If you dive into the world of dropshipping business, you know that it is rife with challenges and obstacles.
Preparing ahead is crucial in building a successful Shopify online store, especially a dropshipping store. The decisions you make early on when building your Shopify store are critical to your success down the road.
Which Shopify plan is best for dropshipping?
It’s a common question that online store owners find themselves asking, and if you are asking the same question, then you’ve come to the right place.
When I started online selling, choosing the right plan felt like navigating a maze on a blindfold. It was overwhelming and confusing, as you have to find the right balance between cost, features, and scalability.
In this guide, you will find the information you need to have confidence to choose the right Shopify plan for your dropshipping store.
Hopefully, you will have a clear understanding of which Shopify plans are suited for which type of business. You can confidently choose which Shopify plan aligns with your goals and visions for your dropshipping store!
Key Takeaways
- There are four basic plans to choose from and they differ in costs and features.
- Choose a Shopify plan according to your business goals and where you are in your selling journey, as well as your future plans.
- Aside from the subscription pricing, you must consider additional costs that are involved with setting up a dropshipping online store.
Why Choose Shopify for Your Dropshipping Business?
First, let’s tackle why Shopify is the best option for your dropshipping store. It’s easy to see why – Shopify is a global leader in hosting and providing access to ecommerce features for online store owners.
They equip Shopify store owners with the essential tools to launch and grow their ecommerce business, whether it’s dropshipping or any other business model.
Another advantage to setting up Shopify stores for dropshipping is the ease of integration with dropshipping suppliers, like Alibaba and Aliexpress.
From your admin dashboard, you can manage all aspects of your online store, such as adding product range, managing products, optimizing marketing efforts, or analyzing sales data.
Even if you are a beginner in the dropshipping business, the intuitive features and interface make it easy to figure out. As such, Shopify has been the go-to option for dropshipping store owners due to the wide range of tools and services.
Since your online store is a critical part of your dropshipping business, Shopify makes it easy to seamlessly add products and customize your store to attract customers.
Refresher on Shopify Plans
I’ve discussed the various Shopify plans in more detail in another post, but I’ll include a quick refresher here to help you decide which Shopify plan is best for dropshipping.
Each Shopify plan comes at a different cost and they vary in the features and solutions they offer for your dropshipping store.
Shopify offers three basic plans to choose from: Basic Shopify plan, the Regular Shopify plan, and Shopify Advanced Plan. Aside from the basic plan options, you also have the Starter Plan and Shopify Plus plans for those looking for more customizable solutions according to where you are in your dropshipping journey.
Here is a breakdown of each Shopify plans for you to consider.
Shopify Starter Plan
The Shopify Starter plan is the most basic plan available for aspiring Shopify dropshipping business owners. It covers the bare minimum when selling on the Shopify platform.
This plan does not involve a monthly subscription payment just like the rest of the Shopify plans. Instead, you will pay 5% fee + 30 cents for every successful sale on the platform.
For example, you sold an item valued at $10, you can pocket $9.20 for that sale. The rest goes to Shopify.
The only downside to the Shopify starter plan is that you won’t be able to build a website where you can collect payments or hold an inventory. The Starter plan is only suited for social selling, such as on Tiktok or Instagram.
Essentially, you will only be selling products on social platforms where you can transact with customers. It is also possible to sell products through email or SMS.
Shopify Basic Plan
The Shopify Basic Plan is the base plan that Shopify offers. It starts at a price of $19 per month for the annual subscription, or $25 per month if you choose the monthly subscription.
With a Shopify Basic plan, you can take advantage of Shopify’s website builder features. You can build a website to showcase your product range and sell more products to potential buyers.
The ability to set up a website is advantageous for dropshipping business owners because you don’t hold a physical inventory. Showcasing your products online and optimizing it with SEO on the title and product descriptions is the best way to attract customers and sales.
If you’re dropshipping, the Shopify Basic plan allows you to have 10 inventor locations. It is a good starting point for sellers new to building a dropshipping store or solo entrepeneurs.
For every transaction under this plan, you can get 2% transaction fee. Localized selling for up to 3 markets is also available.
Shopify Plan
The Shopify Plan is the next level in the list of Shopify plans available through this ecommerce platform. The fee for this plan is $49 per month on an annual subscription or $65 a month on a monthly subscription.
