With 2.1 million daily active users, Shopify is one of the most popular e-commerce platforms worldwide. However, its pricing and other costs can sometimes be a bit pricey for the new sellers.
Shopify Charges 2.9% and 30¢ per sale on its Basic plan, 2.7% and 30¢ on its Shopify plan, and 2.5% and 30¢ on its Advanced plan.
Let’s take a detailed look at Shopify’s transaction costs, other additional costs, pricing, and more in this article.
How Much Does Shopify Take On Each Sale?
Shopify charges a percentage of the product’s price when a product is sold, which is a transaction fee. This transaction fee is charged for each sale. The transaction fees are applied when your customer pays from a third-party source. The transaction fees are not applicable if a customer pays through Shopify Payments.
These transaction fees cover the cost of Shopify to integrate with external providers. The transaction fee varies on the subscription plan that you have subscribed to with the highest transaction fee on the Basic plan and the lowest transaction fees on the Advanced plan.
Besides, transaction fees vary according to the mode of payment. The following table will provide detailed figures about the transaction fees that Shopify charges for different plans and modes.
Mode Of Payment | Basic Plan | Shopify Plan | Advanced Plan |
Online Payment | 2.9% + 30¢ | 2.7% + 30¢ | 2.5% + 30¢ |
In Person Pay | 2.6% + 10¢ | 2.5% + 10¢ | 2.4% + 10¢ |
3rd-party payment providers | 2% | 1% | 0.6% |
Source: Shopify
These transaction fees do not apply to POS orders or manual payment methods like cash-on-delivery (COD), bank deposits, checks, draft orders, and test orders. Transaction fees are charged in addition to the processing fees charged by your third-party provider.
On the other hand, if you are using the Shopify Payments app, you will not be charged any third-party transaction fees for the orders that are processed through Shopify payments, Shop Pay installments, Shop Pay, Cash On Delivery, and bank transfers.
Source: Shopify Help
Note: Shopify does not charge transaction fees during the free trial period.
Additional Fees That May Apply
Apart from the transaction fees, Shopify merchants have to pay various fees based on the services utilized.
Let us take a brief look at them turn by turn:
1. Payment Processing fees:
It is also known as the Shopify Payments fee. You will be charged a Shopify payment fee when you receive payment for an order. This fee covers the cost of processing your payment.
The fee amount depends on the type of card your customer has used, and the processing fees vary from card to card and the location of the transaction. That means the fee amount will vary for the Visa card usage compared to the American Express Card Usage. Also, the processing fee for domestic and cross-border cards varies.
2. Conversion Rate and fee
A conversion fee is applied to the transaction when the payment is received in a currency other than your payout currency.
First, the currency is converted into US dollars, and then the conversion fees are applied to the transaction. The conversion fee varies according to your store’s primary location. The conversion fee is included in the customer’s price after it has been calculated to reduce your costs.
The conversion fees charged on the transactions made in different currencies are:
- For US: 1.5%
- Other countries and regions with Shopify Payments: 2%
3. Subscription Fees:
The subscription fees are the cost of the plan you have subscribed to. Also, the app subscription costs are included in the subscription fees.
4. Shipping label fees
Shipping label fees are the cost of the shipping labels purchased through Shopify Shipping. You will also be charged for the shipping insurance you purchased or any additional shipping adjustments the shipping carrier charges.
Each country has different tax rules that apply to shipping fees. Hence, your shipping fees may increase due to the taxes applied to the shipping.
5. Tap to Pay on iPhone.
Tap to Pay on iPhone is used to accept payments through contactless credit or debit cards and digital wallets.
However, using Tap to Pay on iPhone may add up additional charges for your Shopify Stores.
A store is allowed to process up to 100 Tap to Pay on iPhone transactions in a month for free. After the limit, an additional $0.25 per transaction is applied. These fees for Tap to Pay appear separately on your Shopify Bill.
6. Shopify Tax
Shopify Tax is available to all merchants that sell to customers in the United States. However, It does not apply in states where the taxes are not collected.
However, Shopify Tax is not applied until a merchant completes his first $100K sales. Later, Shopify charged 0.35% as tax on each sale.
7. Shopify Email
All the merchants that purchase Shopify plans receive 10,000 free emails at the beginning of every month. These emails are received irrespective of the plan to which you have subscribed.
Once these 10,000 free emails expire, you will be charged for the additional emails, which will be added to your Shopify Bill for the previous month.
