How much does Shopify take per sale?

Running an online store involves a lot of decisions. You probably already know that choosing the right platform is a big one. While there are many options out there, Shopify consistently stands out for its features and user-friendliness. However, as with any platform, there are costs to consider, one of them being the Shopify transaction fee. Understanding these fees and how they fit into your business model is key to your bottom line.

Don’t worry; we’re here to break down the complexities of Shopify fees for you. This article will explore everything you need to know about Shopify transaction fees, what they are, how much they are, and some smart strategies you can use to keep those costs under control.

Breaking Down Shopify Transaction Fees

When using Shopify to power your ecommerce business, you’ll need to incorporate Shopify transaction fees into your pricing strategy. This fee is essentially a small percentage that Shopify charges for each sale made through your online store.

These charges are a way for Shopify to generate revenue and continue providing excellent service and updates. For online businesses, understanding how this fee structure works is essential to optimize your store’s profitability. You need to grasp what it costs to sell an item and receive the full amount into your account. Shopify charges fees to cover the costs associated with credit card transactions, but how much are these fees?

What Makes Up Shopify Transaction Fees?

There are two components to Shopify’s transaction fees:

1. Credit card processing fees: Every time a customer purchases a product from your store using a credit card, you’ll incur credit card processing fees. These charges cover the costs associated with securely processing online transactions, preventing fraud, and ensuring your customers’ payment information remains safe. Shopify uses Stripe as their main payment gateway.

2. Shopify’s Fee: On top of credit card processing fees, Shopify may apply an additional fee for each transaction, depending on whether you use Shopify Payments or a third-party payment provider. Using Shopify Payments generally leads to lower transaction costs, simplifying your payment processing experience.

Shopify’s Fees Vary by Shopify Plan and Payment Method

The Shopify Basic Plan costs $29 a month with a 2% fee for using third-party payment providers. You can see the full Shopify pricing plans breakdown on their website. Now, if you choose to go with a third-party processor rather than using Shopify Payments, this is an extra cost on top of the payment provider’s rate.

Think of it this way: Shopify wants to encourage you to use their built-in system, which is why using third-party gateways costs you more. Here’s a breakdown of the Shopify transaction fees based on different Shopify plans:

This Shopify fee applies to every transaction, making it crucial to consider when pricing your products. Successfully navigating this aspect of your Shopify store can make a significant difference in your profit margins. Understanding these costs and implementing strategies to mitigate their impact is a fundamental aspect of running a profitable online business.

Choosing Between Shopify Payments and Third-Party Providers

Shopify payments is a great solution for certain types of ecommerce stores, but if you are a large-volume ecommerce store, you want to have a multiple portfolio of ways that you take payment. This does a couple of different things for your business:

• First, it lets you have convenience for your customers if they have a preferred payment gate way that they like.

• Secondly, it’s lets you reduce the likelihood of business disruption if one of your merchant accounts gets frozen for one reason or another.

• You can have access to your needed funds to fulfill orders quickly for your customers.

• In some merchant gateways, you might stand a better chance of winning a chargeback than in others.

Take a Look at Checkout Champ

If you are tired of forking over your hard-money to Shopify, you should take a look at Checkout Champ. Essentially, if you use Shopify, they charge the third-party payment fee as an incentive to get you to use Shopify Payments. Sometimes, Shopify may not let your store use Shopify Payments if you sell certain types of items. 

With Checkout Champ, you get access to virtually every payment provider in existence and we don’t take a “third-party merchant fee.” Not only does this make it easier for you to do business, but our platform creates stability for your business by letting you use the payment provider that you’d like.

Checkout Champ is not just a checkout extension. You can integrate our platform into your store as much as you’d like, such as using the landing page builder. If you are looking to transition off Shopify, Checkout Champ can also be your full ecommerce solution.