Does Shopify Charge a Percentage of Sales? A Full Guide

Table of Contents

1. Introduction
2. Does Shopify Take a Cut? The Short and Long Answer
3. A Detailed Breakdown of Shopify Subscription Plans
4. The Power of Shopify Payments
5. Digital Products: A Margin Game Changer
6. Real-World Math: When to Upgrade Your Plan
7. Hidden Costs vs. Value Add
8. Why We Built Tevello as a Native Integration
9. Case Study: The Power of Bundling
10. Strategies to Protect Your Margins
11. Shopify Plus: The Enterprise Leap
12. Recurring Revenue: The Ultimate Stability
13. The Future of E-commerce is Content-Driven
14. Checklist for Reducing Fees
15. Final Thoughts on Shopify's "Cut"
16. FAQ
17. Conclusion

Introduction

Imagine you have just crossed the $10,000 monthly revenue milestone. You look at your dashboard, feeling the rush of success, only to realize that after COGS, shipping, and marketing, your take-home pay is significantly less than expected. Then, you see the "transaction fees" and "processing fees" line items. For many merchants, the complexity of e-commerce fees feels like a hidden leak in an otherwise sturdy ship. The e-learning market is currently projected to surpass $460 billion by 2026, and yet many creators are hesitant to dive in because they don't fully understand the cost of doing business on major platforms.

The purpose of this blog post is to demystify the financial architecture of Shopify. We will explore exactly how the platform calculates its fees, the difference between subscription costs and transaction percentages, and how you can optimize your setup to keep more of your hard-earned revenue. We will also look at how transitioning into digital products and memberships can fundamentally shift your profit margins.

At Tevello, our mission is to turn any Shopify store into a digital learning powerhouse. We believe that understanding your platform's fee structure is the first step toward scaling a sustainable, high-margin business. By the end of this guide, you will have a clear roadmap for navigating Shopify’s costs and leveraging our "Native Shopify Integration" to maximize your Customer Lifetime Value (LTV).

Does Shopify Take a Cut? The Short and Long Answer

The most direct answer to the question "Does Shopify charge a percentage of sales?" is yes—but the "how" and "why" are what truly matter for your bottom line. Shopify does not typically take a flat "commission" in the way an aggressive marketplace like Amazon or Etsy might. Instead, the costs are split into two distinct categories: platform transaction fees and credit card processing fees.

For a merchant, these fees are the price of a secure, reliable infrastructure. When you use Shopify, you aren't just paying for a website; you are paying for PCI-compliant checkout, fraud protection, global hosting, and a system that can handle thousands of concurrent visitors without crashing. However, if you don't choose the right plan or the right payment gateway, you might be paying more than necessary.

Understanding the Two Types of "Percentages"

It is crucial to distinguish between these two types of fees because they are often conflated.

1. Credit Card Processing Fees: These are charged by the banks and payment networks (like Visa, Mastercard, and American Express) to facilitate the movement of money. Shopify passes these through at a rate determined by your subscription plan.
2. Shopify Transaction Fees: These are additional fees (ranging from 0.5% to 2%) that Shopify charges only if you choose to use a third-party payment gateway instead of Shopify Payments.

By understanding these nuances, you can begin to see that while Shopify does take a percentage, you have a significant amount of control over how much that percentage actually is.

A Detailed Breakdown of Shopify Subscription Plans

Your monthly subscription fee is the "rent" you pay for your store. However, this rent also determines the "toll" you pay on every transaction. As you scale, the relationship between your monthly fee and your transaction percentage becomes the most important calculation in your business.

Basic Shopify Plan

This plan is the entry point for most new merchants. At approximately $39 per month (or $29 if billed annually), it provides the foundational tools needed to sell products. However, because the monthly cost is lower, the transaction percentages are at their highest. You can expect to pay around 2.9% + $0.30 per online transaction.

The Shopify Plan (Grow)

Often referred to as the "mid-tier" or "Grow" plan, this is designed for businesses that have found product-market fit and are beginning to scale. At $105 per month (or $79 annually), the credit card processing fee drops to 2.6% + $0.30. While a 0.3% difference might seem negligible, on $20,000 of monthly sales, that’s an extra $60 back in your pocket—which nearly covers the price jump from the Basic plan.

Advanced Shopify

For high-volume merchants, the Advanced plan at $399 per month (or $299 annually) offers the most competitive rates at 2.4% + $0.30. This plan also includes advanced reporting features, which are essential for identifying your most profitable customer segments and securing a fixed cost structure for digital products.

The Power of Shopify Payments

The single most effective way to reduce the percentage Shopify takes from your sales is to enable Shopify Payments. In most supported regions, using Shopify’s native gateway removes the "Transaction Fee" entirely.