8. Shopify App costs
Shopify has apps that add numerous features and functionalities to your shop. Some of these Shopify Apps are free while some may cost you between $5 to over $100 depending on the app that you have integrated with your Shopify Store.
Shopify Pricing Plans
As the transaction fees taken per sale vary according to the Subscription you have purchased, let’s take a detailed look at the pricing of different Shopify plans.
The pricing will provide you with a clear understanding of the benefits you will receive in different Shopify Plans.
Plan | Monthly Price | Annual Price |
Basic Plan | $39 per month | $29 per month |
Shopify Plan | $105 per month | $79 per month |
Advanced Plan | $399 per month | $299 per month |
Here is a detailed breakdown of the Shopify Plans, their cost, and the benefits you receive in different plans. What’s more, Shopify also have a $1 offer for starting your Shopify store.
- Basic Plan
The Basic plan will cost you $39 per month if billed monthly and $29 per month if billed annually.
In the Basic plan, you must pay 2.9% and 30¢ transaction fees. The basic plan has the highest transaction fees compared to other plans.
The benefits included in the basic Plan are:
- Up to 77% shipping discount
- 24/7 chat support
- 10 inventory locations
- POS Lite
- Localized global selling (3 markets)
- Shopify Plan:
The Shopify Plan costs $105 per month if billed monthly and $79 per month if billed annually.
The transaction fees applied on the Shopify plan are 2.7% and 30¢ per transaction.
The benefits included in the Shopify Plan are:
- Up to 88% shipping discount and insurance
- 24/7 chat support
- 10 inventory locations
- Localized global selling (3 markets)
- POS Lite
- 5 additional staff accounts
- Advanced Plan
The Advanced plan costs $399 per month if billed monthly and $299 per month if billed annually.
If you have subscribed to the Advanced plan, you will have to pay the lowest transaction fees compared to other plans at 2.5% and 30¢.
The benefits that you get to enjoy in the advanced plans are
- Up to 88% shipping discount, insurance, 3rd-party calculated rates
- 10 inventory locations
- Custom reports and analytics
- Enhanced 24/7 chat support
- 15 additional staff accounts
- Localized global selling (3 markets) + add markets for $59 USD/mo each
- POS Lite
- 10x checkout capacity
- Shopify Plus Plan
The Plus plan is for complex businesses. It costs $2,300 per month and can be subscribed to for a 3-year term.
The transaction rates on this plan are variable and depend on your b business.
The Benefits that you get to enjoy in this plan are:
- Up to 88% shipping discount, insurance, 3rd-party calculated rates
- 200 inventory locations
- Custom reports and analytics
- Priority 24/7 phone support
- 200 inventory locations
- Localized global selling (50 markets)
- Fully customizable checkout with 40x capacity
- Unlimited staff accounts
- 200 POS Pro locations with Shopify Payments
- Fully customizable checkout with 40x capacity
- Sell wholesale/B2B
Other Shopify plans are:
- Starter Plan:$5 per month
- Retail Plan:$89 per month
- Enterprise Plan: Custom pricing
Choosing The Right Shopify Plan
Selecting the right Shopify plan is very crucial. It depends on your budget, business goals, and the features you need to integrate with your shop.
The basic plan is most suitable for new sellers who want to open their stores on Shopify. The Shopify plan is a great fit for those who have grown their Shopify stores over the past years.
Meanwhile, if you receive high traffic in your store and have numerous products, then the Advanced plan may be a great fit for you.
On the other hand, B2B sellers can choose the Shopify Plus Plan to get integrated features, POS selling, and much more.
More On Shopify:
Conclusion: Shopify Takes 2.9% and 30¢ Per Sale
Shopify charges the highest transaction fee on each sale on its basic plan, while the lowest transaction fees are charged on the Advanced plan.
In summary, Shopify takes a minimum of 2.4% + 10¢ per sale and a maximum of 2.9% + 30¢ per sale. Additionally, the sellers have to pay for the services they have integrated with their stores.
FAQs
Shopify takes a percentage of your Shopify profits through translation fees. These transaction fees vary according to the subscription that you have selected.
If you wish to start selling your products online but do not wish to start a full-time store or cannot invest much in the beginning, then you can subscribe to the Shopify Starter plan. It will cost you just $5 per month.
Shopify provides new sellers access to its subscriptions for just $1 per month for the first three months of creating their new store. During this time, users can experiment with the features and tools Shopify provides. However, sellers must pay transaction costs and additional costs even during the $1 trial period.