Shopify Starter vs Basic: Which Plan is Right for Your Business?

Tony Pham Jul 01 2024

Shopify Starter vs Basic: Which plan is better for you? Choosing the right Shopify plan is important because it lays the foundation for the growth and success of your e-commerce venture.

In this comprehensive comparison, we'll dive into the intricacies of Shopify's Starter and Basic plans to help you determine which plan best suits your business goals and requirements.

What are the Shopify Starter and Basic Plans?

Shopify Starter plan caters to business beginners who want to market their products without needing a large online store. It is designed primarily for selling through social media platforms and messaging apps.

On the other hand, Shopify Basic plan is a step up. It offers a comprehensive e-commerce solution, providing a complete online store, additional features, and tools for easier management.

Quick Comparison

Similarities

Both plans include:

Unlimited products, bandwidth, and storage
Secure checkout with SSL, multiple payment methods
24/7 customer support via phone, email, live chat
Access to 60+ performance reports (marketing, sales)
Duty and tax collection at checkout
Includes 3 markets for regional customization

Differences

Price: Shopify Starter costs $5/month, while Shopify Basic is $25/month
Shopify Basic provides an online store, allowing you to use a custom domain, create discount codes, access the app store, etc., which is unavailable in Shopify Starter.
Shopify Starter has a fairly high transaction fee of 5%. Shopify Basic has a 2.9% + 30¢ fee when paying with a credit card online and a 2% fee when using a third-party payment gateway.

Shopify Starter vs Basic: Pros and Cons

	Shopify Starter	Shopify Basic
Pros	Cost-effective: At just $5/month, it's a low-cost entry point for selling online. Ease of Use: Simplifies the selling process, ideal for beginners. Social Media Sales: Great for those who primarily sell through social media platforms and external websites. Mobile Sales: Includes a mobile point of sale (POS Lite) Order Management: Provides essential tools for managing products and orders in the backend. Analytics: Offers basic analytics and reporting tools to track store performance. Linkpop Tool: Includes integration with the Linkpop tool for monetizing social media links.	Full Online Store: Provides a customizable online store with unlimited products. Comprehensive Support: 24/7 support via email, and live chat. Abandoned Cart Recovery: Includes tools for recovering abandoned carts, which can boost sales. Custom Domain: Supports custom domain names. Discount Codes: Enables creation of discount codes. Advanced Reporting: Provides detailed analytics and reporting. Theme Customization: Offers more options for store customization. Additional Sales Channels: Integrates with a wider variety of sales platforms. Reduced Transaction Fees: Lower transaction fees compared to the Starter Plan.
Cons	No Dedicated Storefront: Lacks a full online store, which limits branding and customization. Limited Features: Fewer features compared to higher plans, such as advanced reporting and abandoned cart recovery. High Transaction Fees: Shopify Starter charges a 5% transaction fee for using third-party payment gateways like PayPal or Stripe, which can quickly add up with high sales volume. This fee is higher than other Shopify plans and many other e-commerce platforms. No Email Marketing: Shopify Starter does not include email marketing tools or integrations, limiting your ability to build customer relationships and drive repeat purchases.	Higher Cost: At $25/month, it’s a bigger investment compared to the Starter plan. Basic reporting for some features: Better than Starter but still basic compared to higher-level plans.

Choose Shopify Starter if you’re looking for a cost-effective way to sell on social media and external sites without the need for a full online store.
Opt for Shopify Basic if you need a complete ecommerce solution with more features, customization options, and detailed reporting, and you’re willing to invest a bit more per month.

Pricing & Key Feature Compare

Feature	Shopify Starter	Shopify Basic
Free Trial	3-day trial	3-day trial
Transaction Fees	5% + third-party payment gateway fee	2.9% + $0.30 (online) 2.6% + $0.10 (in-person)
Custom Domain	Separate purchase required, annual fee applies	Available for purchase, an annual fee applies
Online Store Focus	Social networking platforms for sales	Full-fledged online store
SSL Certificate	Focuses on external platforms like social media	Offers a comprehensive website environment.
Abandoned Cart Recovery	Available, but less advanced customization options	Available, with more advanced customization options
Unlimited Products	Unlimited	Unlimited, offers more advanced management features than Shopify Starter.
Shipping Options	Shopify Shipping available, with discounts	Shopify Shipping available, with more advanced features
Manual Order Creation	Available	Available, more frequent manual order processing needs.

