Are you planning to sell on Shopify? You must be curious about how much it costs to sell on Shopify.
Shopify is an eCommerce platform that helps sellers create a standalone online website where they can sell products. It offers custom solutions for small, medium, and large businesses. Like other eCommerce platforms, Shopify also applies transaction and processing fees for selling products. However, these fees depend on the particular Shopify plan you choose.
If you are going to start your own online store on Shopify, you need to understand these transaction fees before you start so you don’t get confused when it occurs after each sale. In this following article, we will discuss Shopify’s fee and transaction structure so you can end your confusion.
Let’s get started.
Table of Contents
- Shopify Plans Comparison
- Does Shopify Take a Cut From Your Sales?
- How Much Does It Cost To Sell On Shopify?
- Shopify Pricing Plans and Selling Costs
- Use Shopify Payments
- Summary: How Much Does Shopify Take Per Sale
Shopify Plans Comparison
|Plan||Price||Credit Card Rates (Online)||Credit Card Rates (In-person)||Online International/AMEX Credit Card Rates||Transaction Fees (For Third-party Processors|
|Starter||$5/month||5.0% + $0.30||N/A||N/A||5.0%|
|Basic||$29/month||2.9% + $0.30||2.7%||3.9% + $0.30||2.0%|
|Shopify||$79/month||2.6% + $0.30||2.5%||3.6% + $0.30||1.0%|
|Advanced||$299/month||2.4% + $0.30||2.4%||3.4% + $0.30||0.5%|
|Shopify Plus||$2000/month||2.15% + $0.30||2.15%||1.0%||0.15%|
Does Shopify Take a Cut From Your Sales?
The answer is Yes. Shopify does take a transaction fee on each sale of your products. The cut is not very high, though.
Luckily, you don’t have to pay these charges upfront. It automatically deducts after a successful sale. And the higher plan you choose, the lower percentage you will have to pay. That’s why choosing the right plan for your store is necessary.
How Much Does It Cost To Sell On Shopify?
Shopify imposes a fixed percentage as a payment processing fee. With Shopify, you can accept payments in multiple ways. However, for every payment method, the processing fee is different. So what fee Shopify deducts will depend on your customer’s payment method. Let’s see the types of payment methods and their processing fee.
Credit Cards (For Online Payments) – 2.15%~5.0% + $0.30
Shoppers mostly use credit cards to pay their online bills. Similarly, they use cards to purchase something online. Shopify also supports many types of credit cards, such as Mastercard, Discover, and Visa. You can set up your preferred credit cards to accept payments from shoppers. If shoppers use credit cards to purchase something from your store, Shopify imposes a percentage of each sale and an additional 30 cents as a processing fee. The processing rates mainly depend on the Shopify plan you choose.
Credit Cards (For In-Store Payments) – 2.15%~2.7%
Shopify offers a POS (point of sale) feature that allows sellers to sell in both online and physical stores. With this feature, sellers can manage both their online and in-person stores under one Shopify account. Shoppers can use credit cards to purchase from physical stores too. For in-store purchases, the payment processing fee for credit cards is the same as for online stores. But you don’t have to pay an additional 30 cents.
International And AMEX Credit Cards – 3.4%~3.9% + $0.30
You can also accept international credit cards and AMEX (American Express) Cards as payment. However, the payment processing fees for these cards are slightly higher than regular credit cards. The processing follows the same method as regular cards. For in-store payments, Shopify takes a fixed percentage, while for online payments, they impose additional 30 cents.
Third-Party Payment Processors – 0.15%~5.0%
Shopify supports more than 120 third-party payment gateways, including various EMI, UPI, Pay Later methods, and e-wallets. You can set your preferred third-party processors to accept payments from shoppers. The processing fee for these third-party payment processors is slightly low compared to credit cards, except for the Starter plan users. The transaction cost for third-party payment gateways varies according to the Shopify plan you choose.
