Shopify Fees per Sale: Overview and Fee Structure
What Are Shopify Fees per Sale?
Shopify charges fees every time you make a sale. These fees are called transaction fees and payment processing fees. Both affect how much money you keep from each sale. The fee structure depends on the plan you pick. Each plan has its own rates.
The main fees you see per sale are Shopify transaction fees. These are extra charges if you do not use Shopify Payments. Next, there are payment processing fees. These cover the cost of handling your customers’ payments online.
Types of Shopify Fees per Sale
There are two main types of fees: transaction fees and payment processing fees. Here is a breakdown:
| Fee Type | When It Applies | Typical Amount |
|---|---|---|
| Transaction Fee | If not using Shopify Payments | 0.5%-2% per sale |
| Payment Processing Fee | On all credit card payments | 2.4%-2.9% + 30¢ |
Transaction fees only apply if you use a third-party payment provider. If you use Shopify Payments, you do not pay extra transaction fees. You still pay payment processing fees no matter what.
Payment processing fees depend on your plan. The higher your plan, the lower your fee. These fees pay for processing credit cards and secure payments.
How Fees Affect Your Earnings
Shopify fees per sale impact your profit. You need to subtract these from the money you make on each sale. For example, if you sell a product for $100, and your payment processing fee is 2.9% + 30¢, you will pay $3.20 in fees. If you also pay a 2% transaction fee, that is $2 more. Your total fees would be $5.20, so you keep $94.80.
It is important to know the fee structure before you start selling. Picking the right plan helps lower your costs. Always check which fees apply based on how you accept payments.
Shopify Payments Fees by Plan (Online and In-Person)
Online Payment Fees by Shopify Plan
Shopify charges different fees for online sales based on your plan. Every time you make a sale online, Shopify takes a small percentage plus a flat fee. This helps them process credit cards and keep your store running smoothly. Here are the current fees for each main plan:
| Plan Name | Online Credit Card Fee | Per Transaction Fee |
|---|---|---|
| Basic | 2.9% | $0.30 |
| Shopify | 2.6% | $0.30 |
| Advanced | 2.4% | $0.30 |
If you are on the Basic plan, Shopify takes 2.9% of the sale amount plus 30 cents for each sale. Upgrading to the Shopify plan drops the percentage to 2.6%. The Advanced plan lowers it further to 2.4%. All plans have the same 30-cent fixed fee per sale.
In-Person Payment Fees by Shopify Plan
Shopify also supports in-person sales. This is helpful if you sell at markets or have a physical shop. In-person fees are lower than online fees, and they also change based on your plan.
| Plan Name | In-Person Credit Card Fee |
|---|---|
| Basic | 2.7% |
| Shopify | 2.5% |
| Advanced | 2.4% |
For in-person sales, the Basic plan charges 2.7% per transaction. The Shopify plan lowers this fee to 2.5%. The Advanced plan offers the lowest fee at 2.4%. No extra flat fee is charged for in-person payments.
Key Things to Know About Fees
The higher your plan, the less Shopify takes per sale. If your business grows, moving up to a better plan can save you money on fees. Remember, these fees only apply when you use Shopify Payments. If you pick a third-party payment provider, Shopify charges an extra fee. It is important to choose the right plan based on how many sales you make each month. That way, you can keep more of your earnings and pay Shopify less per sale.
Third-Party Payment Fees and Penalties
What Are Third-Party Payment Providers?
Third-party payment providers are companies that help process payments for Shopify stores. Some popular options include PayPal, Stripe, and Square. These companies let customers pay using credit cards and other methods. If a store does not use Shopify Payments, it must use a third-party provider.
Every payment provider charges its own fee for each transaction. The fees depend on the provider and the country. Shopify also charges an extra fee if stores use a third-party provider instead of Shopify Payments. This fee is usually a percentage of each sale, and it varies by Shopify plan. For example, it can be 2%, 1%, or 0.5% per transaction.
How Much Are Third-Party Payment Fees?
Fees from third-party providers are added on top of Shopify’s own fees. To help show how this works, see the table below:
| Shopify Plan | Shopify Fee | Example PayPal Fee | Total Fee (per sale) |
|---|---|---|---|
| Basic Shopify | 2.0% | 2.9% + $0.30 | 4.9% + $0.30 |
| Shopify | 1.0% | 2.9% + $0.30 | 3.9% + $0.30 |
| Advanced Shopify | 0.5% | 2.9% + $0.30 | 3.4% + $0.30 |
These numbers can change based on country or payment type. It is important to check the rates for each provider before choosing one. Store owners should add up both the Shopify fee and the payment provider’s fee for every sale.
Penalties and Other Costs
If a store violates the provider’s rules, there can be penalties. Examples are chargeback fees or account holds. Chargeback fees happen if a customer disputes a charge. Most providers charge around $15 per chargeback. Account holds can freeze funds for days or weeks.