The Shopify Basic Plan surpasses the Starter Plan with its advanced features, making it ideal for growing businesses needing a full-featured online store. Key benefits include enhanced abandoned cart recovery, broader sales channel integration, and superior shipping options.

=>> Refer to all Shopify plans and their prices here.

Shopify Starter vs Shopify Basic: Which Plan is Best for You?

Deciding Factors

When choosing between the Shopify Starter and Basic plans, consider the scale of your business, the effort and resources you're willing to invest, and your proficiency with e-commerce tools.

If your brand strategy includes content marketing, the Basic Plan may be more appropriate.

Who Should Choose the Shopify Starter Plan?

The Shopify Starter Plan is ideal for individuals or small businesses entering e-commerce on a tight budget. It's perfect for those who:

Want to explore e-commerce without a significant investment?
Primarily sell through social media platforms like Instagram, Facebook, or TikTok.
Prefer a simple, straightforward platform without the complexities of a full-fledged e-commerce site.
Are transitioning from informal selling platforms and seeking a more professional touch.

Who Should Choose the Shopify Basic Plan?

The Shopify Basic Plan is best for:

Growing small-to-medium businesses needing a dedicated website.
KOLs or businesses requiring advanced features like gift cards, professional reports, and abandoned cart recovery.
Merchants with moderate sales volume need more robust e-commerce functionalities.
Entrepreneurs planning to scale and needing a platform with more customization and integration options.

Conclusion

In summary, the Shopify Starter and Basic plans cater to different stages and scales of online businesses.

The Starter Plan is a cost-effective entry point for those new to e-commerce, focusing on social media selling.

In contrast, the Basic Plan offers a comprehensive set of tools for businesses ready for growth and expansion.

Carefully assess your business needs to choose the plan that best supports your e-commerce journey.

=>> Check out our article: Is Shopify worth it? The most comprehensive in-depth perspective

Frequently Asked Questions (FAQs)

When to Upgrade from Starter to Basic?

Consider switching from Shopify Starter to Basic when:

Your business is rapidly increasing in sales and customers.
You require advanced features such as theme customization, detailed reporting, and abandoned cart recovery.
You want to expand your sales to more platforms and need a more robust online store.

Is there a significant price jump from Starter to Basic?

Yes, upgrading to the Basic Plan requires a higher investment but provides advanced e-commerce features and enhanced support.

Can I manage inventory on the Starter plan?

Yes, while inventory management is more limited compared to the Basic plan, the Starter plan does encompass basic functionalities to keep track of your products.

What is the difference in customer support between Shopify Starter and Shopify Basic?

While both plans offer 24/7 customer support via email and live chat, the Shopify Basic plan may provide more dedicated support and faster response times compared to the Starter plan.

What is the level of understanding needed to use Shopify Starter and Shopify Basic?

Both Shopify Starter and Shopify Basic are designed to be user-friendly, requiring minimal technical knowledge to get started. However, familiarity with basic e-commerce concepts and website management can be beneficial, especially when using more advanced features available in the Basic plan.

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Tony Pham

Hello! I'm Tony Pham, a full-stack Shopify, Magento, and WordPress developer with over 12 years of experience in both front-end and back-end development.

Since 2016, I have been proudly working at Nextsky as the Tech Lead, where I continue to enhance my skills and contribute to exciting projects. One of my proudest works is the Agile theme, which passed Shopify's high standard and is currently available on Shopify Theme Store.

I am passionate about researching new technologies and staying updated with the latest trends in the industry. It not only makes my life more fulfilling and exciting but also allows me to bring better service to clients.

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