I am a new business owner on Shopify and I would really appreciate if someone could explain to me how payouts work/calculate/etc. I am curious as to why my payouts don’t reflect the close to the gross of sales. Example: if I gross $500 in sales why is there a payout scheduled to send my bank $200?
Great question! There's a bit to unpack here as there are a number of variables you'll need to consider.
All in all, it is important to note that your payouts won't match your gross sales as payouts are subject to the credit card fees. For example, if you processed $500 through Shopify Payments while on the Basic plan, then you'd be looking at 2.9% + 30 cents per order. Let's assume you had 25 orders which means your order cost was $20 per order. You'd be looking at $0.88 cents per order in fees which would be $22. You should then receive a payout that is roughly $478. While not as drastic of a difference from your example, I did want to highlight that comparing "gross sales" to your final payout amount would not be an ideal comparison as it won't give you a full view of where your money is going. I would recommend reviewing the Finance Reports we offer as these reports will give you better insight into how your business is doing financially.
If what I provided above doesn't help clear up your question/confusion then let me know as I'd be happy to take a deeper look into why you believe there is a discrepancy in your payouts.
First thank you for such a detailed oriented insight it was so needed and helped me learn other things I had no idea about so again thank you. In regards to the payouts I am receiving I am still a bit confused as to why my payouts have a drastic difference from my sales. I completely understand your example/breakdown and it makes total sense but on my account it doesn’t reflect in that logical sense raising a lot of questions and confusion. I would greatly appreciate it if someone could take a look at this and hopefully clear the confusion. Thank you!
You're welcome! I'm glad my previous response was useful, even though it didn't help clear up the confusion surrounding your payouts. I've gone ahead and sent you an email titled "Shopify Forum Support" to verify your store. If you can reply to that email as soon as you're able, then I can take a look into the account to help get this resolved.
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