Are you considering starting an e-commerce store with Shopify? If so, then you probably have a lot of questions. Luckily, answering questions about Shopify is our specialty.
Among new merchants, one question that we hear is, “Does Shopify take a percentage of sales?”
Shopify takes a percentage of sales but it’s entirely based on your payment plan. Basic Plan subscribers receive a 2.9% +30c deduction from each online transaction. Shopify Plan members get 2.6% + 30c per transaction. Finally, Shopify Advanced members get 2.4% + 30c. The more you pay each month for a Shopify plan, the less of a percentage they take out.
For this reason, it’s imperative to select the right Shopify payment plan for your store.
If you want to learn everything about how Shopify prices their plans, you’re in luck. In this post, we’ll cover Shopify’s transaction fees, membership plans, and more.
Understanding Shopify’s Pricing
Shopify has several membership plans they offer to new merchants. There’s Shopify Lite, the Basic Plan, Shopify Plan, and Advanced Shopify Plan. Each varies in price as well as the features they allow you to access.
Rather than have a universal percentage of sales they deduct, Shopify bases it on your plan.
Also, you’ll need to use Shopify Payments to avoid additional fees. What’s that? Here’s what you need to know.
Shopify Payments is Shopify’s built-in payment processing system. It’s the easiest way to accept online payments through the platform. With it, you won’t have to set up a third-party payment provider or a merchant account. That will save you a lot of time and hassle, as you won’t have to enter long credentials into Shopify. Instead, Shopify Payments will set you up to process any significant payment type with ease.
If your online store is in the continental United States, you’re eligible to use Shopify Payments. The only US territory that isn’t supported by Shopify Payments is Puerto Rico.
So if you want to avoid a cumbersome setup and additional fees, you need to set up Shopify Payments. How? It’s elementary. Here are the steps you’ll need to take to set it up for your store:
- From your Shopify Settings, select the Payments page.
- Enter your Employee Identification Number (EIN)
- Enter your banking information
That’s all it takes to start using Shopify Payments. We highly recommend that you do so to avoid costly fees. Not only that, but it’s by far the most convenient way to process payments through the platform.
Selecting the Right Shopify Payment Plan for You
Next, let’s learn about the details surrounding each Shopify membership plan. That way, you can determine which is the best for your business. Remember, each payment plan will have a different percentage that Shopify takes from your sales. It’s crucial to consider this when selecting a plan.
If you have a high-volume business, for example, you’ll want the lowest fees possible.
You’ll end up paying more per month as a result, but the lower fees will save you more money in the long run. It’s this type of reasoning that you have to use to pick the right plan.
Shopify Lite Plan
First, we’ll briefly discuss the Shopify Lite Plan. While it’s technically a Shopify membership plan, it’s the most limited one. At only $9 per month, Shopify takes no percentage of your sales with this plan.
Instead, it’s simply a way to add a ‘Buy’ button to existing pages and blogs. So if you already have a website, it’s a very affordable way to start selling products.
You’ll gain access to Shopify Payments as well. That way, you can process customer payments through your existing website. Shopify Lite is only for existing website owners.
Shopify Basic Plan
Next is the Shopify Basic Plan. That is by far the most common plan that merchants select. At $29 per month, it has the most affordable monthly rate. Yet, it also has the highest percentage that Shopify takes from your sales. The Basic Plan will take 2.9% + 30c per online sale.
If you run a modest online store without a huge customer base, this is the ideal plan for you. The affordable monthly rate is incredibly manageable. Not only that, but the relatively high sales percentage won’t affect low volume sales.
If you don’t set up Shopify Payments, you’ll also have to pay a 2% external gateway fee. That’s why we recommend always setting up Shopify Payments first to avoid these fees.
The Shopify Plan
Next, we have the Shopify Plan. It costs $79 per month but has a lowered percentage of 2.6% + 30c per transaction. In addition to the lower fees, you also gain access to more robust features. You can have more admin accounts, and you’ll enjoy more detailed reporting features. Not only that, but the Shopify Plan allows you to use gift cards as well as recover abandoned carts.
If your online store is growing like wildfire, we recommend upgrading to this plan. You’ll enjoy more robust features as well as lower transaction fees.
If you’re earning around $5,000 a month from your online store, then you’ve outgrown the Basic Plan. We would recommend upgrading to the Shopify Plan, as it will save you money in the long run.
The Advanced Shopify Plan
Finally, we have the most expensive option, the Advanced Shopify Plan. That is for online businesses that are approaching the enterprise level. Any merchant store can grow, so don’t rule out upgrading to this plan one day.
There are lots of perks here for stores that sell high volumes. If you’re selling upwards of $10,000 a month through your store, this is the plan for you.
You’ll enjoy minimal transaction fees at only 2.4% + 30c. Not only that, but this plan features the most advanced reporting features as well as super-fast shipping.
So if your store has been on the rise for a while now, stop paying those sky-high transaction fees. Making the switch to the Advanced Plan can be well worth it for booming online stores.
Does Shopify Take a Percentage of Sales? ( quick video )
Does Shopify take a percentage of sales? They do, and it’s tied to which plan that you choose. It would be best if you were very strategic when selecting a Shopify membership plan. Smaller businesses should go with the Basic Plan, while more robust online stores will benefit from the Advanced Plan.
For more great content to help you develop your Shopify strategies, check out the rest of the merchant posts on the site. If you want to see a list of our top recommended Shopify apps visit this link here.