What it Costs to Run a Shopify Store: Complete Guide 2024

Did you know the average cost for new Shopify stores is about $39 per month¹? This shows how much it costs to run an online store on Shopify. You’ll need to pay for domain registration, web hosting, payment processing fees, and more. Knowing these costs is key to managing your budget well.

In this guide, we’ll look at all the costs of running a Shopify store in 2024. We’ll cover the main expenses, how to calculate your total cost, and ways to save money for the future.

Key Takeaways

The average cost for new Shopify stores is approximately $39 per month¹
Domain registration costs range from $10 to $30 annually¹
Web hosting varies from $5 to $250 monthly based on plan and provider¹
Shopify platform fees range from $20 to $300 per month¹
Payment processing fees can significantly impact your overall costs

Understanding Total Cost of Ownership for Shopify Stores

Managing the total cost of ownership (TCO) is key for a Shopify store. TCO includes all costs from setup to ongoing expenses. Knowing these costs helps you budget and plan your e-commerce venture².

What is TCO in E-commerce?

TCO in e-commerce means the total money needed to start and keep an online store running. It includes Shopify fees, domain, hosting, payment processing, app subscriptions, marketing, and staff costs. Knowing your TCO helps make smart choices and keeps your Shopify business going strong².

Key Components of Store Ownership Costs

The main parts of owning a Shopify store’s costs are:

Shopify platform subscription fees
Payment processing and transaction fees
Domain and hosting expenses
Theme development and design costs
App subscriptions and integrations
Marketing and advertising budget
Staffing and operational costs

Calculating Your Store’s Total Expenses

To figure out your Shopify store’s TCO, think about your sales, Shopify plan, and extra costs. Shopify has a TCO calculator² to help estimate your costs. This way, you can plan your budget and ensure your store’s success³.

“Accurately calculating your TCO can help you make informed decisions and ensure the long-term viability of your Shopify business.”

How Much Does it Really Cost to Run a Shopify Store? A Complete Breakdown

Running a successful Shopify store is more than just paying a monthly fee. You must also think about setup costs, platform fees, and ongoing expenses. By understanding these costs, you can plan your e-commerce budget better and keep your online store profitable.

There are three main cost areas for a Shopify store:

Setup costs: This includes design, development, and any custom needs⁴⁵.
Platform fees: This includes your Shopify subscription, payment fees, and app integrations⁴⁵⁶.
Operational costs: This includes ongoing platform updates, infrastructure, and management⁶.

Most small business owners spend about $40,000 in their first year. About 9% of that goes to online business needs⁴.

Shopify Plan	Monthly Cost
Basic Shopify	$29 per month⁴⁶
Shopify	$79 per month⁴⁵⁶
Advanced Shopify	$299 per month⁴⁵⁶

The cost of running your Shopify store varies based on your needs and goals. Knowing these costs helps you manage your expenses and budget better.

Essential Platform Costs and Subscription Plans

Running a successful Shopify store means knowing about Shopify pricing plans and subscription costs. Shopify has plans for businesses of all sizes and needs⁷.

Basic Shopify Plan Features

The Basic Shopify plan is perfect for new businesses, costing $29 a month. It comes with unlimited products, 24/7 support, and a free SSL certificate⁸. The fees for this plan are up to 2.9% plus 30 cents per online credit card transaction⁸.

Advanced Shopify Plan Benefits

The Advanced Shopify plan is for growing businesses, priced at $299 a month. It has advanced reporting, third-party shipping rates, and lower transaction fees of 2.4% plus 30 cents per online credit card transaction⁸.

Shopify Plus Enterprise Solutions

Shopify Plus is for high-volume merchants, offering advanced features and customization. It starts at $2,000 a month, ideal for large sales volumes and complex needs⁷.

Remember, there are other e-commerce platform fees like domain registration, payment processing, and custom app development or premium themes¹.

Understanding Shopify pricing plans and costs helps you choose the right plan for your business and budget⁸⁷¹.

“Choosing the right Shopify plan is crucial for the long-term success of your online store. It’s important to carefully assess your business needs and growth potential to select the most suitable plan.”

Domain and Hosting Expenses

Running a Shopify store means you need to think about domain and hosting costs. Shopify offers hosting with lots of bandwidth, fast servers, and SSL certificates. They also include unlimited email forwarding with every plan⁹. Domain prices through Shopify are between $11 and $15 a year⁹.

If you choose to host your store yourself, like with WooCommerce or Magento, costs add up. You’ll need an e-commerce hosting account (starting at $5 to $20 per month)¹⁰. You’ll also need a domain name (about $15 a year)¹¹ and an SSL certificate (from $69 a year)¹⁰. Some web hosts offer deals with free domain names and SSL certificates for just $2.75 a month¹⁰.