Shopify Pricing Plans and Selling Costs
Shopify is a great platform to start an eCommerce business. Whether it is a small or enterprise-level company, Shopify caters to every business size. That’s why they offer a tier-based pricing structure so sellers can easily start online businesses regardless of their size of business. Transaction fees also vary according to the Shopify plans. Currently, they are offering five plans to their users.
1. Starter – $5/month
The Starter plan is for merchants and influencers who want to sell products through messaging apps or social media platforms. However, the plan is not suitable for those who want to create a standalone website for their business. As soon as you sign up for this plan, you can link your social profiles and use eCommerce features.
- Credit Card Fees (For Online Payments): 5.0% + $0.30
- Transaction Fees for Third-party Payment Processors: 5.0%
2. Basic – $29/month
Shopify’s Basic plan lets you create a standalone website for your business. With this plan, you will get all the features you need to run an online store. You can add and sell unlimited products with this plan. You can also sell in physical stores and manage activities in your Shopify account.
- Credit Card Fees (Online Stores): 2.9% + $0.30
- Credit Card Fees (Physical Stores): 2.7%
- Online International/AMEX Credit Card Rates: 3.9% + $0.30
- Transaction Fees for Third-party Payment Processors: 2.0%
3. Shopify – $79/month
If your small or medium-sized business is measuring new heights, the Shopify plan will be the best option for you. The plan offers a few advanced features and increased access to tools. You can upgrade your current plan to Shopify from your admin dashboard.
- Credit Card Fees (Online Stores): 2.6% + $0.30
- Credit Card Fees (Physical Stores): 2.5%
- Online International/AMEX Credit Card Rates: 3.6% + $0.30
- Transaction Fees for Third-party Payment Processors: 1.0%
4. Advanced – $299/month
Shopify’s Advanced plan is great for large or medium-sized businesses that are growing rapidly. The plan offers sophisticated features such as advanced reporting, lower transaction fees, and abandoned cart recovery.
- Credit Card Fees (Online Stores): 2.4% + $0.30
- Credit Card Fees (Physical Stores): 2.4%
- Online International/AMEX Credit Card Rates: 3.4% + $0.30
- Transaction Fees for Third-party Payment Processors: 0.5%
5. Shopify Plus – Starting from $2000/month
It is Shopify’s enterprise-level plan that caters to large businesses and industries. It offers custom solutions for businesses. The basic pricing starts from 2K a month. The base will increase if you want more additional features. With Shopify Plus, you will get personalized solutions that will help you increase conversion and sales.
- Credit Card Fees (Online Stores): 2.15% + $0.30
- Credit Card Fees (Physical Stores): 2.15%
- Online International/AMEX Credit Card Rates: 1.0%
- Transaction Fees for Third-party Payment Processor: 0.15%
Use Shopify Payments
Shopify Payments is an in-house payment provider of Shopify. It directly integrates with your checkout. The major benefit of using Shopify Payments is that you don’t have to pay any transaction fee for selling products in your store. You can add payment methods such as credit cards, PayPal, Amazon Pay, cryptocurrency, and gift cards. However, Shopify Payments is only available in certain countries and regions, so check whether it is available in your region.
- Best Shopify Accounting Software
- How To Dropship On Shopify
- How To Sell On Shopify In 6 Simple
- How To Remove Powered By Shopify
- How To Delete Shopify Account
Summary: How Much Does Shopify Take Per Sale
Hopefully, now you have a better idea of Shopify’s pricing structures and the fees that occurs after each sale. It is a service cost that Shopify imposes to cover payment processor integration. However, it varies for every Shopify plan. If you are a member of a premium tiered plan, the transaction fees will be less than inexpensive plans.
If you want to avoid these transactions and processing fees, you can use Shopify Payments as your payment provider. It supports almost all payment processors and third-party providers, so you can set it to your account without much effort.
- What Is Amazon Retail Arbitrage & How To Do It In 2023? - January 28, 2023
- 10+ Best eBay Dropshipping Suppliers Of 2023 (Top Picks) - January 28, 2023
- Jungle Scout vs Viral Launch: Which One Is The Best In 2023? - January 27, 2023