A Comprehensive Guide to Shopify Plus Total Cost of Ownership

For high-growth brands, Shopify Plus provides a robust ecommerce platform with enterprise-grade features. However, choosing Shopify Plus requires understanding the total cost of ownership, not just the monthly platform fee. This comprehensive cost analysis is essential whether launching a new direct-to-consumer (DTC) brand or migrating an existing store. Our experienced Shopify Plus specialists are here to help you navigate these complexities and accommodate custom needs during your migration process.

Demystifying the total cost of ownership for Shopify Plus

Understanding the Total Cost of Ownership (TCO) of Shopify Plus is critical. It’s not just about the monthly fee but all the costs involved in building, launching, and maintaining your store. Many companies underestimate these costs, leading to unpleasant financial surprises. This guide provides a transparent breakdown of TCO, helping you avoid unexpected expenses, accurately assess if Shopify Plus fits your budget, and align your ecommerce investment with your overall business strategy.

Businesses with more complex business structures may face additional costs due to the need for tailored solutions and advanced functionalities.

The following key cost factors are considered when calculating total cost of ownership (TCO):

• Shopify Plus ecommerce platform costs
• App subscription and tech stack costs
• Payment processing charges
• Implementation & development costs

These combined costs help provide a comprehensive view of the total investment in a platform.

Definition and Importance of Total Cost of Ownership (TCO)

TCO is the sum of all costs associated with buying, building, and running an ecommerce store. Understanding TCO is crucial when evaluating platform options, as it provides a comprehensive view of the investment required. TCO encompasses various costs, including platform fees, payment processing fees, app costs, and agency costs. By considering TCO, businesses can make informed decisions that align with their financial goals and operational needs. This holistic approach ensures that all potential expenses are accounted for, preventing unexpected financial burdens and enabling better budget planning.

Factors Affecting TCO

Several factors can significantly impact the TCO of an ecommerce platform. These include:

• Platform fees: The cost of using the platform includes monthly or annual subscription fees. For Shopify Plus, this is a critical component of the overall cost.
• Payment processing fees: The cost of processing transactions, including card processing and transaction fees. These fees can vary based on the payment gateway and the volume of transactions.
• App costs: The expense of using third-party paid apps to enhance the platform’s functionality. These costs can add up, especially if multiple apps are required to meet business needs.
• Shopify agency costs: Hiring an agency to design, develop, and maintain the online store. This can vary widely depending on the project’s complexity and the agency’s expertise.
• Security and compliance costs: Additional costs can be incurred to ensure the platform is secure and compliant with relevant regulations. These are essential for protecting customer data and maintaining trust.
• Revenue and business model: The platform's cost can fluctuate based on the business’s revenue and operational model. Higher revenue can lead to higher platform fees, while different business models may require specific functionalities that affect costs.

By understanding these factors, companies can better anticipate their expenses and manage their budgets effectively.

Shopify Plus platform costs

Every Shopify Plus merchant pays a base platform fee proportional to their monthly revenue. This subscription fee is always calculated and charged in US dollars.

• For revenue up to USD 800,000 per month: Businesses pay a flat fee of USD 2,300 per month. This fee offers a stable cost framework that is particularly beneficial for growing businesses.
• For revenue above USD 800,000 per month, higher-volume businesses switch to a variable platform fee of 0.25% of the total monthly revenue. This fee structure allows global brands and partners to scale their costs with their growth, providing flexibility and access to advanced features.

Example:

If a store generates USD 1,000,000 monthly revenue, the Shopify Plus fee would be USD 2,500 (0.25% of $1,000,000), higher than the base USD 2,300 flat fee.

Shopify Plus offers both 12-month and 3-year contract terms, with the 3-year term providing a lower monthly rate. The tiered Shopify Plus pricing structure (which scales with revenue) requires companies with fluctuating income to plan accordingly.

What's included in your Shopify Plus subscription?

