Technology

How much does the Shopify Plus license cost?

To fully understand the overall cost of migrating to Shopify plus, the first step is to examine how the Shopify Plus license works. 

As is the case with many ecommerce platforms, it can be difficult to find detailed information about exact pricing on the Shopify website, as Shopify wants to be contacted to negotiate live with a potential merchant. .

Fortunately, it is possible to calculate or at least get an idea of ​​the fees that Shopify charges for using the Plus platform, without having to speak to the Shopify sales team.

Shopify Plus’s price is based on the revenue your store charges. Since Shopify Plus is a hosted SaaS platform, this seems consistent because the larger your store, the more resources and bandwidth it uses.

 So there is a minimum license fee of $ 2,000 per month (Shopify charges everything in dollars) and a maximum monthly fee of $ 40,000. 

If you calculate correctly, the fees applied once you exceed $ 2,000 in a month are quite competitive compared to other e-commerce platforms.

But what happens if you exceed € 800,000 in turnover / month (or 9.6 million turnover / year anyway)? 

With revenue of $ 1,000,000 per month, Shopify plus will charge you $ 2,500 in licensing fees. To meet the maximum monthly license fee of $ 40,000, a merchant would need to achieve sales of $ 16 million per month. 

Of course, $ 40,000 in license invoicing is not cheap, but to manage $ 16 million in collection, you need the facilities opposite. Not sure that full open source + hosting is really cheaper for this size of online store.

We even tend to see merchants saving money by switching to Shopify Plus.

For the sake of completeness, there are also some benefits to be mentioned about fully migrating to Shopify plus. 

What is included in the Shopify Plus license?

When discussing Shopify Plus with SMEs  or retailers, the license fees can seem high. They may have doubts about the value of migrating to the platform due to the cost of $ 2,000 per month, especially in comparison to Magento Community Edition.  

But let’s compare what is comparable with the TCO (total cost of ownership). By including the Magento server, technical costs, TMA, updates and evolutions, we can have much more than $ 2000 / month of technical budget. These fees are included in the Shopify plus license. 

But Shopify Plus is also about having an account manager at your service who is there to provide assistance in using Shopify. As part of the monthly license, ecommerçants are assigned an account manager as well as a launch manager for the creation of the site to assist them.

Most of the time, it can help in the following areas: 

General Shopify help for the administrative part 

A bit of front end dev. (~ 3 hours of mods adjustments or installs, etc. per month)

Some tips to get your e-commerce off the ground

Support to best use shoplift (onboarding) 

General advice on Shopify Plus solutions and popular or partner apps.

As has already been said, in addition to the presence of an “account manager”, the Shopify Plus license also includes all hosting costs, which are often very expensive for many e-commerce sites. 

Generally, a standard hosting for an e-commerce site under Magento will cost between 500 and 5000 € / month. Be careful, this does not include the more specialized costs for load balancing, replication, backups, management of exceptional traffic peaks, etc. The actual price at the end of the year can be much higher. 

Some features of Shopify Plus, such as the ability to easily add sales channels, can significantly reduce the costs of using third-party apps. With Shopify POS, Shopify has its own point of sale solution and integrated solutions for in-store selling. There is still a lot to do with Shopify SEO agency Melbourne but the integration between Shoplift plus and Shopify POS is a real advantage. 

Payment processing fees (via Shopify Payments)

In addition to the license costs per Shopify Plus transaction, e-merchants will have to take into account the processing costs of payment gateways (gone, Payten etc…) Shopify payments are not yet available in France for the moment.

Radhe Gupta

Radhe Gupta is an Indian business blogger. He believes that Content and Social Media Marketing are the strongest forms of marketing nowadays. Radhe also tries different gadgets every now and then to give their reviews online. You can connect with him...

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