If you use a third-party provider like PayPal or a specialized local gateway, Shopify will add a 2%, 1%, or 0.5% fee on top of whatever that provider is already charging you. We always advocate for keeping things native. Just as we built Tevello to ensure a unified login that reduces customer support friction, Shopify Payments ensures a friction-free financial setup.

Avoiding the "Third-Party Tax"

When you use Shopify Payments, you are only responsible for the credit card processing fee. This is a massive advantage for merchants who are sensitive to margins. By staying within the Shopify ecosystem, you ensure that your checkout experience is fast, branded, and cost-effective.

Digital Products: A Margin Game Changer

While physical product merchants are constantly battling rising shipping costs and manufacturing overhead, digital product creators operate in a different reality. This is where the percentage of sales taken by Shopify becomes much easier to swallow.

Consider a merchant selling premium coffee beans. After the cost of the beans, the packaging, the shipping, and the 2.9% Shopify fee, their net margin might be 20%. Now, consider that same merchant using Tevello to offer a "Mastering the Pour-Over" video course for $50.

Because there is no shipping cost and no physical inventory to replenish, the only "cost" is the transaction fee. By generating over €243,000 by upselling existing customers, brands can effectively use digital products to offset the lower margins of their physical goods.

The Tevello Advantage

At Tevello, we believe merchants should own their customer data and brand experience. This is why we created a solution that keeps customers on your own URL. When you sell a course through our app, it goes through the same Shopify checkout you already use. This means you aren't paying a separate "success fee" to a third-party course platform on top of your Shopify fees.

Our model is built for your growth. Our Unlimited Plan is a flat $29.99 per month. We charge 0% transaction fees, meaning whether you sell ten courses or ten thousand, your cost to Tevello remains exactly the same. We provide all the key features for courses and communities, ensuring you have a robust environment to scale without fear of being penalized for your success.

Real-World Math: When to Upgrade Your Plan

Many store owners stay on the Basic plan for too long, afraid of the higher monthly commitment. However, there is a clear "break-even" point where upgrading your Shopify plan actually saves you money.

Let’s look at the math for a store doing $20,000 in monthly volume:

• On Basic (2.9%): $580 in processing fees + $39 subscription = $619 total.
• On Shopify (2.6%): $520 in processing fees + $105 subscription = $625 total.

At $20,000, you are almost at the break-even point. Once you hit $25,000 or $30,000, the Shopify Grow plan becomes significantly cheaper than the Basic plan. This is why we emphasize predictable pricing without hidden transaction fees. Knowing your numbers allows you to make these strategic shifts at the right time.

Hidden Costs vs. Value Add

Beyond the percentage of sales, you should also account for:

• App Subscriptions: Tools for SEO, email marketing, or course management.
• Themes: A one-time or recurring cost for your store's design.
• Domain Registration: Usually a small annual fee.

The key is to ensure every dollar spent on an app or a theme is generating a return. If you are driving 50% of sales from repeat course purchasers, then the cost of a course management app is not an expense—it is an investment in a high-yield revenue stream.

Why We Built Tevello as a Native Integration

If unifying your stack is a priority, start by a simple, all-in-one price for unlimited courses.

We saw too many merchants struggling with "platform fragmentation." They would have their products on Shopify, their courses on a third-party site, and their community on a social media group. This creates a nightmare for the customer, who has to manage multiple logins, and a nightmare for the merchant, who has to reconcile data from three different sources.

By seeing how the app natively integrates with Shopify, you realize that your customers never have to leave your site. They buy a physical product and a digital course in the same cart, pay once, and get immediate access. This seamlessness is what builds brand loyalty and increases LTV.

Keeping Customers "At Home"

One of our core values is keeping customers at home on the brand website. When you redirect a customer to a third-party course platform, you are essentially handing over your customer relationship to another company. With Tevello, the learning experience happens on your URL, under your brand, which reinforces your authority in your niche.

Case Study: The Power of Bundling

Physical products and digital learning belong together. We have seen merchants achieve incredible results by bridging this gap. For example, how one brand sold $112K+ by bundling courses shows the potential of this model. They didn't just sell yarn; they sold the skill of crocheting.

By utilizing strategies for selling over 4,000 digital courses natively, they were able to:

1. Increase their average order value (AOV).
2. Provide instant gratification (the course) while the customer waited for the physical package to arrive.
3. Build a community of loyalists who returned to buy more supplies.

Strategies to Protect Your Margins

To ensure Shopify takes the smallest possible cut, follow this checklist:

1. Use Shopify Payments: This is the most important step to avoid the 0.5%–2% platform transaction fee.
2. Audit Your Apps: Quarterly reviews of your app spend can reveal "zombie" subscriptions that are eating into your profits.
3. Encourage Annual Subscriptions: If you offer memberships, annual plans often have lower churn and higher upfront cash flow.
4. Optimize for AOV: Higher order values mean the fixed $0.30 per-transaction fee represents a smaller percentage of the total sale.
5. Build a Community: Use Tevello's community features to keep customers engaged. Engaged customers have a higher LTV, making the initial acquisition cost (and the transaction fee) much more palatable.

