What Is Shopify? (2026) — How It Works, Pricing & Fees
Published on February 4, 2026
Sources: Shopify pricing and Shopify Payments rates.
Quick answer: Shopify is a platform to build and run an online store. You typically pay (1) a monthly plan and (2) per-order payment processing fees. If you don't use Shopify Payments, Shopify may also charge an additional transaction fee per order.
This guide explains what Shopify is, how it works, what Shopify pricing includes, and how to estimate Shopify fees with a calculator so you can price products with profit targets.
Shopify fee model
Per order + fixed monthly- Revenue = item price + shipping charged (and sometimes tax)
- Processing = order total × rate + fixed fee
- Extra transaction fee = order total × plan fee % (only if you use a third-party provider)
- Plan cost per order = monthly plan ÷ expected orders (optional)
1) What is Shopify?
Shopify is a software platform that helps you sell online. It provides a storefront (your website), checkout, product management, integrations, and tools for running your business. Shopify is hosted, meaning Shopify handles the infrastructure and you manage your products and operations.
2) How Shopify works (high level)
- Pick a plan and create your store.
- Add products and configure shipping and taxes.
- Choose a payment provider (Shopify Payments or a third-party gateway).
- Launch, market, and fulfill orders.
3) Shopify pricing: what costs to expect
Shopify pricing usually includes a monthly plan and optional costs like apps, themes, domains, and shipping labels. Since the monthly plan is a fixed cost, many sellers model it as a plan cost per order when forecasting profit.
- Official plan pricing: Shopify pricing
- Plan cost modeling: Shopify plan cost per order (2026)
4) Shopify fees per sale
Shopify fees per order depend mostly on your payment processing. If you use Shopify Payments, you typically pay only the processing fee (percent + fixed). If you use a third-party payment provider, Shopify may charge an additional transaction fee.
- Processing rates by country: Shopify Payments fees by country
- Third-party transaction fees: Shopify third-party transaction fee (2026)
- UK-specific: Shopify fees UK (2026) · Shopify fee calculator UK
5) Estimate Shopify fees with a calculator
If you want a quick answer for a product price, open the calculator, select your plan and payment provider, and enter your real payment rates. Then add costs (COGS and shipping cost) to get net profit and margin.
FAQ
What is Shopify?
Shopify is a hosted e-commerce platform that lets you build an online store, take payments, manage products, and fulfill orders. You typically pay a monthly plan plus payment processing fees per order.
How does Shopify work?
You choose a plan, build your storefront (theme + products), connect a payment provider (often Shopify Payments), and start accepting orders through checkout. Shopify handles hosting and core store features while you run fulfillment and marketing.
What fees does Shopify charge per sale?
Per-sale costs usually include payment processing (percent + fixed fee). If you use a third-party payment provider, Shopify may also charge an additional transaction fee based on your plan.
Do I pay Shopify transaction fees if I use Shopify Payments?
Typically no. Shopify's additional transaction fee is usually 0% when you use Shopify Payments, and applies when you use a third-party provider.
What does Shopify pricing include?
Shopify pricing typically includes a monthly plan plus optional costs like apps, themes, domains, and shipping labels. Your exact costs depend on your plan and the tools you add to your store.
How can I estimate Shopify fees and profit quickly?
Use a Shopify fee calculator: enter your order value, shipping, costs, and your payment rates to see profit and margin instantly.