Introduction
In today’s digital age, e-commerce platforms have become the cornerstone of retail, enabling businesses of all sizes to reach customers worldwide. Among these platforms, Shopify has emerged as a leading choice, offering robust features and flexibility that accommodate everything from small startups to well-established brands.
At its core, Shopify is a comprehensive e-commerce platform that allows businesses to set up an online store to sell their products. It is widely recognized for its user-friendly interface, a range of customization options, and scalability, making it a popular choice for both new and seasoned online merchants.
Despite the platform’s benefits, potential users often find themselves asking one crucial question before jumping on board: “Does Shopify take a percentage of sales?” This article is dedicated to providing a comprehensive answer to this question, examining the intricacies of Shopify‘s pricing structure, transaction fees, and what this means for your sales. So, whether you’re an existing Shopify user seeking clarity or a prospective one weighing your options, this article aims to shed light on your concerns and equip you with the necessary knowledge.
Table of Contents
Understanding Shopify’s Pricing System
When we delve into Shopify’s pricing system, we see that it employs a tiered subscription model designed to cater to businesses of various sizes and needs. Each tier comes with its own set of features, benefits, and costs, allowing users to choose the plan that best aligns with their business goals.
The three primary subscription plans include:
Basic Shopify ($29/month): This is the entry-level plan, and it’s great for new businesses or online businesses new to in-person selling. It includes all the basics for starting a new business. For every online credit card transaction, you’ll pay a 2.9% + 30¢ rate, and for every in-person credit card transaction, it’s 2.7%. If you use payment providers other than Shopify Payments, the transaction fee will be 2.0%.
Shopify ($79/month): This is the standard Shopify plan that comes with additional features like gift card creation and professional reports. The online credit card rates drop to 2.6% + 30¢ per transaction, while the in-person rate remains at 2.7%. The transaction fee for using other payment providers decreases to 1.0%.
Advanced Shopify ($299/month): For scaling businesses, this plan offers advanced features like third-party calculated shipping rates and an advanced report builder. Online credit card rates are even lower at 2.4% + 30¢ per transaction, and in-person rates drop to 2.4%. The transaction fee for using other payment providers is reduced further to 0.5%.
Shopify Plus (custom pricing): For enterprise-level solutions, Shopify Plus provides a host of additional features, superior support, and lower transaction fees. Pricing is customized based on business needs.
At this point, you may be wondering, “Does Shopify charge a percentage of sales?” The answer is yes, in a way. In addition to the monthly subscription fees for the plan you choose, Shopify charges additional fees, commonly referred to as transaction fees, for every sale you make. However, the percentage that Shopify charges per sale is contingent upon your subscription plan and the payment gateway you use.
Understanding these aspects of Shopify’s pricing system is crucial in determining how much you would be paying to use the platform and how this affects your overall sales and revenue. In the sections that follow, we’ll dive deeper into what percentage of sales Shopify takes, and why.
What Percentage of Sales Does Shopify Take?
So, does shopify take a percentage of sales? It’s important to understand that the fees Shopify charges per sale are not a simple percentage applied uniformly to all merchants. Rather, they are a combination of subscription fees, transaction fees, and credit card fees that vary depending on your chosen plan and payment gateway.
Subscription Fees: This is a fixed monthly fee that you pay for your chosen plan (Basic Shopify, Shopify, or Advanced Shopify).
Transaction Fees: These fees are applicable if you choose to use a third-party payment gateway instead of Shopify Payments. The rates are as follows: 2.0% for Basic Shopify, 1.0% for Shopify, and 0.5% for Advanced Shopify.
Credit Card Fees: If you’re using Shopify Payments, you won’t be charged transaction fees. Instead, you’ll pay a credit card rate which varies based on your plan: 2.9% + 30¢ for Basic Shopify, 2.6% + 30¢ for Shopify, and 2.4% + 30¢ for Advanced Shopify.
So, does Shopify take a percentage of sales? Yes, it does. However, this percentage is not a fixed value and will depend on the variables we just discussed. It’s important to consider these costs when pricing your products and calculating your potential profits. By doing so, you can ensure that the fees Shopify charges won’t adversely affect your bottom line.
Does Shopify Get a Percentage of Sales?
Yes, Shopify does get a percentage of sales. Given the fee structure we’ve outlined, it’s clear that Shopify does get a percentage of sales, but how exactly does that work? Let’s delve deeper into the nature of these fees to provide a clearer picture.
Transaction Fees and How They Work
When you make a sale on Shopify, the platform charges a transaction fee if you’re using a third-party payment gateway. This fee is a percentage of the total order value (including taxes and shipping). The exact percentage varies according to your Shopify plan: 2.0% for Basic Shopify, 1.0% for Shopify, and 0.5% for Advanced Shopify.
So, does Shopify take a percentage of your sales? In the context of transaction fees, yes. But it’s important to note that these fees are waived if you use Shopify Payments, Shopify’s integrated payment system.
Why Does Shopify Take a Percentage of Sales?
You might be wondering, why does Shopify take a percentage of sales in the first place? The answer lies in the services provided by the platform. Shopify offers a comprehensive suite of tools and features designed to help you run and manage your online store efficiently. From hosting your website and securing your data to providing round-the-clock customer support, there are various operational costs involved.
