Shopify Pricing Plans Review – Are They Really That Expensive?

Last updated on November 8, 2018

Shopify Pricing Review

Shopify Pricing review


Picking the right ecommerce builder can be confusing, especially when it comes to figuring out how much it really costs.

A lot of people complain about Shopify pricing plans, specifically when it comes to transaction fees and credit card rates.

In this Shopify pricing review, we’ll investigate commonly misunderstood concept of transaction fees, how you can remove them, and how you can save on credit card fees.

Review by
Last Updated on November 8, 2018

Shopify currently powers over 500,000 online stores in 175 different countries.

When it comes to their pricing plans, however, reviews are mixed. It really boils down to two separate camps.

Some say it’s well worth the investment and others say the fees are giant rip-offs.

So, what’s the truth? How much does Shopify really cost? If you want it in a nutshell:

The cheapest iteration of each plan is Shopify Basic at $23.20 per month, Shopify at $63.30 per month, and Advanced Shopify at $239.20 per month. That’s when you lock in for two years, otherwise the monthly rates are $29, $79, and $299 respectively.

But how come some people gladly throw money at Shopify and some cringe in disgust?

It’s really not that hard to distinguish these two major groups of people:

  1. Shopify users who are successfully leveraging off Shopify’s tools to grow their businesses.
  2. Non-Shopify users who are very price sensitive and enjoy nickel and diming when price shopping for the best (aka lowest) prices.

Let’s be honest, we all want a good deal by getting the most out of purchases while paying the least possible. It’s wise, and there’s nothing wrong with it.

But when it comes to picking a tool to build your business, pricing consideration is just one factor out of many, and I’d argue that this factor should not be the most important one.

I know, times are tough and every dollar counts, but in addition to being obsessed with the price tag while shaking your head, you should also weigh up the rewards from achieving long-term success.

Ask yourself these questions:

  • Why am I building an ecommerce store? To expand my business? To generate some side income? Maybe one day I can quit my full-time job and work from home?
  • To best reach my goals, should I automatically use the cheapest tools available? Or should I use the best tools available, even if it costs more per month?

If you’re going to enter a car race where the prize is freedom (however you define it – financial freedom, lifestyle freedom, freedom from your nagging boss, etc.), would you enter the race with the cheapest car you can find on the lot? Or would you actually consider investing in a high-performance car to give yourself the best chance of winning?

I’m not recommending that you throw your entire life savings away here. You’re more sensible than that.

What I’m suggesting is to consider investing in the best tool (even if it costs more) to give yourself the best chance to succeed.

You can see our full review of Shopify here.

The fact is, Shopify is not the cheapest ecommerce builder in the market. It’s not. But in my view, it is one of the best and it’s getting better every year.

Best All-Around Ecommerce Builder
Top Choice

5 out of 5

Template Design

5 out of 5 stars

Ease of Use

5 out of 5 stars

Features & Flexibility

5 out of 5 stars


5 out of 5 stars


5 out of 5 stars

Check out our ecommerce comparison chart here to see how Shopify stacks up against its competitors.

So, if you want to improve your chances of building a successful online store, Shopify is one of the best tools you can invest in to help you achieve your goal.

In this article you’ll learn:

  • What you actually get from each Shopify pricing plan.
  • Credit card rates – using Shopify Payments versus PayPal.
  • Which is price plan is the right choice for you.
  • The truth about transaction fees (Q&A) – common misunderstanding.

Shopify Pricing Plans – What It Costs Per Month

One thing you should note is that on Shopify’s pricing page, the monthly price for each plan assumes you pay on a month-to-month plan.

What this means is that if you decide to cancel, you just stop paying. Period.

If you decide to go on the 1-year or 2-years plans, you save 10% or 20%, respectively.

Shopify Prices:

Shopify Pricing Plans Shopify Basic Shopify Advanced Shopify
Monthly $29.00 $79.00 $299.00
$26.10 $71.10 $269.10
Savings (%) 10% 10% 10%
$23.20 $63.20 $239.20
Savings (%) 20% 20% 20%

An interesting fact I dug up is that based on Shopify’s annual report (they are a publicly listed company), there are more users on the monthly plan than the 1-year or 2-year plans.

