This is a common question for Shopify store owners who are thinking about closing their online store. The short answer is that you will not be charged any additional fees simply for closing your Shopify store. However, there are a few things to keep in mind when shutting down a Shopify store that can impact final costs.
Shopify’s Monthly Subscription Fees
With Shopify, you pay a monthly subscription fee based on the plan you selected when opening your store. The basic Shopify plan starts at $29/month, Shopify at $79/month, and Advanced Shopify at $299/month. These fees cover the use of the Shopify platform, tools, and features.
When you decide to close your Shopify store, you can simply cancel your subscription in your Shopify admin. You will no longer be billed the monthly fee after cancellation. However, Shopify does not offer prorated refunds on unused portions of already billed periods. So if you cancel mid-way through the month, you will not get a refund for the remainder of that billing cycle.
Transaction and Payment Processing Fees
In addition to the monthly subscription, Shopify charges fees for transactions and payments processed through your store. This includes:
- Payment processing fees – Typically 2.9% + 30¢ per transaction
- Chargeback fees – $15 per chargeback
- Payment provider fees – Varies by provider
You will need to pay any outstanding processing fees for transactions that took place before closing your Shopify store. But you will not incur any additional transaction fees after shutting down.
Domain Registration
If you purchased a custom domain through Shopify, they will bill you annually for the domain registration. This fee is around $14/year depending on the domain extension. When closing your Shopify store, you have a few options for your domain:
- Keep the domain registered with Shopify – You will continue to be billed the annual fee
- Transfer the domain to another registrar – Shopify charges a $25 domain transfer out fee
- Let the domain registration lapse – Your domain will become inactive once the registration expires
So while Shopify won’t charge you simply for closing up shop, domain fees are something to factor in if you purchased a custom domain through their platform.
Realized Revenue Share
Shopify charges a percentage fee on sales through a revenue share model. This fee depends on the plan you choose:
| Plan | Revenue Share % |
|---|---|
| Basic | 2% |
| Shopify | 1% |
| Advanced | 0.5% |
This percentage is deducted from your store’s gross revenue, excluding shipping and taxes. So if you made $10,000 in sales on the basic Shopify plan, they would take 2% or $200 as their revenue share fee.
You will need to pay any outstanding revenue share fees that were incurred prior to closing your Shopify store. But no additional charges will be applied after shutdown.
Apps and Themes
If you installed paid apps or themes from the Shopify App Store, keep in mind that many of them bill on a recurring basis. So cancelling your Shopify subscription does not automatically cancel any apps you were using.
You will need to manually cancel each paid app subscription individually to avoid being billed again. Visit the “Billing” section in each app’s dashboard to cancel auto-renew. Take inventory of any apps you may be forgetting about to avoid surprise charges.
The same applies to premium Shopify themes – make sure automatic renewals are disabled for any paid themes to stop future billing.
Shopify Payments Account Balance
If you were using Shopify Payments to process transactions, take some time to get your account balance to zero before closing up shop. Shopify sends payouts for your earnings 45 days after the initial transaction.
So be sure all pending transactions and payouts have been fully processed. You can view pending payouts in your Shopify Payments dashboard. Shopify will mail a cheque for your remaining balance after the 45 day period if your account is closed.
Transaction Fees for Outstanding Orders
Keep in mind that if you have any remaining open orders or fulfillments when closing your Shopify store, you will still incur the transaction fees when they are finalized. Shopify charges transaction fees when orders are fulfilled, not necessarily when they are placed.
So don’t forget about open orders – be sure to fulfill or cancel them prior to closing your store so you don’t get hit with surprise transaction costs down the road.
Conclusion
In summary, when you cancel your Shopify subscription you will no longer be charged for the monthly platform fee or any additional transaction fees. However, take the time to do the following to avoid any final charges when shutting down your Shopify store:
- Pay any outstanding subscription, transaction, and processing fees
- Cancel domain registration or transfer the domain
- Disable recurring billing for apps and themes
- Process pending payouts and get your account balance to zero
- Fulfill or cancel any remaining orders
Following these steps will ensure you wrap up your Shopify store without incurring any surprise fees down the road. The main costs are just the regular subscription and transaction charges for activity prior to closing your store. There are no special termination costs simply for cancelling your Shopify account.
