How Much Does Shopify Take Per Sale? A Detailed Breakdown

Shopify is a popular and highly-rated ecommerce platform from real-world users and ecommerce experts. It provides a fully robust platform that gives small business owners all the tools they need to start an online store, from website building and product listing to analytics and marketing.

Shopify subscriptions also come in tiers to cater to businesses that are ready to scale and even expand globally. Whether you are an entrepreneur or enterprise, Shopify can fully support your growth and still stay affordable.

Shopify also provides payment services, called Shopify Payments, to let you securely accept payments online. It doesn't lock you in with their payment processor, however, and you are free to choose which third-party payment provider to go with. However, this will incur transaction fees.

In this guide, we give you a breakdown on the various fees revolved around your online sales using the Shopify platform.

Advantages and Disadvantages of Using Shopify

Pros:

• User-Friendly Interface: Shopify’s dashboard is easy to navigate, making it simple for beginners to set up an online store.
• Extensive App Store: Shopify has over 4,000 apps to extend the functionality of your store.
• 24/7 Support: Shopify offers round-the-clock support, which can be a lifesaver in emergencies.

Cons:

• Transaction Fees: Unless you use Shopify Payments, transaction fees range from 0.5% to 2%, adding up quickly.
• Theme Customization: While Shopify themes are beautiful, they can be less customizable compared to platforms like WordPress.
• Cost: As you add more features and apps, the overall cost can become high, especially for small businesses.

Shopify Pricing Plans: An Overview

Shopify has four subscription plans, all catering to a specific type of business. Take a look at our table below to have a comparison overview of what the inclusions are of each plan.

*Lumpsum billing

Cost-Benefit Analysis of Each Plan:

• Basic Plan ($39/month or $29/month annually):
  • Pros: Lower monthly cost, suitable for new or smaller businesses.
  • Cons: Higher transaction fees, limited staff accounts, and basic reporting features.
  • Best for: Startups and small businesses focusing on online sales.
• Shopify Plan ($105/month or $79/month annually):
  • Pros: Moderate transaction fees, additional staff accounts, gift card support, and performance reports.
  • Cons: Higher monthly cost compared to the Basic plan.
  • Best for: Growing businesses needing more advanced features and better reporting.
• Advanced Plan ($399/month or $299/month annually):
  • Pros: Lowest transaction fees, custom reports, 15 staff accounts, and advanced shipping features.
  • Cons: High monthly cost.
  • Best for: Established businesses with high sales volumes needing extensive reporting and custom shipping options.

Shopify Fees: An Overview

When you make a sale through Shopify, the platform charges various fees, there are credit card processing fees and transaction fees. This fee varies based on your subscription plan.

Credit Card Processing Fees

These fees are charged by Shopify and allow you to accept major credit cards as online store payments. Examples of credit cards are Visa, Mastercard, and American Express.

Transaction Fees

Transaction fees are additional Shopify charges (on top of the usual credit card processing fees) if you use a third-party payment provider to take payments. These fees vary based on your Shopify plan subscription. They are waived if you use Shopify’s payment processor, Shopify Payments.

Shopify Payments

Shopify Payments is Shopify's built-in payment processor. With Shopify Payments, you won't pay transaction fees. There are many advantages to using Shopify Payments:

• If you sell in-person with a point-of-sale (POS) system, you can use Shopify’s POS with Shopify Payments to streamline online and in-store sales.
• You can use the Shop Pay feature and set up a local currency on your checkout page. It works like Apple Pay and Google Pay in that shoppers can complete orders in one
• You can still accept other payment methods, too! It doesn’t restrict you from accepting PayPal, Amazon Pay, and more for your checkout options.

Importance of understanding fee structures for business planning

Knowing how much Shopify takes per sale is crucial for planning your business finances.

• Transaction Fees Impact: These fees can add up quickly, especially if you have a high volume of sales.
• Budgeting: Understanding these costs helps you set accurate pricing for your products and ensures you maintain profitability.
• Choosing the Right Plan: Evaluating the fee structures can guide you in selecting the appropriate Shopify plan that aligns with your business needs and budget.

For example, if you expect a high volume of sales, opting for the Advanced plan with lower transaction fees may be more cost-effective in the long run.

How Much Does Shopify Take Per Sale?

Let’s discuss the various types of fees Shopify takes based on each plan.

