Ever wondered How Much Does Shopify Take Per Sale? Well, Let us help you with that. Shopify is a popular e-commerce platform that allows businesses to set up and manage their online stores. And, if you’re thinking of using Shopify to sell your products online, you may be wondering about the costs associated with the platform. One key consideration is how much Shopify takes per sale.
Shopify charges different fees depending on the payment method used, the pricing plan selected, and the country in which you are based. These fees can add up quickly and impact your bottom line, so it’s important to understand them before you begin selling on the platform.
In this article, we’ll explore the different fees associated with selling on Shopify, including transaction fees and payment processing fees, to help you understand the costs involved and make informed decisions about your e-commerce business. So without wasting anymore time let’s begin with How Much Does Shopify Take Per Sale.
How Much Does Shopify Take Per Sale: Overview
Here’s a table outlining the different Shopify Pricing Plans and How Much Does Shopify Take Per Sale:
|Pricing Plan||Monthly Cost||Online Store Features||Transaction Fees|
|Shopify Lite||$9||Buy button, Facebook/Instagram sales||2.9% + 30¢ per transaction|
|Basic Plan||$39||Online store, blog, unlimited products||2.9% + 30¢ per transaction|
|Starter Plan||$5||Easy no-code setup, social pages sales||5.0% + 30¢ per transaction|
|Shopify||$79||Gift cards, professional reports, abandoned cart recovery||2.6% + 30¢ per transaction|
|Advanced Shopify||$399||Advanced report builder, third-party calculated shipping rates||2.4% + 30¢ per transaction|
|Shopify Plus||$2000||Advanced features, dedicated support, API access||2.15% + 30¢ per transaction|
Shopify’s Commission Fees: How Much Does Shopify Take Per Sale
Yes, Shopify takes a cut from your sales if you use their platform to sell products. The fees charged by Shopify can vary depending on the type of plan you are on and the payment method you use.
For example, if you use Shopify Payments (Shopify’s built-in payment processor), you’ll be charged a transaction fee for each sale. The transaction fee ranges from 2.4% to 2.9% + 30¢ per transaction, depending on your plan.
If you use a third-party payment processor, you’ll also be charged a fee per transaction, which varies depending on the processor you use. Third-party payment providers allow merchants to integrate with over 100 payment gateways, such as PayPal, Stripe, and Amazon Pay. Merchants can choose the payment provider that best suits their business needs, and Shopify seamlessly integrates with these providers to enable secure payment processing.
In addition to transaction fees, Shopify also charges a monthly subscription fee for their platform. The monthly fee varies depending on the plan you choose, with the basic plan starting at $29 per month and the advanced plan costing up to $299 per month.
So, while Shopify does take a cut from your sales, it’s important to weigh the costs against the benefits of using their platform, such as ease of use, integrations, and other features that can help you run your online store.
The following section discusses the transaction fees that Shopify charges on different payment methods and plans. Continue reading!
Breaking Down: How Much Does Shopify Take Per Sale
When you sell products on Shopify, there are various costs you need to consider. Some of these costs include transaction fees for accepting payments via credit or debit cards, fees charged by third-party payment processors, and fees for accepting payments from international cards. Let’s break down these costs in more detail:
- Card Processing Fees: When customers pay for products on your Shopify store using a credit or debit card, you’ll need to pay a service/processing charge. If you use Shopify Payments (Shopify’s built-in payment processor), the transaction fees can range from 2.15% to 5% + 30¢ per transaction, depending on your plan.
- In-Store Card Payments: Credit cards can also be used to make purchases in physical stores. The payroll credit cards chargers for in-store buyers is equal to that for online buyers. However, you are not required to pay an extra 30¢. The charges usually range from 2.15% to 2.7%.
- Third-Party Processor Fees: If you choose to use a third-party processor instead of Shopify Payments, you’ll need to pay additional fees, which can range from – 0.15% – 5.0%. The cost of third-party payment gateway transactions varies depending on the Shopify plan you select. For example, PayPal charges a fee of 2.9% + 30¢ per transaction, while Stripe charges a fee of 2.9% + 30¢ per transaction.
- International Card Fees: If you plan to receive payments from customers outside of your country, you’ll need to pay additional fees. Shopify charges a fixed percentage for in-store payments, and an additional 30 cents for online payments. Generally, the charges vary from 3.4% – 3.9% + $0.30
Shopify’s Pricing Tiers: How Much Does Shopify Take Per Sale
Shopify offers several pricing plans that cater to businesses of different sizes and needs. Let’s take a closer look at the different Shopify pricing plans and the costs associated with selling on the platform.
Shopify Basic Plan
The Basic Plan costs $39 per month and includes every single feature of the Starter Plan, plus the ability to create discount codes and gift cards for customers, and access to more advanced reporting. Additionally, it includes features such as unlimited products, 24/7 support, a website and blog, a free SSL certificate, and the ability to sell across multiple channels.
Credit Card – Physical / Online Stores: 2.7% / 2.9% + $0.30
Third-Party Payment Processors: 2.0%
International Cards: 3.9% + $0.30
The Shopify Plan costs $79 per month and includes all the features of the Basic Plan, plus professional reports and analytics, the ability to create custom checkout pages, and the ability to offer third-party calculated shipping rates.