This plan enables you to build a full-featured website wherein you can showcase your product range. Unlike the basic plan, the Shopify plan allows you to have up to five staff accounts to help manage your store, orders, and products.
Like the basic plan, you can access standard analytics and hold 10 inventory locations. However, the main difference is that the transaction fee is only 1%. Localized selling is available for up to three markets.
The Shopify plan is suitable for mid-sized teams and dropshipping store owners. With more staff accounts, this plan allows you to work with a website designer and staff to monitor your campaigns and add products to your storefront.
Professional reporting also ensures you can generate more conversions on your store.
Shopify Advanced Plan
The Shopify Advanced Plan is available at $299 per month for an annual subscription or $399 per month for a monthly subscription. It is the highest plan available for those who run a single online store or those with advanced business needs.
It is ideal for high volume businesses or dropshipping with Shopify with a large volume of orders, such as those that generate up to $1 million annually in sales.
The Shopify Advanced plan owners can build a full-featured storefront when dropshipping with Shopify. It also comes with up to 15 additional staff accounts to help manage and run your dropshipping store.
The enhanced live chat support, custom reporting and sales data analytics, and 10x checkout capacity are available for this plan.
The transaction fee for the Shopify Advanced plan is 0.6% with an additional payment for a tax platform. In-person selling is available with Shopify POS lite. You can manage global sales for up to three markets, with the option to expand to more markets for an additional fee.
For a dropshipping store owner, this plan gives you the option to sell internationally. It also means you can build different versions of your website for each country.
It is recommended for dropshipping owners that maintain a positive cash flow and consistent sales.
Shopify Plus Plan
The Shopify Plus Plan is available at a price of $2,300 a month with a 3-year term. It is the highest-tiered plan without purchasing a custom plan.
It is recommended for a business that have high volume orders and have access to variable fees. There is an unlimited staff account available with the Shopify Plus plan with priority support via phone or chat.
The main difference with other Shopify plans is that the Shopify Plus plan enables you to build up to 25 customizable Shopify stores and access up to 200 inventory locations. Meanwhile, your checkout capacity is 40x higher than other Shopify plans available.
Your transaction fee is down to 0.2% per transaction, and you can get up to 20 locations for in-person selling with Shopify POS or up to 200 using Shopify Payments gateway.
As you would expect, since you will be paying more on this plan, you have access to more advanced selling features.
It will require a significant investment so choose this plan only when your dropshipping business grows or you experience a steady stream of large volume orders on your Shopify dropshipping store.
Get the eBook and learn how to launch your one-product Shopify store right!Cost Analysis of Plans for Shopify Users
Before you start dropshipping or choose a plan for your drop shipping business, it’s important to perform a cost analysis for the various pricing plans that Shopify offers.
It will help you determine which plans would fit your budget and business needs, and also your current online sales for your ecommerce store.
Aside from the subscription fees, you must consider the additional Shopify costs associated with Shopify dropshipping. Consider this to help you pick the best Shopify plans.
I will break down the various costs when you start dropshipping on Shopify and discuss how it will impact your decision on which plan to use.
Monthly and Transaction Fees
Each plan has a set price that you must pay annually or monthly, depending on your chosen subscription type. While the pricing for each plan is upfront, the transaction fees are not.
Take this into consideration when choosing the best Shopify plan for drop shipping.
The Basic Shopify plan has a transaction fee of 2% per sale. It is a budget-friendly option for startup businesses or those who are new to drop shipping, but the 2% fee can affect your profit margins.
Consider if this is worth it and if you can still keep your business profitable. If not, you can consider going up a tier in the Shopify plans as your business expands or you get more online sales to save up on the transaction fees.
The next plan is the Shopify plan, which charges a transaction fee of 1% per sale. Upgrading to this plan from the Basic plan is a wise choice if you want to lower your fees per transaction, improving your profit margin.
Lastly, the Advanced Shopify plan comes with a 0.6% transaction fee. It is suitable for high volume businesses that want to maximize their profits with reduced transaction fees.
If you run multiple Shopify stores, the Shopify Plus plan is the best Shopify plan available at a 0.2% transaction fee.
The reduced transaction fees enable you to cover the costs of the high-tier plan while also optimizing the sales features available on this plan to increase your sales volume.
When analyzing the transaction fees for each plan, let’s consider this equation when selling a product worth $20.
- Basic Shopify – For a $20 sale, you will deduct 2% and earn $19.60.
- Shopify – For a $20 sale, you will deduct 1% and earn $19.80.
