Shopify Starter Plan vs. Basic: Which One is Right for You?

Starting an online business can be exciting, but choosing the right tools to support your venture can be daunting. Shopify, one of the leading eCommerce platforms, offers a variety of pricing plans designed to cater to different business needs. Among these, the Shopify Starter Plan and the Basic Plan stand out as popular options for budding entrepreneurs. In this blog, we’ll dive into the features, benefits, and differences between these two plans, helping you decide which one aligns best with your goals. Stay tuned!

Shopify Starter Plan

The Shopify Starter Plan is an excellent entry-level option for those just dipping their toes into eCommerce. It’s designed for entrepreneurs who want to sell their products without the need for a fully functional online store. This plan is ideal for people who primarily sell through social media platforms or want to embed a Shopify Buy Button on an existing website or blog. It’s perfect for individuals testing the waters of online sales with minimal upfront investment.

Price

The Shopify Starter Plan is priced at $5 per month, making it one of the most affordable entry points into the Shopify ecosystem. It’s designed for those who want to start selling online without committing to the higher costs of a full online store.

Features

• No Full Online Store: The Starter Plan doesn’t include a fully functional online store or the ability to customize a website storefront. Instead, it provides a way to sell products through external channels.
• Social Selling Tools: The primary selling feature of the Starter Plan is its ability to integrate with social media platforms such as Facebook, Instagram, and WhatsApp, allowing you to sell directly through these channels.
• Shopify Buy Button: This feature allows you to add a Buy Button to any existing website or blog, making it easy to sell products from any online platform without needing a Shopify store.
• Payment Processing: Integrated with Shopify Payments, the plan allows you to accept credit cards and other payment methods without needing a third-party processor. Transaction fees apply (2.9% + 30¢ per transaction).
• Basic Order Management: Manage customer orders and payments through Shopify's backend dashboard, making it easier to track sales and manage customer inquiries.
• Shipping and Delivery: Shipping features are minimal, though you can still calculate shipping rates and manage orders.

Pros

• Affordable: At only $5 per month, it’s a highly cost-effective way to start selling products online.
• Social Media Integration: Ideal for businesses that want to sell directly through social media or use an existing website.
• Ease of Use: Shopify’s dashboard is user-friendly and easy to navigate, making it an excellent option for beginners.

Cons

• No Full Storefront: You can’t create an entire website or an online storefront; you are limited to using external platforms for sales.
• Limited Features: Basic order management and limited tools for scaling your business mean this plan is not suitable for long-term growth.
• No Access to Apps: You won’t be able to use most of Shopify’s third-party apps to expand functionality.

Shopify Basic Plan

The Shopify Basic Plan is a step up from the Starter Plan, designed for small business owners who are ready to build a full-fledged online store. This plan is perfect for those who want complete control over their branding and product catalog, as it comes with all the essential tools to run a professional eCommerce website. If you’re looking to scale your business, offer a polished shopping experience, and manage operations all within Shopify’s ecosystem, the Basic Plan is a strong choice.

Price

The Shopify Basic Plan is priced at $25 per month, a significant step up from the Starter Plan. However, it offers far more robust features and a fully functional online store.

Features

• Full Online Store: The most notable feature of the Basic Plan is the ability to create a fully customizable online store, complete with your domain and branding.
• Two Staff Accounts: The Basic Plan allows two staff accounts, so you can have team members or partners managing the store alongside you.
• Unlimited Products: You can add as many products as you want to your store with no cap on inventory size.
• Customizable Themes: Access to Shopify’s library of free and premium themes allows you to create a professional-looking store with ease.
• Discount Codes: The ability to offer discount codes and promotions to your customers to boost sales.
• Shipping Labels: You can print shipping labels directly from Shopify and access Shopify’s discounted shipping rates, saving you time and money.
• Basic Reporting: You’ll have access to basic reports and analytics, helping you track sales, orders, and customer activity.
• Payment Processing: Like the Starter Plan, Shopify Basic integrates with Shopify Payments and charges 2.9% + 30¢ per transaction.
• Abandoned Cart Recovery: A valuable feature that allows you to automatically remind customers about products they left in their cart, which can help recover lost sales.

