Shopify pricing: Features and plans explained

Shopify offers a powerful platform for businesses of all sizes to build and manage their online stores. In this guide, we'll explain Shopify's pricing structure, and its features, and see how its plans cater to various needs and budgets. 

You'll also learn:

• How Shopify's platform facilitates online store creation and management
• The key features that differentiate Shopify from other e-commerce platforms
• A detailed breakdown of Shopify pricing plans and its alternative solutions
• Which types of companies benefit most from Shopify's pricing model
• How to build your own pricing model inspired by Shopify's approach

Let's get started by exploring what Shopify is and how its platform works.

What is Shopify?

Shopify is a platform that allows anyone to set up an online store and sell products. It’s like a one-stop shop for everything you need to run your business online. It provides the tools to create an e-commerce website without needing to build it from scratch.

With Shopify, businesses can list products, manage inventory, process payments, and fulfill orders all in one place. It also offers features that go beyond the basics. Think marketing tools, analytics, and access to apps that can add extra functionality to your store.

Essentially, Shopify provides the infrastructure for businesses to operate online. It handles the technical side of things, so merchants can focus on creating and selling products. 

How does Shopify work?

Shopify provides the backbone for your online business. It handles all the essential elements that keep your store running smoothly. Let's explore the inner workings of Shopify and see how it all comes together:

Building your online storefront

With Shopify, creating a professional online store is simple. Shopify has a diverse selection of pre-designed templates. Each one of them caters to different industries and brand aesthetics. 

These templates provide a solid foundation for your website. You can easily customize them with your logo, colors, and images to create a unique look and feel. 

The intuitive drag-and-drop interface empowers you to add pages. You can also create navigation menus, and arrange your products in a way that's pleasing to the eye and easy for customers to navigate.

Shopify's templates are responsive. That means they automatically adjust to fit perfectly on desktops, tablets, and smartphones. This feature ensures a consistent browsing experience for all your customers, no matter how they choose to access your store.

Showcasing your products

Adding products to your Shopify store is a straightforward process. You can upload high-quality images that showcase your products. You can even write captivating descriptions that highlight their features and set prices.

Shopify also allows you to create variants for products that come in different sizes, colors, or styles. The goal is to help you give your customers more choices and flexibility.

Shopify allows you to group products into categories and collections. They help you keep your store organized so customers find what they're looking for. This feature enhances the browsing experience and encourages customers to explore related items. 

The platform also has a robust inventory management system. You can easily keep track of your stock levels, get low stock alerts, and forecast demand. Shopify helps make sure you always have the right amount of product on hand to meet customer demand.

Creating a seamless checkout experience

Shopify offers a smooth shopping cart and checkout experience. As customers browse your store, they can add products to their cart. Carts keep track of their selections and let them review their choices before checkout.

The checkout process is designed to be intuitive and hassle-free. Shopify guides customers along the way, from entering their shipping data to choosing their payment method. You can even customize the checkout experience to match your branding.

Shopify also adheres to the highest industry standards for data security. They help give your customers peace of mind when shopping at your store by guaranteeing that all transactions are processed securely, and customer data is protected. 

Offering flexible payment options

Shopify makes it easy to accept payments from customers around the globe. This feature allows you to expand your reach and increase your sales potential. 

Shopify offers its own integrated payment gateway called Shopify Payments. It lets you accept credit cards and other forms of payment without the need to set up a third-party provider. 

If you prefer to use a different payment gateway, Shopify integrates with a wide range of third-party providers. The platform gives you the flexibility to choose the solution that best suits your needs. Keep in mind that using an external payment gateway means extra Shopify fees. 

Managing orders and fulfillment

Shopify provides the tools you need to manage the entire fulfillment process, from packing slips to shipping labels. You can view and manage all your orders in one central location, making it easy to track order status and contact customers about their orders. 