Basic Plan Fees

• Monthly Cost of the Basic Plan: $39 per month, $29 per month on a lumpsum billing
• Transaction Fees
  • Online Transactions: Shopify charges a 2.9% + $0.30 fee for each domestic credit card transaction.
  • International Sales: For international or American Express credit cards, the transaction fee is 3.9% + $0.30.
  • In-Store Sales: If you use Shopify's Point of Sale (POS) system, the fee is a flat 2.7% for in-store purchases.

Additional Fees for Third-Party Payment Processors: If you use a third-party payment processor instead of Shopify Payments, there is an additional 2% fee per transaction.

Shopify Plan Fees

• Monthly Cost of the Shopify Plan: $105 per month, $79 per month on a lumpsum billing.
• Transaction Fees:
  • Online Transactions: 2.6% + $0.30 for each domestic credit card transaction.
  • International Sales: For international or American Express credit cards, the fee is 3.6% + $0.30.
  • In-Store Sales: In-store purchases through Shopify POS have a 2.5% fee.

Advanced Plan Fees

• Monthly Cost of the Advanced Plan: $399 per month, $299 per month on a lumpsum billing.
• Lowest Transaction Fees Among All Plans:
  • Online Transactions: The fee is reduced to 2.4% + $0.30 per domestic credit card transaction.
  • International Sales: For international or American Express credit cards, the fee is 3.4% + $0.30.
  • In-Store Sales: In-store purchases have a 2.4% fee.

Custom Reporting and Shipping Features:

• Custom Reports: This plan offers advanced report-building capabilities, allowing you to tailor reports to your specific business needs.
• Third-Party Shipping Rates: You can integrate third-party calculated shipping rates, helping you offer your customers the best shipping options.
• Staff Accounts: Supports up to 15 staff accounts, making it ideal for larger teams.
• Shipping Discounts: Provides the highest shipping discounts, up to 77%, further lowering your operational costs.

Understanding these fee structures helps you make informed decisions about which Shopify plan aligns best with your business goals and financial strategies.

How to Choose the Right Shopify Plan for Your Business

There are several considerations when choosing the Shopify plan that is right for your business.

Business Size and Sales Volume

Smaller businesses with lower sales volumes may find the Basic plan sufficient. Larger businesses, on the other hand, might benefit from the Advanced plan due to its lower transaction fees and advanced reporting features.

Features Needed

Identify the features that are essential for your business operations. For instance, if you need advanced reporting and custom shipping rates, the Advanced plan might be the best fit.

Staff Accounts

The number of staff accounts required can be a deciding factor. The Basic plan offers two, the Shopify plan offers five, and the Advanced plan allows for 15.

Budget

Evaluate your budget for monthly expenses. The Basic plan is the most affordable, while the Advanced plan, though more expensive, offers the most comprehensive features.

Planning for future growth is crucial when selecting a Shopify plan. Your business needs today might change as you scale. Opting for a plan that can accommodate growth without frequent upgrades saves both time and money. For instance, if you anticipate hiring more staff or needing advanced reporting soon, the Shopify plan or the Advanced plan might be more cost-effective in the long run.

Tools to Calculate Potential Shopify Fees and Savings

Using tools to estimate costs helps in making an informed decision. Some resources include:

• Shopify's Fee Calculator: Helps you calculate monthly fees based on your plan and transaction volume.
• Third-Party Calculators: Websites like EcommerceGold and Forbes provide tools to estimate overall costs, including additional features and third-party integrations.
• Break-Even Analysis Tools: These tools help determine the point at which your revenue will cover your costs, which can guide your decision on which plan to choose.

When choosing a Shopify plan, weigh the features against the costs and consider your business’s future growth. This strategic approach ensures you select a plan that supports your business now and in the future.

What are the Additional Costs Associated with Shopify?

Shopify offers various a la carte services that can enhance your store's functionality but come with additional costs. These services include:

Custom Domain

Purchasing a custom domain through Shopify costs around $11 to $81 per year. A custom domain builds brand credibility and makes your store easier to find.

Website Themes

While Shopify offers free themes, premium themes are available for $140 to $180. These premium themes often provide more customization options and better aesthetics.

Email Hosting

This service starts at about $5 per month if you use third-party providers like G Suite or Zoho. Email hosting allows you to create professional email addresses that match your custom domain.

