With over 2.7 million Shopify stores in the United States, it’s clear that this platform has become a top choice for e-commerce businesses. In fact, this number represents more than half of Shopify’s global presence, highlighting the popularity of the platform among American entrepreneurs.
However, while Shopify makes it easy to set up and run an online store, many sellers have questions about the costs involved, particularly how much does Shopify take per sale. Understanding these fees is crucial for managing your profits effectively and planning for growth.
In this blog post, Real Busi will break down transaction fees, monthly Shopify pricing plans, and additional costs. Whether you’re considering Shopify for your business or looking to optimize your existing store, this guide will provide the insights you need to make informed decisions. Let’s get started.
AdvertisementWhat Are Shopify Fees?
Put simply, Shopify fees are the costs you pay to use the platform to sell your products. These fees cover the tools and services Shopify provides, such as your online store, payment processing, and support. Knowing these fees is important because they directly affect your profits.
There are two main types of fees: monthly subscription fees and transaction fees. The monthly fee depends on the plan you choose. Shopify offers several options, ranging from Basic to Advanced, each with different features and pricing.
Shopify transaction fees are charged on every sale you make; these fees include credit card processing fees and Shopify’s own charges. If you use Shopify Payments, their built-in payment system, you only pay credit card processing fees. If you use a different payment gateway, additional transaction fees apply.
Other optional fees might come from extra features like premium themes or third-party apps. These can enhance your store’s functionality but also add to your costs. Being aware of these fees helps you budget better and maximize your store’s profitability.
Shopify Subscription Plans and Costs
Shopify offers several subscription plans to meet the needs of businesses at different stages. The Starter Plan costs $5/month and is designed for businesses that primarily sell through social media and messaging apps. It enables you to list products on platforms like Facebook and Instagram.
The Basic Plan is priced at $19/month and is ideal for small businesses just starting out. It includes an online store, unlimited products, up to 2 staff accounts, 24/7 support, and features like abandoned cart recovery and basic reporting.
For growing businesses, the Shopify Plan at $49/month provides additional features such as gift cards, professional reports, and customer segmentation tools. It’s perfect for businesses that need more advanced tools for marketing and sales.
The Advanced Plan costs $299/month and includes all Shopify Plan features, plus an advanced report builder and third-party calculated shipping rates, making it suitable for larger businesses.
Lastly, Shopify Plus is a high-volume solution at $2,000/month, offering enterprise-level tools, a dedicated account manager, and customizable checkout.
How Much Does Shopify Take Per Sale?
Shopify charges transaction fees based on the plan you select and the payment method you use. So, for example, if you use Shopify Payments, the transaction fees are lower. For the Basic Plan, Shopify takes 2.9% plus 30¢ per online sale. The Shopify Plan has a 2.6% plus 30¢ fee, while the Advanced Plan charges 2.4% plus 30¢ per sale.
If you opt for a third-party payment processor like PayPal or Stripe, Shopify will charge an additional fee. For the Basic Plan, this fee is 2%, 1% for the Shopify Plan, and 0.5% for the Advanced Plan.
Breakdown of Additional Shopify Fees
Now, let’s do a breakdown of additional Shopify fees, as this is important for understanding the true costs of running your online store. Beyond basic subscription and transaction fees, additional charges can arise from optional services, tools, and upgrades that enhance your store’s functionality. Let’s take a closer look.
App Fees
Shopify’s app marketplace offers hundreds of third-party apps that add extra features to your store. These apps can range from marketing tools to inventory management and customer service solutions. While some apps are free, others charge a monthly subscription or usage-based fee.
For example, email marketing apps like Klaviyo or product review apps like Yotpo can cost anywhere from $10 to $100-plus per month. It’s important to evaluate which apps provide real value to avoid unnecessary expenses.
Theme Costs
Shopify provides free themes, but many store owners opt for premium themes to create a more professional-looking storefront. Premium themes typically cost a one-time fee between $150 and $350.
These themes often come with additional customization options, improved performance, and customer support from the theme developers. While this is a one-time expense, it’s worth considering if your store requires a more tailored design.
Domain Costs
To run a Shopify store, you’ll need a domain name. You can purchase a domain directly through Shopify, with the cost depending on the specifics of your domain registration.
Alternatively, you can buy one from a third-party provider like GoDaddy or Namecheap and connect it to your store. Keep in mind, custom domains often renew annually, and some premium domains can be more expensive depending on availability and demand.
Credit Card Processing Fees
Every time a customer makes a purchase using a credit card, Shopify charges a processing fee. If you use Shopify Payments, fees range from 2.9% plus $0.30 per transaction for the Basic plan to lower rates on higher-tier plans.
If you use an external payment gateway, additional fees apply, which can significantly add to your overall costs, especially for high-volume stores.
Shipping Costs and Labels
Shopify offers built-in tools to manage shipping, including discounted rates for carriers like USPS, UPS, and DHL. However, these rates are not free and you’ll still need to cover the cost of printing shipping labels.
Depending on the size and weight of your packages, shipping costs can vary widely, so it’s crucial to factor this into your pricing strategy.
Point of Sale (POS) Hardware
If you run a physical store or sell at events, Shopify POS allows you to process in-person sales. However, you’ll need compatible hardware such as:
- Card readers
- Barcode scanners
- Receipt printers
Basic card readers start at $49, while full hardware bundles can cost hundreds of dollars. This is an important expense to consider if you plan to sell offline as well as online.
