Shopify is a robust e-commerce platform that is ideal for companies that sell a big number of physical items.
Shopify is the industry leader in website builders for e-commerce. Shopify sellers benefit from powerful inventory and order management features, built-in payment processing, and lower shipping rates. Along with your website, Shopify makes it simple to list your items on social media and online marketplaces.
Shopify is an excellent solution for businesses who sell and transport tangible things, particularly if you’re a high-volume seller with various warehouse locations and a huge frequency of orders. However, service organisations should search for a platform that includes native appointment booking, while smaller enterprises may wish to explore for less expensive choices.
Here’s how to figure out if Shopify is right for your e-commerce business.
Deciding factors
| Annual Pricing | Starter: $5, plus 5% transaction costs via Shopify Payments. An e-commerce website is not included.Basic: $29 per month, plus 2.9% + 30 cents in Shopify Payments transaction costs.Shopify: $79 per month, plus 2.6% + 30 cents in Shopify Payments transaction fees.Advanced: $299 per month, plus 2.4% + 30 cents in Shopify Payments transaction costs.Plus: $2,000 per month or more. |
| Payment processing | Shopify Payments is included as standard (see full prices below). Shopify enables merchants to use several payment processors, but levies a 5% transaction fee for Starter clients.Basic customers save 2%.Customers of Shopify receive a 1% discount.For Advanced clients, the fee is 0.5%.Plus clients get a 0% discount. |
| Key features | Social networking networks and online markets are being integrated.Shipping costs have been reduced.Tools for detailed inventory and order management.Performance evaluations. |
| Online marketplace includes | Facebook.Google.YouTube.Instagram.TikTok.Walmart Marketplace. |
The primary characteristics of Shopify
Shopify’s unique capabilities enable businesses to sell tangible things on a variety of online channels all around the world. Individual plan characteristics may differ (see breakdown below).
Selling across several channels
Sellers on Shopify may sell their items on Facebook, Instagram, YouTube, TikTok, Google, and Walmart Marketplace. They may select the platforms that are most suited to their brand and target audience, and then manage all of their orders from the same dashboard that controls the rest of their Shopify business.
To link Shopify with Amazon, sellers would need to use a third-party software, which will most likely include an extra monthly price. Shopify’s app store has various solutions with great user reviews.
Inventory and order administration
The inventory management software included into Shopify is advanced. Sellers may track and manage incoming and committed goods, as well as shift inventory between storefronts and warehouses.
Customers’ previous orders are displayed on the seller’s Shopify dashboard. They can categorise orders by fulfilment method or delivery location and make changes as needed before goods ship. Sellers may keep consumers informed by sending email or SMS messages, or by notifying them via Shopify’s Shop app.
Shipping reductions
Shopify merchants get access to discounted shipping prices from carriers such as USPS, UPS, DHL Express, and Canada Post. Along with printing shipping labels, Shopify also provides up to $200 in package insurance to assist safeguard deliveries against theft and damage.
Business owners with physical locations can provide in-store pickup and local delivery by the seller’s own personnel.
Payment Options on Shopify
NerdWallet recommends Shopify Payments as the best payment processor for e-commerce enterprises. It is pre-installed with Shopify’s online shop builder.
Shopify Payments adds the following transaction fees to the monthly pricing of Shopify:
| Shopify plan | Monthly cost (when billed annually) | Online payments | In-person payments |
| Shopify Starter | $5. | 5% per transaction. | None; the Starter package does not include Shopify POS. |
| Basic Shopify | $29. | 2.9% plus 30 cents per transaction. | 2.7% per transaction. |
| Shopify | $79. | 2.6% plus 30 cents per transaction. | 2.5% per transaction. |
| Shopify Advanced | $299. | 2.4% plus 30 cents per transaction. | 2.4% per transaction. |
| Shopify Plus | For businesses with high-volume sales, monthly rates begin at $2,000 and are based on a quotation. | Quote-based; varies on location. | Quote-based; varies on location. |
If you wish to use a different payment processor, keep in mind that Shopify charges an extra 0.5% to 2% each transaction, depending on your plan.
Shopify plan features
Here are the features available at each Shopify price level.
Shopify Starter: is ideal for small businesses who wish to experiment with Shopify.
This package can help you get started with social media sales, but it does not include your own website.
The cost is $5 each month. Shopify Payments charges an extra 5% every transaction.
Features:
- Product pages are limitless.
- A tool for adding links in your bio to your social network profiles.
- Backend order handling with Shopify.
- A basic shop, but not a whole website.
- Third-party marketplace and social media sales.
Shopify Basic: is best suited for small enterprises.
Shopify Basic includes a website, omnichannel commerce capabilities, the whole Shopify dashboard, including order management features.
Price: $29 per month billed annually, $39 per month billed monthly. Shopify Payments adds 2.9% + 30 cents to each transaction.
Features:
- The features available with Shopify Starter.
- There are two staff accounts.
- Shipping reductions of up to 77% are available.
