Without a doubt, Shopify is one of the most scalable and feature-rich ecommerce platforms out there right now. From small businesses to big international brands the platform is currently experiencing growth in popularity across the world.
If you are thinking about starting your online store on Shopify, or migrating to the platform, in this article we look behind the powerful sales features, extensive integrations and a user-friendly interface – all positive features Shopify has to offer. By uncovering the hidden costs early on, you can avoid unexpected expenses in the future and make sure that your chosen Shopify plan and theme match your budget as well as future growth potentials.
Now, when I talk about hidden costs, what I mean by that is the expenses and costs, which you might have not considered before, especially when it comes to running and managing your store in comparison to other ecommerce platforms out there. Once you understand and factor in the extra costs, you can make an informed decision before starting or migrating your store to this platform.
What to consider:
Apps costs
To run an effective and efficient ecommerce store on Shopify, one that works hard for your business, in my opinion, the default set up is sufficient to get you going at the start but to achieve better performance and implement more functionality in terms of personalisation, CRO, SEO and advanced checkout features you need to add third-party apps to your store. Some of these apps offer free but usually very limited plans, others are paid for and available with annual renewal plans. These plans can add significantly to the running costs of your store. The costs can vary widely, from £5 to over £500 per month, depending on the app and its features. Here are some common apps and their average costs:
SEO Optimiser – £20 per month
Advanced Analytics – £50 per month
Personalisation Tools – £100 per month upwards
Hiring or working with Shopify developers
As the demand for Shopify developers grows, so do their rates. Whether you’re looking at freelance platforms or specialised Shopify agencies, the costs can be substantial. For example, while freelance developers on platforms like Fiverr might offer services for as low as £10/hour, the quality and reliability often match the price. On the other hand, experienced developers or agencies may charge anywhere from £50 to £200 per hour, making it crucial to budget and factor in these expenses appropriately.
Transaction fees
Transaction fees are another significant cost to consider. Shopify charges a fee on each sale, which varies based on your plan. Additionally, if you opt for a third-party payment gateway, an extra 2% fee is applied. For transactions involving credit cards or international orders, the fees can be even higher. It’s essential to review the latest transaction fees on the Shopify pricing page to avoid surprises. Even though very competitive, these fees can be slightly higher than other ecommerce solutions with different payment gateway providers.
Other common costs
Besides the main expenses, several additional costs can add up to the running costs including:
- Domain Fees: £10-£30/year
- Email Hosting: £5-£15/month
- POS Fees: Variable, based on usage
- Marketplace Connect Fees: £10-£50/month
What to consider when choosing a theme:
The Shopify theme store offers a wide range of themes, each with different capabilities and costs. Look beyond its aesthetics and design, and instead invest in a high quality theme which, with the help of an experienced developer, can save you from the need to switch themes later on. From our experience the themes we recommend specifically for lifestyle and design ecommerce brands are Prestige, Impulse and Dawn. All of these have customisable capabilities and advanced features and additional functionalities can be added saving you the hassle, time and money in the long run.
Conclusion
When considering Shopify as your ecommerce platform, it’s crucial to look beyond the advertised monthly or yearly fees. The hidden costs I discussed above can significantly impact your budget. Many clients come to us, asking for customisation, functionality and feature enhancements, only to find out that the costs are much higher than what they have anticipated. So thorough research and planning are essential to avoid unexpected expenses.
If you need personalised advice, don’t hesitate to contact us for a free 30-minute consultation to discuss your specific needs and help you navigate the complexities of running a Shopify store efficiently.
