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E-Commerce·9 min read

Shopify vs. Custom E-Commerce Website: Which Should Your Business Choose?

Shopify is the right answer for most businesses starting to sell online, and we say so regularly. But the fee structure means the decision flips at a predictable revenue point — and most owners find that point years after they passed it.

YCBy York Coders Team

An e-commerce storefront with product listings and a checkout flow displayed on a laptop
Shopify all-in
$1,900 – $6,000/yr
Custom build
$5,000 – $25,000 once
Crossover point
~$700k/yr revenue
Under $250k/yr
Stay on Shopify

We build custom e-commerce and we still tell most enquiries to use Shopify. For a business selling forty products with standard shipping, a custom store is an expensive way to reinvent something excellent that already exists for $39 a month.

But Shopify's economics are volume-based, and its constraints are structural. Both become relevant at a fairly predictable point. Here is where the line sits.

Head to head

Shopify

Hosted platform, subscription plus fees

  • Selling within days, not months
  • Payments, tax, shipping and fraud handled for you
  • PCI compliance is Shopify's problem, not yours
  • Thousands of apps for almost any requirement
  • Excellent uptime, and it scales through Black Friday
  • 0.5–2% transaction fee unless you use Shopify Payments
  • App subscriptions stack up fast — often $200–$600/mo
  • Checkout customisation is limited below Shopify Plus
  • You cannot leave with the storefront, only the data

Custom e-commerce

Built for your catalogue and your rules

  • No platform fee on any sale, ever
  • Product logic can be as unusual as your business is
  • Checkout designed for your conversion rate, not a template
  • Direct integration with your ERP, inventory or accounting
  • You own the code, the data and the customer relationship
  • $5,000–$25,000 up front
  • You own PCI scope, security and uptime
  • Six to twelve weeks before launch
  • Ongoing development budget is not optional

The real cost of Shopify

The subscription is the smallest part. Apps and transaction fees are what most owners underestimate, and both scale with success.

Annual Shopify cost at different revenue levels
Online revenuePlanAppsTransaction feesTotal/yr
$100,000Basic — $468$1,200$0 (Shopify Payments)$1,668
$300,000Grow — $1,068$3,600$0$4,668
$500,000Advanced — $4,788$6,000$0$10,788
$1,000,000Advanced — $4,788$9,600$0$14,388
$1,000,000Advanced + external gateway$9,600$5,000 (0.5%)$19,388

Payment processing (roughly 2.9% + 30¢) applies on any platform and is excluded here — it is not a Shopify-specific cost. The transaction fee row is the extra Shopify charges if you do not use Shopify Payments.

Five-year total cost, $500k/year online store
  • Shopify

    Plan, apps, theme work, occasional dev

    $45,000$62,000

  • Custom build

    Build, hosting, and ongoing development

    $28,000$55,000

At $500k the two converge. Below that Shopify wins comfortably; above roughly $700k custom pulls ahead and the gap widens.

When custom genuinely wins

Revenue is the crude signal. These are the specific situations where custom is the right call regardless of what you are turning over.

  • Unusual product logic

    Configurable products, quantity-break pricing, made-to-order, rental periods, subscriptions with irregular rules. Shopify apps can approximate these; they rarely fit properly.

  • Deep system integration

    Live inventory from a warehouse system, pricing from an ERP, orders into accounting. Shopify's APIs are good but you are always working around someone else's data model.

  • High volume, thin margin

    At $2m of revenue on 8% margin, a 1% platform cost is over 12% of your profit. That is the arithmetic that moves businesses off hosted platforms.

  • B2B and trade pricing

    Customer-specific price lists, credit terms, approval workflows, purchase orders. Genuinely painful to bolt onto a consumer platform.

  • Checkout is your battleground

    If a one-point conversion improvement is worth six figures, you need full control of checkout — which below Shopify Plus you do not have.

  • Data ownership matters

    Regulated industries, or businesses where the customer relationship and its data are the actual asset being built.

When to stay on Shopify

Stay on Shopify

  • Under roughly $250,000 a year in online revenue
  • Standard products with standard shipping
  • You need to be selling within a month
  • Nobody on the team wants to think about PCI or uptime
  • Your growth constraint is marketing, not the platform

Consider custom

  • Over roughly $700,000 a year online
  • You are paying more in apps than the plan costs
  • Three or more apps exist purely to work around a limitation
  • Your ERP or inventory system must be the source of truth
  • B2B pricing, credit terms or approval workflows
  • $250k

    Below this, Shopify wins clearly

  • $700k

    Above this, custom usually wins

  • 6-12 wks

    Custom store build time

What a custom store actually costs

  • Focused storefront

    $5,000+

    Small catalogue, standard checkout, one payment provider.

    • Up to 50 products with variants
    • Stripe or PayPal checkout
    • Flat or weight-based shipping rules
    • Order notifications and admin
    • Mobile-first, tuned for Core Web Vitals
  • Most chosen

    Full store

    $12,000+

    Larger catalogue with real operational integration.

    • Unlimited products and categories
    • Customer accounts and order history
    • Inventory sync with your existing system
    • Discount, bundle and promotion logic
    • Automated tax calculation
    • Abandoned cart recovery
  • Platform

    $25,000+

    B2B, multi-channel or genuinely unusual commerce models.

    • Customer-specific pricing and credit terms
    • Quote-to-order and approval workflows
    • ERP or accounting system integration
    • Multi-warehouse fulfilment logic
    • Staged rollout with a full test environment

The migration question

Moving off Shopify is a real project, not a switch. Plan for it properly and it is unremarkable; improvise and you will lose rankings and orders.

  1. Export products, customers and order history early — Shopify's exports are good but incomplete for some app data.
  2. Map every existing product and collection URL to its new equivalent, and 301 redirect all of them.
  3. Run both systems in parallel for a short window if you can, with the new one behind a password.
  4. Migrate reviews deliberately — they are usually held by an app, not by Shopify, and they are hard to recreate.
  5. Do not migrate in Q4. Ever.

Frequently asked questions

  • Is Shopify cheaper than a custom e-commerce website?

    Below roughly $250,000 a year in online revenue, comfortably yes. Between $250,000 and $700,000 the two converge once app subscriptions are counted. Above roughly $700,000 a custom store is usually cheaper over five years.

  • What are Shopify's hidden costs?

    App subscriptions are the big one — most stores run $100 to $600 a month in apps. Add the 0.5 to 2 percent transaction fee if you use an external payment gateway, plus theme customisation and any developer work. The plan fee is typically the smallest line.

  • Can I move my Shopify store to a custom website?

    Yes. Products, customers and order history export cleanly. The theme and app functionality do not, so treat it as a rebuild, map every product and collection URL to a 301 redirect, and migrate reviews deliberately since they usually live in an app.

  • Is a custom store safe for taking payments?

    Yes, when built correctly. Card details go directly to Stripe, PayPal or a similar processor and never touch your server, which keeps PCI scope minimal. The security responsibility is real but manageable and well understood.

  • How long does a custom e-commerce build take?

    Six to twelve weeks for most stores, scaling with catalogue size and how many systems it must integrate with. B2B platforms with pricing rules and approval workflows typically take longer.

  • What about WooCommerce as a middle option?

    It is a legitimate middle ground — no per-sale platform fee and more flexibility than Shopify, but it inherits WordPress's plugin and maintenance overhead. It suits businesses already comfortable running WordPress; it is rarely the right reason to adopt WordPress.

  • E-Commerce
  • Shopify
  • Comparison
  • Online Store
  • Payments

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