Shopify fees can be a bit confusing for new ecommerce entrepreneurs. After all, when you’re just starting out, every dollar counts. So when you see a Shopify fee on your bill, it’s natural to wonder if it’s a necessary cost of doing business.
The short answer is: yes, Shopify fees are considered a cost of goods sold (COGS). This is because they’re directly related to the sale of your products. Specifically, the Shopify platform fee and the payment processing fee are both COGS.
The slightly longer answer is: it depends on how you structure your business. If you’re selling physical goods, then Shopify fees are definitely COGS. But if you’re selling digital products or services, then it’s up to you to decide if Shopify fees are COGS or not.
Here’s a more detailed explanation:
Shopify Platform Fee: This is the monthly fee that you pay to use the Shopify platform. It’s typically $29 per month (or $79 per month for the advanced plan). This fee is definitely a COGS, because without it you wouldn’t be able to sell your products online.
PRO TIP: If you are thinking of using Shopify to sell goods, be aware that the fees associated with Shopify are not considered to be part of the cost of goods sold. This means that you will need to factor in these fees when pricing your goods.
Payment Processing Fee: This is the fee that Shopify charges for processing credit card payments. It’s 2.9% + $0.30 per transaction for most plans (3.30 per transaction for the advanced plan). This fee is also a COGS, because without it you wouldn’t be able to accept credit card payments from your customers.
Digital Products or Services: If you’re selling digital products or services (like ebooks, courses, or memberships), then Shopify fees are not considered COGS. This is because there are no physical goods involved in the sale, so the Shopify platform and payment processing fees are not directly related to the sale of your product. However, if you’re using Shopify to process payments for digital products or services (like through a Buy Now button), then the payment processing fee is still considered a COGS.
So there you have it! Whether or not Shopify fees are considered COGS depends on what type of product or service you’re selling.
If you’re selling physical goods, then Shopify fees are definitely COGS.
8 Related Question Answers Found
Shopify fees are merchant fees. By using Shopify, merchants agree to pay Shopify’s fees for the services that Shopify provides. Shopify is a platform that allows businesses to create and manage their online stores.
Shopify is a platform for businesses of all sizes to create an online store. It offers users a customizable platform, an easy-to-use checkout process, and a wide range of features. One of the questions that potential Shopify users often ask is whether Shopify charges for every transaction.
Shopify is a platform for businesses of all sizes to create an online store. Shopify offers users a customizable platform, an easy-to-use checkout process, and a wide range of features. One of the questions we often hear from potential Shopify users is “does Shopify charge per transaction?”
The short answer is no – Shopify does not charge per transaction.
Shopify Payments is one of the most popular payment processors available today. Shopify Payments allows you to accept credit card payments directly on your Shopify store. There are no monthly fees or set up costs for using Shopify Payments.
Shopify fees are a bit complex because they vary based on the type of plan you choose, and whether you use Shopify Payments or not. But we’ll try to give you a general idea of the fees you can expect. The basic Shopify plan starts at $29 per month.
Shopify charges a monthly fee for its Shopify Plus subscription. This fee varies depending on the user’s location, but generally ranges from $9 to $19 per month. Shopify also charges a monthly fee for its Shopify Enterprise subscription.
Shopify is a popular ecommerce platform that allows users to create a store, manage inventory, and sell online. The platform is free to use for entrepreneurs starting out, but there are fees associated with some features. For a basic Shopify store, the cost is $9 per month, plus $0.15 per sale.
Shopify supports over 140 currencies, which is great news for businesses who want to sell their products internationally. The company has made it easy to change your store’s currency, and you can even offer multiple currencies to your customers. Here’s a look at what currencies Shopify supports.