Shopify Plus: The Enterprise Leap

For merchants doing millions in annual revenue, Shopify Plus offers custom pricing. While the monthly fee jumps to $2,300+, the transaction fees are further negotiated. Plus is about more than just fees; it’s about automation (Shopify Flow) and the ability to manage multiple international stores from one backend.

However, for 95% of merchants, the standard plans combined with a robust app ecosystem like Tevello provide everything needed to build a world-class brand. You don't need an enterprise budget to turn your store into a "learning powerhouse."

Recurring Revenue: The Ultimate Stability

One of the reasons we focus so heavily on memberships and subscriptions is the stability they provide. When you have a predictable amount of revenue coming in every month from digital members, the fluctuations in physical sales become less stressful.

Shopify’s native subscription APIs allow for seamless recurring billing. When you combine this with Tevello, you can create a "Netflix-style" hub for your brand. This recurring revenue model is highly attractive to investors and provides the cash flow needed to reinvest in marketing or new product development.

The Future of E-commerce is Content-Driven

We are moving away from a world where "just having a product" is enough. Today’s consumers want to be educated, entertained, and part of a community. By adding digital courses and memberships to your Shopify store, you are not just selling a commodity; you are selling a transformation.

Whether you are teaching people how to cook, how to code, or how to garden, the infrastructure is already there. Shopify provides the checkout, and Tevello provides the classroom. Together, they create a powerful engine for growth.

Checklist for Reducing Fees

• Enable Shopify Payments (if available).
• Calculate your monthly volume to see if a plan upgrade is due.
• Move digital content from high-commission platforms to a native Shopify solution.
• Review your "App Spend" and consolidate where possible.
• Start your 14-day free trial and build your first course now to see how zero-fee digital sales feel.

Final Thoughts on Shopify's "Cut"

At the end of the day, Shopify’s fees are a service cost. Just as you pay for electricity in a physical boutique, you pay for the digital infrastructure of your online store. The goal is not necessarily to find the "cheapest" platform, but the one that offers the best return on investment.

Shopify’s ecosystem, when utilized correctly, is one of the most cost-effective ways to scale a global business. By incorporating high-margin digital products, you can significantly dilute the impact of these fees and build a more resilient business model.

We encourage you to look at your Shopify dashboard today. Calculate your "Effective Fee Rate" (Total Fees / Total Sales). If that number is higher than you’d like, it might be time to simplify your tech stack and add a digital revenue stream that doesn't require shipping labels or inventory storage.

FAQ

Does Shopify charge a fee for every item sold?

No, Shopify charges a fee per transaction, not per item. If a customer buys five items in a single checkout, you will only be charged one transaction fee and one $0.30 fixed fee. This is why increasing your Average Order Value (AOV) is a key strategy for reducing the relative impact of Shopify's fees.

Can I use my own payment processor with Shopify?

Yes, you can use third-party gateways like PayPal, Stripe, or Authorize.net. However, if you do not use Shopify Payments, Shopify will charge an additional "Transaction Fee" of 0.5% to 2% depending on your plan. For most merchants, using Shopify Payments is the most cost-effective choice.

Does Tevello charge a percentage of my course sales?

Absolutely not. One of the biggest advantages of Tevello is our commitment to merchant profitability. We charge a flat monthly fee of $29.99 for our Unlimited Plan, and we have 0% transaction fees. You keep 100% of the revenue you generate from your courses and memberships (minus the standard Shopify credit card processing fees).

What happens to my fees if I refund a customer?

When you issue a refund on Shopify, the platform typically returns the transaction fee to you, but the credit card processing fee (the percentage charged by the banks) is usually not refunded. It is important to factor this into your return policy and customer service strategy.

Conclusion

Understanding "does Shopify charge a percentage of sales" is vital for any merchant who wants to move from a "hobbyist" mindset to a "CEO" mindset. While Shopify does take a small cut to maintain its world-class infrastructure, you have the power to optimize those costs through smart plan selection and native integrations. By choosing Shopify Payments and adding high-margin digital products via Tevello, you can protect your margins and build a more sustainable business.

At Tevello, we are here to help you turn your expertise into a recurring revenue stream without the headache of complicated fee structures or fragmented platforms. We offer a transparent, flat-rate plan that includes unlimited courses, unlimited students, and unlimited video hosting—all within the Shopify environment you already trust.

To build your community without leaving Shopify, start by reviewing the Shopify App Store listing merchants install from. Remember, with Tevello, you keep 100% of your earnings because we never charge success fees. Install the app today, take advantage of our 14-day free trial, and see how easy it is to transform your store into a digital learning powerhouse.