This is a broad statement, but unfortunately Shopify didn’t provide exact percentages. I’d imagine that the discounts you receive are not steep enough for users to commit to longer terms.

On that note, you should also know that Shopify’s merchant growth has progressed at a pace of 74 percent on average since 2012, and helped its merchants process over $40 billion in sales.

Shopify is on an accelerated growth path and their brand continues to receive more and more recognition each year as one of the best ecommerce builders available today.

shopify pricing shopify trends
Overall interest in ecommerce is growing slowly while interest in Shopify is growing rapidly. Click graph to see recent updates.

In fact, uber-successful entrepreneurs such as Tony Robbins and Daymond John (Fubu, Shark Tank) all recommend and support Shopify’s mission and platform.

Of course there are solid alternatives to Shopify out there (see our comparison to BigCommerce here), but none come with quite the same industry recognition as Shopify.

Getting back to Shopify pricing plans though, here’s exactly what you get from each plan:

Features Basic Shopify Shopify Advanced Shopify
Monthly Price $29.00 $79.00 $299.00
Credit Card Rates 2.9% + $0.30 2.6% + $0.30 2.4% + $0.30
Transaction Fees Shopify Payments = 0.0%

Other Processors = 2.0%

Shopify Payments = 0.0%

Other Processors = 1.0%

Shopify Payments = 0.0%

Other Processors = 0.5%

No. of Products Unlimited Unlimited Unlimited
24/7 Support Yes Yes Yes
Discount Codes Yes Yes Yes
Blogging Yes Yes Yes
Free SSL Yes Yes Yes
Gift Cards No Yes Yes
Detailed Reporting No Yes Yes
Abandoned Cart Recovery No Yes Yes
Advanced Reporting No No Yes
Real-Time Shipping No No Yes
Features Basic Shopify Shopify Advanced Shopify

You can click here to see the actual pricing table on Shopify’s website.

To get a quote for Shopify Plus (not listed on the table above), you have to speak to Shopify directly. This is because it’s an enterprise-level ecommerce plan targeted at big businesses.

Besides the obvious monthly pricing differences, here are a few other differences you should pay attention to as well:

  • Credit Card Rates – decreases marginally for higher plans
  • Transaction Fees – decreases significantly for higher plans
  • Abandoned Cart Recovery – very useful tool to help you earn more profits automatically. Detailed discussion here.

I’ll go over the Credit Card Rates and Transaction Fees in much more detail below.

Shopify Plus (Enterprise Level Users) – If you’re in the big leagues and your business generates 6 to 7 figures in sales per year, this is how Shopify Plus can help you grow even more.


Shopify Pricing – Credit Card Rates

On Shopify’s pricing table, the Credit Card Rates section relate to the rates you get charged if you decide to use Shopify Payments to handle your payment processing.

Cost of Shopify

When you use a credit card to purchase online or offline, there is a fee that you will pay no matter what – a payment processing fee.

What this means is that when a shopper purchases a product from you, the payment processor that helps you collect money, and deposit the money into your bank account, will charge you a fee for handling this monetary transfer process.

It’s something you can’t avoid, unless you physically go to each shopper, collect the cash, and depositing it into your own bank account.

When you go to your local grocery store to purchase something with your credit card, the grocery store pays a processing fee to their payment processor to collect payment from your bank and deposit it into their bank. That’s just how the world of commerce works. All merchants pay this fee.

That said, the only thing you can control are the credit card rates and that is determined by which payment processor you choose to use.

With Shopify Payments, their credit card rates / payment processing rates for online transactions are as follows:

Shopify pricing plans

These fees are on a per transaction basis, not on a per-item sold basis. So if someone buys 10 widgets from you in one single transaction, the 30 cents is charged only once and not on each item.

(Note: If you sell products in-person using Shopify’s Point-of-Sale system, the credit card rates are lower)

Shopify Payments is Powered by Stripe

Shopify Payments is actually powered by a very reputable payment processor called Stripe.

They’re known to be reliable, easy to work with, and for their transparent pricing structure.

