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

Shopify Usage Fee - "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 over a week ago

Article Contents:
Quick Overview
Example


Quick Overview:


Shopify usage charges are associated with an app's usage events and are billed every 30 days.

Depending on the retailer's Carro subscription plan, Carro takes 10%, 7%, or 5% of every order on the retailer's side in the form of a Shopify usage charge.

Suppliers decide what percentage of the sale they keep. Suppliers don't incur any Carro usage charges.

When retailers confirm their Carro subscription in Shopify, they will see this message: "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 $10 (10%) it would take 1,000 orders to reach the limit.


Example:


20% to Retailer

70% to Supplier

10% (Retailer Free Plan) 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 10% as a usage charge. The retailer nets 20% which was the original "EARN" value.

Retailers can upgrade their Carro subscription plan to pay lower Carro usage fees. Read more here.


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