Does Shopify Take Commission on Sales? A Merchant’s Guide

Table of Contents

1. Introduction
2. Defining the "Shopify Cut": Commission vs. Fees
3. The Three Pillars of Shopify Costs
4. Deep Dive: Subscription Plans and Percentage Sales
5. The Shopify Payments Advantage
6. Transaction Fees for Third-Party Gateways
7. Why Digital Products and Courses Change the Math
8. Case Study: Maximizing Margin with Tevello
9. Calculating Your Break-Even for Plan Upgrades
10. Hidden Fees: App Subscriptions and Themes
11. How to Keep More of Your Revenue
12. Diversifying Revenue Streams for Stability
13. Conclusion
14. FAQ

Introduction

Did you know that in a single year, Shopify merchants have collectively processed over $235 billion in gross merchandise volume? This staggering figure highlights a massive shift in how the world buys and sells, but for the individual entrepreneur, it often leads to one burning question: how much of that money actually stays in my pocket? When you are building a business, every decimal point matters. Whether you are selling handcrafted ceramics, high-performance athletic gear, or specialized digital training, understanding the cost of your infrastructure is the difference between a thriving brand and a struggling one.

The question of whether Shopify takes a commission on sales is one of the most common inquiries from both new and seasoned sellers. The short answer is that while Shopify doesn’t take a "commission" in the same way a marketplace like Etsy or Amazon does, they do charge various fees that affect your bottom line. At Tevello, our mission is to help you turn any Shopify store into a digital learning powerhouse, and part of that mission involves empowering you with the financial clarity needed to scale. We believe merchants should own their customer data and brand experience, which is why we’ve built our tools to keep customers on your own URL, avoiding the hidden "tax" of third-party platforms.

In this comprehensive guide, we will break down exactly how Shopify’s fee structure works, the difference between transaction fees and payment processing, and how you can optimize your setup to keep more of your revenue. We will also explore how diversifying into digital products can drastically improve your margins. By the end of this article, you will have a clear blueprint for managing your Shopify costs and a realistic expectation of how to grow your business sustainably.

Defining the "Shopify Cut": Commission vs. Fees

To understand the financial landscape of Shopify, we first need to clear up the terminology. In the world of e-commerce, a "commission" usually refers to a flat percentage taken by a marketplace for bringing you a customer. For example, some marketplaces take 15% or more of every sale because they provide the traffic.

Shopify operates differently. It is a software-as-a-service (SaaS) platform, meaning you are paying for the tools to build your own store, host your own site, and manage your own customers. Because you are responsible for your own marketing and traffic, Shopify does not take a traditional commission. Instead, their revenue comes from three main sources: monthly subscriptions, payment processing fees, and transaction fees.

Understanding this distinction is vital for your long-term strategy. When you own the store, you own the relationship. This is a core value we uphold at Tevello; we believe in providing a native Shopify integration that ensures a seamless checkout experience using the payment gateways you already trust, without the platform taking an arbitrary cut of your hard work.

The Three Pillars of Shopify Costs

Before you can calculate your net profit, you must understand the three distinct layers of cost associated with selling on the platform.

1. Monthly Subscription Fees

This is the fixed cost you pay to keep your store "open." It covers your website hosting, security (SSL certificates), and access to the Shopify admin dashboard. These fees are predictable and billed every 30 days (or annually if you choose a discounted long-term plan).

2. Payment Processing Fees (Credit Card Rates)

Every time a customer uses a credit card to buy from you, a payment processor (like Shopify Payments, powered by Stripe) has to verify the transaction, communicate with the bank, and move the money into your account. This service is never free, regardless of which platform you use. These rates are typically a percentage of the sale plus a small fixed fee (e.g., 2.9% + $0.30).

3. Transaction Fees (The "Non-Shopify Payments" Fee)

This is where many merchants get confused. Shopify wants you to use their own gateway, Shopify Payments. If you choose to use a third-party gateway like PayPal or Authorize.net instead, Shopify will charge an additional "transaction fee" on top of whatever that gateway charges you. This fee ranges from 0.5% to 2% depending on your plan.

Key Takeaway: You can completely eliminate the Shopify "transaction fee" by using Shopify Payments. However, you will always pay credit card processing fees, as these are a standard cost of doing business online.

Deep Dive: Subscription Plans and Percentage Sales

Your specific Shopify plan dictates the percentage you pay on every transaction. As your business grows, moving to a higher plan often pays for itself because the percentage "cut" on each sale decreases.

The Basic Plan: Starting Your Journey

The Basic plan is the most popular starting point for new merchants. It provides all the tools needed to launch a professional store.