How Stripe works with Shopify

Shopify Payments is currently available to stores in the United States, Puerto Rico, Canada, the United Kingdom, Ireland, Australia, New Zealand, Hong Kong, and Singapore.

If you’re not located in these countries, Shopify is fully integrated with over 70 different payment processors to accept credit cards from all over the world. You can see their list of payment processors here. 

Shopify Payments vs PayPal

In this section, I’ll compare Shopify Payments (essentially Stripe) with PayPal – the most popular payment processor in the world.

PayPal is rock solid. It’s reputable, easy to use, but they’re more expensive than using Shopify Payments:

Service Shopify Payments PayPal
Monthly Fees $0 $30 *
Transaction Fees 2.9% + $0.30

2.6% + $0.30

2.4% + $0.30

2.9% + $0.30
Amex Fees Same as above 3.5% + $0.30
International Fees Same as above 3.9% + Fixed Fee **
Accepts Apple Pay Yes No
Payout Schedule 2-Days: US, Australia

7-Days: Canada, Ireland, UK


Source: PayPal Merchant fee schedule

* If you want your customers to remain on your website throughout the entire checkout process, you’ll need to upgrade to PayPal Payments Pro ($30 per month). If you don’t, your customer will be redirected away from your website to PayPal’s secure payment page, then be brought back to your website after payment. Stripe keeps your customer on your website the entire time.

** If your customer is not based in your country, PayPal will charge you a higher percentage plus a fixed fee. The fixed fee depends on where your customer is located:

Shopify credit card fees based on country
Depending on your customers’ locations, PayPal will charge different fees.


A lot of ecommerce businesses choose to use Stripe because their pricing structure is simple and transparent, and the funds are automatically deposited into your bank account a lot faster than PayPal.

In fact, 85% of Shopify users use Shopify Payments when it is available in their country (we’ll get into more details in the next section).

While PayPal is also reliable, their pricing structures are often confusing as there are a lot of “depends on…”, so it’s challenging to work out exactly how much they’re going to charge you per transaction.

It can be really frustrating sometimes, especially if you’re a very detailed type of person and want to know exactly how they calculated the fees.

At the end of the day, it’s cheaper to use Stripe / Shopify Payments if it is available in your country.

Keep in mind that the processing fee also decreases (though marginally) if you subscribe to a higher Shopify plan.

Shopify Payments Guide – If you’re looking for more information about Shopify payments, check out our further discussion.


Shopify Pricing – What’s The Best Plan For Me?

Shopify’s Basic Plan is great for anyone who wants all the standard functionality of an online store but isn’t bothered about all the fancy features that can come on top.

It costs $29 a month and can really help kick-start your journey into the world of ecommerce. It also is a fantastic way of creating a fully-fledged online store if you’ve had some initial success with the Lite Plan and want to make the step up.

Shopify’s Professional Plan is a smart choice for those who are really invested in growing their business. If your site currently returns around $5000 in monthly revenue, then this is the plan for you.

This plan costs $79 a month but gives you added features such as an abandoned cart recovery tool, which is proven to increase sales without adding to your workload.

Shopify’s Advanced Plan is designed for companies with monthly revenues in excess of $10,000 and costs $299 a month.

Shipping is handled by a third party and the plan also allows you to create advanced reports. This is an excellent feature for those looking for more accuracy when testing and projecting. 

Cost of Shopify

At this point, it’s important to state that there are two other plans also available – Shopify Lite and Shopify Plus – with these two plans sitting either side of the spectrum.

Shopify Lite allows you to add ecommerce functionality to an existing site (like a personal blog or even selling through Facebook). Whereas Shopify Plus caters for massive companies and takes care of managing your orders, giving you and your team more time to focus on marketing products.

Shopify Lite costs $9 per month and is for those just want to sell things on the side. It won’t allow you to create a separate online store and is really more of an added extra to your site rather than the main attraction.

If you want Shopify Plus however, you’ll need to get a quote from Shopify themselves. As a safe bet, though, you’ll be looking at around $2000 per month.


Shopify Pricing – Transaction Fees (Q&A)

I see complaints about Shopify’s transaction fees quite often, usually from merchants who are concerned about how transaction fees can add up quickly and eat into their profits.

