how much does nexternal cost vs. shopify

when it comes to starting your own,online store shopify is one of the best,ecommerce platforms out there but the,main problem with shopify is that it can,be hard to decide which shopify plan to,go with or how much it really costs when,you factor in the cost of third-party,apps now the right shopify plan for your,online store depends on a variety of,factors which include your monthly,revenue your required feature set and,your customization needs now this video,will enumerate all the costs and,benefits for each shopify plan and,prevent you from wasting money on,unnecessary features and my ultimate,goal here is to help you understand how,much shopify costs and choose the,cheapest possible shopify pricing plan,that meets your minimum requirements,now the first question i always get,asked is is shopify free shopify is not,free but they do offer a 14 day free,trial and during this free trial you can,build an online store and have access to,all their tools however in order to take,transactions online you have to sign up,for a paid plan and right now shopify,offers five plans there's shopify lite,and nine bucks a month shopify basic at,29 a month shopify regular at 79 a month,shopify advanced at 2.99 a month and,shopify plus which costs over 2 000 a,month,now which shopify plan should you choose,now the following table here is actually,taken directly from shopify's website,and enumerates all the features for each,pricing plan,if you look at this table you notice a,couple things first of all the shopify,lite plan and the shopify plus plan are,missing and the reason is because the,shopify plus plan and the lite plan have,very specific use cases which i'll,discuss in depth later on this video,second of all there's actually very,little difference between the basic,regular and advanced plans outside of a,couple of features and processing fees,so as a result your decision between,shopify basic regular and advanced,primarily depends on your monthly sales,volume and how much you value the extra,features versus paying for third-party,apps,alright so here are the features,available on all shopify pricing plans,now they all offer abandoned cart,recovery and abandoned cart recovery is,a feature where your shopping cart,automatically reaches out to customers,who abandon their cart and convince them,to complete their purchase,now shopify's built-in abandoned cart,recovery feature is extremely limited,because it only allows you to send a,single email to customers and,realistically any serious ecommerce,store owner will use a third-party,abandoned cart recovery solution like,clayview,all shopify plans also offer a point of,sale solution as well,shopify pos or point of sale is their,point of sale solution that allows you,to access in-person payments at pop-ups,markets fairs and trade shows and then,finally all shopify plans offer a free,ssl certificate,discount codes real-time carrier,shipping quotes and unlimited products,now let's talk about the plans if you,have a website and you want to sell just,a couple of products then shopify lite,is for you and it's nine bucks a month,so if you run a popular blog or an,existing website and simply want to just,add the ability to sell a couple,products here and there then the light,plan is for you the light plan costs,nine bucks a month it allows you to sell,on facebook and on your own site through,the use of custom buy buttons now the,important thing to realize about shopify,lite is that this plan does not provide,you with an online store website in fact,the lite plan is only for people who,already have their own website and would,like to accept transactions online so,for example if i want to sell widgets on,mywifecritterjob.com,i might want to sign up for the shopify,lite plan so i can include buy buttons,on my blog to sell my products now if i,had a popular facebook page or group i,might want to sign up for shopify lite,to sell directly on facebook so bottom,line the shopify lite plan is only for,people who already have a website and,would like to accept transactions online,and in addition to the nine dollars a,month fee you'll also have to pay 2.9,percent plus 30 cents in credit card,transaction fees if you use shopify,payments now if your online store makes,less than 16 333 dollars per month go,with shopify basic and for more stores,out there the basic plan makes the most,economical sense until you start,generating more than sixteen thousand,three hundred and thirty three dollars,in monthly revenue now here's how to,calculate the break-even point the basic,shopify plan charges 2.9 percent plus 30,cents in credit card transaction fees,whereas the main shopify plan charges,2.6,plus 30 cents in credit card transaction,fees that is a difference of 0.3 percent,on fees now the main shopify plan costs,79,whereas the basic shopify plan costs,only 29,a difference of 50 bucks now to make up,for that fifty dollar difference in cost,you have to process fifty dollars,divided by point three percent or,sixteen thousand three hundred thirty,three dollars to break even in terms of,credit card fees,now feature wise the one major,difference between the main shopify plan,and the basic plan is that the main plan,offers gift cards and an advanced report,builder now at first glance the lack of,gift card capability sounds like a deal,breaker but there's actually many,shopify third-party apps that will,implement this functionality for you so,for example the bold discount app offers,a very powerful discount engine for only,15 a month,now while the professional reports you,get with the main plan are useful they,alone do not justify the added fifty,dollar cost of the main plan now if your,online store makes between sixteen,thousand three hundred and thirty three,dollars a month and a hundred and