• Monthly Cost: Approximately $39 (or $29 if billed annually).
• Online Credit Card Rate: 2.9% + $0.30.
• Transaction Fee (if not using Shopify Payments): 2.0%.

For a new store doing $1,000 in monthly sales, the $39 fee is your primary hurdle. However, once you start scaling, those 2.9% fees begin to add up.

The Shopify Plan: The Growth Phase

Often referred to as the "mid-tier" or "Grow" plan, this is designed for businesses that have found product-market fit and are seeing consistent volume.

• Monthly Cost: Approximately $105 (or $79 if billed annually).
• Online Credit Card Rate: 2.6% + $0.30.
• Transaction Fee (if not using Shopify Payments): 1.0%.

The Advanced Plan: Scaling for Maximum Margin

High-volume merchants eventually find that the monthly cost of the Advanced plan is a bargain compared to the savings they gain from lower transaction rates.

• Monthly Cost: Approximately $399 (or $299 if billed annually).
• Online Credit Card Rate: 2.4% + $0.30.
• Transaction Fee (if not using Shopify Payments): 0.5%.

The Shopify Payments Advantage

The most effective way to answer "does Shopify take a commission?" in a way that favors your wallet is to enable Shopify Payments. When you use this native gateway, Shopify waives their additional transaction fee.

We often advise our merchants that the goal is to create a frictionless experience. Just as Tevello focuses on keeping customers at home on the brand website, Shopify Payments keeps the financial data within the ecosystem, reducing errors and speeding up payouts.

However, keep in mind that "waiving the fee" does not mean credit card processing is free. You are still paying the 2.4% to 2.9% mentioned above. These rates are competitive with other major processors like Stripe or Square, but they are a mandatory part of the e-commerce landscape.

Transaction Fees for Third-Party Gateways

Why would anyone use a third-party gateway if it costs more? There are several reasons:

1. Geographic Availability: Shopify Payments is not available in every country.
2. Risk Profile: Some industries (often called "high risk") are not supported by Shopify Payments' terms of service.
3. Customer Preference: In certain markets, customers demand specific local payment methods that might require an external provider.

If you must use an external gateway, Shopify will add a fee of 2.0%, 1.0%, or 0.5% (depending on your plan) to every sale. This is arguably the closest thing to a "commission" Shopify charges. It is essentially a fee for the privilege of integrating an outside financial service into their proprietary checkout system.

Why Digital Products and Courses Change the Math

One of the most effective ways to mitigate the impact of Shopify’s fees is to change the nature of what you sell. Physical products carry significant overhead: manufacturing, storage, shipping, and returns. When you layer Shopify fees on top of a 20% product margin, your take-home pay shrinks fast.

Digital products—specifically online courses and memberships—offer a vastly different financial profile. Once a course is created, the cost of "manufacturing" the next unit is effectively zero. At Tevello, we specialize in helping you build an all-in-one ecosystem where physical products and digital courses live side-by-side.

Imagine you sell high-end coffee beans. Your margin on a bag of beans might be slim after shipping. But if you sell a "Mastering the Pour-Over" video course alongside those beans, that digital sale has a massive margin. Even after Shopify takes its 2.9% processing fee, you keep the rest.

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

Case Study: Maximizing Margin with Tevello

To see how these fees work in a real-world scenario, look at how one brand sold $112K+ by bundling courses. This brand didn't just rely on physical inventory; they realized that their expertise was a product in itself.

By generating revenue from both physical and digital goods, they were able to absorb the standard Shopify fees much more easily. When you sell a digital product for $50, and your only "cost of goods sold" is the payment processing fee and your Tevello subscription, your profit margins can exceed 90%.

Furthermore, Tevello provides all the key features for courses and communities for a flat rate. While many other "course platforms" charge a percentage of your sales (a success fee), we believe you should keep what you earn. Our Unlimited Plan is priced at a flat $29.99 per month with 0% transaction fees from our end. This ensures that as you scale from 10 students to 10,000, your software costs remain predictable.

Calculating Your Break-Even for Plan Upgrades

When does it make sense to move from the Basic plan ($39) to the Shopify plan ($105)? This is a math problem that every growing merchant should solve.

The primary difference between these two plans for many is the 0.3% difference in credit card rates (2.9% vs 2.6%).

• The difference in monthly subscription cost is $66 ($105 - $39).
• To "save" $66 through that 0.3% discount, you would need to process roughly $22,000 in monthly sales.

However, this calculation changes if you are not using Shopify Payments. If you are using a third-party gateway, the transaction fee drops from 2.0% to 1.0%. That 1% difference means you only need to do $6,600 in monthly sales to justify the upgrade.

