How Much Does It Cost To Build A Website On Shopify
Entrepreneurs continue to strive despite the uncertainty caused by the pandemic’s restrictions thanks to the help of eCommerce. More entrepreneurs are signing up on Shopify where they can easily set up and put their ideas into action.
In the 2nd quarter of 2020, Shopify reported that their gross profit grew by 87% and their subscription solutions revenue grew by 48% as compared to last year. Amy Shapero, Shopify’s CFO said that Shopify’s “tremendous third-quarter results reflect the resilience and entrepreneurial spirit of our merchants”.
If you are considering putting up a Shopify store yourself, we will elaborate on how much it costs to build your website on Shopify so let’s dive right in.
Why Choose Shopify?
Shopify is an eCommerce platform that lets merchants set up their stores and sell products online but also supports offline selling through Shopify POS. The platform was made to build and run online stores. It has features and tools that make it a good choice for both small and large businesses. From the perspective of a beginner, its interface is user-friendly and overall has a nice look. The tools also allow merchants to keep customers engaged and lets you sell an unlimited number of products. All these features make it the leading commerce platform designed for businesses of all sizes.
If you are thinking of moving to Shopify, one great reason to move is that it is hosted for you. The possibilities of your website crashing or slowing down during peak seasons are the least of your worries. Plus, it is very secure for both you and your customers. Their interface is also easier to use making inventory management convenient and the customer support is great.
Benefits of Using Shopify
- No server costs
- Discounts are available for annual plans
- Shopify App Store
- Security and reliability
- Has free themes but also lets you create your own
- Easy to use
- Provides 24/7 customer support
- Learn from Shopify Academy
- Great SEO capabilities
Shopify provides merchants with all the tools they need and even big brands such as Tesla, Kylie Cosmetics, and GymShark are on this platform. But, how much does it cost? Let’s break it down.
Components of a Shopify Store
Apart from Shopify’s pricing plans, there are many factors that can affect your overall costing. Your website will need to go through some testing which will involve a lot of trial and error, plus you’ll need a team of designers and developers if you don’t have knowledge in it or do not have time to learn it. There are a lot of things that you will need to launch a fully functional website aside from a Shopify account. We’re here to help you.
Here are some items you’ll need for your Shopify store:
- Shopify base plan
- Domain name registration;
- SSL certificate (for strong encryption);
- Reliable hosting;
- Transactional fees (PayPal, Visa, MasterCard, etc.)
- Development and documentation;
- UX and visual design selection and setting;
- Copywriting and imagery;
- Product shipping options;
- Continued web store maintenance
Let’s start with the Shopify plans. A Basic Shopify plan starts at $29 per month and this already provides you with everything you need if you’re just starting out. If Shopify is your very first platform there is a learning curve so it will take some time to learn everything but it helps that the platform provides you with 24/7 Customer Support so you don’t have to worry. You also get access to Shopify’s forums where other merchants and Shopify exports can help you out.
Shopify offers the following plans:
- Shopify Basic - $29 (Suitable for new businesses)
- Shopify - $79
- Shopify Advanced - $299
To summarize, here is where they all differ:
- Number of staff accounts
- Professional reports (Advanced and Shopify only)
- Advanced report builder (advanced only)
- Online credit card rates
- In-person credit card rates
- Third-party Payment Processors
- Shipping discount
- Third-party calculated shipping rates
- Able to integrate with your own shipping accounts (Advanced only)
Let’s go through the plans just to see what exactly you’ll be getting.
BASIC SHOPIFY PLAN ($29 per month + additional fees)
This is best for when you are just starting out as it already provides you with the basics, as per its name. You will be able to launch a website and sell products even with just this plan.
Here is what’s included in the basic shopify plan:
- Unlimited product uploads: Upload as many products as you want!
- Shipping discount: Get competitive shipping rates from USPS, UPS, and DHL Express. Discounts can go up to 64%.
- Shopify POS Lite: Lets you accept in-person payments.
- 4 locations: Lets you assign inventory to up to 4 specific retail stores or warehouses
- Sales channels: Lets you integrate your store with other eCommerce channels and social media
- Staff accounts: You get up to 2 staff accounts to access your admin account and POS.
Features for BASIC SHOPIFY plan include:
- 24/7 support
- Manual order creation
- Discount codes
- Secure Sockets Layer (SSL) certification
- Automatic abandoned cart recovery emails
- Customized gift cards
- Printing shipping labels
For transaction fees, you will pay 2.9% + 30 cents for every transaction with an online credit card and 2.7% for every transaction with an in-person credit card. If you use a third party payment provider, you may pay up to 2.0% of the sale in fees. We’ll expand more on this later.
SHOPIFY PLAN ($79 per month + additional fees)
This is the middle-tier plan and is best when your business is starting to grow and you’re looking to expand both the business and your services. You get a few more features on top of what’s included in the basic plan.
Here are what’s included in the Shopify Plan:
- 5 Locations: You can now assign inventory to up to 5 different retail stores or warehouses.