Taking the time to properly close your store rather than abandoning it halfway through a billing cycle can end up saving you quite a bit of money. Shopify makes it relatively straightforward to close up shop with a few clicks, so long as you dot your i’s and cross your t’s regarding any outstanding fees and obligations.
At the end of the day, Shopify does not directly charge merchants simply for closing an online store. The primary financial considerations are completing payment of regular subscription and transaction fees, cancelling future recurring app/theme billing, and properly fulfilling or cancelling any remaining orders. Address these items and you can close your Shopify store without incurring further charges.
Shopify provides an easy way for entrepreneurs and small business owners to create an online store with powerful ecommerce features. But sometimes a business may outgrow the platform or need to shut down for other reasons. Shopify merchants can rest assured that closing an online Shopify store does not directly result in termination fees or penalties. By taking care of subscriptions, payments, apps, and remaining orders, store owners can avoid any last-minute costs when shutting down their Shopify-powered online business.
Shopify Plus Store Closure
The information above applies to standard Shopify plans. However, Shopify Plus operated under a different annual contract model. With Shopify Plus, you agree to an annual contract and minimum purchase requirement. The specific details vary based on your negotiated contract terms.
If you need to close a Shopify Plus store before the end of your current contract term, you may be subject to early termination fees. These equal a percentage of your minimum purchase amount for the remainder of the contract. So be sure to carefully review your Shopify Plus contract terms before deciding to close your Plus store.
In summary, while standard Shopify stores can be closed without penalty, Shopify Plus merchants need to factor in potential early termination fees if closing before the end of their annual contract period. Be sure to consult your specific Plus contract terms for details.
Frequently Asked Questions
What happens to my store data if I close my Shopify account?
Shopify will delete all your store data 90 days after cancellation of your account. This includes all information about your products, customers, orders, etc. If you need a copy of your store data, you can download it before closing your account.
Can I re-open my Shopify store after closing?
Yes, you can re-open your Shopify store after closing the account as long as you use the same email address. When signing up again with the same email, you will have the option to restore your old store. However, any data deleted 90 days after closing will not be restored.
Do I need to notify customers if I’m closing my Shopify store?
It is highly recommended to notify customers if you are closing your Shopify store, especially if you have any open orders. Be sure to include information about order cancellations, product availability, and how to access support if needed. This will help maintain good customer relationships.
What happens to my domain if I don’t renew it after closing Shopify?
If you purchased a custom domain through Shopify and opt not to renew it, the domain will enter a 30-day grace period after expiration. After this grace period, the domain is removed from your account and becomes inactive. Others could then acquire the domain.
Can I delete my Shopify account if I still have open orders?
You should not delete your Shopify account if you still have open orders. Instead, you should first fulfill or cancel these orders, and disable new orders from being placed. Closing with open orders can result in issues with transactions, refunds, and an poor customer experience.
Is there a fee for deleting my Shopify account?
No, Shopify does not charge a fee simply for deleting or closing your Shopify account, apart from regular subscription fees up to the cancellation date. However, you may incur fees related to outstanding billing for orders, apps, domain registration, etc.
The Bottom Line
Closing a Shopify store is a straightforward process if you understand the potential obligations and take steps to wrap them up responsibly. While Shopify does not directly charge store owners simply for account cancellation, you need to consider:
- Paying any remaining subscription fees
- Handling outstanding order fulfillments and refunds
- Disabling recurring app and theme billing
- Processing pending balance payouts
- Cancelling or transferring your Shopify-managed domain
Covering these bases allows you to shutter your Shopify store without incurring surprise fees or penalties after closure. Just be sure your account is fully settled up first. With some forethought, store owners can cleanly wrap up a Shopify ecommerce business when it comes time to close up shop for good.