Credit Card Fees – Physical / Online Store: 2.5% / 2.6% + $0.30
Third-party Processors: 1.0%
International Card: 3.6% + $0.30
Shopify Advanced Plan
The Advanced Plan costs $399 per month and includes all the features of the previous plan, plus an advanced report builder and third-party calculated shipping rates.
Credit Card Charges – Physical / Online Store: 2.4% / 2.4% + $0.30
Third-party Processors: 0.5%
International Card: 3.4% + $0.30
Shopify Plus Plan
Shopify Plus is a customized business-level scheme that offers a fully scalable and customizable ecommerce solution. The pricing for Shopify Plus is $2000/mo.
Credit Card Charges– Physical / Online Store: 2.15% / 2.15% + $0.30
Third-party Processors: 0.15%
International Card: 1%
Shopify Lite Plan
Shopify Lite is a unique pricing plan offered by Shopify that differs from the traditional subscription-based plans. It is designed for merchants who want to sell products on their existing website or social media channels without the need for a full Shopify online store.
With Shopify Lite, merchants can add Buy Buttons to their website or blog, which allows customers to purchase products directly from the site. Merchants can also sell products through Facebook, Messenger, and other social media channels. In addition, Shopify Lite provides access to Shopify’s payment processing system, Shopify Payments, and offers the ability to create invoices and track orders.
The monthly subscription fee for Shopify Lite is $9 per month, plus a transaction fee of 2.9% + 30 cents per transaction for online sales or 2.7% per transaction for in-person sales if using Shopify’s POS system.
Other Payment Methods: How Much Does Shopify Take Per Sale
Shopify Payments is Shopify’s in-house payment processing system, which enables sellers to accept credit card payments directly through their online store without having to use a third-party payment provider. The major benefit of using Shopify Payments is that it does not charge any transaction fees, unlike many third-party providers who typically charge a transaction fee per sale.
Shopify Payments supports a variety of payment methods, including major credit cards such as Visa, Mastercard, American Express, and Discover, as well as alternative payment methods like Apple Pay, Google Pay, and Shop Pay. Merchants can also easily manage their payments and view their transaction history within the Shopify dashboard.
However, it’s worth noting that Shopify Payments is only available in certain countries and regions. Additionally, Shopify may place a hold on funds for a short period of time to verify the legitimacy of a transaction or in cases of fraud.
Furthermore, Shopify also has a POS (Point of Sale) system that allows you to sell products and accept payments in person, whether at a brick-and-mortar store or an event. With Shopify POS, you can use a mobile device, such as a tablet or smartphone, to process transactions and manage inventory. This system integrates with the Shopify online store, making it easy to manage both online and offline sales from a single dashboard.
In addition to Shopify Payments, it also supports other payment methods. These include:
- Manual Payments: Manual payments are also supported by Shopify, which enables merchants to accept offline payments such as cash on delivery (COD), bank transfers, and money orders. This can be helpful for merchants who are selling to customers who prefer not to use online payment methods.
- Alternate Options: Shopify supports a range of alternative payment methods, including cryptocurrency payments, Apple Pay, Google Pay, and Shop Pay. These payment methods can be convenient for customers who want to make a quick and easy payment without entering their billing and shipping information.
Conclusion: How Much Does Shopify Take Per Sale
In conclusion, the fees associated with selling on Shopify can vary depending on several factors, including the payment method used, the pricing plan selected, and location. While the transaction fees and payment processing fees can add up, Shopify offers a range of features and tools to help businesses manage their online stores effectively.
Therefore, it’s important to carefully consider the costs involved and weigh them against the benefits of using the platform before making a decision. By doing so, you can ensure that you’re making the most of Shopify’s capabilities while keeping your costs under control and maximizing your profits per sale.
FAQs: How Much Does Shopify Take Per Sale
How much does an average Shopify store make?
The amount of money an average Shopify store makes can vary widely depending on many factors, including the niche, target audience, and product quality. However, according to Shopify’s data, the average revenue per user (ARPU) on the platform was $50 per month in 2020.
How are Shopify fees calculated?
Shopify fees are calculated by combining the monthly subscription fees, transaction fees, credit card processing fees, and third-party app fees. The specific amount of fees charged depends on the pricing plan selected and the payment method used by the merchant.
Does Shopify charge a lot?
Whether Shopify charges a lot depends on the individual merchant’s budget and business needs. Shopify’s pricing plans start at $9 per month for the Shopify Lite plan and go up to custom pricing for the enterprise-level Shopify Plus plan.
How much do beginners make on Shopify?
There is no set amount that beginners make on Shopify, as it can vary widely depending on factors such as niche, marketing strategy, and product quality. Some beginners make a few hundred dollars per month, while others can generate thousands or even millions of dollars in revenue per year.
What is the success rate of Shopify stores?
It’s difficult to determine a specific success rate, as Shopify doesn’t release official statistics on the success rate of its stores. However, according to Shopify’s data, 81% of merchants achieve profitability within two years of starting their store, and the average annual revenue for a Shopify store is $155,000.
- Amazon FBA Fees In 2023: Detailed Cost Breakdown! - July 31, 2023
- Amazon OTT Advertising : The Ultimate Guide (2023) - July 29, 2023
- How to Find a Seller On Amazon In 2023 (The Ultimate Guide) - July 28, 2023