Pros

• Fully Functional Online Store: You can build a complete eCommerce site with your domain and customizations, offering more control over your brand.
• Scalability: With features like discount codes, abandoned cart recovery, and unlimited product listings, the Basic Plan provides tools to grow your business over time.
• Shipping and Order Management: More advanced shipping options and tools like label printing make it easier to fulfill orders.
• Customizable Themes: Access to Shopify’s professional themes lets you create a polished, user-friendly store without needing design expertise.

Cons

• Higher Price: At $25/month, the Basic Plan is significantly more expensive than the Starter Plan, which may be a hurdle for tiny businesses or those just starting.
• Limited Reporting: While you get basic analytics, the advanced reporting features are reserved for higher-tier Shopify plans.
• Transaction Fees: Similar to the Starter Plan, you still have to pay transaction fees, which can add up depending on your sales volume.

In summary, the Shopify Starter Plan is perfect for those looking to start small and sell through social media or existing websites. At the same time, the Shopify Basic Plan offers a full-fledged online store with the tools needed for growing businesses. The choice between these plans ultimately depends on your business size, goals, and how much control you want over your eCommerce operations.

Shopify Starter Vs. Shopify Basic: Key Differences

When comparing the Shopify Starter Plan to the Shopify Basic Plan, it’s important to understand that both serve different types of business needs. While the Starter Plan is ideal for those looking for a low-commitment option to start selling on social media or an existing site, the Basic Plan offers more robust features, including a full online store. Here are the key differences between these two plans:

Price and Value

• Shopify Starter Plan:
  The Starter Plan is priced at $5 per month, which makes it an extremely affordable option for individuals or small businesses just starting. For this low price, you can sell products via social media platforms or embed a Shopify Buy Button on an external website.
• Shopify Basic Plan:
  On the other hand, the Basic Plan comes at $25 per month, a significant increase in cost. However, it includes a wide array of features, such as the ability to create a fully functional online store, which justifies the price difference for businesses looking to build and scale their online presence.

Selling Platforms

• Shopify Starter Plan:
  With the Starter Plan, you get a partial online store. Instead, the focus is on social selling. You can sell your products via social media platforms like Facebook, Instagram, and WhatsApp or by embedding a Shopify Buy Button on an external website or blog. This makes it ideal for influencers, small-scale sellers, or those who want to test products without committing to building a full website.
• Shopify Basic Plan:
  The Basic Plan includes a fully customizable online store. You can create a complete website with product pages, collections, a shopping cart, and checkout features. This is perfect for businesses that want full control over their brand, with the ability to manage all operations in one place. In addition, the Basic Plan allows you to still sell via social media and third-party channels, expanding your reach.

Website and Branding

• Shopify Starter Plan:
  The Starter Plan doesn’t offer a website builder. You don’t get access to Shopify’s themes or the ability to build a custom store with your domain. Instead, you’re using Shopify’s tools to integrate into other platforms. While this is effective for minimalist sellers, it limits how much control you have over your brand identity and website customization.
• Shopify Basic Plan:
  In contrast, the Basic Plan offers a fully customizable website with access to Shopify’s wide range of themes. You can purchase a custom domain or use a Shopify-provided one, allowing you to build a branded online storefront. This gives you full control over your website’s look, feel, and functionality, making it a better option for businesses that need a unique brand presence.

Product Listings and Management

• Shopify Starter Plan:
  With the Starter Plan, product management is limited to the essentials. While you can list products for sale through social media and Buy Buttons, there’s no built-in inventory management system or product categorization features as you would have in a full online store.
• Shopify Basic Plan:
  The Basic Plan offers unlimited product listings, giving you the freedom to grow your inventory as much as needed. Additionally, you can categorize products, use collections to group similar items, and manage inventory directly within Shopify. This makes it far more suitable for businesses with multiple products or those looking to scale.

