Billing on Shopify works similar to most other online shopping platforms. When you make a purchase, your card is charged and the funds are transferred to the seller. Shopify then takes a cut of the sale as a commission.
The commission rate varies depending on which Shopify plan you’re on, but it’s typically 2-2.9%. So, for example, if you sell a product for $100, Shopify will take $2-$2.90 as their fee.
You can also choose to have Shopify process your payments through their own payment gateway, which costs an additional 1% per transaction. Or, you can use a third-party payment gateway like PayPal or Stripe, which will also incur additional fees.
Overall, billing on Shopify is straightforward and easy to understand. Just be aware of the fees involved so you can factor them into your pricing accordingly.
1. Your billing period starts on the day you sign up for Shopify, and recurs monthly on that date.
2. If you add a credit card to your account, Shopify will charge your card for any fees that are due at the beginning of your billing period. For example, if you sign up on January 1st, Shopify will charge your credit card for your January 1st-31st fees on February 1st.
3. If you add a bank account to your account, Shopify will withdraw any fees that are due at the beginning of your billing period from your bank account. For example, if you sign up on January 1st, Shopify will withdraw your January 1st-31st fees from your bank account on February 1st.
4. If you have any unpaid invoices at the end of your billing period, Shopify will automatically attempt to charge your credit card or withdraw the funds from your bank account on the first day of the following billing period.
Conclusion:
In conclusion, billing on Shopify works similar to most other online shopping platforms.
Shopify then takes a cut of the sale as a commission. The commission rate varies depending on which Shopify plan you’re on, but it’s typically 2-2.
