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What are Shopify Usage Charges?
What are Shopify Usage Charges?

Shopify message - "You’ve approved an app with a usage limit of $10,000.00 USD every 30 days."

David Rice avatar
Written by David Rice
Updated this week

Article Contents:
Quick Overview
Example


Quick Overview:


Shopify usage charges are associated with an app's usage events and are billed every 30 days. Carro takes a fixed 5% of every order on the retailer's side in the form of a Shopify usage charge.

  • The retailer and supplier split 95% of the sale.

  • Suppliers don't incur any Carro usage charges.

When you confirm your Carro subscription in Shopify, you may see usage charges on your bill: "You’ve approved an app with a usage limit of $10,000.00 USD every 30 days.

That's authorizing Carro to be able to bill you up to $10,000 worth of usage charges. To put that in perspective, if it's a $100 transaction, Carro bills $5 (5%) it would take 2,000 orders to reach the limit.


Example:


25% to Retailer

70% to Supplier

5% to Carro

_____________

100% of the sale


The retailer is charged 70%, which is routed directly to the supplier via Stripe. This leaves the retailer with 30%.

At the end of the retailer's Shopify billing cycle, the retailer is billed Carro's 5% as a usage charge. The retailer nets 25% which was the original agreed-upon value.


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