Want to lower your Shopify store's running costs? Here are 5 practical ways to save money while keeping your store efficient and competitive:

1. Review App Costs: Audit your Shopify apps, remove unused ones, and switch to multi-purpose apps to reduce monthly expenses.
2. Cut Shipping Costs: Use Shopify Shipping for discounted rates, optimise packaging sizes, and offer store pickup to save on delivery fees.
3. Automate Tasks: Use tools like Shopify Flow to streamline order management, marketing, and inventory updates, saving time and reducing errors.
4. Lower Payment Fees: Use Shopify Payments to avoid third-party fees and negotiate better rates if you process high transaction volumes.
5. Reduce Power Costs: Switch to energy-efficient equipment, monitor power use with smart meters, and encourage staff to save energy.

By focusing on these areas, you can cut costs, improve efficiency, and stay profitable in New Zealand's competitive retail market.

Strategy	Savings Potential	Complexity
App Cost Review	Reduced software costs	Low
Shipping Optimisation	Lowered shipping expenses	Medium
Time-saving Tools	Decreased labour costs	Medium
Payment Fee Reduction	Savings on payment processing fees	Low
Power Cost Management	Cut down on energy bills	Low

These steps can help Kiwi Shopify store owners stay ahead, even in a challenging economic environment.

How To Lower the Cost of Shopify's Payment Processing?

Review and Cut App Costs

Many Shopify store owners unknowingly pay for apps they barely use. Taking the time to review and optimise your apps can help cut monthly costs without compromising your store's functionality.

Check Your Apps

Start by reviewing all the apps listed in your Shopify admin panel. As speedboostr points out, "The majority of Shopify stores have old unused app code slowing their site down" ^[1]. This leftover code not only increases costs but can also slow down your store's performance.

Look for active subscriptions, monitor how often each app is used, spot duplicate functionalities, and check your theme files for any leftover code from uninstalled apps.

Consider Multi-Purpose Apps

Instead of relying on several single-function apps, switch to apps that handle multiple tasks. For instance, Roadmap offers features like:

• Campaign creation
• Loyalty programme management
• Gift-with-purchase (GWP) and discount tools
• Bundle setup
• Tag organisation

Using one app for multiple needs can simplify your workflow and reduce your monthly app expenses.

Lower App Costs

Unused or poorly optimised apps can also affect your store's speed and costs. For example, speedboostr explains that "if a product upsell app allows customers to add Product B to the cart when viewing Product A, it should only load on the product page. Loading the app's code on every page via theme.liquid unnecessarily impacts load speed on your home page, collections, and cart pages" ^[1].

Here are some tips to cut app-related costs:

• Audit your spending: Look into your app subscriptions and negotiate for better rates on long-term plans.
• Optimise app loading: Ensure apps only load on the pages where they're needed.
• Remove unused code: Check theme files like theme.liquid, product.liquid, and cart.liquid for any leftover app code ^[1].

Before removing any code, preview your theme to confirm everything works as expected. This step ensures you maintain your store's performance while cutting unnecessary expenses.

Up next, find out how to reduce shipping costs while improving your store's efficiency.

Cut Shipping Costs

Shipping costs can eat into your profits. But with a few smart tweaks, you can lower these expenses while still ensuring reliable deliveries for your customers.

Use Shopify's Shipping Rates

Shopify Shipping offers discounts based on your plan, which can significantly reduce your shipping expenses - especially for international orders.

Here’s a breakdown of potential savings with Shopify Shipping:

Shipping Type	Basic Plan	Shopify Plan	Advanced Plan
Domestic	Up to 35%	Up to 38%	Up to 43%
To US	Up to 44%	Up to 47%	-
International	Up to 58%	Up to 60%	Up to 64%

To get the most out of these discounts, use Shopify's shipping calculator with accurate package details like weight and dimensions. Adjust your packaging to further cut costs.

Reduce Package Sizes

The size of your package directly impacts shipping costs. Smaller packages mean lower fees. As Shopify advises, "Don't ship air! Always aim for the smallest possible package dimensions" ^[2].

Here are some practical ways to minimise package size:

• Use poly mailers or padded envelopes when possible
• Opt for lightweight corrugated boxes
• Choose packing materials that don’t add unnecessary weight
• Get a postage scale to weigh items accurately

Review your order history to identify the best packaging options. For local customers, consider offering pickup to completely eliminate shipping fees.

