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What expense category is Shopify?

Shopify is classified asGeneral merchandise·Fully deductible

E-commerce platform subscription for building and managing online stores, payments, inventory, and POS.

Shopify is a leading cloud-based e-commerce platform used by businesses to build and operate online stores, manage inventory, process payments, and sell across channels including social media, marketplaces (Amazon, eBay, Etsy), and physical retail via Shopify POS. It operates on a monthly or annual subscription model with plans ranging from entry-level to enterprise (Shopify Plus), plus optional per-transaction fees when using third-party payment gateways. Businesses also spend on Shopify App Store integrations and custom themes. Major brands including Tesla, Nestlé, and Whole Foods use Shopify, alongside millions of SMBs. Note: This vendor was categorized as 'General merchandise' but is properly classified as a SaaS platform.

How businesses classify Shopify

General merchandiseMost common100%
100% of transactions classified under General merchandise

Tax details

Fully deductible
Capital vs. Operating
Operating expense — subscription fees are fully deductible as ordinary business expenses
Section 179
Not eligible for Section 179
Documentation tips
  • Monthly or annual Shopify plan fees are fully deductible as ordinary business operating expenses — this includes the base subscription and any recurring app subscription costs from the Shopify App Store.
  • Shopify transaction fees (charged when not using Shopify Payments) are also deductible as cost of sales or payment processing fees — track these separately from the platform subscription for cleaner reporting.
  • One-time purchases such as premium Shopify themes may be deductible under the de minimis safe harbor if under $2,500, or capitalized and amortized as a software asset if over that threshold.
  • If you use Shopify for both an e-commerce business and a side project, only allocate the portion attributable to the business as a deductible expense.
  • Pull your Shopify billing invoices monthly from the admin panel; they itemize subscription fees, transaction fees, and app charges, providing clear audit documentation.

Business insights

Average spend
$29–$299/month for standard plans; Shopify Plus starts at $2,000/month; app and transaction fees add $50–$500+/month for growing stores
Common industries
Retail & E-CommerceConsumer Goods & CPGFashion & ApparelFood & BeverageHealth & BeautyDirect-to-Consumer BrandsWholesale & DistributionArts & Crafts / Handmade Goods

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