All in One Article! After Global Selling Orders, How Much Service Fee is Deducted at Each Step?
Another short and powerful beginner-friendly article. When I was a beginner (before getting orders), I was extremely confused about fees and had no channels to find answers.
Another short and powerful beginner-friendly article.
At least when I was a beginner (before getting orders), I was extremely confused about this question and had no channels to find answers; because this involves cost calculations for beginners, thus pricing issues.
After getting orders, how much "service fees" are deducted at each step.
First, before understanding this question, you need to clarify the difference between payment processing and fund withdrawal. See my previous article:
Payment Processing Fees
Payment processing first depends on which gateway you use—each has different fees. Also, each platform has different rates for different country entities.
I'll use mainstream examples here, but check your specific payment service provider for details.
Shopify Payments
1) Transaction Fees
As shown, for my UK entity, when UK customers order, each transaction fee is 2% + £0.25.
(Of course, different customer cards may have different rates—check specifically. For example, American Express is 3.1% regardless of UK or foreign customers.)
2) Cross-Border Transaction Fees
When a non-UK customer orders, like an Australian customer, my base transaction fee becomes 3.1% + £0.25!
3) Currency Conversion Fee
That's not all! When a foreign friend orders, you also bear 2% currency conversion fee!
Finally, different annual plans also have different Shopify Payments rates.
Paypal
1) Base Transaction Fees
Similarly, assuming I'm a UK account, it might be around 2.9% rate + fixed fee. Same logic—this rate only applies to domestic consumers. Fixed fee depends on currency.
2) Cross-Border Transaction Rates
Also using UK Paypal account as example, when customers from other countries order, you're charged an additional 1.29%-1.99% rate.
Looking at domestic Paypal account rates, official documentation directly states 4.4% + fixed fee. Since Paypal can't be used domestically, any transaction defaults to cross-border rates.
Check official sources for specific fees.
Fund Withdrawal Fees
Next is the fee for withdrawing money to your bank. For regular players, there's usually just a fixed service fee. Fees depend on different withdrawal service providers.
Others may involve exchange rates—each may calculate differently.
Using某里汇 as example, rate is around 0.3%. (Shopify Payments bound to万里汇 card)
For Paypal withdrawals, basic domestic account rates apply, but Paypal China recently launched cross-border收款宝 that can greatly reduce withdrawal fees.
Currency Conversion Rates
UK rate reference—for those without UK bank cards needing某里汇 virtual cards, your receiving + withdrawal incurs 2% + 0.003% fees.
Final Tips:
- Definitely clarify your target market and apply for that country's entity. This saves significant fees. For UK market, best to open UK company; for US market, best to open US company.
- Think PP withdrawal fees are too high? Try using PP to pay for Google ads or other expenses.
- Shopify UK stores can also bind PP domestic accounts.
