Shopify is one of the most popular e-commerce platforms for businesses looking to sell products online.
While the platform offers a range of features and tools to help businesses grow, one important factor to consider is how much of the profit Shopify takes.
How Much Of Your Profit Does Shopify Take
In this article, we will explore the different fees associated with using Shopify and how they impact a business’s profit.
Shopify Monthly Fees
Shopify offers different pricing plans to suit the needs of businesses of all sizes. The Basic Shopify plan costs $29 per month, the Shopify plan costs $79 per month, and the Advanced Shopify plan costs $299 per month.
Each plan offers different features and tools, with the more expensive plans offering more advanced features.
Transaction Fees
In addition to the monthly fees, Shopify also charges a transaction fee for each sale made through the platform. The transaction fee varies depending on the pricing plan and payment gateway used.
For businesses using the Basic Shopify plan, the transaction fee is 2.9% + 30¢ per transaction if they use Shopify Payments as their payment gateway. If they use a third-party payment gateway, the transaction fee is 2.0% per transaction.
For businesses using the Shopify and Advanced Shopify plans, the transaction fee is lower. For the Shopify plan, the transaction fee is 2.6% + 30¢ per transaction if they use Shopify Payments, and 1.0% per transaction if they use a third-party payment gateway.
For the Advanced Shopify plan, the transaction fee is 2.4% + 30¢ per transaction if they use Shopify Payments, and 0.5% per transaction if they use a third-party payment gateway.
Other Fees
Shopify also charges additional fees for certain features and services. For example, businesses may need to pay extra for additional staff accounts, gift cards, and professional reports. Shopify also charges a fee for using certain payment gateways, such as PayPal.
How Much of Your Profit Does Shopify Take?
To calculate how much of your profit Shopify takes, you need to take into account the monthly fees, transaction fees, and any additional fees. For example, if you sell a product for $100 and use the Basic Shopify plan with Shopify Payments, your profit would be $96.81 after deducting the transaction fee of 2.9% + 30¢ per transaction.
If you sell 100 products per month, your total transaction fees would be $309, and your total monthly fees would be $29, bringing your total cost to $338.
Conclusion
Shopify charges a range of fees for using the platform, including monthly fees and transaction fees. The amount of profit that Shopify takes depends on a variety of factors, such as the pricing plan and payment gateway used, as well as any additional fees for features and services.
While these fees can add up quickly, many businesses find that the benefits of using Shopify outweigh the costs.
By understanding the different fees associated with Shopify, businesses can make informed decisions about whether the platform is right for them.
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