Add Store Pickup

Store pickup is a great way to save on shipping while offering convenience to your customers. To set it up effectively:

• Define clear processing times
• Provide easy-to-follow pickup instructions
• Keep your inventory system updated
• Enable notifications to inform customers when their order is ready

For businesses with multiple locations, setting up store transfers can help keep products available at the right pickup point. This ensures customers can always collect their orders without delays.

Add Time-Saving Tools

Automation eliminates repetitive tasks and reduces errors. Here's how you can simplify processes, save time, and cut costs.

Speed Up Order Processing

Shopify Flow is a built-in tool that automates order management. It allows you to:

• Tag, sort, and flag orders based on value, location, or risk
• Create custom workflows without needing coding skills

"Flow is incredible and a must-have to extract maximum value from your Shopify subscription. The amount of 3rd party services and subscriptions you can avoid by dedicating your time to Flow is, quite frankly, unbelievable." - IppodoTea.com ^[3]

For additional automation, check out Almond Labs' Roadmap toolkit to handle campaigns and daily operations.

Set Up Auto-Marketing

Automation can handle many marketing tasks, saving time and reducing costs. Here are a few examples:

Marketing Task	Automation Benefit	Cost-Saving Impact
Welcome Emails	Immediate response to new customers	Cuts down on customer service workload
Loyalty Points	Automatic reward calculations	Removes the need for manual tracking
Stock Alerts	Instant notifications	Prevents missed sales opportunities

You can also automate actions like abandoned cart reminders and loyalty updates. This ensures ongoing customer engagement without adding extra staff.

Link Stock Updates

syncX: Stock Sync (rated 4.6/5 from 1,358 reviews) offers a reliable inventory management solution starting at just NZ$8 per month.

"Have been using Stocksync for 3+ years now and it has worked consistently and reliably... The support staff have been top notch, knowledgeable, and dedicated, which has been most important for us." - Adult Stuff Warehouse ^[4]

Key features include:

• Real-time inventory syncing across all sales channels
• Automated stock updates to keep inventory accurate
• Low stock alerts to avoid running out of products
• Integration options using APIs or CSV files to fit into your existing systems

These tools can help you maintain smooth operations and focus on growing your business.

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Lower Payment Fees

Cutting payment fees is another way to reduce operating costs, just like automating tasks or improving shipping processes.

Processing fees can eat into your profits, but there are ways to lower these costs while keeping payments running smoothly.

Use Shopify Payments

Shopify Payments makes it easy to accept major credit cards without any extra third-party fees ^[5].

• Integrated checkout removes the need for external payment providers
• Real-time payout tracking directly in your Shopify admin
• Simplified processing for major credit cards

Here's a quick comparison of payment methods with and without Shopify Payments:

Payment Method	With Shopify Payments	Without Shopify Payments
Credit Cards	Standard rate only	Standard rate plus third-party fees
Local Payment Methods	No extra fees	Additional transaction fees
Payout Tracking	Real-time in admin	Varies by provider

By integrating your payments effectively, you can set the stage for additional savings through smarter payment strategies.

Guide Payment Choices

Encourage customers to use lower-cost payment methods. Offer small discounts for bank transfers, highlight cost-effective options during checkout, and include popular local payment methods used in New Zealand. Building strong relationships with payment processors and reviewing transaction data regularly can also uncover ways to minimise fees.

Negotiate Better Payment Rates

If your store handles a high volume of transactions, you may be able to negotiate lower rates. Here's what can give you an edge:

• Monthly sales data to back your negotiations
• Understanding customer payment preferences to adjust fee structures
• Special rates for unique business models or high-value transactions

Taking a proactive approach to managing payment fees can lead to noticeable savings. Regularly reviewing your payment setup ensures you're always getting the best rates for your store.

Save on Power Costs

Power bills can take a big chunk out of your store's operating expenses, especially if you run a warehouse or retail space. Cutting back on energy use is a smart way to save.

Use Better Equipment

Switching to energy-efficient equipment can make a noticeable difference. For instance, LED lighting uses about 85% less energy than traditional incandescent bulbs and lasts up to 10–20 times longer ^[7].

