An eCommerce platform is a huge must in the smooth, efficient and successful creation of a dropshipping store. These are readily available across the Internet, but for most entrepreneurs, the top determining factor for the best one is its cost -- the basic plan, additional charges, and the features that come with it.
I personally have received multiple inquiries as to which platform I would recommend using, and my answer is always "It's hard to say." Whether you prefer CommerceHQ, Shopify, GoDaddy, or others, one thing is for sure: each of them offers different plans and inclusions at varying prices, so before you make your final decision, it is always a good idea to analyze your most basic needs, as well as each platform's offers.
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If you are one of those who are on a tight budget, you might be interested in sealing a deal with Shopify to assist you with your online shop. Why? Find out below!
Shopify for Your eCommerce Store
Shopify is an eCommerce platform that allows you to create your own online store and sell anywhere across the Internet. Yep, that includes online marketplaces and even social media websites. Said platform offers a vast selection of features, tools, apps and themes that speed up your site creation process and, basically, do most of the hard work for you.
Out of all the eCommerce platforms I've had the opportunity to work with, it is inarguable that Shopify offers the cheapest basic plan -- one reason why a lot of budding businesses choose to work with it. But if we take a closer look at it, can we actually say that cheaper is better?
Shopify Costs and Payment Plans
Shopify's 3 offers are shown below:
Every plan comes with these features:
- An online store
- Unlimited products
- 24/7 customer support
- Sales channels
- Manual order creation
- Discount codes
- Free SSL certificate
- Abandoned cart recovery
- Gift cards
It should be noted that these are only the basic features, and additional tools and plugins come at a cost (more on this below).
What makes each plan unique, then?
Starting at USD$29 a month, you can already start creating that dream store and start making those sales fast and easy. This plan, however, only allows for 2 staff accounts to work together, so you might have to exert that extra effort to put things in order.
With an additional $50, the standard plan is priced at $79, and now allows for 5 staff accounts. You are also entitled to the Professional Reports feature, wherein the platform sends you a detailed report and analysis of your overall performance, thus allowing you to determine which aspects of your site and store you need to work more on.
What do you get with $299? Everything the basic and standard plans offer, 15 staff accounts, an advanced report builder and a nifty shipping fee calculator. Expansion to the max! If you are planning to scale your business up, it is recommended that you go with this plan.
Now let's move on to the more expensive plan.
Shopify Plus for Your Business
The name says it all: it's Shopify and more. Shopify Plus is mainly meant for businesses that process tons of orders every single day -- enterprise-level businesses, including Heinz, Magnolia and Lindt greatly benefit from this plan.
A closer look at Shopify Plus' page will tell you that "One million Shopify businesses have made over $155 billion in sales so far, and they’re just getting started."
If you are one of those who process over 10,000 transactions on a daily basis, then this plan is definitely for you.
Shopify Plus Pricing -- Cost Analysis
The base cost of Shopify Plus is shrouded in mystery -- you need to get a quote from the team in order to determine how much it will cost you to switch over to this platform. Although, some reports say that the starting price is at $2,000 (excluding credit card processing fees). One thing is for sure, though: the cost depends on your degree of usage -- the number of transactions per day.
Shopify Plus: The Pros and Cons
If you are planning to scale your business up some time in the future, you might have thought about upgrading your plan to Shopify Plus eventually, so while we're at it, let's talk about some of the pros and cons of doing so.
- Unlimited staff accounts
- Able to manage multiple transactions at a time
- Cost varies according to quote
- Not suitable for small to medium businesses
Both Shopify and Shopify Plus have cheap upfront pricing plans... but if you must know, Shopify charges extra for more features that will unarguably be of great use and help improve customer conversion rates. There is also the issue of credit card processing fees, which, depending on your plan and monthly revenue, can take up a big percentage of your total profit.
Below are Shopify and Shopify Plus' additional charges, for your information.
Credit Card Fees
Credit card fees are inevitable -- how else would your international customers pay you, if not for these plastic quadrilaterals? Unless you would offer Cash on Delivery (COD), there's no other way to receive payments.
Here are the credit card processing fees for every Shopify plan.
Standard Shopify Plans:
- Basic Shopify: 2.9% + USD$0.30 per transaction
- Shopify: 2.6% + USD$0.30 per transaction
- Advanced Shopify: 2.4% + USD$0.30 per transaction
2.15% + USD$0.30 per transaction
How to Reduce Charges
If you wish to reduce credit card rates, as per Shopify's Help Center, "Shopify Payments costs vary based on your plan. You can lower credit card rates by upgrading your subscription with Shopify."
App and Theme Fees
There are multiple applications down by Shopify's app store that could improve usability and provide a better experience for your site visitors, each of which are unique in terms of function and, of course, price.
Over at the theme store, you can purchase pre-made themes to give your online store that vibrant look and feel.
Shopify offers minimal maintenance fees to ensure its customers only the best services and user experience.
Are Either of Them Worth It?
Shopify offers plans at a low upfront cost, but within the depths of this platform lie hidden charges for additional tools and features, as well as credit card processing fees.
Most budding entrepreneurs fall into this kind of trap wherein they are tempted to spend "a little for more". They think that a handful of tools at their disposal will significantly reduce the amount of work they need to do -- which isn't wrong, by the way. But what happens is that this little by little spending will eventually hurt their budget, and before long, they will lose track of their spending and fail to properly allocate their funds to the more important aspects of their business.
Meanwhile, Shopify Plus indeed has everything an enterprise-level business would ever look for in an eCommerce platform. Though it should be well-noted that the actual cost for this plan depends on transaction volume, and as there is not much transparency, there is arguably no way to determine the platform's level of fairness when it comes to putting the price tag.
If you are a startup business with limited resources, Shopify may work great for you, but you must be prepared for any upcoming charges and the inevitable processing fees that will undoubtedly eat up a good amount of your total profit.
Meanwhile, if you are not planning to scale your business up into an enterprise-leveled one, it is not recommended to use Shopify Plus, and you can instead go with Advanced Shopify.
Let's Wrap It Up!
Today we have discussed Shopify and Shopify Plus pricing plans. With this analysis, I hope you obtained tons of information that will help you in making your decision when it comes to choosing the right plan for your business.
For your information, Shopify has multiple competitors that give you the same level of edge, and possibly even more. Be on the lookout for those in the future, here in my blog.
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If you have any more questions about Shopify, Shopify Plus or anything regarding this video, feel free to personally contact me via the Contact Form HERE. You can also leave your comments and feedback below, and our team over at WagePirate will definitely get back to you with a response. For more reviews, news and updates, don't forget to subscribe to my YouTube channel!