Stores also pay extra if they use a provider outside Shopify Payments. These extra fees make each sale cost more. Store owners should read all terms before picking a provider. Always add both third-party payment fees and any penalties when calculating total costs per sale.
Gift Cards, Store Credit, and Chargeback Fees
Gift Cards and Store Credit
Shopify lets stores sell gift cards to customers. When a customer buys a gift card, Shopify charges a standard transaction fee. This fee is the same as for any other sale. When the gift card is used, there are no extra fees. Store credit works in a similar way. If a store offers store credit instead of a refund, Shopify does not charge more fees on the store credit.
Here’s how the process works:
- Selling a gift card: Shopify charges its normal transaction fee.
- Redeeming a gift card: No extra fee from Shopify.
- Issuing store credit: No extra fee from Shopify.
This keeps things simple for store owners. They only pay a fee when the original gift card is sold. Using store credit or a gift card later does not add to the total fees paid.
Understanding Chargeback Fees
A chargeback happens when a buyer disputes a transaction with their bank. If the bank approves the dispute, Shopify charges a chargeback fee. This chargeback fee is usually $15 per chargeback. The fee covers the cost of processing the dispute. Shopify also removes the original sale amount from your account if the customer wins the dispute.
Here’s what to expect with chargebacks:
- Chargeback fee: $15 per dispute (may vary by country).
- Loss of sale proceeds if the customer wins the chargeback.
- No fee if the store wins the dispute.
Chargebacks can add up over time. Each chargeback means not only the fee, but also the lost revenue if you lose the case.
How These Fees Affect Your Earnings
Gift card and store credit fees are less of a worry for most stores. The main concern is the chargeback fee. Chargebacks can reduce profits quickly. Store owners should keep good records and provide clear product info to reduce chargebacks. This helps protect your account and your earnings.
The table below sums up these fees:
| Type | When Charged | Fee Amount |
|---|---|---|
| Gift Card Sale | When sold | Standard fee |
| Gift Card Redeemed | When redeemed | $0 |
| Store Credit Issued | When issued | $0 |
| Chargeback | On dispute | $15 |
Knowing these details helps you understand how much Shopify takes per sale beyond just the basic transaction fee.
Currency Conversion and International Fees
Understanding Currency Conversion on Shopify
Shopify lets you sell to customers all over the world. If someone pays in a different currency than your store’s main one, Shopify will convert the payment. This process is called currency conversion. Shopify uses the current exchange rates to change the money into your main currency. You do not have to do anything yourself. However, there is usually a currency conversion fee added on top of the regular Shopify fees.
Shopify’s currency conversion fee is usually 1.5% for most countries. In some places, it can be 2%. This fee is charged every time money is changed from one currency to another on your store. Here is a table to show how this works:
| Country | Currency Conversion Fee |
|---|---|
| United States | 1.5% |
| Canada | 1.5% |
| Europe | 2% |
| Australia | 2% |
This extra amount gets taken from your sale each time you convert currencies.
International Transaction Fees
When you sell to customers in other countries, you may also pay international transaction fees. These are different from currency conversion fees. Payment providers, like Shopify Payments or PayPal, often charge these fees to handle cross-border sales. Shopify Payments charges a fee when the card used by your customer is from another country.
For example, if your store is based in the United States and someone in France buys from you, you may pay an international fee. These fees are usually around 1% but can differ. Some payment gateways have their own charges. You should check with your provider for exact amounts.
Here is a list of what might happen when selling internationally:
- You may pay a Shopify currency conversion fee.
- You may pay a payment provider’s international fee.
- Your bank might charge extra for foreign transactions.
Ways to Reduce These Fees
There are a few ways to lower currency conversion and international transaction fees. First, use Shopify Payments if you can. Shopify often gives lower rates for conversion and international sales. Second, set up multiple currencies in your Shopify store. This can help avoid some extra charges for your customers.
You can also check if your bank has lower international fees. Some banks offer special accounts for online sellers. Ask about these to save money. Finally, always read the full fee schedule for your payment provider. This helps you understand all possible costs before you start selling worldwide.
Calculating Shopify’s Cut on a Sale (Examples)
How Shopify Fees Work Per Sale
When a shop owner makes a sale on Shopify, Shopify takes a small part of the sale. This is called Shopify’s cut. The amount depends on your Shopify plan and how the customer pays. Fees may include a monthly subscription, a percentage of each sale, and sometimes a small flat fee. The most common fees are transaction fees and payment processing fees.
For example, if you use Shopify Payments, transaction fees might be 2.9% plus 30 cents for each sale on the Basic plan. If you use a different payment gateway, there could be extra transaction fees. It is important to know which fees apply to your shop so you can calculate your costs.
