Shopify POS Pricing Review: How Much Does Shopify POS Cost?

Get a comprehensive breakdown of Shopify POS pricing, from monthly subscriptions to hardware costs. Discover how this robust system can benefit your business

This Shopify POS Pricing includes the most up-to-date information about the costs of Shopify POS—the fixed and variable costs of the Shopify POS system, including the software, hardware, transaction fees, and monthly costs.

How much does a Shopify point-of-sale system cost?

The cost of a Shopify POS system includes both fixed and variable costs as well as transaction fees. Based on the specifics of your business, these costs can significantly vary, and it’s crucial to understand this range to make an informed decision.

At the lower end, if you’re a small business opting for the Basic Shopify plan, Shopify POS Lite. and minimal hardware, your cost could be as low as $39-$500 initially for set-up and around $50 per month thereafter. These fees include your Shopify subscription, Shopify POS software, necessary hardware, and the lowest transaction fees.

On the other hand, a large retail store with multiple locations, multiple Shopify POS terminals, a vast product catalog, and advanced features might see the initial set-up cost escalate into several thousands of dollars. Monthly costs could also scale up, potentially reaching around $900 or even more, depending on your specific needs and transaction volume.

Shopify POS Pricing: All The Fixed Costs

Software

The pricing structure of the Shopify POS system includes the cost of Shopify subscription plans and Shopify POS Pro plans.

Shopify Subscription Plans

Shopify offers a range of subscription plans catering to businesses of different scales and requirements. Each of these plans includes basic Shopify POS features and comes with a monthly charge. Here’s the most up-to-date cost structure:

1. Basic Plan: Priced at $39/month, this plan is ideal for startups or small businesses seeking fundamental functionalities, including the Shopify POS app for brick-and-mortar operations.
2. Shopify Plan: Priced at $105/month, this plan offers standard reporting capabilities and ecommerce automations.
3. Advanced Plan: Comes at $399/month. It offers more advanced features such as Duties and import taxes and Duties and import taxes.

The subscription costs listed above primarily apply to US-based merchants. You can click the button below to check the fee for your region.

Shopify offers a 3-day free trial that allows you to explore the features, including those of Shopify POS, familiarize yourself with the Shopify interface, and evaluate how well it suits your business needs without any financial commitment.

A SPECIAL DEAL: New Shopify merchants can start selling in person with Shopify for only $1 per month by signing up for Shopify’s $1/month for 3 months deal. You can click here to see more about this deal.

Shopify POS Lite and Shopify POS Pro Plan

While the Shopify POS Lite features included in the Shopify subscription plans meet the needs of many businesses, those seeking advanced in-person selling features might consider the Shopify POS Pro. This comes at an additional cost of $89/month per location and provides an array of benefits like unlimited store staff accounts, omnichannel selling features, in-depth analytics, and much more.

Furthermore, when you subscribe to the Shopify POS Pro plan for 12 months, you will pay 10% less (only $79 per month).

Shopify POS Software: Total Estimated Costs

To provide a clearer picture of the total fixed software cost of a Shopify POS system, let’s sum up these costs: For a small business on the Basic subscription plan without the Shopify POS Pro, the annual cost would be $39 x 12 months = $468. A growing business on the Shopify plan, with the inclusion of Shopify POS Pro for a single location, would incur an annual cost of ($105 + $89) x 12 months = $2,328.

A larger business on the Advanced Shopify with Shopify POS Pro for one location would face an annual cost of ($399 + $89) x 12 months = $5,856.

Please note that these amounts pertain solely to software expenses and do not encompass transaction fees or hardware-related costs.

Hardware

A sound Shopify POS system isn’t complete without essential hardware like a cash drawer, card reader, receipt printer, and barcode scanner. These tools have not only become popular but are necessary for smooth and efficient operations. In this article, we only include the Shopify POS hardware offered by Shopify.

Cash Drawers

Cash transactions continue to hold significant importance in retail businesses, making cash drawers an indispensable component of a Shopify POS system. They provide a secure place to store cash, coins, and checks. Shopify offers cash drawers ranging from $139 to $159. But, the exact price depends on the model you choose, typically varying by size and type of lock.

Card Readers

In the era of digital payments, card readers have become a necessity. Shopify’s card readers are not only affordable, costing $49, but they also support a broad range of cards, including credit, debit, and contactless payments. This versatility enables businesses to cater to the payment preferences of a diverse customer base.

Receipt Printers

Providing customers with a physical receipt is not just a professional practice but often a legal requirement. With options for Bluetooth, WiFi, or wired receipt printers, Shopify offers flexibility to businesses based on their specific needs. These receipt printers cost between $289 and $399, depending on the connectivity options and features.

Barcode Scanners

Barcode scanners streamline the checkout process, making them an increasingly popular tool in retail environments. They can drastically reduce human error and speed up the checkout process. Shopify provides two types of barcode scanners - 1D and 2D, costing between $229 and $329. While both types are efficient, 2D scanners come with the extra perk of reading barcodes from any angle, improving ease of use and productivity.

