You might be wondering, “Does Shopify take a cut?” if you’re going to start an online business. Yes, but not in the same way that Amazon or Etsy do. Shopify charges a mix of transaction fees, payment processing fees, and subscription fees.
The good news is? You can keep track of every transaction, pay these fees, and make the most money without concern if you have the correct plan and use PlugBooks.io.
Important Things for Sellers to Remember
- Shopify doesn’t charge a fixed cost like Amazon does, but if you don’t use Shopify Payments, you will have to pay transaction fees.
- PlugBooks keeps track of all your Shopify costs and sales on its own, so you can see exactly how much you’re paying for each order.
- Depending on your Shopify plan, transaction costs might be as low as 0.5% or as much as 2.0%.
- PlugBooks tracking with Shopify Payments gets rid of additional transaction costs and makes keeping track of your money easier.
- PlugBooks can help you keep track of extra charges like monthly subscriptions, apps, and shipping.
Does Shopify Take a Cut of Your Sales?
When sellers ask, “Does Shopify take a cut of sales?” they usually mean, “Does Shopify charge a fee for each sale?”
The truth is that Shopify charges a monthly subscription fee and transaction fees if you utilise third-party gateways. Here’s how it breaks down:
- Basic Plan: $39 a month 2.0% for each transaction
- Shopify Plan ($105/month): 1.0% for each sale
- Advanced Plan ($399/month): 0.5% for each transaction
Pro Tip: PlugBooks lets you see exactly how much these costs cut into your profits, which can help you change the prices of your products.
Shopify Payments: Avoid Extra Cuts
You don’t have to pay transaction fees when you use Shopify Payments. Instead, you pay the usual fees for processing credit cards:
- Basic Plan: 30 cents plus 2.9%
- Shopify Plan: 2.6% and 30¢
- Advanced Plan: 2.4% + 30¢
Learn about how Shopify collects sales tax to stay informed on related charges.
Other Costs Sellers Must Track
When you ask “does Shopify take a cut of your sales?” don’t forget about additional costs:
- Fees for monthly subscriptions.
- Premium themes and apps (typically on a subscription basis).
- Costs of shipping and fulfilling orders.
- Taxes and fees
- Discover more on Shopify fees to keep track of all expenses.
Is Shopify Worth the Cut?
Yes! Shopify does take a cut, but it’s significantly less than other sites like Amazon, which take 8–15% of each sale. You also own your brand and website.
Read more on analyzing sales channel profits using PlugBooks to optimize your earnings.
PlugBooks connection gives you automatic data on Shopify sales, fees, and taxes, which makes it much easier to figure out how much money you really made.
How to Reduce Shopify Fees
Want to keep more of your money? This is how sellers do it:
- To avoid transaction fees, use Shopify Payments.
- Choose the proper package based on how much you sell (PlugBooks statistics will help you find the one that saves you the most).
- Limit the number of apps you don’t need—PlugBooks can keep track of how much each app costs so you know which ones to retain.
- Leverage Shopify Shipping discounts.
- PlugBooks can help you find your real profit margins and set the best prices.
Sign up for a PlugBooks account to get started and easily track your fees.
Example: What You Really Keep on a $100 Sale
- With Shopify Payments on Basic Plan, fees = $3.20. You keep $96.80.
- With PayPal + Shopify, total fees = $5.20. You keep $94.80.
PlugBooks automatically records these numbers for you, saving hours of manual calculations
Frequently Asked Questions (FAQs) for Sellers
1. If I utilize Shopify Payments, does Shopify take a cut?
Just the card processing cost, no extra cut. PlugBooks keeps track of these fees on its own.
2. Does Shopify keep a portion of refunds?
Shopify doesn’t take a percentage, however the card fees are not refundable. PlugBooks quickly records refunds in your books.
3. Are there extra costs with Shopify?
No extra fees, although the cost of apps and delivery might mount up. PlugBooks lets you find costs that aren’t essential.
4. Does Shopify get a piece of the shipping fees?
No, carriers get the shipping fees. PlugBooks can keep track of shipping costs so you can see how much money you’re making.
5. How do the fees on Shopify compare to those on Amazon?
Shopify’s costs are stable and easy to handle with PlugBooks, while Amazon’s costs are greater at 8–15%.
6. Is it possible to eliminate all of Shopify’s fees?
Not completely, but with PlugBooks, you can find the best way to pay the least.
Why Shopify sellers need PlugBooks
PlugBooks.io is the perfect tool for you if you want to build your store. It:
- Links QuickBooks and Xero to Shopify.
- Keeps track of every transaction, fee, tax, and refund.
- Gives you detailed profit reports so you know how much money you really make.
- Saves hours of doing bookkeeping by hand.
Learn more about PlugBooks QuickBooks integration
Conclusion
So, does Shopify take a cut? Yes, but its fees are transparent and can be minimized with smart strategies. By using Shopify Payments, selecting the right plan, and monitoring your expenses, you can keep more of your hard-earned profits.
With tools like PlugBooks.io, Shopify sellers can easily track every fee, sync sales data with QuickBooks or Xero, and make better financial decisions. This not only saves time but ensures that every dollar of your revenue is accounted for—helping your business grow without unexpected costs.