As an ecommerce entrepreneur, it’s essential to understand the costs involved in running your online store. One of the critical factors to consider when choosing Shopify as your ecommerce platform is the fees they charge per sale. In this blog post, we will break down Shopify’s pricing structure and help you understand how much Shopify takes per sale, so you can make informed decisions about your business’s profitability.
Shopify’s pricing plans
Shopify offers three primary pricing plans, each with its own set of features and fees. The cost per sale on Shopify depends on the plan you choose:
- Basic Shopify: $29 per month, 2.9% + 30¢ per online transaction, 2.7% for in-person transactions
- Shopify: $79 per month, 2.6% + 30¢ per online transaction, 2.5% for in-person transactions
- Advanced Shopify: $299 per month, 2.4% + 30¢ per online transaction, 2.4% for in-person transactions
In addition to these plans, Shopify offers a lower-priced plan called Shopify Lite for $9 per month, which allows you to sell products on social media and through a buy button on your existing website. The transaction fee for Shopify Lite is the same as the Basic Shopify plan: 2.9% + 30¢ per online transaction.
It’s important to note that these fees are for using Shopify Payments, Shopify’s integrated payment gateway. If you choose to use a third-party payment gateway, additional fees may apply.
Additional transaction fees for third-party payment gateways
If you decide not to use Shopify Payments and opt for a third-party payment gateway instead, Shopify will charge an additional transaction fee on top of the payment gateway’s fees. The additional transaction fees for each plan are:
- Basic Shopify: 2.0% per transaction
- Shopify: 1.0% per transaction
- Advanced Shopify: 0.5% per transaction
These fees are in addition to the fees charged by the third-party payment gateway itself. To minimize costs, it’s generally recommended to use Shopify Payments when possible.
Other fees to consider
While transaction fees are an essential factor in calculating your store’s profitability, there are other costs to consider when using Shopify:
- Monthly subscription fees: As mentioned earlier, each pricing plan comes with a monthly subscription fee, ranging from $9 for Shopify Lite to $299 for Advanced Shopify.
- App and theme fees: While Shopify offers many free themes and apps, some premium options come with additional costs. Be sure to factor in any potential expenses for premium themes and apps that you may need to enhance your store’s functionality.
- Domain and email hosting fees: If you want to use a custom domain for your Shopify store, you will need to purchase a domain through Shopify or a third-party provider. Additionally, Shopify does not provide email hosting, so you may need to sign up for a separate email hosting service to create custom email addresses for your domain.
Calculating your total costs
To determine the total cost of using Shopify for your online store, consider the following steps:
- Choose a pricing plan: Select the Shopify plan that best fits your business needs and budget. Keep in mind the transaction fees and additional features included with each plan.
- Factor in transaction fees: Calculate the total transaction fees based on your chosen plan and your estimated sales volume. Remember to include any additional fees for using a third-party payment gateway, if applicable.
- Consider app, theme, domain, and email hosting fees: Add up the costs of any premium apps and themes you plan to use, as well as domain registration and email hosting fees.
- Calculate your total cost: Add together the monthly subscription fee, transaction fees, and any additional costs to determine your total monthly Shopify expenses.
By understanding and calculating your total costs, you can make informed decisions about your pricing strategy, profit margins, and overall business viability on the Shopify platform.
Shopify’s fees per sale depend on the pricing plan you choose and whether you use Shopify Payments or a third-party payment gateway. By factoring in these fees, as well as other related costs such as app and theme fees, domain registration, and email hosting, you can gain a clear understanding of your store’s total expenses and make informed decisions to ensure your business’s profitability on the Shopify platform.