- Staff account:You get 5 staff accounts
- Shipping discount: Get competitive shipping rates from top shipping companies, up to 72%.
- Professional reports: You can not get professional reports which can provide you with valuable information to help analyze customers’ shopping behaviors and track product sales.
For transaction fees, you will pay 2.6% + 30 cents for online credit card purchases and 2.5% for in-person credit card purchases. You get an additional 1% fee for third party payments.
Advanced Shopify Plan ($299 per month + additional fees)
This is the best plan for businesses who are scaling as it provides more advanced features that can compliment your growth.
This plan gives you all the features from the Shopify Basic and Shopify plan, with more additional and advanced features:
- 8 locations: You can now assign your inventory to more warehouses or retail stores.
- 15 Staff accounts: A booming staff requires more staff. Give more staff access to your Shopify admin and Shopify POS to help you out.
- Advanced report builder: This lets you create custom reports to help you track your customer’s purchasing behavior and patterns.
- Third-party calculated rates: This lets your customers see up-to-date shipping rates when they check out.
For transaction fees, you will be paying 2.4% + 30 cents for each transaction with a credit card online, and a 2.4% fee for in-person credit card charges. For 3rd party payments, you will get charged a 0.5% fee.
You can check the complete details here. Shopify does offer a 14-day FREE trial so you can try it out first to figure out which one will work best for you.
In a year this is how much your plans will cost (not counting in the free trial):
Price (base price x 12 months)
Having your own domain helps establish your brand. It helps customers know that this is a legitimate, professional business. It makes the brand seem very confident as it is able to invest in its own website and domain. It helps your Shopify store appear and rank higher in Google search results. It also helps customers remember your website URL faster and easier.
You can actually buy a domain thru Shopify or other websites like GoDaddy. Prices start at $11 per year.
Price (base price x 12 months) + domain fees
As mentioned earlier, apart from your base Shopify fee, there are transaction fees whether you use third-party payment gateways or even if you use Shopify Payments. Of course, to provide convenience for your buyers, it would be best to install the most widely used options. Shopify supports many of these third party payments however, charges differ per payment gateway.
Here is how transaction fees will get charged if you opt for Shopify Payments:
- Shopify Basic: 2.9% of your transaction + 30 cents.
- Shopify: 2.6% of your transaction + 30 cents.
- Shopify Advanced: 2.4% of your transaction + 30 cents.
If you choose to implement other payment gateways, you will have to pay for a few more things such as set up, monthly cost and transaction fees.
- Set-up cost: $0 - $250
- Monthly cost: $10 - $50.
- Transaction fees: Can go from $0.00 – $0.25 + 1% – 5% per transaction. You will still have to pay both the fixed fee and the percentage of the transaction.
Shopify does have some great free themes and some paid themes at the Shopify marketplace. You can also opt to get a customized one from a reputable Shopify Expert to really make your brand stand out. It is only a matter of your budget and needs.
If your Shopify store is new and perhaps you’re just getting started with eCommerce, a free theme can be enough. Shopify provides themes that can match most niches from clothing, cosmetics to tech.
Free themes have limited capabilities so you might want to get a paid theme from Shopify Marketplace. These cost $180 per theme and offer more features. However, these are still a bit limited in terms of branding and design, so if your brand is going global or scaling, you might want to get an agency to customize one for you. Prices can go from $100-$5,000 for custom themes. It all depends on what you and of course, you get what you pay for.
If you’re going to shell out $180 for a paid theme, you might as well get a customized one that’s made just for your brand from a reputable digital agency.
So in your first year, this is the estimate including themes, base plan and domain:
Price (base price x 12 months)
With Paid Theme ($180)
With Custom Theme ($100-5,000)
Our team here at Webinopoly has worked with over 200 happy and satisfied clients including big brands like Fashion Nova, Rihanna x Fenty, and Colgate. So, don’t hesitate to contact us if you need a Shopify design or need team to develop a new Shopify website for you.
These are optional and like the themes, there are free apps available and there are those that come in a subscription based payment. These are helpful for most Shopify stores as it can give you more features that can maximize your website. It also gives you an added boost in marketing, shipping, payments and inventory management.
When you’re starting out your first store, you don’t really need to get paid apps. You can try out some of the free apps and get a feel of how they work. If they help improve your workload and your business, then you can keep using that app or upgrade to one that has more features. But definitely, you can find free apps that do the job just as well.
Check out the Shopify app store here
Compared to other platforms, Shopify really gives you value for your money. It’s more convenient to use especially for first time business owners as well as for those who are not that knowledgeable with designing and developing a website. It lets you just do what’s important which is to market and sell your products.
We do hope that you’ve learned something from this article and feel free to get in touch with us, your Shopify Experts at Webinopoly if you need any services such as creating, designing and developing your first Shopify store.
Webinopoly is an Award-Winning Digital Agency and are experts in Design, Setup, Development, and Marketing. We house trusted and top-notch Shopify experts who can help entrepreneurs like you build your online business. Our services range from building your Shopify store to theme customization, website development, migration to Shopify, SEO, and marketing.
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