Cost of Shopify

Of course, nobody likes to pay more fees especially if you don’t think it’s necessary. However, I feel that the concept of Shopify’s transaction fee is commonly misunderstood.

Let’s spend a few minutes investigating why transaction fees exist on top of monthly plan fees, is it unique to Shopify (or if they’re just a bunch of greedy people), and what you can do.

Q: How do transaction fees work?

A: Each time a customer purchases from you (a transaction), depending on which Shopify plan you subscribed to, a transaction fee will be charged. The fees are 2% for the Basic Shopify plan, 1% for the Shopify plan, and 0.5% for the Advanced Shopify plan.

Q: What are transaction fees for?

A: When shoppers visit your online store, they browse around before making a decision to purchase. It takes resources for Shopify to power your ecommerce website to ensure that it stays up and doesn’t crash on you.

So the idea is that the transaction fees help Shopify keep your store open and operating at optimal levels, no matter how many visitors you have on your website at one given time (10 visitors or a million visitors).

Q: Doesn’t the monthly plan fee cover this already?

A: Yes and no. The monthly fee mainly gives you access to the Shopify platform and selling tools to get your online store published and working. The transaction fees exist to continually keep your store powered, and is only charged when someone purchases your product.

Q: What about other similar ecommerce builders? Do they charge transaction fees?

A: Yes, but in different forms.

For BigCommerce (Shopify’s closest competitor), even though they don’t charge transaction fees for each sale you make, if you generate more than a certain sales dollars per 12 months, they automatically bump you to up to a higher plan so you’ll end up paying more per month. Shopify doesn’t “force” you to upgrade to a higher plan, no matter how much sales you generate per month.

For Wix (an ideal ecommerce builder for newcomers), you won’t have to pay any transaction charges. However to sell products on Wix, you need to be on either the eCommerce or VIP plan, which are a little bit more expensive per month. Be aware that you will need to pay a percentage per transaction to your payment gateway provider, who each charge their own rate (all payment gateway providers charge this fees).

For Volusion, they limit the amount of bandwidth you have per month (think of bandwidth also as “power” that keeps your website running. The more shoppers visit your store, the more bandwidth it uses), whereas Shopify gives you unlimited bandwidth. Once you exceed the bandwidth limit with Volusion, you’ll have to purchase additional bandwidth from them (which they don’t list how much it costs, so it’s going to be a nice surprise.)

So transaction fees appear in different forms for ecommerce platforms similar to Shopify.

Q: Is there any way to remove Shopify’s transaction fees?

A: Yes. If you use Shopify Payments, they’ll remove all transaction fees.

Q: What’s the catch? Assuming if I use Shopify Payments and Shopify removes all transaction fees, how can they keep my ecommerce website powered?

A: Shopify Payments help you process payments from your customers (collect money from your customer and deposit it into your bank account). This is the credit card fee as discussed in detail above.

If you use Shopify Payments, then Shopify will earn the credit card fees.

This allows them to waive the transaction fees. So instead of paying transaction fees plus credit card fees, you just have to pay credit card fees if you use Shopify Payments. You’d have to pay this regardless even if you use another payment processor (such as PayPal).

Q: Will using Shopify Payments cost me anything more?

A: No. Shopify will waive transaction fees (saving you money), and the credit card rates are actually lower than payment processors such as PayPal (saving you money). The fee per transaction is fixed, there are no international fees (if you sell to customers outside of your country) and there are no monthly fees.

Q: Is using Shopify Payments going to save me more money compared to using other similar ecommerce builders?

A: Yes. As discussed, if you use BigCommerce, they force you to upgrade to a higher plan if you exceed certain sales levels. Shopify doesn’t require you to upgrade at all. So theoretically, you can sell $1 million worth of products and you can remain subscribed to Shopify’s lowest plan at $29 per month.

With BigCommerce, you’ll have to upgrade to a higher plan and pay more. If you use Volusion, they limit the amount of bandwidth and if you exceed the limit, you’ll have to purchase more from them.

Shopify gives you unlimited bandwidth.

Q: Are a lot of Shopify users using Shopify Payments?

