Does Shopify include shipping fees in what they charge you per sale?

Shopify Discussion
1

I have a question about Shopify fees.

I want to recalculate my product prices to lower them and exclude shipping fees (now it’s all included in the product price because it was impossible to calculate due to restrictions when shipping to the US).

Example: I have a 100 USD product with a 10 USD shipping fee. All payments are under Shopify payments, so if I’m getting this right I’m charged 2.9% + 30 cent per transaction.

  • CURRENT SCENARIO (Price is 110 USD, shipping included. At checkout, shipping is shown as “free”)
    The price is 110 USD. Shopify keeps 2.9% + .30 USD of that (= 3.49 USD.)

  • AFTER I CHANGE PRICE ((Price is 100 USD, + 10 USD shipping calculated at checkout.)
    Is it A) The exact same, or B) Shopify keeps 2.9% + .30 USD of the product price (= 3.2 USD), and I pay no fees on the shipping cost?

Also, I can’t remember exactly why, but I remember that in my rough math when I started the store I ended up calculating that I lose a total of about 6% per transaction. I think it was before I opted for Shopify Payments, so I might be mistaken here, but if that’s correct I wonder what that extra is. Might that be the result of credit card fees, which are calculated on top of the Shopify fees themselves? If that’s the case, am I going to pay that amount calculated on the total (110 USD) or just on the product?

I feel nothing is going to change on my side, but I just wanted to make sure.

Thank you in advance!

2

@juslearnen

Great question! The short answer is it stays the exact same as your current scenario.

Shopify Payments credit card rates are charged on the total value processed through our payment processor which would include shipping rates. When you’re not using Shopify Payments, you would be charged a transaction fee of 0.5%-2% per order (based on plan) which is on top of what your payment provider is charging you. I suspect that’s why you were seeing close to 6% per transaction before switching over to Shopify Payments.

As long as you keep Shopify Payments enabled, you will not see a transaction fee when orders are processed through the additional payment providers you have enabled. You would only see a charge from the third-party payment provider.