MARKETING
Does Shopify Take a Percentage of Your Sales?
When you set up an ecommerce store on Shopify, one of the most critical considerations is understanding the fee structure. Many entrepreneurs and small business owners often wonder: does Shopify take a percentage of your sales? This blog post aims to elucidate that question and provide a comprehensive understanding of Shopify’s pricing and fee model.
Understanding Shopify’s Pricing Structure
Shopify offers several pricing plans to cater to different business needs. These plans include Basic Shopify, Shopify, and Advanced Shopify. As of my last update, the monthly costs for these plans are:
- Basic Shopify: £24 GBP/month
- Shopify: £65 GBP/month
- Advanced Shopify: £344 GBP/month
Beyond the monthly subscription fees, Shopify also applies transaction fees unless you use Shopify Payments as your payment gateway. Understanding these fees is crucial to calculate your overall costs.
Transaction Fees on Shopify
If you choose to utilise third-party payment gateways instead of Shopify Payments, Shopify does charge a transaction fee. The fee structure for each plan is as follows:
- Basic Shopify: 2.0%
- Shopify: 1.0%
- Advanced Shopify: 0.5%
These transaction fees are charged in addition to any fees that the payment gateway itself (e.g., PayPal, Stripe) might impose. Therefore, if you’re not using Shopify Payments, it’s essential to account for these additional costs.
Shopify Payments: A Way to Reduce Transaction Fees
One way to avoid these additional transaction fees is by using Shopify Payments. Not only does it eliminate the extra transaction fees, but it also simplifies your financial handling as everything is managed within Shopify. The standard card processing fees for Shopify Payments in the UK are:
- 2.2% + 20p for online credit card rates on the Basic Shopify plan
- 2.0% + 20p for online credit card rates on the Shopify plan
- 1.6% + 20p for online credit card rates on the Advanced Shopify plan
Why Opt for Shopify Payments?
Besides the apparent financial benefits of reduced transaction fees, utilising Shopify Payments offers other advantages:
- Simplified Financial Management: Handle all payments directly via your Shopify admin panel.
- Faster Payouts: Manage your cash flow better with quicker payouts.
- Seamless Integrations: Integration with your store and reporting tools becomes more straightforward.
Conclusion
So, does Shopify take a percentage of your sales? If you are not using Shopify Payments, yes, Shopify does charge a transaction fee in addition to the subscription fee. However, by taking advantage of Shopify Payments, you can significantly reduce these additional costs.
Navigating the complexities of ecommerce can be challenging. Fortunately, Update specializes in web design, ecommerce development, and crafting digital marketing strategies tailored to grow your online presence. Contact us today to leverage our expertise and turn your ecommerce ambitions into reality.