Example Calculations for Different Shopify Plans
Let’s look at some examples to see how much Shopify takes per sale. We will use a $100 sale as an example. The table below shows the fees for the Basic, Shopify, and Advanced plans using Shopify Payments.
| Shopify Plan | Sale Amount | Percentage Fee | Flat Fee | Total Fee | Amount You Keep |
|---|---|---|---|---|---|
| Basic | $100 | 2.9% | $0.30 | $3.20 | $96.80 |
| Shopify | $100 | 2.6% | $0.30 | $2.90 | $97.10 |
| Advanced | $100 | 2.4% | $0.30 | $2.70 | $97.30 |
If you make a $100 sale on the Basic plan, Shopify’s cut is $3.20 and you keep $96.80. On the Shopify plan, the fee is $2.90, and you keep $97.10. The Advanced plan has the lowest fee, so you keep even more.
What if You Use a Different Payment Gateway?
Sometimes, you might use PayPal or another payment gateway instead of Shopify Payments. In this case, Shopify still takes a fee for using a third-party gateway. This fee is usually 2% on the Basic plan, 1% on the Shopify plan, and 0.5% on the Advanced plan, in addition to the payment provider’s own fee.
For example, if you sell a $100 item using PayPal on the Basic plan, Shopify takes $2, and PayPal takes their fee too. This means you end up paying more in fees compared to using Shopify Payments. Be sure to check all your payment options before making a sale.
How to Minimise Shopify Fees (Saving Tips)
Choose the Right Shopify Plan
Shopify offers different plans. Each plan comes with its own set of fees. Review your sales volume and needs. You might be paying extra for features you do not use. Start with the Basic Shopify plan if you are new. Switch to a higher plan only when your business grows. This helps you avoid paying more than necessary.
Here is a simple comparison of Shopify plans and their fees:
| Plan | Monthly Fee | Online Sale Fee | In-person Sale Fee |
|---|---|---|---|
| Basic Shopify | $39 | 2.9% + 30¢ | 2.7% |
| Shopify | $105 | 2.6% + 30¢ | 2.5% |
| Advanced Shopify | $399 | 2.4% + 30¢ | 2.4% |
As your sales increase, upgrading your plan may save you money. Lower per-transaction fees can offset the higher monthly cost.
Use Shopify Payments
Using Shopify Payments helps you avoid extra fees. Third-party payment gateways add extra charges. Shopify Payments does not add these extra fees. It is available in many countries. If you can use it, turn it on in your store’s settings. This will save you money on every sale you make.
Other payment gateways may charge an extra 2% per sale. Shopify Payments only charges the standard transaction fee. This small change can help a lot as your sales grow. Always check if your country supports Shopify Payments before switching.
Reduce Additional Costs
Watch for other fees that can add up over time. Some apps on Shopify charge monthly fees. Review your app subscriptions. Remove apps you do not really use. Some tasks can be done without apps, using Shopify’s built-in tools. Also, try to handle shipping in-house when possible. Using Shopify Shipping can offer discounts on postage.
Keep an eye on refund and chargeback fees. Have clear policies to reduce returns. Use automatic tools to flag possible fraud to avoid extra costs. Every small saving helps your profit grow over time.
FAQs and Common Concerns
What Are Shopify Fees Per Sale?
Shopify charges two main types of fees per sale: subscription fees and transaction fees. Subscription fees are monthly charges for using the Shopify platform. Transaction fees apply when you use payment providers other than Shopify Payments. If you use Shopify Payments, there is no extra transaction fee for online sales. For third-party gateways, fees range from 0.5% to 2% of each sale, depending on your plan. This means, if your plan has a 2% fee and you make a $100 sale, Shopify takes $2 from that sale.
Are There Other Costs To Consider?
Besides the standard fees, you may pay credit card processing fees. These are charged by Shopify or your payment provider. Credit card fees can range from 2.4% to 2.9% plus a small fixed fee per transaction. For example, if your sale is $50 and the processing fee is 2.9% + 30¢, the total fee is $1.75. This fee is in addition to your monthly subscription and any transaction fee.
You might also pay for apps or themes from the Shopify App Store to boost your store. Some apps have their own monthly charges. These costs add up, so it’s important to review your needs before adding paid apps or themes.
Common Questions About Shopify Charges
1. Can I avoid transaction fees?
Yes, you can avoid extra transaction fees by using Shopify Payments.
2. Are there hidden fees?
Shopify lists most fees up front. Watch for extra costs like apps, add-ons, or third-party payment providers.
3. How do refunds work?
When you issue a refund, Shopify returns the transaction amount, but credit card fees are not always returned. Check Shopify’s refund policy to understand what fees are non-refundable.
4. Do I pay more if I sell more?
Transaction and processing fees apply to every sale. As your sales grow, the total fees also grow. Upgrading your plan may lower some fees as your business grows.
Here is a table showing example fees for different plans:
| Shopify Plan | Transaction Fee with Shopify Payments | Transaction Fee with Other Gateways |
|---|---|---|
| Basic | 0% | 2% |
| Shopify | 0% | 1% |
| Advanced | 0% | 0.5% |
