The problem: “Shopify fees” aren’t one number
Most merchants ask “How much does Shopify take?” expecting a single percentage. In reality, fees come from multiple sources: payment processing (percent + fixed), Shopify transaction fees (if you use a third-party gateway), plan cost, and sometimes currency/international fees.
The only number that matters for pricing is your effective fee rate: total fees ÷ revenue. That rate changes with AOV because of the fixed portion of processing fees.
Payment processing: percent + fixed
The percent fee is obvious. The fixed fee is what hurts low AOV. A $0.30 fixed fee is 1.2% on a $25 order before you add the percent. On a $120 order it’s barely noticeable.
This is why low AOV stores often struggle to scale paid acquisition: their CPA ceiling is already constrained by processing fees, shipping subsidies, and margin.
Transaction fees: the hidden “second fee” when you don’t use Shopify Payments
If you use a third-party processor, Shopify may charge an additional transaction fee (plan-dependent). That fee stacks on top of your processor’s fee, effectively doubling the fee burden.
For many stores, the transaction fee is the difference between sustainable and unsustainable unit economics. Model it explicitly before committing to a gateway decision.
Plan cost: why it matters less (until it matters a lot)
Plan cost is a fixed overhead, not a per-order fee. But when order volume is low, it meaningfully raises your per-order cost. When volume is high, plan cost becomes negligible compared to processing.
When comparing plans, do the math: savings per order × monthly orders. Only upgrade if that savings exceeds the incremental plan cost with room to spare.
How to compute your effective fee rate (the number to use in pricing)
Effective fee rate = (processing percent × AOV + fixed fee + transaction fee percent × AOV + other fee percent × AOV) ÷ AOV.
That looks complex, but it simplifies to: percent fees + fixedFee/AOV. The fixed fee term is why small orders feel “taxed.” This is also why bundles and multi-unit offers can improve profitability without changing COGS.
Common fee mistakes that break profit models
Mistake 1: using a single fee percentage. If you ignore the fixed fee, you’ll underestimate fees on low AOV.
Mistake 2: forgetting transaction fees when using third-party gateways.
Mistake 3: ignoring international/currency fees when a meaningful share of customers are cross-border.
Mistake 4: calculating fees on list price instead of actual paid price after discounts and shipping promotions.
Use the fee stack to set better CPA and discount limits
Your fee stack affects contribution margin, which sets your real CPA ceiling and break-even ROAS. If fees rise (or discounts increase), your ROAS target rises immediately.
If you want a fast way to compute fees at different AOVs and plans, use the Shopify Fees Calculator tool and export the breakdown for planning.