How Much Does Shopify Take from a $100 Sale? A Complete Breakdown of Fees and Costs
When running an online store, understanding your expenses is crucial to maintaining profitability. One of the most common questions Shopify store owners ask is, “How much does Shopify take from a $100 sale?” The answer isn’t straightforward, as it depends on several factors, including your Shopify plan, payment gateway, and any additional apps or fees. In this article, we’ll break down all the costs associated with a $100 sale on Shopify, so you can calculate your net revenue and make informed financial decisions.
Understanding Shopify’s Fee Structure
Shopify charges fees in two main categories:
- Subscription Fees: The monthly cost of using the platform.
- Transaction Fees: Costs associated with each sale, including payment processing fees and Shopify’s own transaction fees (if applicable).
Let’s dive into each of these to see how they impact a $100 sale.
1. Subscription Fees: Which Plan Are You On?
Shopify offers four main pricing plans:
- Basic Shopify: $39/month
- Shopify: $105/month
- Advanced Shopify: $399/month
- Shopify Plus: Custom pricing (for enterprise-level businesses)
While subscription fees are a fixed monthly cost, they indirectly affect your profit margins. For example, if you’re on the Basic Shopify plan and make 10 sales in a month, your subscription cost per sale is $3.90. However, for the purpose of this breakdown, we’ll focus on transaction fees, as these are directly tied to each sale.
2. Transaction Fees: How Much Does Shopify Take Per Sale?
Transaction fees on Shopify depend on two factors:
- Whether you use Shopify Payments or a third-party payment gateway.
- Your Shopify subscription plan.
A. Using Shopify Payments
Shopify Payments is Shopify’s built-in payment processor. If you use Shopify Payments, you won’t be charged additional transaction fees by Shopify, but you will still pay credit card processing fees. Here’s how it breaks down for a $100 sale:
Shopify Plan | Credit Card Processing Fee | Total Fee for a $100 Sale |
---|---|---|
Basic Shopify | 2.9% + $0.30 | $3.20 |
Shopify | 2.6% + $0.30 | $2.90 |
Advanced Shopify | 2.4% + $0.30 | $2.70 |
Example: If you’re on the Basic Shopify plan and use Shopify Payments, Shopify will take $3.20 from a $100 sale.
B. Using a Third-Party Payment Gateway
If you choose to use a third-party payment gateway like PayPal, Stripe, or Authorize.net, Shopify charges an additional transaction fee on top of the gateway’s processing fees. Here’s the breakdown:
Shopify Plan | Shopify Transaction Fee | Third-Party Gateway Fee (approx.) | Total Fee for a $100 Sale |
---|---|---|---|
Basic Shopify | 2.0% | 2.9% + $0.30 | $4.90 + $0.30 = $5.20 |
Shopify | 1.0% | 2.9% + $0.30 | $3.90 + $0.30 = $4.20 |
Advanced Shopify | 0.5% | 2.9% + $0.30 | $3.40 + $0.30 = $3.70 |
Example: If you’re on the Basic Shopify plan and use PayPal, Shopify will take $5.20 from a $100 sale.
3. Additional Costs to Consider
While subscription and transaction fees are the primary costs, there are other expenses that could impact your net revenue from a $100 sale:
A. App Fees
Shopify’s App Store offers thousands of apps to enhance your store’s functionality. Some apps charge monthly fees or take a percentage of each sale. For example:
- Upsell apps: May charge 1-2% per sale.
- Email marketing apps: Could cost $10-$50/month.
B. Shipping Costs
If you offer free shipping or discounted rates, this will reduce your profit margin. For example, if shipping costs $5, your net revenue from a $100 sale drops to $95 before fees.
C. Product Costs
Don’t forget to factor in the cost of goods sold (COGS). If your product costs $40 to produce or purchase, this will further reduce your profit.
D. Taxes
Depending on your location, you may need to collect and remit sales tax, which can impact your overall revenue.
Real-Life Example: Calculating Net Revenue from a $100 Sale
Let’s assume the following:
- You’re on the Basic Shopify plan.
- You use Shopify Payments.
- Your product cost is $40.
- Shipping costs are $5.
Here’s how the math works:
- Sale Amount: $100
- Credit Card Processing Fee (2.9% + $0.30): $3.20
- Product Cost: $40
- Shipping Cost: $5
- Net Revenue: $100 – $3.20 – $40 – $5 = $51.80
If you were using a third-party payment gateway, your net revenue would be lower due to Shopify’s additional transaction fees.
Tips to Minimize Fees on Shopify
- Use Shopify Payments: Avoid additional transaction fees by using Shopify’s built-in payment processor.
- Upgrade Your Plan: Higher-tier plans reduce credit card processing fees, which can save you money if you have high sales volume.
- Negotiate Shipping Rates: Partner with shipping carriers to get discounted rates.
- Optimize App Usage: Only use apps that provide significant value and avoid those with high per-sale fees.
- Monitor Your Costs: Regularly review your expenses to identify areas where you can cut costs.
Conclusion: How Much Does Shopify Take from a $100 Sale?
The amount Shopify takes from a $100 sale depends on your subscription plan, payment gateway, and additional costs like shipping and product expenses. On average:
- If you use Shopify Payments, fees range from $2.70 to $3.20.
- If you use a third-party payment gateway, fees range from $3.70 to $5.20.
By understanding these costs and optimizing your store’s operations, you can maximize your profit margins and grow your business effectively. Shopify’s transparent pricing and powerful tools make it a top choice for e-commerce entrepreneurs, but it’s essential to factor in all expenses to ensure long-term success.