Besides the Shopify POS hardware devices mentioned above, you may see some stores using a tablet or smartphone as a Shopify POS terminal. However, we don’t include the cost of purchasing a tablet or smartphone here because you can make use of your own devices.

Shopify POS Hardware: Total Estimated Costs

Now that we’ve discussed the individual costs, let’s consolidate the minimum and maximum sums you might expect to pay for all the Shopify POS Hardware combined.

For the cost-free option, you don’t even have to buy a terminal. Just download the Shopify POS app for your mobile devices and use it.

• For the cost-effective paid options with all the Shopify POS hardware devices, you’re looking at a total of $139 (cash drawer) + $49 (card reader) + $359 (receipt printer) + $229 (barcode scanner) = $776.
• On the higher end, choosing the most expensive options would amount to $159 (cash drawer) + $49 (card reader) + $369 (receipt printer) + $329 (barcode scanner) = $906.

Overall, depending on your specific needs and choices, the total hardware cost for a Shopify POS system ranges from $776 to $906. Remember, these costs are a one-time investment, and the Shopify POS hardware usually lasts several years, ensuring you get a good return on your investment. These tools, while requiring an upfront cost, can lead to increased operational efficiency, faster checkouts, and improved customer experience — factors that can positively impact your bottom line.

Shopify POS Transaction Fees

Transaction Fees with and without Shopify Payments

If you’re using Shopify Payments, Shopify’s own payment processor, the transaction fees vary based on the plan you’ve subscribed to. For in-person sales in the U.S., the fees are as follows:

• Basic Shopify: 2.7% per in-person transaction
• Shopify: 2.5% per in-person transaction
• Advanced Shopify: 2.4% per in-person transaction

However, if you decide to use a third-party payment gateway instead of Shopify Payments, an additional fee applies. This extra fee varies by plan: 2% for Basic Shopify, 1% for Shopify, and 0.5% for Advanced Shopify. These additional fees come on top of any fees charged by your chosen third-party payment gateway, potentially adding a considerable amount to your overall costs.

Transaction fees for in-person sales through Shopify Payments differ slightly for other countries. For example:

• In Canada, the fees are 2.7%, 2.6%, and 2.4% for Basic Shopify, Shopify, and Advanced Shopify plans, respectively.
• In Australia, the fees are 2.8%, 2.6%, and 2.4% for Basic Shopify, Shopify, and Advanced Shopify plans, respectively.

Transaction Volume

Transaction volume refers to the total value of all transactions processed through your Shopify POS system within a specific period. As transaction fees are charged per transaction, the total volume of transactions can greatly impact your overall costs.

Suppose you’re a medium-sized retailer who has opted for the Shopify plan, and you’re processing an average of $20,000 in in-person transactions per month. Your transaction fee would be 2.5% per transaction. In this scenario, your monthly transaction fees would equate to $20,000 * 2.5/100 = $500.

Multiplying by 12 to calculate the annual payment cost:

$500 * 12 = $6,000

Therefore, in this scenario, the sum of all payment costs for a year would be $6,000 when using Shopify Payments. On the other hand, if this retailer decided to use a third-party payment processor, there would be an additional 1% fee on every transaction, on top of the payment processor’s own fees. So the monthly Shopify fee alone would be:

$20,000 * 1/100 = $200

This equates to an additional:

$200 * 12 = $2,400 per year

In this case, the sum of all Shopify transaction costs would be $6,000 + $2,400 = $8,400 per year, not including any fees charged by the third-party payment processor.

This illustrates the significant cost savings that come with using Shopify Payments as opposed to a third-party payment processor.

However, it’s important to note that while these costs may seem substantial, the convenience, security, and efficiency offered by integrated payment processing like Shopify Payments often make it a worthwhile investment.

Shopify POS Pricing: Variable costs

Number of Shopify POS Terminals

Suppose you are operating a retail store with two additional Shopify POS terminals, each requiring a card reader and a display. With card readers at $49 each and iPad displays stand averaging around $329, this would mean an additional cost of approximately ($49+$329) * 2 = $756.

Number of Store Locations

If you’re operating two additional store locations beyond what your Shopify plan includes, the cost is $89 per additional location. So this would mean an extra cost of $89 * 2 = $178 per month.

Add-ons and Apps

If you want to add three premium apps from Shopify’s App Store to improve customer experience, and each app costs approximately $30/month, the total extra cost would be $30 * 3 = $90 per month.

With these more detailed examples, your estimated variable costs would total up to $940 (one-time cost) and $424 monthly. As you can see, these costs can add up, so it’s crucial to take them into account when planning your budget. Please note that these prices are based on averages and may vary. Always verify current pricing and consider your specific business needs when estimating your total Shopify POS costs.

Other fees

The cost of opening a retail store can range from $10,000 to a few hundred thousand dollars, depending on factors such as location, business structure, sourcing products, finding a retail space, licenses and permits, insurance, operating costs, and equipment.