A: Yes. According to Shopify, 85% of their users are using Shopify Payments when it is available (for users located in the US, Puerto Rico, Canada, the UK, Ireland, Australia, New Zealand, Hong Kong, and Singapore) as at the end of 2017.

This shouldn’t be surprising at all as users get to save transaction fees, have lower credit card processing fees, and can start receiving funds after 2-days.


When it comes to fees per sales transaction, it’s best to use Shopify Payments. Not only will Shopify waive all transaction fees, the credit card processing fees are also lower than PayPal (and most other payment processors).

It doesn’t cost you anything more to use Shopify Payments as you’ll need a payment processor to handle payments anyway.


Conclusion – Shopify Pricing Plans

I hope this discussion addresses the more commonly misunderstood aspects of what it costs you per month to use Shopify.

Shopify is one of the best hosted ecommerce builders available in the market today (see our full review here). They’re not the cheapest, but they do offer the best value for money.

They have a very broad range of ecommerce tools, offer you access to their App Store (over 1,400 apps), and an ecosystem of theme designers and experts. Shopify is a very strong and fast-growing online store builder.

If you’re looking for a low-cost ecommerce builder, then Shopify is not the right platform for you (see our ecommerce comparison chart for alternatives).

But, if you’re serious about building a successful online store, Shopify is an excellent platform to help you achieve your goals.

Their plans are not outrageously expensive and are actually quite affordable, giving you the tools and infrastructure to get started. Imagine if you were able to earn $1,000 per month from your business, the $29 per month plan is quite manageable.

Now, imagine if you grew your sales to $5,000 per month over time, the monthly cost starts to become negligible.

So, while $29 or $79 per month sounds expensive when you first get started, keep in mind what your business sales goals are over the medium to long-term. If you only want to generate $200 per month, then Shopify is probably not for you.

But if you want to generate thousands of dollars per month over time, Shopify is a strong platform to help you do just that.

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About Jeremy

Maybe just like you, at first we didn't have a darn clue about how to build a website, nevermind write half a line of code if our life depended on it! We wanted to build a website to start a side business, and felt overwhelmed, confused & scared about how to actually do it, which builder to use, and making wrong decisions. After years of trials & errors using different website builders, we're here to share our experiences with you.



About Jeremy

Maybe just like you, at first we didn't have a darn clue about how to build a website, nevermind write half a line of code if our life depended on it! We wanted to build a website to start a side business, and felt overwhelmed, confused & scared about how to actually do it, which builder to use, and making wrong decisions. After years of trials & errors using different website builders, we're here to share our experiences with you.

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30 Responses to Shopify Pricing Plans Review – Are They Really That Expensive?

  1. #

    This is such a helpful review. Thank you!
    I am debating whether Shopify commerce site is the right for me for a UK based business. I am trying to ascertain the costs involved in the sales.
    Am I correct in thinking that if I go with a Shopify payment at Charge of 2.2% +20p I will be charged the same regardless of whether they pay with credit card or PayPal. Does this differ if they are international payments.
    I would love an online calculator to help me work this out!!! Is there anything like that?

    • Natasha Willett

      Hi Antoinette,
      Welcome to the community and thank you for your question. Payments and transactions fees is something we hear time and time again as a huge factor when deciding which platform to use, so you are not alone in your concern. Lets break this down, yes that fee of 2.2% +20p is regardless of how your customer will pay. This fee however is only when you have used Shopify payment as your payment gateway. If you select to use this on your site it would be integrated to your checkout meaning it is super straightforward for your customers to pay by card from wherever they are in the world! Taking international payments through Shopify payments should not stop you.
      I haven’t heard of an online transaction fee calculator, what a great idea, I’ll reach out to to our tech team to see if there is a way to maybe develop something onsite!
      I hope this is has helped, all the best with your decision.