Hosting Type	Cost Range (USD/month)
Shared Hosting	$5 to $20¹⁰
WordPress Hosting	$2 to $10¹⁰
Dedicated Hosting	$80 to $500¹⁰
VPS Hosting	$20 to $90¹⁰
Cloud Hosting	$50 to more than $2,000¹⁰

When picking a hosting plan, think about the service level, scalability, and reliability you need for your Shopify store¹⁰. Also, the length of your contract can affect your monthly costs. Longer contracts often mean lower rates¹⁰. Cloud hosting is scalable and reliable but might need more technical know-how and can cost differently based on use¹⁰.

“Ensuring a solid domain and hosting foundation is crucial for the success of any Shopify store. By understanding the various options and their associated costs, you can make an informed decision that aligns with your business needs and budget.”

Payment Processing and Transaction Fees

Efficient payment processing is key for a successful Shopify store. The platform offers several pricing plans for businesses of all sizes. Each plan has its own Shopify payment processing fees and transaction charges¹².

Shopify’s core plans are Basic Shopify ($29/month), Shopify ($79/month), and Advanced Shopify ($299/month). The Basic plan charges 2.9% + $0.30 per online credit card transaction. The Advanced plan lowers this to 2.4% + $0.30¹². In-person payments often have lower fees because of less fraud risk¹².

Merchants can also use third-party online payment gateways for more payment options. These gateways might have different fees¹². International transactions may have extra fees or currency conversion charges. These should be included in your e-commerce transaction fees budget when selling globally¹².

Credit Card Processing Rates

Shopify Lite plan: 2.9% + $0.30 per transaction¹³
Basic Shopify plan: 2.9% + $0.30 per online transaction¹²¹³
Shopify plan: 2.5% + $0.30 per online transaction¹⁴¹³
Advanced Shopify plan: 2.4% + $0.30 per in-person or debit card transaction¹²¹³
Shopify Plus plan: Customized pricing starting at $2,000/month¹⁴¹³

Third-party Payment Gateway Costs

Shopify also works with various third-party online payment gateways. These gateways offer more payment methods and control over the authorization process. The fees for these gateways vary, so merchants should choose wisely based on their business needs¹².

International Transaction Considerations

For businesses selling globally, it’s key to consider international transaction fees and currency conversion charges. Shopify charges a 1.5% conversion fee (or 2% outside the US) for sales in a different currency¹². Planning and research are vital to ensure your international sales are financially sound.

“Choosing the right payment processing solution is crucial for the success of your Shopify store. Carefully evaluate your options to find the most cost-effective and secure solution that meets your business needs.”

¹²¹⁴¹³

Theme Development and Design Investment

Having a good-looking Shopify store is key to winning customer trust and sales. Shopify has many free and paid themes, priced from $0 to $180. These themes have layouts for important pages like the homepage and shopping cart¹⁵.

If you want a unique design, costs can go up a lot. A custom Shopify theme can cost from a few thousand to $20,000 or more. Some agencies might even charge over $100,000 for detailed work⁵.

Building a Shopify store can take 80 to 250 hours, based on how custom you want it. This includes making a Style Guide and designing the main page. You’ll also need to make sure all pages look the same¹⁵.

Design tasks that add to the cost include making a Style Guide and designing key pages. This includes the Home Page, Category Page, and Product Page¹⁵.

The cost of Shopify theme development and design depends on what you need. Knowing these costs helps you plan and budget for your Shopify store’s success⁵.

Essential Apps and Integration Costs

Running a Shopify store comes with costs beyond the base fees. Integrating key apps and features can greatly affect your expenses. The Shopify App Store has many free and paid apps to boost your store’s performance.

Popular Paid Apps Categories

Paid Shopify apps offer valuable features. They include email marketing tools, social media integrations, and SEO analytics. The most sought-after categories are:

Email marketing automation
Social media selling and advertising
Inventory management and reporting
Advanced SEO and product optimization
Loyalty and rewards programs

The prices for these apps vary. Monthly fees can range from a few dollars to hundreds, based on the features and plan¹⁶.

Free App Alternatives

Free Shopify apps can also help your business grow. They offer various functionalities without extra costs. You can find everything from basic customization to advanced CRM tools.

Custom App Development Expenses

For unique needs, custom app development might be the answer. This can be a big investment. Costs can start at $5,000 for simple apps and go up to $75,000 or more for complex ones, based on the project’s scope and the developer’s rates.

When planning your budget, think about your store’s current and future needs. Make sure your app and integration choices support your long-term goals and offer a good return on investment.

Marketing and Advertising Budget Requirements

To get people to visit and buy from your Shopify store, you need to spend on marketing and ads. How much you spend depends on your marketing plan and the competition. You might spend on SEM, social media ads, content marketing, and email campaigns.

Many small businesses spend about 7-8% of their income on marketing¹⁷. Digital marketing costs can be low or very high. For small efforts, it’s a few hundred dollars a month. For big campaigns, it can be thousands or tens of thousands¹⁸.

It’s key to see how much you get back from your marketing money. Change your plans if needed to get the best results. Using both free and paid marketing can help you reach more people¹⁷.

