How to start a Shopify store
Last reviewed . General information, not legal or tax advice.
To start a Shopify store, sign up for a trial, choose a plan (Basic is $39 a month, or $29 a month billed yearly), add your products, turn on Shopify Payments or another payment provider, and set shipping, taxes and your domain. Unlike a marketplace, your store is your own, so you bring the customers and handle sales tax registration.
How much does Shopify cost?
Shopify's pricing page lists four plans and says there are no setup fees on any of them. New stores can try it free for 3 days, then pay $1 a month for 3 months.
| Plan | Paid monthly | Paid yearly (per month) | Online card rate with Shopify Payments |
|---|---|---|---|
| Basic | $39 | $29 | From 2.9% + 30¢ |
| Grow | $105 | $79 | From 2.7% + 30¢ |
| Advanced | $399 | $299 | From 2.5% + 30¢ |
| Plus | From $2,300 | Not listed | From 2.25% + 30¢ |
A first store rarely needs more than Basic. Grow and Advanced mostly add lower card rates, more staff accounts and shipping and regional features, which pay off only at higher sales. Budget separately for any paid theme or apps, and for buying a domain name if you do not already own one.
What does Shopify take from each sale?
With Shopify Payments, the main per-sale cost is the card rate. On Basic, Shopify lists 2.9% + 30¢ for standard online cards, 3.5% + 30¢ for premium cards, an extra 1% for international cards and 2.6% + 10¢ for in-person card sales. Shopify Payments is available only in certain countries.
If you use a different payment provider instead, Shopify adds a third-party transaction fee on top of that provider's own charges: 2% on Basic, 1% on Grow and 0.6% on Advanced.
| Payment setup | Shopify's charge | Left before your costs |
|---|---|---|
| Shopify Payments, standard card (2.9% + 30¢) | $1.32 | $33.68 |
| Another provider (Shopify's 2% only; the provider's fee comes on top) | $0.70 | Less than $34.30 |
Compare this with a marketplace: there is no listing or commission fee, but the monthly plan is fixed. At $39 a month, the plan alone adds about $1.95 to each order if you make 20 sales a month, and about $0.39 at 100. Low early volume is where Shopify costs the most per order.
What are the steps to launch a Shopify store?
Start the trial and pick a plan
Use the trial to build the store before you pay, and choose monthly or yearly billing once you know you will keep it.
Add products with real costs behind the prices
Write each product page with photos, materials, sizes and delivery times. Set prices that cover your unit cost, card fees and shipping; see how to price a product or service.
Set up payments and payouts
Turn on Shopify Payments where it is available, or connect another provider and accept the third-party transaction fee. Link a business bank account for payouts.
Register for sales tax, then set tax collection
Get your state's seller's permit before you sell taxable goods, then configure where the store charges tax. Shopify does not file or remit tax for you unless you use Shopify Tax with automated filing.
Set shipping rates and delivery promises
Only promise delivery times you can meet; federal rules apply to what you state.
Connect a domain and publish your policies
Shopify's plan comparison lists a custom domain name and a free SSL certificate under hosting. Publish refund, shipping and privacy policies before launch.
Launch and bring the first visitors
A store has no built-in marketplace traffic, so plan how the first customers will find it; see how to get your first customers.
Which legal duties come with running your own store?
On a marketplace, the platform takes over some duties. On your own Shopify store you are the seller of record, so these are yours:
- Sales tax. Shopify's US tax help says it does not remit or file your taxes for you unless you use Shopify Tax and set up automated filing. Register, collect and file where you must; see seller's permits and sales tax.
- Shipping promises. Under the FTC's Mail, Internet or Telephone Order Merchandise Rule, you need a reasonable basis for any shipping time you state, or for shipping within 30 days if you state none. If you cannot ship on time, you must ask the customer to consent to the delay or promptly refund.
- Marketing email. The FTC's CAN-SPAM guide requires accurate headers and subject lines, your physical postal address, a clear way to opt out, and honoring opt-outs within 10 business days.
- Income records. Payment processors report your sales to the IRS on Form 1099-K above $20,000 in more than 200 transactions, and you report all of it either way.
Frequently asked questions
How much does it cost to start a Shopify store?
Shopify lists no setup fee. After a 3-day free trial and 3 months at $1 a month, the Basic plan costs $39 a month, or $29 a month billed yearly. Each online card sale through Shopify Payments then costs from 2.9% plus 30 cents. Paid themes, apps and a domain name cost extra if you choose them.
Do I need Shopify Payments?
No, but Shopify charges a third-party transaction fee when you use another payment provider: 2% on Basic, 1% on Grow and 0.6% on Advanced, on top of that provider's own fees. Shopify Payments is available only in certain countries, so check whether your business qualifies before you compare the costs of each option.
Does Shopify collect and pay sales tax for me?
Not by default. Shopify's help center says it does not remit or file your taxes for you unless you use Shopify Tax and set up automated filing. You still need your own seller's permit in each state where you must collect, and you are responsible for the returns.
Is Shopify better than Etsy or Amazon for a new brand?
It depends on where your customers already are. Marketplaces bring shoppers but charge per listing or per sale and set the rules. A Shopify store charges a monthly plan and card fees, keeps the customer relationship with you, but brings no traffic of its own. Some sellers use both: a marketplace for reach and their own store for repeat customers.
Sources
- Shopify Pricing, Shopify. https://www.shopify.com/pricing
- US taxes, Shopify Help Center. https://help.shopify.com/en/manual/taxes/us
- Business Guide to the FTC's Mail, Internet, or Telephone Order Merchandise Rule, Federal Trade Commission. https://www.ftc.gov/business-guidance/resources/business-guide-ftcs-mail-internet-or-telephone-order-merchandise-rule
- CAN-SPAM Act: A Compliance Guide for Business, Federal Trade Commission. https://www.ftc.gov/business-guidance/resources/can-spam-act-compliance-guide-business
- Understanding your Form 1099-K, Internal Revenue Service. https://www.irs.gov/businesses/understanding-your-form-1099-k
This guide is general information, not legal or tax advice. Rules differ by state and city and change over time, so confirm the details with the official sources above or a licensed professional.