Third-Party Apps and Integrations

Using third-party apps can significantly enhance your store’s capabilities. However, these also add to the total cost:

• Marketing Apps: Tools like Klaviyo for email marketing or Privy for pop-ups can range from $20 to $200 per month, depending on the features and the plan you choose.
• Inventory Management: Apps like TradeGecko can cost around $39 to $199 per month. These apps help manage stock levels and streamline order fulfillment.
• Customer Support: Integrations like Zendesk, which start at around $5 per month per agent, provide efficient customer service solutions.
  

Fees for Premium Features Like Advanced Reporting

Advanced reporting features are typically included in the higher-tier Shopify plans, but some require additional payment:

1. Advanced Reports: Included in the Advanced plan, these allow you to create custom reports tailored to your business needs. This feature supports better decision-making through in-depth data analysis.
2. Custom Shipping Rates: Available in the Advanced plan, this feature enables you to use third-party calculated shipping rates, which can help reduce shipping costs and improve customer satisfaction.

How Additional Shopify Fees Can Impact Total Expenses and Profit: Examples

To understand the cumulative effect of these additional costs, consider the following examples:

1. Small Business Example:

• Basic Plan: $39/month
• Custom Domain: $11/year
• Email Marketing App (e.g., Klaviyo): $20/month
• Total Monthly Cost: $39 + ($11/12) + $20 = ~$60

2. Growing Business Example:

• Shopify Plan: $105/month
• Premium Theme: $160 (one-time)
• Inventory Management App (e.g., TradeGecko): $39/month
• Customer Support App (e.g., Zendesk): $5/month per agent
• Total Monthly Cost: $105 + $39 + $5 = $149

3. Established Business Example:

• Advanced Plan: $399/month
• Custom Domain: $11/year
• Advanced Reporting: Included
• Marketing App (e.g., Klaviyo): $200/month
• Custom Shipping Rates: Included
• Total Monthly Cost: $399 + ($11/12) + $200 = ~$600

These examples illustrate how additional costs can quickly add up, affecting your overall budget. Being aware of these costs allows you to plan effectively and allocate resources where they are most needed.

How Does Shopify Compare to Other eCommerce Platforms?

When comparing Shopify's fees to other eCommerce platforms, here's what you need to know:

Wix

Starting at $17/month, Wix offers a drag-and-drop editor with ecommerce capabilities. However, transaction fees are around 2.9% + $0.30 per sale, similar to Shopify's Basic plan.

Squarespace

Starting at $23/month, Squarespace also charges 2.9% + $0.30 per transaction. It provides beautiful templates but lacks some of Shopify's advanced eCommerce features.

BigCommerce

BigCommerce plans start at $29.95/month with no additional transaction fees if you use their preferred payment gateways. This can be more cost-effective for high-volume sellers.

Case Studies of Businesses Switching To Shopify from Other Platforms:

Case Study 1: Fashion Boutique Moving from Wix to Shopify

• Before: A small fashion boutique was using Wix but struggled with limited eCommerce features.
• After: After switching to Shopify, they saw a 30% increase in sales due to better inventory management and marketing tools.

Case Study 2: Tech Gadgets Store Transitioning from WooCommerce to Shopify

• Before: A tech gadgets store used WooCommerce but faced issues with website speed and customer support.
• After: Switching to Shopify improved their site speed by 40% and provided more reliable customer support, leading to higher customer satisfaction.

How Vanchat Can Help with Shopify Store Management

Vanchat offers comprehensive AI Chatbot services to help manage and optimize Shopify stores. It has the following powerful features:

1. AI-Powered Responses: Vanchat's AI-driven engine understands and responds to real-time customer queries. It can handle various questions, including product details, shipping information, and return policies.

2. Customizable Chat Widgets: You can customize the chat widget to match your store's branding. Adjust colors, fonts, and even the chatbot's avatar to create a cohesive look.

3. Multilingual Support: Vanchat supports multiple languages, making it an ideal choice for stores with a global customer base.

4. Analytics Dashboard: Access detailed analytics to track chatbot performance customer interactions, and gather insights to improve service.

Early adoption of chatbot technology can give businesses a competitive edge. Integrating Vanchat into your online store helps you provide round-the-clock customer service, improve overall efficiency, and gather insights to improve your operations as well.