How Much Does Squarespace Take From Each Sale?

Squarespace is a popular website building and e-commerce platform that allows users to create and manage online stores. When considering selling products through Squarespace, it is important to understand the associated costs and fees. Below is a detailed breakdown of how much Squarespace takes from each sale:

1. Subscription Plans:

Squarespace offers different e-commerce subscription plans, each with its own set of features and pricing. The major plans suitable for e-commerce are:

• Business Plan: $23 per month (if billed annually) or $33 per month (if billed monthly)
• Basic Commerce Plan: $27 per month (if billed annually) or $36 per month (if billed monthly)
• Advanced Commerce Plan: $49 per month (if billed annually) or $65 per month (if billed monthly)

2. Transaction Fees:

The transaction fees vary based on the subscription plan you choose:

• Business Plan: Squarespace charges a 3% transaction fee on each sale.
• Basic Commerce Plan: No transaction fee.
• Advanced Commerce Plan: No transaction fee.

These transaction fees are in addition to the payment processing fees charged by the payment processor.

3. Payment Processing Fees:

Squarespace integrates with popular payment processors, primarily Stripe and PayPal. The fees for these processors are separate from Squarespace's fees and can vary:

• Stripe: Typically charges 2.9% + $0.30 per successful transaction for US-based transactions.
• PayPal: Typically charges 2.9% + $0.30 per successful transaction for US-based transactions.

These rates can vary depending on factors such as location, currency, and the volume of sales processed.

4. Example Calculation:

To give you a clearer picture, let's walk through a hypothetical example of the total cost for a sale:

Scenario:

• Product price: $100
• Plan: Business Plan
• Payment processor: Stripe

Calculation for Business Plan:

1. Product Price: $100
2. Squarespace Transaction Fee (3%): $100 * 0.03 = $3
3. Remaining Amount After Squarespace Fee: $100 - $3 = $97
4. Stripe Processing Fee (2.9% + $0.30):
   • Percentage Fee: $97 * 0.029 = $2.813
   • Fixed Fee: $0.30
   • Total Stripe Fee: $2.813 + $0.30 = $3.113
5. Final Amount Received (after all fees):
   • $97 - $3.113 = $93.887

So, out of the original $100 sale price, you would receive approximately $93.89 after Squarespace and Stripe fees.

Calculation for Basic/Advanced Commerce Plan:

1. Product Price: $100
2. Squarespace Transaction Fee: None
3. Stripe Processing Fee (2.9% + $0.30):
   • Percentage Fee: $100 * 0.029 = $2.90
   • Fixed Fee: $0.30
   • Total Stripe Fee: $2.90 + $0.30 = $3.20
4. Final Amount Received (after all fees):
   • $100 - $3.20 = $96.80

So, on the Basic or Advanced Commerce Plan, you would receive approximately $96.80 from the original $100 sale price, as there is no Squarespace transaction fee.

5. Additional Considerations:

• International Sales: Be aware that payment processing fees can vary for international sales. Ensure to check Stripe or PayPal’s specific fee structures for international transactions.
• Shipping and Taxes: Remember to account for shipping costs and taxes in your pricing strategy. Squarespace offers tools to help manage and calculate these, but they are outside the scope of the platform’s transaction fees.
• Discounts and Coupons: When offering discounts or coupons, factor in how these will affect your net revenue after transaction and processing fees.

Conclusion:

Understanding the fee structure of your e-commerce platform is crucial for pricing your products correctly and maintaining desired profit margins. Squarespace’s transaction fees depend on your chosen subscription plan, with no transaction fees on the Basic and Advanced Commerce plans. Payment processing fees from Stripe or PayPal will still apply regardless of the Squarespace plan selected.

Carefully evaluate your sales volume and choose the most cost-effective plan for your business needs.