The Shopify Plus base fee provides exceptional value with a comprehensive suite of features that often exceed those of competitors. Here’s a closer look at what’s included:

• Reliable and scalable hosting: Shopify Plus guarantees reliable and scalable hosting, meaning your store stays online and performs well during traffic spikes. The platform’s 99.99% uptime is a testament to its reliability. Furthermore, the Shopify Launchpad tool provides essential features for managing high-traffic events, including visibility controls, store locking, and bot protection.
• Exclusive Shopify Plus apps: Shopify Plus merchants can access specialised apps with advanced features and customisation options. These include powerful tools like Shopify Functions for personalised checkout experiences and Shopify Flow for automating repetitive tasks.
• Shopify Point of Sale (POS) system: Shopify Plus includes Shopify POS Pro at no extra cost for up to 20 locations, a feature that typically requires an additional fee on other plans. This free Shopify POS Pro offering allows brands to unify their online and in-store experiences with a fully integrated system. Businesses gain a complete view of inventory, sales data, and customer information across all channels, ensuring a smooth omnichannel selling experience to unlock new revenue streams. In-person card fees: While Shopify POS Pro is included at no extra cost, businesses should be aware of in-person card fees associated with transactions, which can vary by country.
• Integrated wholesale functionality: Shopify Plus streamlines direct-to-consumer (DTC) and business-to-business (B2B) sales within a single platform. It includes B2B-specific features like customer-specific pricing, customised product catalogues, bulk ordering options, and tools to manage multiple buyers under company profiles.
• Up to 9 Expansion stores included: This feature helps businesses save significantly compared to running multiple platforms, making it ideal for multi-regional or multi-brand strategies. With unlimited staff accounts, larger teams can collaborate seamlessly. Business owners also get a complete performance overview across all stores, including total orders (excluding gift card-only purchases) and total sales for a single store or the entire organisation.
• Automatic essential updates: With Shopify Plus, merchants receive automatic updates, including new features, critical security patches, and platform enhancements. The regular updates remove the need for manual updates, saving your IT team time and resources while keeping your store running on the latest technology.
• Dedicated 24/7 priority support: Shopify Plus offers round-the-clock access to expert assistance, ensuring smooth operations and quick resolution of any issues. This premium support is a significant advantage over the standard support available with lower-tier Shopify plans.

Monthly License Fee

The monthly license fee for Shopify Plus ranges from $2,300 to $2,500, depending on the contract terms. This fee covers the core features and functionalities of the platform, including advanced API access, higher API call limits, and Shopify Plus-built features. The license fee is a significant part of the Total Cost of Ownership, providing access to a robust suite of tools designed to support high-growth businesses. This predictable monthly expense allows companies to plan their budgets with greater accuracy, ensuring they can leverage the full capabilities of Shopify Plus without unexpected costs.

App subscription and tech stack costs

It’s important to remember that effective solutions don’t always come with the highest price tag. Lower-cost paid apps can provide significant value, especially for smaller teams or specific niche needs. Some apps offer strong performance at a reasonable monthly fee, although they may lack the premium support or advanced features of more expensive alternatives. Before committing to any app, evaluating whether its features and support level align with your business’s requirements and budget is crucial. A strategic approach to app selection—focusing on needs and value—is essential to maximise your tech stack’s return on investment. Remember that the cost of third-party apps is a variable component of your total cost of ownership, so careful planning and selection are necessary. Standard Shopify plans serve as essential starter kits for online stores, providing a fixed monthly fee that simplifies budgeting for startups and growing businesses.

App costs are calculated on a per-store installation basis. Not all stores require the installation of the same app or plan, so be sure you need the app before installing it. For example, if you have one main store and three expansion stores, and you install an advanced product review app on the main store and a basic plan on two expansion stores, your total app cost will be the cost for one advanced plan and two basic plans.

Typical monthly tech stack costs for Shopify Plus brands.

Shopify includes several apps at no extra cost; most Shopify Plus merchants invest in additional tools to optimise performance and scale their stores. The Shopify App Store offers a variety of solutions for personalisation, customer loyalty, returns management, and marketing automation. Pricing for each app depends on factors such as the features offered, usage volume, and website traffic. Based on our extensive experience with Shopify Plus clients, here's an overview of typical monthly spending for key app categories:

• Marketing & Email: Additionally, many apps utilise usage-based pricing, where costs are determined by specific metrics such as the number of contacts stored, the volume of emails sent, or the number of SMS messages transmitted. Tiered pricing is also frequently employed, offering different plans with varying features and usage allowances at various price points.
• Customer Service: In the customer service category, usage-based pricing is often used, with charges based on the number of support tickets handled within a given period. Some apps also implement user-based pricing, charging a fee per agent or user accessing the platform. Additionally, tiered pricing is frequently applied, offering various plans with different ticket or user limits and features.
• Product Reviews & Social Proof: Product review apps are key in building trust and influencing purchasing decisions. The most common pricing model in this category is order-based pricing, where costs are determined by the number of orders the store processes each month.
• Loyalty & Referral Apps: Loyalty and referral apps boost customer retention, repeat purchases, and word-of-mouth marketing. In this category, order-based pricing is often used, with costs tied to monthly orders, while member-based pricing depends on the number of active members in the loyalty program. Tiered pricing is standard, offering different plans with varying limits on orders or members and distinct feature sets.
• Search Optimisation: Search optimisation apps may use usage-based pricing, with charges based on the number of search requests or the volume of records indexed. Like other categories, tiered pricing offers plans with different usage limits and feature sets.

