Starting an online business can be exciting, but choosing the right e-commerce platform is crucial for success. Shopify offers various plans to suit different business needs. Two popular options for new entrepreneurs are the Shopify Starter and Basic plans.
In this article, we’ll compare these plans in detail to help you decide on your online venture.
We’ll explore each plan’s key features, pricing, transaction fees, and ideal use cases. By the end, you’ll have a clear understanding of which Shopify plan best aligns with your business goals and budget.
Shopify Starter vs Basic: In A Nutshell
Before we dive into the details, here’s a quick comparison of the Shopify Starter and Basic plans:
| Feature | Shopify Starter | Shopify Basic |
|---|---|---|
| Monthly Price | $5/month | $39/month |
| Annual Price | N/A | $29/month |
| Free Trial | 3 days | 3 days |
| Online Store | ✘ | ✓ |
| Custom Domain | ✘ | ✓ |
| Unlimited Products | ✓ | ✓ |
| Sales Channels | Social media, messaging apps | Online store, social media, marketplaces |
| Abandoned Cart Recovery | ✘ | ✓ |
| Discount Codes | ✘ | ✓ |
| Staff Accounts | 1 | 2 |
| Transaction Fees (non-Shopify Payments) | 5% | 2% |
| 24/7 Support | ✓ | ✓ |
Note: Shopify’s Starter plan doesn’t offer an annual subscription.
What Is The Shopify Starter Plan?
The Shopify Starter plan is an entry-level option designed for entrepreneurs who want to start selling online without the complexity of a full-fledged e-commerce website. It’s ideal for those looking to sell products through social media platforms, messaging apps, or by sharing product links.
Key features of the Shopify Starter plan include:
- Ability to sell unlimited products
- Integration with popular social media platforms
- Simple product link-sharing option
- Basic inventory management
- Mobile-friendly checkout experience
- Access to Shopify’s Linkpop tool for bio links
The Starter plan is perfect for side hustlers, social media influencers, or small businesses testing the waters of e-commerce. It provides a low-risk entry point into online selling without the need for a full website.
What Is The Shopify Basic Plan?
The Shopify Basic plan is a more comprehensive e-commerce solution for businesses ready to launch a full online store. It offers a wider range of features and tools to help you create, manage, and grow your online business.
Key features of the Shopify Basic plan include:
- Full-featured online store with customizable themes
- Custom domain name
- Unlimited product listings
- Access to Shopify’s app store
- Abandoned cart recovery
- Discount code creation
- 24/7 customer support
- Basic reports and analytics
- Multiple sales channels (online store, social media, marketplaces)
- Two staff accounts
The Basic plan is suitable for small to medium-sized businesses looking to establish a strong online presence and grow their customer base. It provides more advanced tools and features to support business growth and expansion.
Shopify Starter vs Basic: Pricing And Transaction Fees
One of the most significant factors in choosing between Shopify Starter and Basic is the cost. Let’s break down the pricing and transaction fees for each plan.
Shopify Starter Pricing And Transaction Fees
The Shopify Starter plan is priced at $5 per month, making it an affordable option for new entrepreneurs or those on a tight budget. This low monthly fee gives you access to essential selling tools and features.
Shopify’s Starter plan charges a fixed 5% transaction fee per sale whether you sell online or in-person through Shopify POS.
These higher transaction fees for external payment gateways can add up quickly if you’re processing a large volume of sales. It’s worth considering this when evaluating the true cost of the Starter plan for your business.
Shopify Basic Pricing And Transaction Fees
The Shopify Basic plan is priced at $39 per month ($29/month if paid annually), which is a significant jump from the Starter plan. However, this higher Shopify pricing plan comes with a more comprehensive set of features and lower transaction fees.
Here’s a breakdown of the transaction fees for the Basic plan:
When using Shopify Payments:
- 2.9% + 30¢ for online transactions
- 2.6% + 10¢ for in-person transactions
When using external payment gateways:
- 2% transaction fee on top of the payment processor’s fees
The lower transaction fee for external payment gateways (2% vs. 5% on the Starter plan) can result in significant savings for businesses with higher sales volumes. This reduction in fees can often offset the higher monthly cost of the Basic plan.
Additionally, the Basic plan includes features like abandoned cart recovery and discount codes, which can help increase sales and potentially justify the higher monthly investment.
Either you choose Shopify Starter or Basic, you will get a 3-day free trial which you can extend to 1 month by paying $1.
Shopify Starter v Basic: Which One To Choose?
Deciding between Shopify Starter and Basic depends on your business needs, goals, and budget. Let’s explore when each plan might be the right choice for your online business.
Choose Shopify Starter If:
- You’re just starting out: If you’re new to e-commerce and want to test the waters without a significant financial commitment, Shopify Starter is an excellent entry point.
- You primarily sell through social media: For businesses that mainly rely on social media platforms like Instagram or Facebook for sales, the Starter plan provides the necessary tools without the added cost of a full online store.
- You have a limited product range: If you only sell a few products or services, the Starter plan’s features may be sufficient for your needs.
- You’re on a tight budget: With its low monthly fee, Shopify Starter is ideal for entrepreneurs with limited funds who want to start selling online quickly.
- You don’t need a full website: If you’re comfortable selling through product links and social media integrations, the Starter plan offers a cost-effective solution.
- You’re a content creator or influencer: For those looking to monetize their audience through product sales, Starter provides an easy way to get started without the complexity of a full e-commerce site.
- You’re running a side hustle: For part-time entrepreneurs or those with a small side business, Starter offers the essential tools without unnecessary features.
Choose Shopify Basic If:
- You want a professional online store: If having a full-fledged e-commerce website is important for your brand, Shopify Basic provides the tools to create and customize your online store.
- You’re planning to scale your business: The Basic plan offers more room for growth with features like abandoned cart recovery and discount codes that can help boost sales.
- You have a diverse product catalog: For businesses with a wide range of products, Basic’s unlimited product listings and better inventory management tools are beneficial.
- You need multiple sales channels: Basic offers more integrated sales channel options if you want to sell through your website, social media, and online marketplaces.
- You want to build brand recognition. Basic helps establish a stronger brand presence online with a custom domain and fully customizable online store.
- You need detailed analytics: Basic offers more comprehensive reporting tools to help you understand your business performance and make data-driven decisions.
- You process a high volume of sales: If you’re processing numerous transactions, the lower transaction fees on Basic can lead to significant savings compared to Starter.
- You require multiple staff accounts: Basic allows for two staff accounts, making it easier to manage your store with a small team.
- You want to offer gift cards: Basic allows you to create and sell gift cards, which can be a valuable addition to your product offerings.
- You need more payment options: Basic supports a wider range of payment gateways, giving you and your customers more flexibility in payment methods.
Conclusion: Shopify Starter And Basic Plans Cater To Different Business Needs!
Both plans offer valuable features for entrepreneurs looking to start or grow their online businesses, but they cater to different stages of the e-commerce journey.
Shopify Starter is an excellent choice for those just dipping their toes into e-commerce, particularly if you’re focusing on social media sales or have a limited product range.
On the other hand, Shopify Basic is better suited for businesses ready to establish a more professional online presence.
Both plans offer a trial period for new users, so take advantage of the 3-day plus 1-month free trial at $1. This will help you choose the right option for your business.