ten,thousand dollars a month go with the,shopify main plan in fact feature wise,there's almost zero reason to sign up,for the advanced shopify plan until you,exceed 110 000 a month now if you look,at the main shopify plan you literally,get 99 of the features of the advanced,shopify plan for only 79 bucks which,makes this plan the sweet spot for most,six and seven figure store owners now,the only reason it's time for the,advanced shopify plan at this revenue,tier is if you require more than 15,staff accounts but realistically a store,at this level you're not going to have,15 employees if you aren't using shopify,payments then shopify charges you a,credit card transaction fee which are,drastically reduced on the advanced,shopify plan so instead of paying one,percent in extra fees on the basic plan,you only get charge point five percent,if you want to show calculated shipping,rates at checkout then go with the,advanced plan but in my experience,showing the exact shipping rate during,checkout is overrated but for some,businesses it might be important,now if your online store makes between,110k a month and 680k per month go with,the shopify advance plan now the,advanced shopify plan offers the lowest,credit card transaction fees of all the,main plans including a couple of extra,nice to have features so for example at,this revenue level you're probably,already handling your shipping via a,third-party vendor like ship station or,shipping easy as a result it might be,nice to show you calculated rates during,checkout instead of using a table rate,or a flat rate solution now if you don't,have a bookkeeper or an analytics member,on your staff shopify's advanced reports,will come in handy for projecting your,future revenue but outside of that you,should just stick with the advanced,shopify plan until you hit 680k a month,in revenue or if you require the,advanced feature set of shopify plus,if your online store makes over 680k per,month go with shopify plus just for the,savings on credit card transaction fees,alone at this tier your credit card,processing fees plummet to only 2.15,which is on par with what you can get,with a regular merchant account and,gateway combo but outside the pure,transaction fee savings shopify plus,also offers you a host of advanced,features that are extremely useful and,unique to plus users so for example you,get multiple online stores now this,feature is very convenient if you sell,in international markets and with,shopify plus you can have up to 10,stores at no additional cost where you,can tailor the products and the content,to whatever country you're selling into,you also get access to shopify's,launchpad tool,launchpad is a tool that's only,available to plus members that yes users,automate common ecommerce tasks related,to promotions and sales so for example,you can automatically adjust your prices,during a promotional campaign based on,specific product parameters you can set,complex rules for discounts such as free,gift with purchase or free shipping,based on the type of product ordered you,can also set a start and end time for a,special sale and automatically change,your theme with special colors images,and immediately revert it back after the,campaign is over meanwhile shopify,allows you to monitor your launch,campaigns in real time with their event,dashboard,you can also sell wholesale with shopify,plus one of shopify's glaring weaknesses,is the ability to offer special,wholesale pricing to select customers,but shopify plus adds this capability,out of the box,now the shopify plus wholesale channel,allows you to create a separate shopify,store specifically for your wholesale,customers that is an extension of your,existing website now especially if you,sell in retail locations you can,effectively streamline your sales,channels and merge your inventory,tracking for your entire operation now,you have full control with shopify plus,one of the biggest advantages of using,shopify is that you don't need to know,how to code your own website but once,your store reaches a certain size you'll,probably have customization needs that,extend beyond the regular shopify plan,so for example regular shopify plans do,not allow you to alter the checkout,experience but shopify plus customers,can create any custom checkout,implementation that they want,you also get access to shopify flow and,in my opinion access to shopify flow is,probably the biggest benefit to,upgrading to shopify plus aside from the,cost benefit now what is shopify flow,well shopify flow is shopify's backend,automation platform that allows you to,set up custom workflows so for example,let's say i want to automatically track,and tag specific customers who purchase,widget a and b together well with,shopify flow you can easily set up an,automated workflow to tag these,customers and then use this data to,generate highly segmented reports or to,set up facebook custom audiences you can,also export these customers into special,segments for your email marketing,provider now another popular use case,for shopify flow is to automatically,implement loyalty and retention,discounts by segmenting customers with,tags based on their lifetime spend,amount you can even use shopify flow to,send a staff member a slack message,whenever a high ltv customer is shopping,in your store so overall shopify flow,allows you to take specific actions,based on internal events that run in,your store and the possibilities are,endless now one of the most common,questions i get asked is what is the,cost of shopify payments now,one of the perks of signing up for any,shopify plan is that they give you the,ability to process credit card payments,right out of the box without the need,for a third party provider now their,credit card payment solution is now,called shopify payments and it's very,convenient for new