- Advanced Shopify – For a $20 sale, you will deduct 0.6% and earn $19.88.
- Shopify Plus – For a $20 sale, you will deduct 0.2% and earn $19.96.
Imagine if you make more sales, the savings you can get will increase as the transaction fee is lowered. The differences are minor, but they will matter the more online sales you make on your store.
Additional Costs to Consider
Aside from the upfront costs in the subscription pricing and the transaction fees, you must consider additional costs for your drop shipping business with Shopify.
Domain Name
When you set up your Shopify store, you need to buy a custom domain name. Shopify assigns a default domain on your website upon choosing your Shopify plan, but if you want to build a professional Shopify store, it is important to invest in a custom domain name to set your business apart from other dropshippig Shopify stores.
The cost of buying a domain name varies depending on whether you buy your domain from Shopify or other domain hosting companies, such as Google Domains or DreamHost. Prices will vary annually or monthly, too.
Themes
The Shopify themes enable you to customize your storefront to attract potential buyers. The Shopify Theme store offers a mix of free and premium themes.
If you choose the free themes, you won’t have to worry about the additional costs. But premium themes offer more functionality and advanced ecommerce features to optimize the shopping experience.
Apps and Plugins
The costs vary with each app or plugin you integrate into your online store. It could range from a few hundred dollars to thousands per month.
Site Development
It takes a significant investment to build a website from ground up. While the Shopify platform is a website builder that makes it easy to build your ecommerce store website, large businesses and enterprises like to hire a web designer or developer to customize their website and its features.
Consider this additional cost when you are choosing the best Shopify plan for drop shipping.
So, Which Shopify Plan is Best for Dropshipping?
Knowing fully well what the various pricing plans are available on Shopify and their corresponding features, we’re now in a better position to pick the most suitable plan.
The best plan available is the Shopify plan. While the Shopify Basic plan is the cheapest, it limits your access to the essential features you need to build a customizable store and to add a vast product range to your dropshipping store.
On the other hand, the Shopify plan is ideal for drop shipping store owners because it is specifically suited for the dropshipping business model. You have access to inventory management tools so you can track your products without dealing with physical storage.
In addition, you can create additional staff accounts (up to five) so you can enlist the help of your team members to manage orders, add products, and optimize your listings for more success.
While you only access standard analytics and reporting, you can integrate third-party analytics tools to analyze your sales data and monitor results for marketing campaigns. The transaction fee is at 1% per sale, but it should be a marginal fee if you are able to drive your sales higher.
But then again, the best Shopify plan for dropshipping is the one that aligns with your business goals. Every business is unique. Your business needs vary depending on where you are in your dropshipping journey.
Align your chosen plan with your needs and the future vision for your business, because you want to enjoy the scalability of your plan as your business expands.
Therefore, it’s wise to consider your current and future plans for your business to succeed with setting up a Shopify store, and picking the right plan that fits your budget.
And that’s the beauty of Shopify if you have a dropshipping business – it is highly versatile and can adapt to your business needs!
Build Your Store After Choosing Which Shopify Plan Is Best for Dropshipping
After deciding which Shopify plan is best for dropshipping, launch your store with ZIK’s Shopify AI Store Builder. This tool lets you create a fully functional, beautifully designed Shopify store in minutes—no design skills or tech knowledge needed.
FAQs
What is the best plan to start with on Shopify?
If this is your first time dropshipping and you’re simply dipping your toes into this business model, it’s best to start with the Basic Plan.
Starting at $25 a month, it is affordable to start with for your dropshipping online store. You can always upgrade to a higher-tiered plan later on as your business needs change and you want access to more advanced features and tools.
Can you drop ship with a Shopify starter plan?
Technically, yes. However, a starter plan does not allow you to create a website. You can only sell via approved sales channels, so it will not be suitable for dropshipping, especially if you have a vast product range.
How much does dropshipping with Shopify cost?
It depends on the plan you choose. The Basic plan starts at $25 a month, and it goes up to $2,300 a month for Shopify Plus.
Choose a plan that offers the features and tools you need, according to your goals and the size of your business. If you want to test if Shopify is the right dropshipping platform, you can start a free trial account.
Is Shopify worth it for dropshipping?
Yes. This leading ecommerce platform offers an extensive array of tools that ensure success for dropshipping store owners, as long as you choose the right plan and maximize its tools and capabilities.