Hi Shopify and Zendrop Community,
I have received a quote from Zendrop for a product I am selling for $1.27 per item. I did a test purchase for myself and bought x4 items which was $5.08 in total + shipping which was $14 in total. Therefore each total wholesale product cost including shipping costs roughly $4.77 ($1.27 per item +$14/4 items = $3.5). I use Zendrop which I believe is a third-party payment provider which incurs a 1% fee and I paid using a MasterCard which I believe incurs a 2.6% online credit card transaction rate + USD $30c (AUD $50c) for the premium Shopify plan I have selected. This would equate to roughly $5.75 ($4.77+3.6% + $0.50c) - $75/4 = $18.5 x3.6% + %0.50c = $1.2 + $4.77 = $5.94 per item).
So I would assume the product cost on Shopify would be also around $5.94 including shipping. 3rd party payment fees, and credit card fees. However, when I look at my gross profit report in my analytics tab on Shopify the product cost was listed as $10.88 per item.
Where could this additional approximate $5 on Shopify be coming from possibly?
Why is my Shopify product cost around $5 more than my Zendrop product cost?
Are there more fees that Shopify charges that I do not know about and have not accounted for?