Shopify also integrates with various shipping carriers. It lets you generate shipping labels, compare rates, and track packages in real-time. You can even set up shipping rules based on product weight and destination to automate your shipping process.

Shopify supports third-party fulfillment services, freeing you from the logistical burden. This feature can be very useful for growing businesses that need to simplify their fulfillment process. 

Promoting your store and tracking performance

With Shopify's built-in marketing tools, you can create discount codes to incentivize purchases. You can also run email marketing campaigns and connect your store to social media platforms to expand your reach. 

Shopify also offers SEO tools to help your store rank higher in search results and attract more organic traffic.

To help you understand how your store is performing, Shopify provides detailed analytics. These analytics offer key insights into your sales, website traffic, and customer behavior. This data helps you to spot trends and make educated decisions about your business strategy. 

An in-depth look at Shopify pricing plans  

Shopify pricing tiers cater to all stages of growth. From startups to enterprises with high-volume sales, Shopify covers all bases. We’ll break down each Shopify plan, including features and what each tier offers. We’ll also answer the question, “How much does Shopify cost?” 

Let’s start with the free trial offering:

Free trial

Shopify’s free trial is an excellent way to explore the platform without commitment. You can try Shopify free for three days, followed by your first month for only $1. 

Important caveat: While the trial lets you test Shopify’s features, you’ll need to pick a paid plan to start selling. This introductory trial provides enough time to assess whether Shopify fits your business. However, it doesn’t include access to advanced sales tools or customizations.

Basic plan

The Basic plan is ideal for solo entrepreneurs or small businesses needing basic e-commerce tools. It’s priced at $25 per month when billed monthly or $19 per month on an annual plan. 

Let’s take a look at some of what it offers:

• Features: This plan covers unlimited product listings, a fully featured online store, and ten inventory locations.
• Key support and features: Includes 24/7 live chat support, abandoned cart recovery, marketing automation, and access to Shopify’s POS Lite — an entry-level point-of-sale solution for casual selling.

Shopify pricing on the Basic plan includes a 2% fee on transactions processed through third-party payment. That means you get a much clearer view of your monthly Shopify cost.

Shopify plan (for small teams)

Next is the Shopify plan, intended for small teams at $65 per month billed monthly or $49 per month with an annual subscription. This tier builds on the capabilities of the Basic plan while enhancing team collaboration and customer support.

Let’s look at how it’s different from the other plans:

• Expanded features: The Shopify plan includes five extra staff accounts. It also adds customized analytics and a higher discount on shipping rates.
• Customer support and inventory: Apart from support, Shopify’s POS Lite and the ability to manage up to 10 inventory locations are included. For sales analytics, this tier provides standard analytics to help you make data-driven decisions.

On the “Shopify” plan, there's a 1% transaction fee when using third-party payment providers like PayPal or Stripe. This fee is waived if you use Shopify Payments. It's important to note that this fee varies on other plans (2% for Basic, 0.6% for Advanced). 

Advanced plan 

The Advanced plan is tailored for scaleups that need in-depth analytics, robust reporting, and more sales capacity. It’s priced at $399 per month, billed monthly, or $299 per month billed annually. 

Here’s what’s included in the Advanced plan:

• Reporting and checkout capacity: Advanced offers custom reporting features and 10x checkout capacity. More capacity means more simultaneous checkouts during peak sales.
• Expanded staff and support: This plan allows for 15 staff accounts and better live chat support — ideal for larger teams.
• International selling and transaction rates: This plan supports localized selling in more markets. It also includes a 0.6% transaction fee on third-party payments.

Shopify pricing for Advanced reflects its feature-rich setup. It’s an ideal choice for businesses expanding their reach and scaling up operations.

Plus plan (for complex businesses)

At the high end, Shopify’s Plus Plan starts at $2,300 per month on a three-year term. It’s specifically designed for high-volume businesses requiring extensive customization and performance optimization.