  2. #


    Thank you for such a detailed explanation, very helpful. I am still struggling with the question of “owning” our web site. We are a bricks and mortar, 39 year old retail farm and garden supply business, with an outdated website. I have looked at different web site builders, and we are in the process of working with one now, but, have not payed our first installment yet. I have stalled as I realized I needed to ask the question: “What happens if we decide to not use you after our one year contract is finished”. Answer: site gets dismantled. So, we have spent roughly $3000.00 or so (not including social media package, hosting, etc.), or adding ecommerce component, really just the design, and it is very boiler plate, that is not ours to keep if we want to move to another web platform. I feel like I need to own my website, with the designer keeping in mind that we will be adding the shopify capabilities at some point once info (or brochure) site is up and running. I am trying to understand if Shopify actually builds and designs websites.

    Any thoughts would be appreciated. Thank you in advance for your time.

    • Lucy Carney

      Hi Darnell,
      Thanks for your comment, I’m so glad you found the article helpful. That’s great that you’re looking to get back online, and I understand your concerns. Shopify is a platform that allows you to create your own website, so you use it to build your online store, adding products and customizing your design. You don’t need a designer to do this, as it is aimed at ordinary people being able to do it themselves. In regard to the issue of what happens to your website if you no longer want to stay with that provider, there are a few options. Most ecommerce website builders have apps and guides to help you migrate your website across from one builder to another. For example, you could use the Shopify app Cart2Cart to transfer your store to Shopify, or another example would be using BigCommerce’s Catalog Transfer to transfer your site away from Shopify. All these apps should allow you to move your products, customers, reviews, etc. smoothly across from one to another.
      If you want to read more about this, here’s Shopify’s guide on how to migrate your store to their platform, and here’s Cart2Cart’s homepage plus their list of supported platforms that you can transfer between. Hopefully this will clear up any concerns of being stuck with one provider, as apps like these do make it as easy as possible to migrate your store. If you’re not sure about Shopify, why not check out our comparison chart of the best ecommerce online store builders of 2018?
      Really hope that helps and best of luck!
      Thanks for reading,

  3. #

    Hi! Very helpful information! For me time is money and so I always look for a product that works as advertised, with a minimum of fuss and with good support. That is what I found here. I recommend Shopify Pricing Table that was easily integrated into our site.

    • Fred Isaac

      Thanks for the comment Michael, glad Shopify worked for you.

  4. #

    Thank you for the informative article. I’m just starting my Shopify ecommerce store – dropshipping – and while the credit card type fees are negligible in the long run, they do need to be accounted for and we need to know what to expect. Otherwise, we might be blindsided by a number of ‘negligible fees’ that actually add up.

    I understand from my emails with Shopify support and that if we use Shopify Pay as our gateway, we only pay on the $29 plan 2.9% + $.30 per transaction no matter what credit card the buyer uses or if they use PayPal. At least I think that’s what I’m being told. Customer support is great and I received a lot of information but not in a way that isn’t still leaving questions.

    Your article which is far more comprehensible than anything else I’ve found in trying to understand something that should be so plain and simple. I’m still not sure that what I understand is what I’ll be charged.

    • charlie Carmichael

      Hi Gayle,

      Thanks for your comment.

      Yes we would always recommend you keep track of all your outgoing fees, no matter how small they may be individually. You are correct regarding the 2.9% + $0.30 for the $29 monthly plan, and that shouldn’t change based on whether the buyer uses a credit card or PayPal. We’re glad you found the article helpful and please feel free to share it on social media – you never know who else it could benefit!

      Thanks again,


  5. #

    Hi Jeremy – I was on the Shopify website. Can you explain the 1.2% + $.30: -4% when using an external payment gateway (like Paypal or Stripe)? What does the -4% mean? Also, does Shopify accept ACH payments (and how does it charge us)?


    • charlie Carmichael

      “Hi Bill,

      Thanks for your comment.

      I’m not sure where you’ve seen Shopify’s external payment gateway fees at 1.2% or at 4%? I’ve just checked the Shopify pricing plans page and I can only see options at 2%, 1.0% and 0.5% which you can see here

      As for ACH, Shopify nor any of the other hosted platforms will have an option like that I’m afraid. ACH is something your payment gateway would use to settle your funds. However, the closest thing I can think of is an e-check payment. For example, the gateway allows customers to pay using an electronic check. But again the customer payment will first go to your payment gateway before it is settled to you.

