fbpx
image represents Does Shopify take a percentage of sales?

Does Shopify take a percentage of sales?

Yes, Shopify does take a percentage of your sales. How much they take depends on which Shopify plan you’re on.

Does Shopify take a percentage of sales?

If you’re considering using Shopify to sell online, you might wonder about the fees involved. Does Shopify take a percentage of sales?

The short answer is no; Shopify does not take a percentage of sales.

Here’s a more detailed explanation:

When you use Shopify to sell online, you’ll pay two main types of fees:

– Monthly subscription fees
– Transaction fees

The monthly subscription fee is a flat fee you pay every month, regardless of how much you sell. The transaction fee is a smaller fee that you pay on each sale.

So, in answer to the question, “Does Shopify take a percentage of sales?”: no, Shopify does not take a percentage of sales. However, you will pay transaction fees on each sale.

The good news is that Shopify’s transaction fees are very reasonable.

For most plans, you’ll pay just 2.9% + $0.30 per sale.

And if you’re on the Advanced Shopify plan, you’ll get a lower transaction rate of 2.6% + $0.30 per sale.

🤷 How does Shopify calculate its fees?

When you use Shopify to sell products or services online, Shopify collects a commission from each sale. This commission is charged as a percentage of the sale price and is paid to Shopify.

The commission rate that Shopify charges depends on the plan that you’re on.

For example, the Basic plan has a commission rate of 2.0%, while the Advanced plan has a commission rate of 1.0%.

If you use Shopify Payments to process credit card payments, Shopify collects a separate transaction fee.

In addition to the commission and transaction fees, Shopify charges other fees for certain features and services.

For example, Shopify charges a monthly fee for using our point of sale (POS) system and also charges for certain add-ons and apps.

You can see a full breakdown of our fees in our pricing section.

What are the different types of Shopify fees?

When you sell products online, you will inevitably have to pay a fee to the eCommerce platform you use. Shopify is no different. Shopify has a few different fees you should know before you start using their platform.

  1. First, there is the Shopify subscription fee. This is a monthly fee that you will pay to use Shopify’s platform. The amount you pay will depend on the plan that you choose. Shopify has three different plans: Basic, Shopify, and Advanced. The Basic plan starts at $9 per month, the Shopify plan starts at $29 per month, and the Advanced plan starts at $299.
  2. Next, there are the fees for using Shopify’s payment gateway. Shopify has its payment gateway called Shopify Payments. You will not be charged any additional fees if you use Shopify Payments. However, a different payment gateway will charge you a 2% transaction fee.
  3. Finally, there are the fees for using Shopify’s shipping labels. If you use Shopify’s shipping labels, you will be charged a flat rate of $0.50 per label.

Your fees for using Shopify will depend on your chosen plan and how you use the platform. You will not be charged additional fees using Shopify’s payment gateway and shipping labels.

However, if you use a different payment gateway or don’t use Shopify’s shipping labels, you will be charged additional fees.

🤷 How can I avoid paying Shopify fees?

It is no secret that running an ecommerce business can be expensive.

image represents How can I avoid paying Shopify fees?

Many fees are involved, from the cost of goods sold to payment processing fees to advertising costs. And, of course, let’s not forget about Shopify fees.

Shopify is a platform that allows you to create and run an online store. It is a subscription-based service, meaning you must pay a monthly fee. In addition to the monthly fee, Shopify also charges transaction fees on each sale that you make.

The good news is that there are ways to avoid paying Shopify fees. In this article, we will discuss four of them.

1. Use a Shopify Alternative 〽️

There are several Shopify alternatives that you can use to build and run your online store. Some of these alternatives are free, while others have very low monthly fees.

2. Use a Third-Party Payment Processor 3⃣️

You are subject to Shopify’s transaction fees if you use Shopify Payments. However, you can avoid these fees using a third-party payment processor like PayPal or Stripe.

3. Use a Shopify App 📱

There are several apps that you can use to avoid paying Shopify fees. For example, some apps allow you to use a third-party payment processor, while others use a Shopify alternative.

4. Use a Shopify Theme 🖼

If you use a Shopify theme, then you may be able to avoid paying Shopify fees. Some themes include features that allow you to use a third-party payment processor or a Shopify alternative.

In conclusion, there are several ways that you can avoid paying Shopify fees. If you want to save money on your ecommerce business, you should consider using one of these methods.

Are there any other costs associated with using Shopify?

Shopify is a platform that allows you to create an online store. It offers users a customizable platform, an easy-to-use checkout process, and a wide range of features.

One of the questions people often ask about Shopify is whether any other costs are associated with using the platform.

While there are some additional costs that you may need to consider, such as paying for a domain name or investing in marketing, overall, Shopify is a very cost-effective solution for setting up an online store.

Let’s look at some potential additional costs associated with using Shopify.

Domain name 📛

You must purchase a domain name to use Shopify to create an online store. This is the address that customers will use to access your store, and it can be anything that you want.

While you can purchase a domain name directly through Shopify, buying it through a third-party provider such as GoDaddy or Namecheap is often cheaper.

Shopify themes 🖼

Shopify offers a wide range of themes, and you can browse through them all in the Shopify Theme Store. While some free themes are available, most cost between $140 and $180.

If you want a custom look for your store, you can hire a Shopify Expert to design a theme.

Shopify apps 📱

Thousands of apps are available in the Shopify App Store, and they can be a great way to add extra features to your store. While some apps are free, most cost between $9 and $29 monthly.

Payment processing fees 💰

If you want to accept credit card payments in your store, you must pay a payment processing fee. Shopify offers its payment gateway, Shopify Payments, with competitive rates. You must pay their processing fees using a different payment gateway, such as PayPal or Stripe.

🤔 Conclusion

Based on the research, it can be concluded that Shopify takes a percentage of sales from its users.

The percentage varies depending on the plan that the user is on, but the average seems to be around 2.9%.

This percentage is taken from the total sale amount, including shipping and taxes.

Free E-book for E-Commerce Entrepreneurs

9 Most Crucial eCOM Tax Deducations The IRS Doesn’t Want You to Know

Explore More

How To File Taxes For Shopify Store?
Blog

How To File Taxes For Shopify Store?

How To File Taxes For Shopify Store? In this article, you will learn: Shopify Taxes Shopify Store Owners Need To Pay Shopify Income Tax: Forms,

Boost Your E-Commerce Business Now

drop us a line and keep in touch
Alan Chen

Schedule Your Call with Alan!

Hate working with accountants that don’t understand your online business?

By the end of this Strategy Session, you will have a clear understanding of the next steps you can take.

 This Call Is Completely FREE.

Have Urgent Questions You Need Answered?

Book a FREE consultation call with Alan and talk to a CPA who actually understands and cares for your business.

Alan Chen