When you sell on Shopify, fees can eat into your profits. Here’s a quick breakdown of how much Shopify takes from a $100 sale:

  • Using Shopify Payments (Shopify’s built-in payment processor):

    • Basic Plan: $3.20 (2.9% + $0.30)
    • Shopify Plan: $2.90 (2.6% + $0.30)
    • Advanced Plan: $2.70 (2.4% + $0.30)
  • Using Third-Party Payment Providers:

    • Adds extra fees: 2% (Basic), 1% (Shopify), or 0.5% (Advanced).
  • Monthly Subscription Costs:

    • Basic: $39/month
    • Shopify: $105/month
    • Advanced: $399/month

Quick Comparison Table:

Plan Level Fee per $100 Sale (Shopify Payments) Fee per $100 Sale (Third-Party) Monthly Cost
Basic $3.20 $5.20 $39
Shopify $2.90 $3.90 $105
Advanced $2.70 $3.30 $399

Key Takeaways:

  • Using Shopify Payments saves you money by avoiding extra transaction fees.
  • Higher-tier plans have lower per-sale fees but higher monthly costs – best for high sales volumes.
  • Choose a plan based on your monthly sales to balance costs and profits.

Cost Breakdown: $100 Shopify Sale

Shopify

Fee Rates by Plan Level

Here’s a breakdown of fees for a $100 sale across Shopify’s plans:

Plan Level Payment Processing Fee Fixed Fee Total Fee on $100 Sale
Basic 2.9% $0.30 $3.20
Shopify 2.6% $0.30 $2.90
Advanced 2.4% $0.30 $2.70

Credit Card Processing Rates

If you choose a third-party payment provider instead of Shopify Payments, extra transaction fees will apply:

  • Basic Plan: Additional 2% ($2.00 on a $100 sale)
  • Shopify Plan: Additional 1% ($1.00 on a $100 sale)
  • Advanced Plan: Additional 0.6% ($0.60 on a $100 sale)

Total Fees Calculator

Here’s a complete comparison of fees:

Plan Level Using Shopify Payments Using Third-Party Provider
Basic $3.20 $5.20
Shopify $2.90 $3.90
Advanced $2.70 $3.30

For the Basic plan, Shopify Payments leaves you with $96.80 from a $100 sale, while a third-party provider reduces that to $94.80. The Advanced plan offers the lowest per-transaction fees, but keep in mind the higher monthly subscription cost. For businesses with high sales volume, lower transaction fees could outweigh the higher monthly fees.

Next, we’ll look at how these fees impact your overall profit margins.

Does Shopify Charge You For Every Transaction?

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What Affects Your Net Profit

Several factors influence your net profit beyond just the fee breakdown.

Payment Provider Cost Comparison

The payment provider you choose can make a difference in your net profit for a $100 sale. Third-party providers often add extra fees, as shown in the table below:

Payment Method Basic Plan Shopify Plan Advanced Plan
Shopify Payments $96.80 $97.10 $97.30
Third-Party Provider $94.80 $96.10 $96.80

Now, let’s look at some additional costs that might not be obvious at first glance.

Hidden Costs to Watch

Some extra expenses can also impact your net profit:

  • Monthly Subscription Fees

    • Basic Plan: $39/month (~$1.30/day)
    • Shopify Plan: $105/month (~$3.50/day)
    • Advanced Plan: $399/month (~$13.30/day)
  • Other Operating Expenses

    • Domain: $11–$81/year
    • Email: $0.001 per email after 2,500 monthly emails
    • Marketplace Fees: 1% after 50 orders (max $99/month)
    • Tax: 0.35% after $100K/year (max $0.99 per order)

These costs can add up quickly, so it’s essential to factor them into your calculations.

Sales Numbers and Plan Costs

Your monthly sales volume plays a big role in determining which plan gives you the best value:

  • Basic Plan ($39/month): Best for sales under $10,000/month
  • Shopify Plan ($105/month): Ideal for sales between $10,000 and $50,000/month
  • Advanced Plan ($399/month): Most efficient for sales above $50,000/month

For example, if you process 500 sales of $100 each month, the Advanced plan’s fee of $2.70 per sale would save you $250 compared to the Basic plan’s $3.20 fee. This almost offsets the $360 difference in monthly subscription costs.

If you opt for annual billing, you can save 10% on your subscription, which could reduce your yearly costs by up to $478.80 on the Advanced plan.

How to Lower Your Fees

Here’s how you can cut down on fees and improve your profits:

Choosing Your Plan Level

Pick a plan that aligns with your sales volume to keep costs low:

Monthly Sales Volume Recommended Plan Processing Fee per $100 Sale Monthly Cost
Under $10,000 Basic $3.20 $39
$10,000 – $50,000 Shopify $2.90 $105
Over $50,000 Advanced $2.70 $399

If you opt for annual billing, the Basic plan drops from $39 to $29 per month, saving you around $120 a year.

You can also reduce fees by optimizing your transactions.

Using Shopify Payments

Shopify Payments

By using Shopify Payments, you avoid the extra 2.0% fee charged by third-party processors on the Basic plan. This saves $2 for every $100 in sales. The savings grow as your sales volume increases.

Cost vs. Features Guide

Weigh costs against features to find the best balance for your business:

  • Features That Are Worth Paying For
    Some features can directly improve your efficiency and sales:

    • Abandoned cart recovery (available on the Shopify plan and higher)
    • Professional reports (available on the Shopify plan and higher)
    • Advanced report builder (Advanced plan)
    • Third-party calculated shipping rates (Advanced plan)
  • Ways to Save Money
    Simple strategies to cut expenses include:

    • Using free themes and customizing them
    • Removing apps you don’t use
    • Relying on Shopify’s built-in tools before buying apps
    • Upgrading plans only when your sales volume makes it worthwhile

Conclusion: Quick Reference Guide

Shopify’s Fee Breakdown for a $100 Sale

Plan Level Total Fees per $100 Sale You Keep Monthly Cost
Basic $3.20 $96.80 $39
Shopify $2.90 $97.10 $105
Advanced $2.70 $97.30 $399

To figure out the fees for any sale: Take your plan’s processing rate (Basic: 2.9%, Shopify: 2.6%, Advanced: 2.4%), multiply it by the sale amount, and add the $0.30 fixed fee.

Key Takeaways for Maximizing Profits

  • Lower fees on higher-tier plans: While the monthly cost is higher, the transaction rates decrease.
  • Advanced plan offers the best rate: At 2.4% + $0.30, it has the lowest per-transaction cost.
  • Don’t forget product costs: Always include both Shopify fees and your product expenses when calculating profit margins.

As your sales volume increases, upgrading to a higher-tier plan can help reduce transaction costs and improve profitability.

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