Last Updated on: 22nd November 2023, 12:05 am
Many of the world’s eCommerce markets run on the Shopify platform. That is, these companies select one of the many packages Shopify has to offer. Which one is the best will depend on the company.
It might be said that the eCommerce package, Shopify Plus, is the best. Is Shopify Plus worth it? While there are many perks to the Shopify Plus package, there are also many downfalls. The cost per month is one a company will need to consider before choosing the Plus package.
What is Shopify Plus?
Shopify Plus is the enterprise package for the shopping website giant. That is, those who do business on Shopify can select one of many platforms to operate on. The plus is one of the packages offered by Shopify.
What is the cost of the Plus Package?
Before we get into the factors of cost for the enterprise package for Shopify, we must consider a bit first. Four factors go into configuring the cost of Shopify Plus. These are as follows.
- Shopify Plus Platform Fees
- Credit Card Processing Fees
- App Fees
- Maintenance Fees
Shopify Plus Platform Fees
The minimum fee a company can expect to pay for Shopify Plus is $2,000 per month.
Let us explain the fee a bit further. The fee is based on how many of the Shopify resources a company will be using. For instance, if a company is conducting much business, they can expect to use more bandwidth than other companies on the Shopify platform. Therefore, a company will pay the minimum fees of $2,000 per month to operate an eCommerce site.
However, if the company is generating enough revenue per month, the fees for the service will rise. With that being said, let us explain. If a company generates revenue of a minimum of $800 thousand per month, the company can expect to pay 0.25% of that revenue for the use of Shopify Plus.
To make it simple, the cost of Shopify Plus is $2,000/month, or 0.25% of the company’s monthly revenue. Whichever is greater, is what the company is charged.
Credit Card Processing Fees
These fees will vary depending on the home nation of the company. There will be an additional 0.15% charged to the company if they are not using Shopify to process the payments.
Besides the enterprise package, Shopify also offers its customers an avenue for processing payments. That is, the company can select to have payments processed on its website via the Shopify payment processing.
If so, the company will not need a merchant account. There are many perks to using the Shopify payment processing system. These include not having to pay the extra 0.15% per transaction, and that Stripe backs the Shopify payment system. The company’s transactions are secure.
What are the Processing Fees a Company Pays on the Shopify System?
The bottom line is that companies can negotiate lower prices for the processing fee. It will depend on the company’s sales volume and the revenue generated by the company.
Regardless, if a company uses a merchant account, PayPal, Square, or another processor, the company will need to pay Shopify for transactions performed on its site. That is, Shopify charges the company an additional fee of 0.15%. These fees are on top of what a company will pay for its merchant processing.
There are more than 70 payment processors that are integrated with Shopify. It is worth it for a company to shop around. Each payment gateway charges various fees for credit card transactions performed on a website. A company might find it is more worthwhile to pay the additional 0.15% on top of the fees from the chosen gateway.
App Fees and Maintenance Fees
The app and maintenance fees will vary from merchant to merchant.
The applications will vary from site to site. Many businesses running on the Shopify Plus platform will need apps to run. That is, they will need apps for things such as subscriptions, loyalty programs, and more.
When a company decides to use these apps to integrate into its business, it must be configured that more apps are being offered than the company will need. It is a challenge to put a price tag on such an item. That is because no company is created equal.
For maintenance, a company will not need to worry about many factors while on the Shopify platform. These include kernel upgrades and security patches. But there will be some maintenance a company will need during the course of a month.
Companies running on the Shopify Plus platform will need to factor the maintenance fees into the monthly service fees and the credit card processing fees that are part of running a business with Shopify.