Here’s what sets it apart from the other plans:

• Better inventory and API access: The Plus plan includes up to 200 inventory locations. It also adds unlimited staff accounts and 50 international markets with localized selling. The plan provides access to advanced API functionalities for headless e-commerce.
• Priority support and customization: Users get white-glove support by phone. They also get fully customizable checkout and 40x checkout capacity during peak times. 

Shopify pricing on the Plus plan is highly competitive for large enterprises. It’s especially useful for those requiring complex e-commerce solutions and staff management.

Alternative Shopify solutions

Shopify offers alternative plans to cater to specific business needs. They cover everything from social selling to in-person retail setups. These solutions go beyond the core pricing tiers. Let’s explain one by one:

Starter plan

The Starter plan is Shopify’s most affordable option at $5 per month. It’s focused on small businesses looking to sell via social media or simple online stores. 

Although it includes limited features, the Starter plan lets you connect product links on social media. It also grants access to Shopify’s POS Lite for casual in-person selling.

Retail plan

For in-store sales, the Retail plan offers advanced POS Pro features. It’s priced at $89 per month. It includes unlimited POS logins, in-depth customer profiles, and access to Shopify’s full range of retail analytics tools. 

The Retail plan is perfect for brick-and-mortar stores that also want basic online store functionality.

Enterprise Commerce plan

Shopify’s Enterprise Commerce plan offers custom pricing options for large-scale needs. It provides agile deployment, custom integrations, and access to Shopify’s most exclusive features. These features include things like up to 500% higher API call limits.

Shopify's pricing structure is best for these types of companies

Shopify pricing is designed with scalability in mind, making it an attractive option for many businesses. The tiered structure lets companies start small and upgrade as they grow.  They only pay for the features and capabilities they need at each stage of their journey. 

But who benefits most from this approach? Let's take a look:

Startups and small businesses 

For entrepreneurs just starting out, Shopify pricing offers an accessible entry point. The Basic plan provides all the essentials to launch an online store without a hefty upfront investment.

As the business grows and requires more advanced features, upgrading to higher tiers is a seamless process.

Growing businesses

As sales increase, businesses can take advantage of Shopify's higher-tier plans. These plans offer features like lower transaction fees. Increased staff accounts and advanced reporting tools are also included.

These features benefit growing businesses looking to optimize their operations and boost profitability.

Businesses with seasonal peaks

Some businesses experience fluctuations in sales throughout the year. Shopify pricing accommodates these businesses by allowing them to scale their plan up or down as needed. 

During peak seasons, they can upgrade to a higher tier to handle increased traffic and order volume. Then, they can downgrade during slower periods to manage costs effectively.

International businesses

Shopify's pricing structure is well-suited for businesses selling to a global audience. Features like multi-currency support and internationalization tools are available across various plans. This way, it's easier for businesses to tap into new, international markets.

Omnichannel retailers

Businesses that operate both online and offline can benefit from Shopify's POS system. They can also make use of its integration with their e-commerce platform. 

Shopify pricing allows these businesses to unify their online and offline operations. Companies can provide a consistent brand experience. They can also streamline their sales and inventory management across all channels.

How you can build a Shopify-like pricing model

Shopify's pricing model is a key reason for their success. As we’ve discussed above, it allows them to cater to a wide range of businesses while keeping healthy revenue streams. Want to create your own pricing structure that’s similar to Shopify? Here's how:

Step 1: Identify your target audience and their needs

Just like Shopify, you need to know who you're serving. Are you targeting startups, established businesses, or both? What are their pain points, and how does your product address them? 

Understanding your audience is crucial for creating a pricing model that resonates with their needs and budget.

Shopify recognized the diverse needs of businesses, from solopreneurs to large enterprises. This understanding led them to create a tiered structure that caters to various stages of business growth.

Step 2: Define your value metric and how you’ll track it. 

Ask yourself: What are customers paying for? Is it the number of users, features accessed, storage used, or something else? 

