apps to enhance your store's functionality. Some apps are free, but some may have additional costs, as explained in our Shopify $1 Apps article. App costs can range from a few dollars to hundreds of dollars per month, depending on the features and complexity of the app.
A bit overwhelming, right? Luckily, there are tools like the Shopify pricing calculator and Shopify plan calculator. These calculators help you determine the most cost-effective plan for your store based on your expected sales volume, transaction fees, and other factors.
How To Use A Shopify Fees Calculator?
Using a Shopify fees calculator is an effective way to estimate the costs associated with running your online store. Follow these step-by-step instructions to use a Shopify fees calculator:
- Search for a credible Shopify fees calculator online: These tools are often provided by third-party developers or companies.
- Enter your expected monthly sales volume and average order value: This information helps the calculator estimate your revenue and associated Shopify transaction fees.
- Input your payment gateway, either Shopify Payments or a third-party payment gateway: This allows the calculator to factor in Shopify payments rates and any additional transaction fees.
- Add any optional expenses, such as custom domain costs, app subscriptions, or theme purchases, to get a more accurate estimate of your overall costs.
- Review the results generated by the Shopify fees calculator. You should see a breakdown of your estimated expenses, including subscription fees, Shopify transaction fees, payment processing fees, and other costs.
- If needed, adjust your inputs to explore different scenarios or compare various plans using the Shopify plan calculator function.
Upon implementing these steps, you can estimate your store's costs and make the best decisions for your business. Keep in mind that Shopify fees explained resources are also available to help you understand the platform's fee structure in more detail.
Examples Of Shopify Store Expenses
Let's dive into examples that illustrate the expenses associated with each Shopify plan. With the help of tools like the Shopify pricing calculator and resources that explain Shopify fees, you'll be better equipped to make informed decisions about selecting the ideal plan for your business and effectively managing your costs.
- Small Handmade Jewelry Store
A handmade jewelry store picks the Basic Shopify plan at $29/month, uses Shopify Payments with 2.9% + 30¢ fees per transaction, buys a $14/year custom domain, and adds two paid apps: a $5/month Instagram integration and a $10/month email marketing app. Their monthly expenses, excluding transaction fees, amount to approximately $44, which covers the plan, payment gateway, domain, and app costs.
- Mid-Sized Home Decor Store
A mid-sized home decor store chooses the $79/month Shopify plan, uses a third-party payment gateway with 2% fees plus gateway's charges, buys a $180/year premium theme, and uses three paid apps:
- A $7/month customer review app
- A $20/month inventory management app
- A $15/month sales analytics app
Their monthly expenses, excluding transaction fees, total about $131, covering the plan, payment gateway, theme, and app costs.
- Large Online Apparel Store
A large apparel store chooses the $299/month Advanced Shopify plan, utilizes Shopify Payments with 2.4% + 30¢ fees per transaction, buys a $14/year custom domain, and uses five paid apps:
- A $30/month subscription management app
- A $20/month loyalty program app
- A $15/month chatbot app
- A $25/month product recommendation app
- A $20/month advanced SEO app
Their monthly expenses, excluding transaction fees, total approximately $409, covering the plan, payment gateway, domain, and app costs.
Utilize tools like the Shopify pricing calculator and resources with Shopify fees explained to gain a better understanding of the costs involved in each plan.
Top Shopify Apps To Help Manage Your Store's Expenses
To further assist you in managing your store's expenses, explore some of the top Shopify apps designed for effective expense management and integration with your chosen plan. These apps can help streamline your financial processes and ensure your store runs smoothly and profitably.
- QuickBooks Online by Bold: Sync your Shopify store data with QuickBooks Online to manage expenses, inventory, and accounting.
- BeProfit - Profit Tracker: Analyze your store's profits, expenses, and other financial metrics in an easy-to-understand dashboard.
- OrderMetrics: Calculate your store's profitability by analyzing revenue, product costs, shipping fees, and other expenses.
Leverage these essential Shopify apps to streamline expense management and enhance your store's financial performance.
Among Shopify apps, it's worth mentioning GemPages, a top-ranked Shopify page builder. GemPages doesn't provide a direct template for optimizing store expenses, but it provides a smart and fast way to create and customize stunning pages and contains lots of conversion-driven elements that win customers from the very first clicks.
Use GemPages to build and customize stores with ease
Start with our free plan and upgrade as you scale.
You can explore their templates library to find a wide range of designs that suit your store's needs.
Conclusion
In conclusion, understanding and managing the costs associated with running a Shopify store is essential for any entrepreneur aiming for success in the e-commerce world. Utilizing a Shopify fees calculator can help you estimate expenses such as Shopify transaction fees, Shopify pricing calculator, Shopify plan calculator, Shopify payments rates, and other Shopify fees explained. This knowledge will enable you to make informed decisions about which plan and payment options best suit your store's needs. For more information on specific plans, don't miss our Shopify Start Plan Review.
Utilizing tools such as a Shopify fees calculator and exploring other resources to optimize your store's expenses can help ensure that your business remains profitable while providing a seamless shopping experience for your customers. We encourage you to try a Shopify fees calculator and other optimization tools to take control of your store's financial performance and achieve your e-commerce goals.
FAQs About Shopify Fees Calculator
What factors contribute to the cost of running a Shopify store?
When considering the cost of running a Shopify store, several factors come into play. Subscription plans determine the features and transaction fees available to your store. Domain and hosting costs are necessary for establishing your online presence. App and plugin costs enhance your store's functionality, while theme costs affect its appearance. Marketing and advertising expenses drive traffic and sales. Additionally, shipping and fulfillment, inventory and storage, as well as taxes and legal fees, all contribute to the overall cost of operating a Shopify store.
How can I reduce the expenses associated with my Shopify store?
To reduce expenses associated with your Shopify store, carefully select the right subscription plan and payment processing options. Utilize free themes and apps, and monitor their usage to ensure they provide value. Focus on cost-effective marketing strategies, negotiate shipping rates, and streamline inventory management. Automate tasks where possible and consistently track and analyze your store's expenses to identify areas for improvement without compromising quality or customer experience.
Do Shopify fee calculators consider additional costs like apps, themes, and marketing?
Typically, Shopify fee calculators focus on subscription and transaction fees. Additional costs such as apps, themes, and marketing expenses must be calculated separately based on your store's requirements.