• Finding a Retail Space:
  • Purchasing retail space costs around $127 to $300 per square foot while leasing averages around $22 per square foot.
  • Loans with interest rates ranging from 2.2% to 18% are common for purchasing retail properties.
  • Renovations and preparations for the space can include expenses for paint, lighting installation, display cases, and security systems.
• Operating Costs & Equipment:
  • Point-of-sale (POS) systems can range from $300 to $10,000, with transaction fees typically around 3%.
  • Ongoing operating costs include utilities (averaging $2.10/sq ft), internet ($64/month), and cleaning ($200/cleaning).

5 tips to cut costs

Here are five savvy tips to help you cut costs without sacrificing the service quality of Shopify POS.

1. Use Shopify POS Go

Shopify POS Pro is a Shopify mobile POS device. If you’re a small business owner, starting with this handheld device could save you significant upfront costs for buying other hardware devices.

2. Use Shopify Payments

As we discussed earlier, using Shopify Payments can help avoid additional transaction fees charged when using third-party payment gateways. Suppose you’re a retailer in the U.S. with a monthly transaction volume of $20,000. In this case, switching from a third-party gateway (which incurs an extra 2% transaction fee) to Shopify Payments could save you around $4,800 annually.

3. Make Use of Your Free Trial

Shopify offers a 3-day free trial and $1 per month for your first three months. While the trial period may be short, it allows you to test the Shopify POS system thoroughly without incurring any costs. If you leverage this to the maximum, set up your shop, and start selling from day one, you could generate sales while effectively paying almost nothing for the platform during these 3 months.

4. Rent Hardware

Buying Shopify POS hardware upfront can be a significant investment. Instead, consider renting Shopify POS hardware. This not only reduces your initial outlay but also keeps your Shopify POS system updated, as rental agreements often include upgrades to the latest equipment. For instance, if a cash drawer costs $159 to purchase, but you could rent it for $20/month, in the first year, you’d save $99.

5. Choose the Yearly Subscription

Opting for a yearly subscription over a monthly one can result in substantial savings. Usually, SaaS platforms like Shopify offer a discount for annual payments. As an example, if you receive a 10% discount on the Advanced Shopify plan when billed annually, this could amount to savings of $479.20 in a year. Not to mention another deal recently offered by Shopify POS: a 10% discount on the Shopify POS Pro plan, saving you $120 per year.

Shopify POS: Pricing Table

Here’s a table summarizing the potential costs of a Shopify POS system:

Please note these costs are estimations and can vary significantly depending on your specific needs and transaction volume. Also, Shopify offers significant discounts for both their subscription plans and POS plans if merchants choose to bill yearly. Another thing is the table doesn’t include transaction fees, which will depend on your payment processor and the total value of your transactions.

The total cost for a Shopify POS system can range from a minimum of around $1,244 per year for a very small business using basic hardware and software to a maximum of around $11,802 per year for a larger retail store requiring multiple terminals and locations, advanced Shopify POS Pro features, and several add-ons or apps. These figures include only the costs of the Shopify POS system itself and do not include additional business costs like renting retail space or purchasing inventory.

Keep in mind, these costs should be considered as an investment in your business. A robust, reliable POS system like Shopify POS can help streamline your operations, improve the customer experience, and ultimately boost your sales and profitability.

Why Shopify POS is the best choice for your business?

So let’s examine why the Shopify point of sale system could represent the best value proposition for your business.

Flexibility in Contract Length

Shopify distinguishes itself with flexible monthly contracts, a boon for small businesses looking for scalability without a long-term commitment. This flexibility allows you to change your plan as your business evolves, effectively helping you manage costs and optimize your ROI.

Unified In-Person and Online Selling

Shopify POS excels in integrating your online and offline sales channels. In today’s retail landscape, this is more than just a convenience—it’s necessary. Shopify POS lets you centralize your inventory management and inventory tracking, streamline operations, and create a seamless customer experience, all contributing to better sales and cost efficiencies.

User-Friendly Interface

The intuitive design and ease of use of Shopify POS can significantly reduce training time and increase productivity—both of which directly impact your bottom line. Your team can hit the ground running, ensuring your transition to Shopify POS doesn’t disrupt your business operations or customer experience.

Room for Growth

Shopify POS is designed to scale together with your business. As your business expands, you won’t have to worry about outgrowing your Shopify POS system, the number of registers used, or incurring high upgrade costs. This scalability translates into long-term cost savings, making Shopify POS a sound investment.

Exceptional Support

Downtime can be costly for any business. With Shopify’s reliable 24/7 customer support, you can resolve issues quickly, ensuring your business operations run smoothly and efficiently.

Competitive Pricing

When comparing “Shopify POS Pricing” with other POS systems, the value proposition becomes clear. Shopify’s robust features, scalability, and comprehensive support make it a competitively priced option, offering quality and cost-effectiveness.

Final words

Investing in a Shopify POS system isn’t merely a financial decision—it’s a strategic move for sustainable business growth. In this sense, Shopify POS shines, offering a compelling blend of affordability, flexibility, and growth potential.