The average monthly app expenditure for mid-level brands using Shopify Plus is typically around USD 1,000. However, companies needing a fully enterprise-ready tech stack with advanced features may spend up to USD 3,000 per month or more, depending on their specific requirements and selected solutions.

Payment processing fees

Transaction and payment processing fees are a key component of the total cost of ownership for any e-commerce business, no matter the platform or payment gateway used. It’s important to differentiate between two types of fees: the card processing fees charged by all payment gateways and the transaction fees imposed by Shopify when a merchant chooses a third-party payment provider instead of using Shopify Payments. It is crucial to stay informed about up-to-date rates for transaction fees, as these can vary by location and impact overall costs.

Payment processing charges

Payment gateways—including Shopify Payments and third-party options like PayPal, 2C2P and PayNow—charge processing fees for each transaction, and merchants pay Shopify based on their chosen gateway and sales volume. These fees vary based on your business’s country, the gateway used, sales volume, credit card type, and risk profile. Merchants can negotiate competitive rates with Shopify based on their sales volume. Please note that the following examples are for a Singapore merchant using illustrative rates.

Example 1: Shopify Payments (primary payment gateway)

• Visa & MasterCard: 2.9% + SGD 0.50 per transaction
• American Express & International Cards: 3.3% + SGD 0.50 per transaction

Example 2: Shopify Payments (primary payment gateway) + PayPal

• Visa & MasterCard: 2.9% + SGD 0.50 per transaction
• American Express & International Cards: 3.3% + SGD 0.50 per transaction
• Paypal (Credit Cards): 3.9% + SGD 0.50 per transaction, with no third-party transaction fees paid to Shopify

Example 3: PayPal

• Paypal (Credit Cards): 3.9% + SGD 0.50 per transaction fees + 0.2% (third-party transaction fees paid to Shopify)
• If you choose not to use Shopify Payments as your primary gateway, or if Shopify Payments is not available in your country, you may use a third-party processor.

Transaction fees: The advantage of Shopify Payments

Opting for Shopify Payments unlocks several additional benefits, such as eliminating transaction fees, a simplified setup process, and the potential for faster payouts through Shopify Balance. The choice between Shopify Payments and a third-party gateway directly impacts the total cost of ownership. For high-volume merchants, the lower transaction fees offered by Shopify Plus, especially when using Shopify Payments, can result in significant cost savings.

Implementation & development costs

Establishing a partnership with a specialised Shopify Plus agency is often a strategic imperative for substantial website development, redesigns for existing websites, or the implementation of intricate integration projects. The costs associated with engaging agency services can vary considerably based on the complexity and overall scope of the project, as well as the size and level of expertise offered by the chosen agency. Understanding Shopify Plus pricing, including additional costs such as theme costs and third-party integrations, is essential for accurate budgeting.

Navigating agency size and expertise

Partnering with a specialised Shopify Plus agency is often essential for significant website development, extensive redesigns, or complex integration projects. The cost of agency services can vary significantly depending on the project’s complexity and scope, as well as the agency chosen's expertise. Agencies can help companies navigate variable platform fee-based pricing structures, ensuring that costs align with their revenue and business model.

Small agencies (Fewer than 15 team members) Shopify Select Partners

• Ideal for: Projects that require a more straightforward, templated design with basic technical needs and have a quick turnaround with a smaller, more focused scope.
• Considerations: Their ability to handle design or brand-focused projects may be limited, as they often rely on templates as a base. They may also rely heavily on apps rather than fully utilising Shopify Plus's capabilities, especially for features like custom discounting. Additionally, they may have limited experience handling complex projects requiring back-end system integrations or advanced technical solutions.
• Shopify Select partner cost: SGD 15,000 - 35,000

Medium agencies (20 – 50 team members), Shopify Plus Partners

• Ideal for: Companies looking to balance cost with quality. These Shopify Plus agencies typically offer front-end and back-end capabilities, allowing them to design custom themes and handle development work tailored to the brand. They have experience working with regional and global brands and usually have a strong track record of completing complex projects.
• Considerations: While they offer a broad range of services, medium-sized Shopify Plus agencies may not provide a complete "full-service" offering. This might require companies to work with additional specialised partners for areas like influencer marketing, paid advertising, or marketplace management.
• Shopify Plus agency cost: SGD 35,000 - 150,000

