Understanding Shopify Order Fees (And How to Lower Them)

Shopify fees that impact your profitability:

Monthly subscription fees ($39-$399 AUD depending on plan)
Transaction fees (0.5-2% unless using Shopify Payments)
Credit card processing fees (1.6-2.25% + 30c per transaction)
Third-party app fees for additional functionality
Shipping costs and label fees
Theme and development costs for customization

Shopify makes ecommerce accessible, but the fee structure isn’t always transparent until you’re running a store and watching fees accumulate. Between subscription costs, transaction fees, payment processing fees, and app subscriptions, many Shopify store owners are surprised by the total costs eating into margins. Understanding these fees—and knowing which are unavoidable vs which can be minimized—helps you run profitable ecommerce operations.

This guide breaks down Shopify’s fee structure, explains which costs you can reduce, and shows how proper inventory management and multi-channel operations can improve overall profitability despite ecommerce platform fees. If you’re running or considering a Shopify store as part of your Australian business, understanding the complete cost picture helps you make informed decisions about ecommerce viability.

The short answer? Shopify fees are competitive but not negligible. For businesses also running wholesale or B2B operations, integrating Shopify with proper inventory management systems can offset ecommerce fees through operational efficiency elsewhere in the business.

Shopify Fee Structure Explained

Shopify charges several types of fees, and the total cost depends on your plan level and business operations:

Monthly Subscription Fees: Basic Shopify ($39 AUD/month), Shopify ($105 AUD/month), Advanced Shopify ($399 AUD/month). Higher tiers offer lower transaction and credit card fees plus additional features. For most Australian small businesses, Basic or standard Shopify plans suffice initially.

Transaction Fees: If you’re NOT using Shopify Payments (their integrated payment processor), Shopify charges additional transaction fees: 2% on Basic plans, 1% on standard Shopify, 0.5% on Advanced. These fees apply on top of whatever payment processor you’re using. Most Australian merchants use Shopify Payments to avoid these extra fees.

Credit Card Processing Fees: Shopify Payments charges: 2.4% + 30c per transaction (Basic plan), 2.15% + 30c (standard Shopify), 1.75% + 30c (Advanced). These are competitive with standalone payment processors but still represent 2-2.4% of your revenue. For a $10,000 monthly revenue store, that’s $215-240 in processing fees.

App Subscription Fees: Most Shopify stores need additional functionality through apps: email marketing ($10-30/month), product reviews ($5-15/month), abandoned cart recovery ($20-40/month), inventory management ($30-100/month). These subscriptions accumulate—$100-200/month is common for stores with moderate app usage.

For a small Australian Shopify store doing $10,000 monthly revenue, total Shopify-related costs typically run $500-700/month including subscription, processing fees, and essential apps. This represents 5-7% of revenue—not insignificant, but manageable if overall margins support it.

Hidden Costs and Fee Optimization Strategies

Beyond obvious fees, several hidden costs impact Shopify profitability:

Shipping Label Fees: While Shopify offers discounted Australia Post rates, you’re still paying per label. High shipping costs eat into margins, particularly for lower-value products. Optimize by encouraging larger order sizes (free shipping thresholds) or negotiating direct carrier accounts for better rates once volume justifies it.

Theme and Development Costs: Premium Shopify themes cost $180-350. Custom development for specific functionality can run $1,000-10,000+ depending on complexity. While one-time costs, they impact initial setup budgets. Start with free or low-cost themes and invest in custom development only when revenue justifies it.

Return and Refund Fees: Shopify doesn’t charge for processing refunds, but payment processor fees aren’t refunded. If you refund a $100 sale, you’ve paid $2.15+ in processing fees you won’t recover. High return rates (common in fashion/apparel) compound this cost.

Currency Conversion Fees: Selling internationally involves currency conversion fees through payment processors. This adds 1-2% to international transactions. Factor this into international pricing strategies.

Fee Optimization Strategies:

Use Shopify Payments to avoid extra transaction fees (assumes it supports Australian businesses, which it does)
Consider plan upgrades if transaction volume justifies lower per-transaction fees (breakeven analysis)
Audit app subscriptions quarterly—remove apps you’re not actively using
Negotiate shipping contracts directly with carriers once volume justifies it
Implement minimum order values or free shipping thresholds to increase average order value relative to fixed fees

Multi-Channel Strategy: Balancing Ecommerce and Wholesale

For many Australian businesses, Shopify is one channel among several—you’re also doing wholesale B2B, selling to retailers, or operating physical locations. The key to managing Shopify fees is optimizing your overall business model, not just ecommerce in isolation.

Hybrid Business Models: Use Shopify for consumer direct sales while managing wholesale through dedicated B2B platforms. Wholesale typically has higher order values and lower customer acquisition costs, offsetting lower margins from Shopify fees on retail. The combined model provides revenue diversification.