online store owners,however the downside to shopify payments,is that it's a lot more expensive than,almost every third-party credit card,processor out there so for example a,store that makes 10k a month can,probably get a 2.2 credit card,processing fee from authorized.net,whereas shopify charges credit card,processing fees of 2.9,now if you can find cheaper credit card,rates elsewhere then why would you stick,with shopify payments well the main,reason is because shopify charges,transaction fees if you use an external,payment gateway provider their,transaction fees start at two percent,for the basic shopify plan and drops,down to 0.5 percent on the advanced,shopify plan so,bottom line shopify essentially forces,you to use their payment processing,platform,now the other question i'm commonly,asked is what is the cost of shopify,apps and the unfortunate reality is that,the basic shopify shopping cart has very,few features out of the box so as a,result most users end up paying,additional shopify costs for third-party,apps that extend shopify's functionality,now the majority of apps in the shopify,app store carry a monthly recurring fee,and these costs must be taken into,account when you calculate the overall,price of shopify in fact it's not,unusual for e-commerce store owners to,pay hundreds of dollars per month for,apps on top of their basic shopify plan,and my advice to you when it comes to,buying apps on the shopify app store is,to only pay for apps that definitively,contribute to your bottom line,here's just some other shopify costs,even though shopify handles most of the,heavy lifting for your online store,website there are a couple additional,costs that you have to worry about on,any shopify plan for one thing shopify,does not provide you with a free domain,and to register your domain shopify will,charge you nine dollars per year but in,general you should host all of your,website domains at a neutral third-party,registrar like godaddy namecheap or,google domains,in addition no shopify plan provides you,with the capability to send email from,your own custom domain out of the box,either instead if you want to send email,under your owndomain.com,you'll need to sign up for an email,provider like zoho mail or g suite now,the million dollar question is is,shopify worth it well shopify is worth,the money if you want to start an online,store that can potentially scale to,seven eight or even nine figures because,shopify is just so popular they have an,army of third-party developers who are,constantly adding new functionality in,apps and as a result shopify is always,on the cutting edge of ecommerce now if,you need a feature for your store,there's probably already an app that,does what you need now while shopify is,expensive compared to other e-commerce,platforms they are the leaders in the,space with a huge war chest of,engineering talent and cash,now if you want to save money on shopify,here's what you need to do the easiest,way to save money on any shopify plan is,to pay for a year upfront versus paying,month to month shopify does not,advertise this on their website but you,can save up to 25,if you choose to pay for three years in,advance in fact here's how the discount,typically works you can save 10 if you,pay for a year in advance you can save,20 if you pay for two years in advance,and you can save 25,if you pay for three years in advance,now if you plan on sticking with shopify,in the long run then it's in your best,interest to pay for as much upfront as,you possibly can now if you're on a,month-to-month plan you can cancel at,any time but it will be significantly,more expensive so i'm now going to,answer some of the most commonly asked,questions i get about shopify how much,does a typical shopify plan cost,including apps now i've already covered,the cost of the different shopify plans,basic regular advance and plus,however the cost of your shopify plan is,often just a small fraction of the total,cost of running shopify because of third,party apps now the total number of apps,that your store will need will vary,depending on the nature of your products,and your e-commerce store but the,majority of the students making at least,five figures per month in my creative,profitable online store course pay over,150 a month on apps alone,the other question i get asked is is,shopify plus worth it because it costs,two thousand dollars a month minimum,well it can be worth the money if your,store makes at least seven figures in,annual revenue in general it makes sense,to upgrade to shopify plus if you make,over 680k per month just for the credit,card processing savings alone however if,you're making between 110k and 680k per,month your decision to use shopify,versus shopify plus will depend on the,features that you need,now overall shopify's pricing plans can,get quite confusing if you don't have,any hands-on experience with the,platform and in practice it's in your,best interest to stay on the cheapest,shopify plan possible until your credit,card rate savings exceed the cost of the,next higher plan,now outside of the shopify plus tier the,features you get for each hire plan are,mostly a non-factor,after all most of the extra,functionality with shopify will be,gained from paying for third-party apps,now the base shopify cart will never do,everything you want it to do so you'll,end up having to pay for apps no matter,what hope you enjoyed this video now if,you like what you saw there's actually a,lot more where that came from if you,subscribe to my channel below and if you,are interested in learning how to sell,physical products online then click over,here and take my free six day mini,course where i'll walk you through,everything that you need to know to get,started in e-commerce thanks for,watching

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