Payment Processing and Transaction Fees

• Shopify Starter Plan:
  Both the Starter and Basic Plans use Shopify Payments, but the transaction fees are the same for both: 2.9% + 30¢ per transaction. However, since the Starter Plan is used on external platforms, this fee applies to every sale processed through the Shopify Buy Button or social media checkout.
• Shopify Basic Plan:
  Shopify Payments in the Basic Plan also charges 2.9% + 30¢ per transaction, but you can manage payments through your online store, which often leads to a more seamless checkout experience. Additionally, with the Basic Plan, you gain access to more payment options and tools for processing refunds or handling payments.

Shipping and Order Management

• Shopify Starter Plan:
  Shipping options are limited with the Starter Plan. You won’t have access to Shopify’s advanced shipping features, such as label printing or automated shipping calculations. Orders are processed through the Shopify dashboard, but management is more basic, with fewer tools for fulfillment or shipping automation.
• Shopify Basic Plan:
  The Basic Plan offers more advanced shipping options. You can calculate real-time shipping rates, print shipping labels directly from Shopify, and take advantage of discounted shipping rates with major carriers. Additionally, the Basic Plan includes tools for better order management, making it easier to track shipments, manage returns, and fulfill customer orders.

Reporting and Analytics

• Shopify Starter Plan:
  Reporting is minimal with the Starter Plan. You won’t have access to Shopify’s advanced analytics or sales reports, meaning it’s harder to track performance in detail. You’ll need to rely on external platforms (like social media insights) for most of your data.
• Shopify Basic Plan:
  The Basic Plan provides access to basic reporting features, including analytics on sales, customer data, and product performance. Although less advanced than the reporting in higher-tier plans, it gives you a clear overview of how your store is performing, helping you make informed decisions to drive sales and growth.

Additional Features

• Shopify Starter Plan:
  The Starter Plan focuses on simplicity so that you won’t have access to Shopify’s broader ecosystem of apps and third-party integrations. There are fewer options for customizing your sales funnel, and you won’t get access to tools like abandoned cart recovery or discount code generation.
• Shopify Basic Plan:
  The Basic Plan offers access to Shopify’s app store, which allows you to extend your store’s functionality with third-party apps. You also get features like discount codes, gift cards, and abandoned cart recovery, which help to boost sales and improve customer retention.

Which pricing plan is right for you?

Choosing between the Shopify Starter Plan and the Shopify Basic Plan ultimately depends on your business goals, the scale of your operation, and the features you need to succeed. Here’s a breakdown to help you decide:

Shopify Starter Plan: Best for Beginners or Social Media Sellers

• Who Should Choose This?
  If you're just starting, have a small product catalog, or primarily sell through social media platforms like Facebook, Instagram, or WhatsApp, the Starter Plan is an ideal low-cost option. It’s perfect for influencers, content creators, or small businesses wanting to test products without the expense or complexity of building a full online store.
• Why It's a Good Fit:
  The $5/month price tag offers a low-risk way to begin selling, and it allows you to use Shopify's powerful payment processing. You won’t need to worry about managing a full website, making this plan simple and easy to manage if your focus is social selling or integrating with an existing website via the Shopify Buy Button.

Shopify Basic Plan: Best for Growing Businesses

• Who Should Choose This?
  The Shopify Basic Plan is perfect for businesses ready to build and scale a complete online store. Suppose you’re planning to create a branded experience with a custom domain and need the flexibility to add features or apps to expand your store’s capabilities. In that case, this plan offers the best balance between affordability and features.
• Why It's a Good Fit:
  At $25/month, the Basic Plan is significantly more expensive, but it gives you a fully customizable online store, advanced shipping options, and features like abandoned cart recovery and discount codes. It’s ideal if you want to manage your store on Shopify and access the app store for further functionality as your business grows.

How to Decide?

• Choose the Shopify Starter Plan if you want to start small, sell primarily through social media, or are testing products before committing to an entire store.
• Choose the Shopify Basic Plan if you want to build a professional online store with customizable branding, more control over product listings, and advanced sales features.