      Hope this helps. Thanks,


  6. #

    Thank you for the great articles. Throughout my Shopify research, I have not been able to find adequate pricing info regarding the POS system. What I would like to know is that if I add the Shopify POS to a Shopify on-line store plan, do transaction fees apply if I use an external gateway for my retail sales in the store only? I have a real issue with paying out an extra percentage on my store-front sales, although it makes sense to have all my info tied together. As a small business owner it becomes cost-prohibitive to pay Shopify what would amount to an additional 1% + of my brick and mortar sales to tie the two together. (based on all the plan options and the excellent pricing I have with my external gateway). Hoping this question makes sense. Thank you.

    • Tom Watts

      Hi Terry,

      As far as I understand Shopify’s ToS, you will have to pay transaction fees if using any third party payment gateway, even with Shopify POS.

      One way to avoid this is using ‘Shopify Payments’, the in-house payment gateway solution. Although I appreciate that you don’t want to lose the favorable rates you have with your current supplier, it’s potentially something to consider for overall convenience and ‘tie it together’ as you say.

      Having just spoken to Shopify via their online support chat, I was informed that “The same transaction fee rules apply to the POS as they do to online transactions. If you process a POS sale through your Shopify account your will incur the applicable transaction fees.”

      So it looks like you’d incur the charges, Terry, if you stick with a third party gateway.

      I hope that clarifies things up a bit,
      – Tom

  7. #

    Hi Jeremy
    I really liked the DETAILED review of Shopify as I am seriously reviewing my options and looking to Shopify. I have a question:

    I have already purchased hosting from GoDaddy and it is paid for another 2 years. I have had lots of problems with Linux and keep my site online, using WordPress. My site is now offline due to some of those issues; probably some of this is my fault but I know not all…
    Do you know if I can use Shopify through my GoDaddy hosting or is Shopify the hosting plan?
    (obvious answer) Maybe you have a suggestion on how to consolidate that hosting investment.

    I like having some control – managing my website offline, experimenting with code snippets as I grow my site and then uploading updates. WordPress was good but I did not feel I had enough control, so I was leaning to the Linux C-panel with GoDaddy. As I said it is all offline due to issues of frequent on/off GoDaddy servers system.

    Thanks again

    • Tom Watts

      Hi Kat,

      Thanks for the positive feedback, good to know you found the review helpful.

      As for your hosting question: If you subscribe to Shopify then your ecommerce store will be hosted on the Shopify servers. This means you wouldn’t be able to use your GoDaddy hosting. If you’ve got a domain with GoDaddy then you can connect this with your Shopify store easily enough (here’s a step by step guide).

      It’s the nature of website building platforms like Shopify, BigCommerce, Wix, etc to bundle their hosting with their product. It’s just how it goes unfortunately. Likewise, while you can upload some custom HTML snippets to each, you can’t work on them in an offline capacity, which – if important to you – may be a sticking point.

      It sounds to me like you’re getting frustrated by the up-time or connectivity of GoDaddy’s servers, so maybe it is time to test the waters a little bit? Why not have a read of our Shopify + BigCommerce reviews as both are well respected by online merchants and trusted by millions of entrepreneurs, like yourself!

      Both platforms also offer a free trial period so you can test them out without any financial risk to yourself.

      Hope that helps,
      – Tom

  8. #

    Wow. Thank you for such a well-written and thorough article. It is undoubtedly so appreciated.

  9. #

    You’ve done a lot of good work. Decisions? Jeremy. Thankyou. Ill process this.Rob McPhail

    • Tom Watts

      Hi Rob,

      Glad you found the discussion informative.

      Thanks for reading,
      – Tom

  10. Tom Watts

    Hi webdev,

    Thanks for sharing your thoughts but I’m sorry, I really have to disagree with you here.

    Shopify is far from a toy platform – it’s one of the market leading ecommerce platforms in the world, powering over half a million stores.

    Magento 2 is a fine choice for large ecommerce businesses – as would be Shopify’s own enterprise plan – but for our readers and the focus of this discussion, Shopify is easier to use than Magento, more intuitive and nowhere near as intimidating for new comers to eCommerce.

    Shopify is also extremely powerful + scalable as you can find out on this page: on this page.