We always recommend predictable pricing without hidden transaction fees because it allows you to plan your growth without worrying about "punishment" for being successful.

Hidden Fees: App Subscriptions and Themes

While the core "commission" question focuses on transactions, your total Shopify bill will likely include other items.

• App Fees: Most successful stores use between 5 and 15 apps. These can range from free to hundreds of dollars per month.
• Theme Costs: A premium Shopify theme is usually a one-time fee of $180 to $350.
• Domain Name: Expect to pay about $15/year for your custom URL.

The key to profitability is consolidation. Many merchants pay for five different apps to handle courses, community, and digital downloads. This is why we created a unified solution. By seeing how the app natively integrates with Shopify, you can often replace multiple expensive subscriptions with one flat-rate plan that supports unlimited members.

How to Keep More of Your Revenue

Reducing the amount "taken" by platforms requires a proactive strategy. Here is a checklist for the savvy merchant:

1. Use Shopify Payments: As discussed, this is the #1 way to eliminate the 0.5%–2% platform transaction fee.
2. Annual Billing: Switching to annual billing for your Shopify plan can save you 25% on your subscription costs.
3. Optimize Your App Stack: Every month, audit your apps. Are you paying for features you don't use? If you are selling digital content, ensure you are using a tool that offers examples of successful content monetization on Shopify so you aren't reinventing the wheel.
4. Reduce Chargebacks: Credit card processors charge a fee (often $15+) for every chargeback, regardless of whether you win the dispute. Clear communication and excellent customer support are your best defenses.
5. Sell Higher Margin Items: Incorporate digital products. You can see how merchants are earning six figures by adding educational content to their existing physical stores.

Diversifying Revenue Streams for Stability

In the e-commerce world, relying solely on physical products is risky. Supply chain issues, rising shipping costs, and inventory management can eat your margins alive. Shopify’s fees are just one piece of the puzzle. The most stable businesses we see are those that build a "brand ecosystem."

By offering a membership or a course, you create recurring revenue. This stability allows you to absorb the fluctuations in Shopify's processing rates or subscription changes. When you install Tevello from the Shopify App Store today, you are not just adding a feature; you are adding a high-margin revenue stream that Shopify’s basic fee structure was built to support.

Whether you are a fitness coach selling equipment or a craft supply store selling tutorials, the goal is to increase your Customer Lifetime Value (LTV). A customer who buys a $20 physical product once is expensive to acquire. A customer who buys that product and then joins a $29/month community is a sustainable foundation for a business.

Conclusion

Understanding "does Shopify take commission on sales" is the first step toward professional financial management of your e-commerce business. While Shopify doesn't take a marketplace-style commission, the combination of subscription fees, payment processing, and potential transaction fees means that you must be diligent about your margins. By using Shopify Payments and choosing the right plan for your volume, you can minimize these costs significantly.

At Tevello, we are committed to helping you maximize your profit. Our Unlimited Plan for $29.99/month provides everything you need—unlimited courses, students, and video hosting—with absolutely 0% transaction fees from us. We provide the tools like drip content, quizzes, and community directories to help you build a "digital powerhouse" directly on your Shopify store.

Ready to transform your business model and keep more of what you earn? You can build your entire curriculum during our 14-day free trial before ever paying a cent.

To build your community without leaving Shopify, start by reviewing the Shopify App Store listing merchants install from.

FAQ

1. Does Shopify take a cut of my shipping fees?

Shopify includes the shipping cost in the total transaction amount when calculating payment processing fees. For example, if a product is $50 and shipping is $10, the 2.9% + $0.30 credit card fee will be calculated based on the $60 total. However, Shopify does not take an additional "platform fee" on shipping beyond the standard processing rates.

2. Is the transaction fee different for digital products versus physical products?

No, Shopify’s core fees remain the same regardless of what you are selling. However, digital products often have much higher profit margins because you do not have to account for the cost of goods sold, warehouse fees, or shipping. This makes the standard processing fees much easier to manage for digital-first businesses.

3. What happens to the fees if I issue a refund?

When you issue a refund on Shopify, the platform typically returns the subscription-based transaction fee (if applicable), but the credit card processing fee (the 2.9% + $0.30) is generally not refunded by the payment processor. This is a standard practice across almost all payment gateways, including Stripe and PayPal.

4. Can I use Tevello to sell courses without paying Shopify's transaction fees?

Yes, as long as you have Shopify Payments enabled on your store, you will pay 0% in Shopify transaction fees for your course sales. Additionally, Tevello charges 0% transaction fees on all our plans. You will only be responsible for the standard credit card processing fee associated with your Shopify plan level.