Shopify primarily uses features as its value metric. That's why higher-tier plans offer more advanced functionalities. Choose a metric that aligns with the value your solution delivers and is easy for customers to understand.

Step 3: Structure your pricing tiers

Shopify pricing uses a tiered structure, and for good reason. It allows for scalability and flexibility, catering to businesses with different budgets. Consider offering at least three tiers:

• Basic: A low-cost option with essential features, perfect for startups and small businesses.
• Standard: A mid-range option with more advanced features, ideal for growing businesses.
• Premium: A high-end option with all the bells and whistles, suitable for enterprises with more intricate needs.

Remember: Clearly define the features included in each tier and the value proposition they offer.

Step 4: Set your price points

Research competitors and analyze industry benchmarks to set competitive price points. Consider your costs, profit margins, and the perceived value of your product. Shopify's pricing is competitive within the e-commerce platform market. It offers a balance of affordability and value.

Step 5: Consider offering a free Trial or freemium version

Allow potential customers to experience your product before committing to a paid plan. Shopify offers a free trial, giving users a taste of their platform's capabilities. A free trial or freemium version can give your conversion rates a big boost. 

Step 6: Communicate your pricing clearly

Make it easy for customers to understand your pricing structure. Shopify's website clearly outlines each plan's features and pricing. Use clear and concise language, avoid jargon, and highlight the value proposition of each tier.

Step 7: Provide outstanding customer support

Shopify excels at customer support, offering various channels for help. Providing exceptional support builds trust and encourages customer loyalty. Make sure your customers have access to helpful resources and prompt help when needed.

Step 8: Continuously analyze, iterate, and optimize

Shopify evaluates and adjusts its pricing strategy based on market trends and customer feedback. Track your pricing model's performance, gather customer feedback, and be ready to make tweaks as needed.

Orb can help you craft a pricing engine similar to Shopify’s

The Shopify pricing structure shows how to handle scalable e-commerce billing successfully. As we've explained, it offers a tiered structure that caters to businesses of all sizes. Want to create a pricing structure with that same appeal and adaptability?

With Orb, you can.

Orb is a done-for-you billing platform. It empowers businesses to design and manage sophisticated pricing models. Industry leaders like Perplexity and Vercel trust us to help them build their pricing engines.

We handle the complexities of usage-based pricing. Our platform gives you the tools to build a pricing strategy that adapts and grows with your business.

Here's how Orb can help you implement a flexible, Shopify-like pricing model:

• Tiered plans implementation: Orb makes it easy to create and manage a tiered pricing structure. 
  Define your tiers, set your prices, and easily adjust them as your business evolves. Orb's granular control allows you to tailor each tier to specific customer segments. We help you maximize your revenue potential.

• Precise usage metering: Accurately measure and bill for the value your customers consume. Orb's metering infrastructure captures detailed usage data. We help guarantee accurate billing based on actual consumption. 
  This level of precision allows you to implement usage-based pricing with confidence.

• Data-driven optimization: Understand your pricing performance with Orb's robust analytics and reporting tools. 
  Track key metrics, identify trends, and make smarter decisions to improve your pricing strategy. Orb helps you transform raw data into actionable insights, allowing you to fine-tune your pricing for maximum efficacy.

• Billing made easy: Orb provides the flexibility to implement virtually any pricing model you can imagine. Go beyond simple subscriptions and explore volume discounts, tiered pricing, and prepaid credits.  
  Orb's powerful billing platform gives you the freedom to design a pricing structure that perfectly aligns with your goals.

• Integrations: Integrate Orb with your existing tech stack for a frictionless billing workflow. Connect with data warehouses and accounting tools to automate your billing process. 

Orb's integrations help you ensure your billing operations are efficient, accurate, and scalable.

Ready to build a billing engine as effective as Shopify's? Sign up for our free 30-day trial and discover how Orb can help you craft a pricing engine that's both flexible and profitable. Explore our pricing options to find the perfect plan for your needs and get started right away.