The percentage of sales taken by Shopify contributes towards covering these operational costs, maintaining the platform, and continually updating and improving the services to offer you a seamless e-commerce experience. By understanding these fees, you can make informed decisions about pricing your products and choosing the most suitable payment gateway for your business.
Average Shopify Sales
While discussing Shopify’s fee structure, it might be useful to also consider the potential sales volume you could expect on the platform. However, quantifying “how many sales per day Shopify” typically sees can be a complex task, as it varies significantly from one store to another.
There are many successful Shopify stores that process thousands of orders each day, while others, especially those just starting, may only see a handful of sales per week. This variability is due to numerous factors, including the type of products being sold, the size and reach of the business, marketing efforts, and even the season or time of year.
Factors Influencing the Number of Daily Sales on Shopify
Several factors can influence the number of daily sales on your Shopify store:
Product Type: Some products are more in-demand or have a wider customer base than others, potentially leading to higher sales.
Marketing and SEO: Effective marketing strategies and search engine optimization (SEO) can draw more traffic to your store, increasing the likelihood of sales.
Customer Experience: A well-designed, user-friendly store with excellent customer service can encourage more customers to complete their purchases.
Pricing: Competitive pricing can attract more customers and stimulate sales.
Seasonality: Sales can fluctuate depending on the season or time of year, particularly for seasonal products.
Ultimately, while Shopify provides the platform and tools for running your online store, the number of sales you make will depend on how effectively you leverage these resources and manage your business. As you plan your business strategy, remember to account for the costs associated with using the platform, including the percentage of sales that Shopify takes.
Conclusion
In our journey to unravel the question “Does Shopify take a percentage of sales?” we’ve explored various aspects of Shopify’s fee structure, providing insights into the platform’s pricing system, transaction fees, and the corresponding implications for your sales.
To summarize, Shopify does take a percentage of sales in the form of transaction fees if you’re using a third-party payment gateway. However, these fees are waived when using Shopify Payments, which has its own credit card fees. The exact percentages vary depending on your chosen Shopify plan.
We’ve also noted that Shopify’s share in the form of fees helps support the extensive suite of services it provides to run and manage your online store efficiently, making it a crucial consideration for your business strategy.
However, it’s important to recognize that the success of a Shopify store, in terms of the number of daily sales, is influenced by many factors, such as your product type, pricing, marketing efforts, and the overall customer experience you provide.
Understanding these aspects empowers you as a business owner to make informed decisions about your Shopify store, ensuring that the platform’s fees become a part of your operational costs, and not a surprise that adversely affects your profit margins.
While Shopify does take a percentage of sales, its comprehensive features and ease-of-use make it a reliable and effective platform for e-commerce businesses worldwide, capable of offering you a good return on your investment. As you continue your journey in e-commerce, consider these insights to make the most of what Shopify has to offer.
Frequently Asked Questions
1. How much does Shopify charge per sale?
Shopify charges transaction fees for every sale if you use a third-party payment gateway. As of September 2021, these fees were 2.0% for Basic Shopify, 1.0% for Shopify, and 0.5% for Advanced Shopify. If you use Shopify Payments, these transaction fees are waived, but credit card fees apply. These fees are 2.9% + 30¢ for Basic Shopify, 2.6% + 30¢ for Shopify, and 2.4% + 30¢ for Advanced Shopify. Always check the current rates on Shopify's website.
2. How much percent does Shopify take from seller?
The percentage that Shopify takes depends on your chosen plan and payment gateway. If you're using a third-party payment gateway, Shopify's transaction fees range from 0.5% to 2.0% per sale. If you use Shopify Payments, these transaction fees are waived, but credit card processing fees ranging from 2.4% + 30¢ to 2.9% + 30¢ apply.
e changes. The exact steps will depend on the theme you are using, but generally, you will need to go to the “Edit Languages” section and search for the “Powered by Shopify” text. From there, you can delete it or replace it with your own text. Alternatively, you can use a third-party app or hire a developer to remove the text for you.
3. How does Shopify pay you?
If you use Shopify Payments, your funds are automatically transferred to your bank account as per your selected payout schedule (daily, weekly, etc.). If you're using a third-party payment provider, the provider will manage your payouts as per their policies.
4. Does Shopify take a percentage of eBay sales?
As of my knowledge cutoff in September 2021, if you are using Shopify's eBay sales channel, the usual Shopify transaction fees do not apply. However, eBay has its own fees that you will need to pay. Always check the current policies on both Shopify and eBay's websites for the most accurate information.
- Go to Online Store and select Themes.
- Click the three-dot icon on your current theme and select Edit Code.
- Choose Sections and then click on footer.liquid.
Then, press Control+F (on PC) or Command+F (on Mac) to search the HTML file. In the search box, type “powered_by_link” and click “Next” to find the code snippet.
- Remove the complete code line and save the file.
5. What is Shopify 20% fee?
As of September 2021, Shopify does not charge a 20% fee. The transaction fees range from 0.5% to 2.0% per sale for third-party payment gateways, and the credit card fees for Shopify Payments range from 2.4% + 30¢ to 2.9% + 30¢. It's possible you may be confusing Shopify with another platform, or it could be a specific fee related to a particular service. Always check the current pricing on Shopify's website for the most accurate information.
