It’s Friday and time for another Reader’s Question post. Today we’ll take a closer look at one of the most popular shopping carts out there – Shopify, and specifically address one problem/issue that comes with a Shopify subscription.
Here’s a recent email I received from Dan:
Awesome blog you have, I have learned so much from you! Thank you for the work you do.
I have a question – one that may be suitable for your weekly reader articles. So here’s my story/question:
I’m an eBay seller and have a pretty decent sized business running. But to expand my customer base and to avoid eBay fees, I’m planning on launching my own online shop in the near future. Thanks to your eCommerce Magnates course I realised that I definitely want to use a hosted shopping cart as I’m not that good with HTML and coding so wouldn’t really want to deal with all the hassle carts like Open Cart come with.
I will be using Shopify as feature wise it’s the most suitable cart for me, it also has several important plugins that I will use for connecting eBay and Amazon sales to my accounting software. I have also already found a very good template I want to use for my shop.
The problem I’m struggling with right now is the Transaction Fee Shopify charges on EVERY sale I make via my shop. As I understand it’s 2% and while my margins are good, it still feels not right to pay such a fee, especially when I’m trying to escape eBay & Amazon fees.
Any advice on how to avoid this fee?
I know that there are many carts out there that don’t have a transaction fee but I really want to use Shopify due to compatibility issues and the template I have found.
Any advice would be appreciated.
Thanks for your email & question Dan.
Yes, you’re correct – on top of a monthly subscription fee Shopify does charge a per sale/transaction fee.
The fee rate depends on the type of shop subscription you have, it’s not always 2%. Here are the current rates:
- Basic Shopify – $29 a month + 2% transaction fee
- Shopify – $79 a month + 1% transaction fee
- Advanced Shopify – $299 + 0.5% transaction fee
You’ll most likely want to go with the Shopify plan at $79 as it includes Gift Cards and the Abandoned Cart Recovery function that are not available for Basic shops, which means you’ll be paying the 1% transaction fee. [Read more…]