Does Shopify take a cut | what you need to know | Lillian Purge

Does Shopify take a cut

This is one of the most common questions I hear from people launching an ecommerce business, and it is a sensible one to ask early. In short, yes, Shopify can take a cut, but whether it does and how much depends on how you use the platform. In my experience confusion usually comes from mixing up Shopify’s subscription fees with payment processing fees, and then not realising there are different rules depending on which payment gateway you choose.

I run a digital marketing firm and I also work closely with ecommerce businesses that use Shopify at different stages, from brand new stores to high volume operations. Understanding Shopify’s pricing properly is important because it affects margins, pricing strategy, and long term scalability. This article explains clearly when Shopify takes a cut, when it does not, and how to minimise unnecessary fees.

The Shopify monthly subscription is not a cut of sales

The first thing to clarify is that Shopify’s monthly plan fee is not a cut of your revenue. It is a fixed subscription cost.

You pay Shopify a monthly fee based on the plan you are on, regardless of whether you make one sale or one thousand sales. This is simply the cost of using the platform, similar to paying for hosting or software.

From experience many new store owners think this monthly fee is Shopify taking a percentage of sales, which is not the case. It is separate from transaction related fees.

Payment processing fees are unavoidable

Where Shopify does effectively take a cut is through payment processing, but this is not unique to Shopify.

If you accept card payments online, there will always be a processing fee. This applies whether you use Shopify, WooCommerce, Stripe, PayPal, or any other platform.

When you use Shopify Payments, Shopify acts as the payment processor. In this case you pay card processing fees that vary depending on your plan, usually a percentage of the transaction plus a small fixed amount. This fee covers card networks, fraud protection, and payment handling. It is not optional if you want to accept card payments.

Shopify Payments versus third party gateways

This is where Shopify’s additional cut comes into play.

If you use Shopify Payments, you only pay the card processing fee. Shopify does not charge an extra transaction fee on top of that. If you choose to use a third party payment gateway, such as PayPal, Stripe outside Shopify Payments, or another provider, Shopify may charge an additional transaction fee on each sale. This additional fee is Shopify’s way of charging for using their platform while bypassing their own payment system.

From experience this catches many businesses out, especially those who default to PayPal or another gateway without checking the extra cost.

How much the extra transaction fee is

The additional transaction fee Shopify charges depends on your plan.

Lower tier plans have higher additional transaction fees. Higher tier plans reduce or remove them. This means that as your store grows, upgrading your Shopify plan can reduce the percentage Shopify takes overall, even if the monthly subscription cost increases.

In my opinion this is one of the most important calculations to make once sales volume increases, because staying on a cheap plan too long can cost more in fees than upgrading.

PayPal fees are separate from Shopify

Another common misunderstanding is around PayPal.

Even if you use Shopify Payments, PayPal transactions are processed by PayPal, not Shopify. This means PayPal’s own fees still apply. If you are on Shopify Payments, Shopify does not add an extra transaction fee to PayPal sales. You only pay PayPal’s processing fee. If you are not using Shopify Payments, you may pay both PayPal’s fee and Shopify’s additional transaction fee.

From experience this double fee scenario is where margins can quietly erode.

Shopify does not take commission on products

It is worth being very clear about this. Shopify does not take commission on your products in the way that marketplaces do.

Platforms like Amazon or Etsy take a percentage of each sale as a marketplace commission. Shopify does not do this. You own the store, the customer relationship, and the revenue. Shopify charges for software and payments, not for access to buyers.

In my opinion this is one of Shopify’s biggest advantages for brands that want control.

Apps can introduce additional cuts indirectly

While Shopify itself may not take a direct cut beyond fees, apps can affect margins.

From experience many Shopify apps charge monthly fees, per order fees, or usage based pricing. These costs add up and effectively reduce profit per sale. Some apps also take a percentage of revenue generated through their feature, such as upsell tools or subscriptions.

This is not Shopify taking a cut directly, but it is part of the Shopify ecosystem that businesses need to account for.

Currency conversion and international fees

If you sell internationally, additional fees can apply.

From experience currency conversion fees may be charged when customers pay in a different currency to your payout currency. These fees are often overlooked when pricing products. Shopify Payments includes currency conversion at a set rate, which is effectively another small percentage taken from the transaction.

For stores selling internationally at scale, these fees can become significant and should be factored into pricing.

When Shopify feels expensive and why

Some businesses reach a point where Shopify feels expensive, especially as order volume grows.

From experience this usually happens when transaction fees and app costs are not reviewed regularly. The platform itself is rarely the issue. In many cases upgrading the plan, consolidating apps, or adjusting payment setup reduces the effective cut significantly.

In my opinion Shopify becomes expensive when it is unmanaged, not because it is inherently overpriced.

How to minimise what Shopify takes

There are a few practical ways to reduce Shopify related costs.

Using Shopify Payments avoids additional transaction fees. Reviewing and pruning unused apps reduces overhead. Choosing the right plan for your sales volume can lower overall fees.

From experience businesses that review their Shopify setup quarterly tend to keep costs under control far better than those who set it once and forget it.

Is Shopify worth it despite the fees

This ultimately depends on your business model.

From experience Shopify offers reliability, scalability, and ease of use that many startups and growing brands value highly. The fees are transparent compared to many alternatives. For businesses that value speed to market, stability, and not having to manage technical infrastructure, Shopify is often worth the cost.

In my opinion the question is not whether Shopify takes a cut, but whether the value you get outweighs that cost.

Final thoughts from experience

Yes, Shopify can take a cut, but it is not a commission based platform in the way many people assume. Most costs come from payment processing and optional transaction fees if you choose not to use Shopify Payments.

From experience businesses that understand these fees early price their products better and avoid surprises later.

If you treat Shopify as a tool to manage and optimise rather than a black box that quietly takes money, it remains one of the most effective ecommerce platforms available.