    So while I take your point that Magento 2 is an excellent choice for large-scale online businesses, it really isn’t appropriate or relevant in the context of our discussion.

    – Tom

  11. #

    Shopify is a toy platform when compared to professional platforms like Magento 2.

    If you take your eCommerce business serious then the only choice is Magento 2.

    If you want to stay small time then Shopify clearly because not only will you be paying for those “extras” per month, your get a website that performs lousy, scales even worse and you never get full control over your own site.

  12. #


    currently i am using squarespace…and i was advised to switch to Shopify….would you recommend it? if so Why?

    Thank you in advance 🙂

    • Tom Watts

      Hi Janet,

      You would only need to consider moving to Shopify from Squarespace if you wanted to build and run an ecommerce website and Squarespace did not offer the right features or functions for your site to grow.

      For a more in-depth discussion, I’d recommend having a quick look at this article comparing Shopify + Squarespace.

      Hope that helps,
      – Tom

  13. #


  14. #


    Great article, very detailed. I appreciate the information provided. For others who read this, there are a few things to keep inthe mind:
    1. The maximum 6% processing is nominal compared to earning. Remember, 6% of a $100 earned is $6.
    2. These transaction fees are business expenses, which as a necessary cost of business, can be claimed as tax offset at the end of the year. Consider it money in savings.
    3. Most importantly, keep focused. Your hosl is to sell your product to generate income
    It is far wiser to pay $6 to gain $94 than to loose the sale out of being too frugal.

    Great article! Thank you for your dedication to helping others.

    Honorably and Respectfully.

    • Jeremy

      Hi Shawn,

      Thanks for adding to this discussion. I agree with you in principle. Focus on building a good and profitable business. Find the tool that gives you the best chance of succeeding, even if it costs a bit more than others. Of course, should perform adequate due diligence to ensure that the tools one use gives you the best return for the buck as well!


  15. #

    Hi Jeremy,
    I have a question regarding this that I cannot find the answer to or maybe I am just confused.

    If my site has Shopify Payments AS WELL AS PayPal and a customer uses the PayPal option, does Shopify charge the 2% on top of the PayPal fees? Or is this a non-issue as long as Shopify Payments is available?

    Thank you in advance as this question is driving me crazy…

    • Jeremy

      Hi Nik,

      Yes, I think so – but best if you clarify this directly with a Shopify staff?

      The reason why Shopify doesn’t charge you a transaction fee if Shopify Payment is used, is that Shopify gets a piece of the payment processing fee (which you have to pay anyway regardless of which payment processor you use), so they don’t have to charge you a transaction fee.

      So if one of your customers uses your PayPal option, then Shopify won’t benefit from that transaction.

      Having said that, my own view (and experience) is that it’s still prudent to offer both Shopify Payment (Stripe) and PayPal payment options. Let your customers choose which one works better for them.

      Some shoppers might prefer using PayPal rather than credit cards. Perhaps they have unused balance in their PayPal account, or they just prefer the protection that PayPal offers.

      Studies have shown that offering more payment options lead to higher transaction success rates. It’s one less reason for your shoppers to walk away!


  16. #

    Hi Jeremy,

    Sorry for this stupid question, but I still haven´t figured completely out how much it will cost to sell something at Shopify.

    So, in the Basic Plan there´s the credit card fee 2,9%+0,30 USD + 2% transaction fee (Shopify Payments not available) + Payment gateway (Stripe, PayPal) fees.

    All this will add up to 6-8%?

    • Jeremy

      Hello Ville,

      Thanks for your comment.

      If you sell a product using Shopify’s Basic plan and if Shopify Payment is not available, then the transaction fee can look something like this:

      2.9% + 0.30 USD (paid to your payment processors such as Stripe or PayPal) + 2% (transaction fee paid to Shopify)

      So in your example, the credit card processing fee is the same as the payment gateway fee. The payment gateway (Stripe, PayPal, etc) is the one that charges you credit card fees.

      Hope this helps clarify things.


  17. #

    Thank you very much for this review! Much appreciated, Jeremy!

    • Jeremy

      Thanks for your feedback, Ken.