A lot of eCommerce stores have turned to Shopify over the years. As any accountant for eCommerce will tell you, it's with good reason: it's convenient, easy to use and increasingly the most popular choice, especially for new businesses. There are several plans available to people who may want to make use of it. They're all priced in US dollars at the moment. As previously mentioned, it is one of the most popular choices amongst new eCommerce shops.
Most people get the Basic Shopify plan, and they leave it at that. While it seems like common sense to continue using a basic service with minimal costs, it may actually cost more in the long run as the business grows.
What are some things to consider when it comes to Shopify upgrades?
Amex and Online International Rates
Sometimes, customers will pay for their order with a credit card that doesn't have anything to do with the shop owner's currency of payout. There are three currency types that need to be taken into consideration with every order that comes in:
Check out currency of credit card used
Default nominated payout currency in the Shopify file
Default Shopify currency
It should be noted that those need to be matching in order for the shop owner to get Australian credit card rates. If even a single one is out of line, international credit card rates will end up on the line instead.
If the Shopify file of the Australian business is set up with an Australian address and ABN, then payout currency is AUD by default.
It is a fixed fee in USD. On top of the user's monthly subscription, when the Australian Business Number (ABN) is added to the Shopify store, goods and services tax (GST) is added. It's part of the set-up process, and chances are GST is not being paid on the Shopify Subscription.
Online Rates for Australian Credit Cards
All plans end up paying a fixed fee that, in Australian dollars (AUD), is essentially .30 cents. This applies to orders which are paid for with the use of a credit card. Moreover, a percentage of the sale will end up paid for by the user as well. That's usually around 1.4 to 1.75 per cent, which of course, depends on the plan on Shopify that the user is subscribed to.
A lot more calculating will go into things fairly quickly. When orders start to rise in numbers, subscribing to a monthly subscription that costs more will be cheaper in the long run. The credit card payments fees can add up, so getting a more expensive monthly subscription can actually end up saving more in the long run. If it's applicable, then the GST will apply to the online rates.
There are a lot of things that go into maintaining your Shopify account as your business grows. Any eCommerce accountant will tell you that while sticking to the basic or cheapest version seems ideal, in the long run, you may save more with an upgrade. Online rates for Australian credit cards are definitely something to consider.
Looking for a Shopify accountant in Australia? Contact The ECommerce Accountant today! We can’t wait to work with you and help your business flourish.