A Shopify plan is the monthly subscription tier that determines which features, staff accounts, and transaction rates your Shopify store gets access to. Shopify offers four main plans: Basic, Shopify, Advanced, and Plus. Each tier unlocks more features and better pricing on payment processing.
Your plan choice does not affect what your customers see. Every plan gives you a fully functional online store. The differences are behind the scenes: reporting depth, staff seats, shipping discounts, and the percentage Shopify takes per transaction.
Why It Matters
Picking the wrong plan either costs you money you do not need to spend, or limits your store at the exact moment you need to grow. A store doing $5,000 a month in sales has very different needs from one doing $500,000.
The biggest financial impact is transaction fees. On the Basic plan, Shopify charges 2.9% + 30 cents per online transaction through Shopify Payments. On the Advanced plan, that drops to 2.4% + 30 cents. That half-percent difference sounds small until you calculate it against $50,000 in monthly sales: roughly $250 saved every month, more than the cost of the upgrade.
How the Plans Compare
| Feature | Basic ($39/mo) | Shopify ($105/mo) | Advanced ($399/mo) | Plus ($2,300+/mo) |
|---|---|---|---|---|
| Online credit card rate | 2.9% + 30c | 2.7% + 30c | 2.4% + 30c | Custom negotiated |
| Staff accounts | 2 | 5 | 15 | Unlimited |
| Inventory locations | Up to 10 | Up to 10 | Up to 10 | 200+ |
| Reports | Basic | Standard | Advanced | Custom |
| Third-party transaction fee | 2.0% | 1.0% | 0.6% | 0.2% |
| Shipping discount | Up to 77% | Up to 88% | Up to 88% | Custom |
The third-party transaction fee only applies if you use a payment gateway other than Shopify Payments. If you use Shopify Payments, that fee is waived on every plan.
Real Example
A home decor brand launches on the Basic plan at $39/month. Sales grow to $30,000/month within six months. The owner is processing all orders through Shopify Payments at 2.9% + 30 cents, paying roughly $900 in processing fees monthly.
She upgrades to the Shopify plan at $105/month. The rate drops to 2.7% + 30 cents, saving about $60/month in processing fees. She also gets better reports to see which products drive the most profit, and three additional staff accounts for her growing team. The $66 difference in plan cost pays for itself through the processing savings alone, and the better data helps her double down on her best sellers.
How to Pick the Right Plan
Start with Basic unless you have a reason not to. Most new stores do not need advanced reporting or more than two staff accounts. You can always upgrade later and the switch is instant.
Upgrade when transaction fees make it worth it. Run the math. If moving to the next tier saves more in processing fees than it costs in plan price, the upgrade pays for itself. For most stores, this tipping point happens around $15,000-$20,000 in monthly revenue.
Consider staff needs. If your team has more than two people who need admin access, the Basic plan will not work. The Shopify plan gives you five accounts, which covers most small teams.
Look at reporting requirements. Basic only gives you surface-level analytics. If you need profit reports, customer lifetime value data, or detailed sales breakdowns by channel, you need at least the Shopify plan.
Skip Plus until you are doing serious volume. Shopify Plus starts at $2,300/month and is built for stores processing millions in annual revenue. If you have to ask whether you need Plus, you probably do not need it yet.
Annual Billing Saves 25%
Every plan offers a discount if you pay annually instead of monthly. Basic drops from $39/month to $29/month. Shopify drops from $105 to $79. Advanced drops from $399 to $299. If you are confident in your commitment, annual billing is one of the easiest savings available.
