How Much Money Does Squarespace Take From Sales?

Squarespace is a popular website building and e-commerce platform that offers various plans for businesses looking to sell products online. Understanding the costs associated with using Squarespace is important for effectively managing your business finances. Here is a detailed breakdown of how much money Squarespace takes from your sales:

1. Subscription Plans

First, it's important to understand the base cost of operating an online store with Squarespace. They offer several subscription plans tailored to different needs:

• Personal Plan: $12/month (billed annually) or $16/month (billed monthly). This plan does not support e-commerce.

• Business Plan: $18/month (billed annually) or $26/month (billed monthly). This plan supports e-commerce but has additional transactional fees.

• Basic Commerce Plan: $26/month (billed annually) or $30/month (billed monthly). This plan is designed for small to medium-sized businesses.

• Advanced Commerce Plan: $40/month (billed annually) or $46/month (billed monthly). This plan offers more advanced e-commerce functionality.

2. Transaction Fees

The transaction fees depend on the plan you choose:

• Business Plan: Squarespace charges a 3% transaction fee on sales in addition to the subscription cost.

• Basic Commerce Plan and Advanced Commerce Plan: Squarespace does not charge any transaction fees on sales.

3. Payment Processing Fees

Regardless of the Squarespace plan, you will incur payment processing fees from the payment gateways. Squarespace integrates with major payment processors like Stripe and PayPal. Typical fees for these processors are:

• Stripe: 2.9% + 30¢ per successful card charge.

• PayPal: 2.9% + 30¢ per transaction. Note that PayPal fees can vary slightly based on your sales volume and the country of the payer.

These payment processing fees are separate from what you pay to Squarespace for your subscription and, potentially, transaction fees.

Practical Example

To illustrate, let's assume you are on the Business Plan and you sell a product for $100.

1. Squarespace Transaction Fee:

2. 3% of $100 = $3.

3. Payment Processor Fee (Stripe or PayPal):

4. 2.9% of $100 = $2.90.
5. Plus 30¢ per transaction.

Total Deductions from a $100 Sale: - Squarespace Fee: $3. - Payment Processing Fee: $2.90 + $0.30 = $3.20. - Combined total = $6.20.

Thus, you would net $93.80 from a $100 sale when using the Business Plan.

Cost Savings

You can save on transaction fees by upgrading to the Basic Commerce or Advanced Commerce plans, especially if you have a high volume of sales. For example, if you upgrade to the Basic Commerce Plan, you would only be subject to the $2.90 + $0.30 Stripe/PayPal fee, and no additional transaction fee from Squarespace.

Considerations and Limitations

• Annual vs. Monthly Billing: Opting for annual billing can reduce your overall costs.
• Sales Volume: High-volume sellers might find significant cost savings by opting for the Basic Commerce or Advanced Commerce plan due to the absence of Squarespace's transaction fees.
• Additional Features: Higher-tiered plans offer more features that could benefit your business beyond just savings on transaction fees, such as abandoned cart recovery, advanced shipping, and more detailed analytics.
• International Sales: Be aware of currency conversion fees if you are selling internationally.

In summary, the money Squarespace takes from your sales varies depending on the plan you choose and the payment processor you use. Carefully evaluating these factors can help you decide which plan offers the best value for your business needs.