Large agencies (50 – 100+ team members), Shopify Premier Partners

• Ideal for: Enterprises seeking an all-in-one Shopify agency capable of providing a comprehensive suite of services, including design, development, pay-per-click (PPC) advertising, brand management, and public relations.
• Considerations: While large Shopify Premier agencies offer a one-stop solution, they may have specialists for each area, which could lead to a more segmented approach. Project timelines may be longer due to managing multiple client engagements, and overall costs are generally higher than those of smaller agencies.
• Shopify Premier agency cost: SGD 150,000 - 350,000

In-house team

• Ideal for: Companies looking to consolidate all resources internally, with a team solely focused on the company's needs. This provides better control over your brand and data.
• Considerations: The costs associated with building and maintaining an in-house team can be high as salaries, benefits, and ongoing expenses increase. The team may not have the breadth of experience or be up-to-date with the latest technologies as they focus solely on one brand. This could require hiring additional specialists for specific tasks, which can be costly.

The best Shopify agency partner for a business will depend on the project's budget, timeline, and business goals. Evaluating an agency's experience with Shopify Plus features like Shopify functions, custom checkout extensions, and wholesale B2B functionalities is crucial. Some agencies specialise in specific industries like design, development, marketing, or verticals like furniture, beauty or electronics. Carefully considering their portfolios and experience will help you select the right partner.

Collaborating with an experienced Shopify Plus agency can lead to a higher return on investment by ensuring your store is optimised for success, leveraging the agency's platform expertise and best practices. These agencies can also handle complex customisations and integrations, saving time and resources compared to relying on an in-house team.

Additional Considerations

When evaluating the Total Cost of Ownership of Shopify Plus, several additional considerations should be kept in mind:

• Benefits of Shopify Plus: The platform offers a range of benefits, including advanced features, scalability, and enhanced security. These advantages can justify the investment by providing significant value to the business.
• Paid Services: Shopify Plus offers paid services, such as Shopify Payments, which can affect the Total Cost of Ownership. These services often provide additional benefits, such as lower transaction fees and faster payouts.
• Online Retail and B2B: Shopify Plus is designed to cater to both online retail and B2B businesses. The cost of using the platform can vary depending on the specific needs of the business, such as the need for B2B functionalities or multi-channel selling.
• Compliance Costs: Ensuring compliance with relevant regulations is critical to running an e-commerce business. The Total Cost of Ownership includes a business's specific needs, various laws, and the cost of maintaining compliance.

By considering these additional factors, companies can gain a more comprehensive understanding of the Total Cost of Ownership and make more informed decisions about their e-commerce investments.

Final considerations for calculating your Shopify Plus total cost

It is crucial to remember to factor in all recurring expenses. To arrive at an accurate estimate of the total cost of ownership for Shopify Plus:

• Shopify Plus base platform costs: As detailed in the tiered pricing structure, they are revenue-based.
• Payment processing fees: Determined by the chosen gateway and the volume of transactions processed.
• App subscriptions: The cumulative cost of all the third-party tools that enhance the store's functionality.
• Shopify agency retainers or project fees: If a partnership with an agency is established for ongoing support or specific development projects.

Companies should consider exploring more affordable app options to manage their budget effectively without sacrificing essential features or user experience quality. Additionally, it's important to evaluate the current business size and projected revenue growth to determine where Shopify Plus aligns with long-term scaling plans. Accurately calculating the total cost of ownership requires a comprehensive understanding of all these interconnected cost components. The decision to invest in Shopify Plus should be carefully aligned with the brand's growth trajectory and overall strategic goals.

Shopify commissioned a top independent consulting firm to analyse the total cost of ownership (TCO) across major platforms in North America, including Shopify, BigCommerce, Salesforce Commerce Cloud, Adobe Commerce (Magento), and WooCommerce. The results revealed that Shopify's TCO is, on average, 33% lower than its competitors, with up to 36% savings.

Ready to unlock your brand's potential with Shopify Plus?

Shopify Plus is an exceptional platform for mid- to enterprise-level businesses seeking competitive pricing and a comprehensive suite of robust features designed for growth. Companies can make informed decisions that align directly with their objectives by thoroughly understanding all potential costs.

Ready to explore what Shopify Plus can do for your brand? Contact our team of experienced Shopify Plus experts today for a personalised consultation and tailored guidance on your transition or optimisation process.