AdvertisementCurrency Conversion Fees
If your store sells to customers in other countries, Shopify may charge a currency conversion fee. This fee is typically 2% for using Shopify Payments to handle transactions in foreign currencies.
While this fee is unavoidable for international sales, it’s something to keep in mind when pricing your products or targeting global markets.
Custom Development Costs
Some Shopify store owners require custom features or designs that aren’t available in the default setup. Hiring a Shopify expert or developer to create these can add significant costs.
Custom development projects may range from a few hundred dollars for small changes to thousands for larger-scale projects, such as building custom integrations or fully personalized themes.
Email Hosting and Marketing Costs
Shopify doesn’t include email hosting with your store, so you’ll need to pay for a separate email hosting service like Google Workspace or Zoho Mail. These services typically cost around $5 to $12 per user per month.
Additionally, if you’re running email marketing campaigns, the costs for tools like Mailchimp or ActiveCampaign can range from $10 to $500 per month, depending on the size of your email list.
Chargebacks and Refund Fees
When customers dispute a charge, Shopify imposes a chargeback fee, which is usually around $15 per dispute. Even if the dispute is resolved in your favor, this fee is often non-refundable.
Similarly, while Shopify doesn’t charge for processing refunds, you won’t recover the credit card processing fees, meaning you still incur costs for refunded transactions.
Examples of Shopify Fees in Action
Understanding Shopify fees in real-world scenarios can help you determine how much you’ll pay per sale, especially as your business grows. So, below are four examples showing how these fees work for different plans and payment methods.
Basic Plan
With the Basic Plan at $29 per month, Shopify takes 2.9% plus $0.30 per online sale. Let’s say you sell a product for $100. Shopify would charge 2.9% of $100, which equals $2.90, plus the $0.30 fixed fee.
So, for this sale, the total fee would be $3.20. You’d receive $96.80 after Shopify’s fees are deducted. This fee is the same if you use Shopify Payments or another payment gateway like PayPal.
Shopify Plan
On the Shopify Plan, priced at $79 per month, the transaction fee drops to 2.6% plus $0.30. For the same $100 sale, the fee would be 2.6% of $100, or $2.60, plus the fixed $0.30 fee. That means your total fee for this sale would be $2.90, leaving you with $97.10.
If you use Shopify Payments, this would be your only fee. But if you use an external payment processor, Shopify charges an additional 1% fee.
Advanced Plan
The Advanced Plan, costing $299 per month, offers the lowest transaction fees: 2.4% plus $0.30 per sale. If you sell a product for $100, the fee is 2.4% of $100, which is $2.40, plus the $0.30 fee.
The total fee in this case is $2.70, leaving you with $97.30. If you use Shopify Payments, you won’t incur any additional transaction fees. However, using a third-party payment processor would trigger an additional 0.5% fee, which would be $0.50 for this sale, making your total fee $3.20.
Selling on Social Media
Shopify’s Starter Plan, which costs $5 per month, is designed for businesses that sell primarily through social media and messaging apps. For example, if you sell a $50 product on Instagram, Shopify takes 2.9% plus $0.30 of the sale.
So, the fee would be $1.75 ($1.45 plus $0.30), leaving you with $48.25. If you use an external payment processor, Shopify also adds an additional 2% fee. In this case, the total fee would increase to $2.75, reducing your earnings to $47.25.
Handy Tips to Reduce Shopify Fees
Reducing Shopify fees helps maximize your profits. One of the most effective ways is to use Shopify Payments, which eliminates additional transaction fees that third-party processors like PayPal charge. Shopify Payments offers the lowest rates on the platform, making it the most cost-effective choice for processing payments.
Upgrading to a higher-tier plan can also reduce fees, especially as your business grows. The Advanced Plan, for example, has lower transaction fees (2.4%) compared to the Basic and Shopify Plans, which can add up to significant savings with higher sales volumes.
Offering alternative payment methods such as Apple Pay or Google Pay can help reduce credit card processing fees, as these services often come with lower transaction costs, particularly for mobile and in-person transactions.
Finally, cutting back on unnecessary apps and features can help lower your overall expenses. It’s best to simply stick to the essentials to keep your costs in check.
Is Shopify Worth It?
Shopify is a great option for businesses of all sizes looking to grow their online presence. Its user-friendly interface, customizable design options, and powerful eCommerce tools make it a top choice for entrepreneurs. Shopify’s robust features allow you to easily set up and manage an online store, whether you’re selling on:
- Social media
- In-person
- Through your website
The platform’s scalability is another major advantage. As your business grows, Shopify can easily grow with you, offering advanced features like detailed reporting and shipping integrations. Plus, Shopify Payments eliminates the need for third-party payment processors, making transactions simpler and more affordable.
While the subscription fees and transaction costs can add up, the convenience and features Shopify offers typically outweigh the costs. For many business owners, the benefits of using Shopify to streamline operations and reach more customers make it a worthwhile investment.
Your Guide to Shopify Fee Structure
The bottom line is that Shopify offers a variety of subscription plans and features that cater to businesses of all sizes. While costs like the monthly fee and cost per sale depend on the plan you choose, the platform’s ease of use and scalability make it a valuable tool for growing your online store. With its powerful features and seamless integrations, Shopify remains a strong choice for entrepreneurs and established businesses looking to succeed in eCommerce.
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