Here’s how modern equipment can help:

Equipment Type	Energy Savings	Additional Benefits
LED Lighting	85% less energy [7]	Saves NZ$100–NZ$300 per bulb
Laptops vs. Desktops	50% less energy [6]
All-in-One Printers	50% reduction [6]

"LED lightbulbs use around 85% less energy and last longer than traditional incandescent bulbs - and they're safer for your home." - Gen Less ^[7]

Stop Using Paper

Once you’ve upgraded your equipment, consider going digital to save even more. Digital invoicing, cloud storage, and automated reporting can cut down on paper use and energy consumption.

If printing is unavoidable, set devices to print double-sided to minimise paper usage. All-in-one printers are a good choice - they use half the energy of separate devices for printing, scanning, and copying ^[6].

Monitor Power Use

After upgrading equipment and digitalising processes, keep an eye on your energy use to find new ways to save.

• Install Smart Meters
  Smart meters can track when and where power is being used the most, helping you identify peak usage times and areas where energy can be saved.

• Use Equipment Controls
  Place servers and copiers in naturally ventilated areas to avoid extra cooling costs. Poor server placement can waste up to 40% of energy ^[6].

• Engage Staff

  "People in your office have direct control over half the energy it uses. Motivating staff to guard against energy waste can have a significant impact on your carbon footprint." - Gen Less ^[6]

  Simple actions, like assigning someone to turn off shared equipment at the end of the day or installing motion sensors for lighting in low-traffic areas, can make a big difference. Regular HVAC maintenance and smart thermostats can also help keep energy use in check ^[8].

New Zealand Store Tips

Cut costs on your Shopify store by tailoring strategies specifically for the New Zealand market. These local tweaks can help you save money while improving your store's operations.

NZD Setup

Make sure your store displays prices in NZD and handles GST correctly. Here are some ways to format your currency display:

Currency Display Option	Format Example	Best Use Case
Standard Format	NZ$149.99	Default for most stores
With Currency Code	NZ$149.99 NZD	For international customers
Tax-Inclusive	NZ$149.99 (incl. GST)	For local customers in NZ

To manage GST accurately, go to Settings > Taxes and duties > Tax regions in your Shopify dashboard.

NZ Shipping Options

If you're dispatching fewer than 50 items a week, consider using My NZ Post Business. It’s an affordable option with useful features:

Feature	How It Helps
Online Quote System	Quickly compare shipping rates
Bulk Label Creation	Saves time for your team
Automated Tracking	Lowers customer service queries
Returns Management	Simplifies handling returns

You can also offer local pickup, particularly in Auckland, to eliminate shipping costs. For rural areas, consolidating orders can reduce delivery trips and associated expenses.

NZ Power Rules

Follow New Zealand's energy-saving guidelines to lower your power bills.

• Equipment Standards
  Use appliances with an Energy Rating Label to minimise energy consumption.

• Digital Solutions
  Switch to Shopify's digital invoicing to save on paper and printing costs.

Wrapping It Up

Cutting costs smartly can improve your store's performance without holding back growth. By focusing on the five areas we've covered, you can make your operations more efficient and effective.

Take the example of home furnishing retailer Lull. They saw big results after streamlining their operations:

"Implementing Shopify inspired us to review our org structure, software stack, and operating expenses", explains Mark Nagelmann, director of web operations at Lull. "This led to a 25% reduction in software costs and 10%–15% savings on internal tech expenses. Eliminating inefficiencies made our opex model leaner and more cost-effective." ^[9]

Here’s a quick overview of the strategies and their impact:

Strategy	Savings Potential	Complexity
App Cost Review	Reduced software costs	Low
Shipping Optimisation	Lowered shipping expenses	Medium
Time-saving Tools	Decreased labour costs	Medium
Payment Fee Reduction	Savings on payment processing fees	Low
Power Cost Management	Cut down on energy bills	Low

For Kiwi businesses, these targeted strategies are key to dealing with market pressures and ensuring long-term success. Tools like Almond Labs' Roadmap can further simplify and enhance these efforts by automating campaigns and improving operations. Pair these strategies with local insights, such as GST compliance and NZ Post Business integration, to drive profitability.

This approach not only trims costs but also strengthens your business for the challenges ahead. As Vincent Arrouet, CEO of Sunology, pointed out:

"WordPress incurs significant costs in terms of development and project management, which would have eventually exceeded the price of Shopify's package." ^[9]