- A website builder with drag-and-drop functionality.
- Third-party marketplace and social media sales.
- Inventory management software.
- Coupon codes.
- Recovery of abandoned carts.
Shopify Best: is ideal for firms looking for automated operations.
This level grants access to Shopify Flow, a suite of automations that may help you manage a large e-commerce operation.
Price: $79 per month if paid annually, or $105 per month if paid monthly. Shopify Payments adds 2.6% + 30 cents to each transaction.
Features:
- Shopify Starter and Basic provide this capability.
- There are five employee accounts.
- Shipping reductions of up to 88% are available, as is USPS Priority Mail Cubic rates.
- Automatic reordering of low-inventory items and concealment of out-of-stock items.
- Automated awards for clients who satisfy particular criteria, such as total expenditure.
- The detection of fraud by flagging suspect orders.
Shopify Advanced: is ideal for enterprises that sell globally.
Shopify Advanced is required if you sell items internationally and wish to collect taxes and display shipping charges to your foreign consumers.
Price: $299 per month invoiced annually, $399 per month payable monthly. Shopify Payments adds 2.4% + 30 cents to each transaction.
Features:
- Shopify Starter, Basic, and Shopify all feature this capability.
- There are 15 employee accounts.
- Shipping charge reductions of up to 88% are available.
- Duties and import taxes are collected during the checkout procedure.
- Shipping prices are displayed throughout the checkout process.
Shopify Plus: is ideal for high-volume or business-to-business retailers.
The enterprise package from Shopify is intended for large organisations that require extensive automations, advertising tools, and checkout services.
Monthly rent starts at $2,000 and goes higher from there.
Features:
- Shopify Starter, Basic, Shopify, and Advanced all include this feature.
- Customer-specific pricing lists and reordering are examples of B2B functionality.
- Shopify Advertising, which assists you in identifying and marketing to similar audiences to yours.
- Shop Pay is a Shopify-created software that allows consumers to keep their information for quicker checkout and order monitoring.
Shopify advantages
Features that stand out for business that sell and ship
Shopify provides almost everything an online business may want, including inventory management, order monitoring, cheap shipping rates, omnichannel commerce, and more. The Basic plan, which is offered to sellers of all sizes, includes the majority of these capabilities. Few other online shop builders provide as many features at such a low cost.
Payment processing is included in.
Amiglix gives Shopify Payments good scores for its 24/7 assistance, connection with accounting software, and costs that are comparable to competitors. With this competitive alternative accessible, you may avoid the hassle of selecting a payment processor.
Increasingly powerful characteristics for expanding enterprises
Upgrading from one Shopify plan to the next gets you more employee accounts and lower payment processing rates. It unlocks additional ordering capabilities, such as abandoned cart emails, import tax collection, and in-house advertising tools, that may be beneficial if your business expands from small to medium or big.
Shopify disadvantages There is no free version.
Shopify does not have a free version. Furthermore, its free trial period is only three days long, so you’ll have to determine fast if Shopify is the best match for your company. You may now extend a free trial to three months for a little fee, but you must choose monthly pricing, which is more expensive than yearly billing.
Shopify Starter, which costs $5 per month, may be a suitable alternative for tiny sellers that simply want to sell on social media — but it doesn’t have a website, so it may not be the best option for businesses that require a distinct online presence.
Native features for service business are limited.
Shopify is best suited to businesses that offer actual goods rather than services. To take appointment reservations, for example, you’ll need to use a third-party app, which may charge a fee.
Accounts for a small number of employees
Shopify Basic only allows two employee accounts, which may affect how you manage your business on a daily basis. To take use of Shopify’s numerous capabilities, the two employees in charge of your e-commerce business may need to devote practically all of their time to it. Squarespace, a Shopify competitor, allows unlimited accounts even with its entry-level e-commerce subscription.
Alternatives to Shopify:
Square Online Provides a free plan
Square Online’s free plan is an excellent choice for brick-and-mortar businesses who already accept Square payments, and it may also be an excellent alternative for other e-commerce businesses. The free plan allows you to list an unlimited number of items, manage delivery, and offer coupons. A custom domain, QR code ordering, and abandoned cart emails will require an update.
Squarespace is a better option for businesses that provide services.
Squarespace is a simple web shop builder that is ideal for businesses offering services or digital content. Squarespace, unlike Shopify, can support native online appointment scheduling, including reminder emails and intake forms. Users can also create “member areas” where users can access unique material such as online courses.
More B2B features on Shift4Shop
Shift4Shop is a more advanced B2B e-commerce platform than Shopify, which is only now introducing B2B functionality. Shift4Shop allows you to provide consumers with their own accounts, set up wholesale and unique pricing, and accept a range of payment options.
Furthermore, Shift4Shop is free for businesses who process more than $500 in credit or debit card sales each month using Shift4, its built-in payment processor. However, Shopify’s B2B services are only available with Plus, which starts at $2,000 per month.