Having a good e-commerce marketing costs plan and a smart online advertising budget is vital for your Shopify store promotion. Spending wisely on the right marketing can bring in more visitors, sales, and profits¹⁷.

FAQ

What is the average cost to run a Shopify store?

The average cost for new Shopify stores is about $39 per month. This can change based on design, customization, and features chosen.

What are the key components of the total cost of ownership (TCO) for a Shopify store?

TCO for a Shopify store includes all costs to run the business. This includes initial setup, Shopify plan fees, app subscriptions, and payment processing charges. It also includes ongoing marketing or design expenses and operational and support costs.

What are the main cost categories for running a Shopify store?

The main cost categories are setup costs, platform fees, and operational costs. These cover everything from initial setup to ongoing expenses.

What are the different Shopify subscription plans and their pricing structures?

Shopify has several plans, including Basic, Advanced, and Shopify Plus for big businesses. Each plan has different prices and transaction fees.

What are the costs associated with domain and hosting for a Shopify store?

Shopify offers hosting with unlimited bandwidth and fast servers. It also includes SSL certificates and unlimited email forwarding. Domain prices start at $15 per year but can go up to $81+ depending on the domain.

What are the payment processing fees for Shopify stores?

Shopify’s payment processing fees depend on the plan. The Basic plan charges 2.9% + 30¢ per transaction. The Advanced plan charges 2.4%. Third-party gateways may have different fees.

How much does website design and theme customization cost for a Shopify store?

Shopify has over 100 free and paid themes, priced from $0 to $180. Custom designs can cost from a few thousand dollars to $20,000+ through the Shopify Partners marketplace.

What are the costs associated with apps and integrations for a Shopify store?

The Shopify App Store has thousands of apps, both free and paid. Paid apps have monthly subscriptions with varying prices. Custom app development can cost over $5,000, depending on complexity and developer rates.

How much should be budgeted for marketing and advertising a Shopify store?

Businesses often spend 7-8% of their revenue on marketing. Digital marketing costs can range from a few hundred dollars to thousands or tens of thousands for bigger campaigns.

Source Links

https://www.shopify.com/blog/ecommerce-website-cost – Ecommerce Website Cost: Full Guide for 2024 – Shopify
https://www.shopify.com/blog/cost-to-start-business – The Average Cost of Starting a Business in 2024 – Shopify
https://www.wemakewebsites.com/blog/shopify-plus-pricing-and-cost-of-ownership – Shopify Plus’ Pricing and Cost of Ownership
https://www.hulkapps.com/blogs/shopify-hub/how-much-does-it-cost-to-start-a-shopify-store-a-comprehensive-guide-1 – How Much Does It Cost to Start a Shopify Store? A Comprehensive Guide
https://instant.so/blog/how-much-does-it-cost-to-build-a-shopify-website – How much does it cost to build a Shopify website? A detailed cost breakdown | Instant
https://www.hulkapps.com/blogs/shopify-hub/how-much-for-shopify-store-a-complete-cost-breakdown – How Much for Shopify Store: A Complete Cost Breakdown
https://www.forbes.com/advisor/business/software/shopify-pricing/ – Shopify Pricing Plans (2024 Guide)
https://www.hulkapps.com/blogs/shopify-hub/how-much-does-it-cost-to-run-a-shopify-store-a-comprehensive-breakdown – How Much Does It Cost to Run a Shopify Store? A Comprehensive Breakdown
https://swiftotter.com/technical/merchant-articles/how-much-does-a-shopify-website-cost – How Much Does a Shopify Website Cost? (2024 Price Estimates)
https://www.shopify.com/blog/hosting-costs – Website Hosting Costs: A Breakdown (2024) – Shopify
https://techreviewer.co/blog/how-much-does-it-cost-to-create-a-shopify-store – How Much Does It Cost to Create a Shopify Store | Techreviewer Blog
https://ecombalance.com/shopify-fees-breakdown/ – Shopify Fees Breakdown: Essential Insights for Ecommerce Business Planning
https://adoric.com/blog/shopify-fees-and-cost/ – Shopify Fees: What’s the Cost of Running a Shopify Store? – Adoric Blog
https://www.enzuzo.com/blog/guide-to-shopify-pricing – Quick Read on Shopify Pricing: How Much Do I Need? (Updated for 2024!)
https://webmeridian.net/shopify/custom-shopify-website-cost/ – Shopify Website Cost: A Breakdown of Expenses from Set Up to Customization
https://sherocommerce.com/shopify-pricing/ – The Definitive Guide to Shopify Pricing, Plans, and Fees [October 2024] | Shero
https://ecommerce.folio3.com/blog/how-much-does-it-cost-to-start-a-shopify-store/ – How Much Does It Cost To Start a Shopify Store in 2024
https://www.shopify.com/blog/how-much-does-a-website-cost – How Much Does a Website Cost in 2024? – Shopify