Integrated Inventory Management: Don’t manage Shopify inventory separately from wholesale/B2B inventory. Use integrated platforms like BSimple that sync inventory across all channels. This prevents overselling, optimizes stock allocation between channels, and provides visibility into which channels are most profitable. Our ecommerce inventory system demonstrates multi-channel integration.

Channel Profitability Analysis: Track profitability by sales channel. After accounting for Shopify fees, shipping costs, and customer acquisition, what’s your net margin on ecommerce vs wholesale? This data informs how much effort to invest in each channel. Some businesses discover wholesale B2B is more profitable despite lower gross margins because customer acquisition and platform costs are lower.

Operational Efficiency Offsets Fees: While Shopify charges platform fees, it also automates ecommerce operations (order processing, payment collection, inventory sync). For businesses handling both ecommerce and wholesale, the efficiency of integrated inventory management across channels often delivers savings that offset ecommerce platform costs.

The goal isn’t to eliminate Shopify fees (they’re unavoidable if you use the platform), but to ensure overall business profitability accounts for those costs and leverages multi-channel opportunities to optimize revenue mix.

When Shopify Fees Make Sense (And When They Don't)

Should you use Shopify despite the fees? Depends on your business model, margins, and channel strategy:

Shopify Makes Sense When:

Your product margins are 40%+ so you can absorb 5-7% platform/payment costs and still be profitable
You’re selling direct-to-consumer alongside wholesale, and ecommerce represents 20-40% of revenue (diversification)
Customer acquisition costs are reasonable ($20-50 per customer) relative to lifetime value ($200-500+)
You want ecommerce without building custom platforms—Shopify’s all-in-one approach saves development costs
You’re testing product-market fit before committing to custom ecommerce infrastructure

Shopify Challenges When:

Your margins are under 30%—platform and shipping fees leave little room for profit and customer acquisition
Average order values are low ($20-40)—fixed fees (30c per transaction plus shipping) consume too much margin
You’re primarily B2B wholesale—Shopify is consumer-focused; dedicated B2B platforms may be more efficient
You need extensive customization that requires expensive development—Shopify’s constraints may not fit complex business requirements

For Australian businesses managing both ecommerce and wholesale operations, the integrated approach matters more than Shopify fees in isolation. Proper inventory management across channels, efficient order fulfillment, and profitability tracking ensure you’re making money overall even if ecommerce has higher platform costs than wholesale.

Learn more about managing inventory across ecommerce and wholesale at our inventory management guide.

Frequently Asked Questions

What are Shopify order fees for Australian businesses?

Shopify charges monthly subscription fees ($39-399 AUD), credit card processing fees (1.75-2.4% + 30c per transaction), and transaction fees (0.5-2% if not using Shopify Payments). Additional costs include app subscriptions, shipping labels, and theme/development expenses. Total platform-related costs typically run 5-7% of revenue for small stores.

How can I reduce Shopify fees?

Reduce fees by using Shopify Payments (avoids extra transaction fees), upgrading plans if transaction volume justifies lower per-transaction rates, removing unused app subscriptions, negotiating direct carrier shipping contracts, and implementing minimum order values to increase average order size relative to fixed fees. Audit costs quarterly to identify savings opportunities.

Are Shopify fees higher than other ecommerce platforms?

Shopify fees are competitive with alternatives like WooCommerce, BigCommerce, and Squarespace. While monthly costs are clear, total cost of ownership depends on payment processing, apps, and development needs. Shopify’s all-in-one approach may cost more in platform fees but less in development and maintenance compared to self-hosted alternatives.

Can I use Shopify for wholesale B2B alongside retail?

Shopify can handle B2B through wholesale apps or Shopify Plus features, but it’s primarily designed for consumer retail. Many Australian businesses use Shopify for consumer direct sales while managing wholesale through dedicated B2B platforms like BSimple. This hybrid approach optimizes each channel with appropriate tools while integrating inventory across both.

How do Shopify fees impact profitability?

For products with 40%+ margins, Shopify’s 5-7% total platform costs leave adequate room for profitability. For lower-margin products (under 30%), platform fees plus shipping and customer acquisition costs can squeeze profitability significantly. Analyze your specific margins, average order values, and customer acquisition costs to determine if Shopify economics work for your products.

Should I integrate Shopify with business management software?

Yes, if you’re managing inventory for both Shopify and other channels (wholesale, retail stores, B2B). Integrated inventory management like BSimple syncs Shopify orders with wholesale operations, prevents overselling across channels, and provides profitability visibility by sales channel. This integration helps optimize overall business profitability despite platform fees on any single channel.