By aligning the plan with your business stage and objectives, you’ll ensure you get the most value for your investment.

Explore more here

• Shopify Pricing Plans 2024
• Shopify Lite Plan - Shopify $9 Plan
• How to claim 33 Day Shopify Free Trial 2024
• How to Change Your Shopify Plan

Final thoughts

Choosing between the Shopify Starter Plan and the Basic Plan depends on your business needs. The Starter Plan is ideal for social media sellers or those looking for a low-cost entry into eCommerce. At the same time, the Basic Plan is perfect for businesses ready to build a full online store with advanced features. Consider your budget, sales strategy, and growth goals to pick the plan that suits you best.

FAQs - Shopify Pricing Plan

1. Can I switch from the Shopify Starter Plan to the Basic Plan?

Answer: Yes, you can easily upgrade from the Shopify Starter Plan to the Basic Plan. Shopify allows you to switch plans anytime as your business grows. When upgrading, your online store will be enabled, and you'll gain access to more features like advanced reporting, discount codes, and additional customization options.

2. Does the Shopify Starter Plan support Shopify Payments?

Answer: Yes, the Shopify Starter Plan supports Shopify Payments. This allows you to accept credit card payments directly on your social media platforms or via the Buy Button. The transaction fees remain the same as in the Basic Plan: 2.9% + 30¢ for online transactions using Shopify Payments.

3. Can I use my domain name with the Shopify Starter Plan?

Answer: No, the Shopify Starter Plan doesn’t allow you to use a custom domain since it doesn’t include a full online store. Your selling is done through social media and external platforms. If you want a custom domain, you’ll need to upgrade to the Basic Plan, where you can create and customize your own branded store.

4. Do I need to know coding or design skills to use the Shopify Starter Plan?

Answer: coding or design skills are necessary to use the Shopify Starter Plan. It’s designed for ease of use, particularly for beginners who are looking to sell via social media or external websites. Shopify provides simple tools to generate Buy Buttons and integrate them into existing platforms.

5. Does the Shopify Starter Plan include customer support?

Answer: Yes, Shopify Starter Plan users have access to 24/7 customer support through chat and email. Shopify’s support team can help with technical issues, payment processing, or getting set up to start selling. However, you won’t have access to Shopify's phone support, which is available with higher-tier plans like Basic and above.

6. Can I use Shopify Apps with the Starter Plan?

Answer: No, the Shopify Starter Plan doesn’t include access to the Shopify App Store. This plan is streamlined for simplicity, focusing on social selling and essential product management. For access to apps, you would need to upgrade to the Basic Plan or higher, which opens up various integrations for marketing, reporting, and more.

7. How does inventory management work with the Shopify Starter Plan?

Answer: Inventory management is limited on the Shopify Starter Plan compared to the Basic Plan. You can track basic product stock levels, but advanced inventory features like bulk import/export, detailed reporting, and product categories aren’t available. The Basic Plan offers more robust tools for managing more extensive inventories.

8. What are the discount code options on the Starter Plan?

Answer: Discount codes are not available on the Shopify Starter Plan. If you want to offer promotions like percentage-based discounts, free shipping, or special deals for customers, you’ll need to upgrade to the Basic Plan, where you can create and manage discount codes from your Shopify dashboard.

9. How does Shopify handle taxes for the Starter and Basic plans?

Answer: Shopify automatically calculates taxes for both Starter and Basic plans based on your location and where you're selling. However, with the Basic Plan, you get more detailed tax settings, including the ability to set custom tax rules and generate reports. The Starter Plan offers only basic tax calculations for transactions.

10. Are there any free trials available for the Shopify Starter and Basic plans?

Answer: Yes, Shopify offers a 3-day free trial for both the Starter and Basic plans. This allows you to test out the platform’s features and decide which plan is right for you before committing. After the trial, you can choose whether to continue with the Starter or Basic plan, depending on your business needs.