When deciding between Etsy and Shopify for your Canadian business’s global expansion, careful thought is needed, particularly regarding the fees involved. Choosing the right platform means more than just considering features, you’ll also want to evaluate the fee structures of both platforms and learn how to minimize currency conversion fees. Fortunately, Vault can help you conduct international transactions without those hefty charges.

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Fees for Canadian Sellers on Etsy

Etsy operates differently from many platforms, not requiring a subscription but charging fees per item listed. Additionally, sellers face transaction, payment processing, and currency conversion fees, which can accumulate over time.

• Transaction Fee: 6.5% of the sale price, including shipping
• Listing Fee: $0.20 USD per item
• Payment Processing Fee (International Orders): 4% + CA$ 0.25 (exclusive of VAT)
• Currency Conversion Fee: 2.5% on the total sale amount
• Exchange Rate Fee: Varies depending on the bank

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Shopify’s Fee Structure for International Sales

Shopify offers three different plans: Basic, Shopify, and Advanced, each with its own pricing. The higher the plan, the lower the credit card processing and transaction fees. However, don’t forget the monthly subscription cost associated with each plan.

• Shopify Plan:some text
  • Basic: CA$ 51 /mo
  • Shopify: CA$ 132 /mo
  • Advanced: CA$ 517 /mo
• Credit Card Processing Rates:some text
  • Basic: 3.5% + CA$ 0.30
  • Shopify: 3.4% + CA$ 0.30
  • Advanced: 3.3% + CA$ 0.30
• Transaction Fee (for third-party payment providers):some text
  • Basic: 2%
  • Shopify: 1%
  • Advanced: 0.5%
• Currency Conversion Fee: 2% when using Shopify Payments
• Exchange Rate Fee: Varies depending on the customer’s bank

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How to Save on Currency Conversion Fees in Global Sales

Expanding your sales globally can open up new markets, but currency conversion fees often cut into your profits. These hidden costs can significantly affect your bottom line. While platform-specific fees might be out of your control, you can mitigate conversion costs by using multi-currency accounts.

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With Vault, you can manage payments and receive funds in multiple currencies, minimizing currency conversion charges. This is a great tool for global sellers, as it eliminates the need for currency conversions when you receive payments or issue refunds.

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Additionally, take advantage of accounting integrations for global success. Vault connects with essential business tools like QuickBooks and Xero, simplifying tasks like tracking sales, managing expenses, and preparing for tax season, which can streamline your financial operations for international growth.

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Conclusion

Both Etsy and Shopify cater to different types of businesses. Etsy is perfect for artisans selling handmade, unique, or vintage products. On the other hand, Shopify offers greater customization and a robust app marketplace, making it ideal for businesses that want more control over their online presence.

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Whichever platform you choose, using Vault to manage international payments can reduce costs, making global expansion smoother. With the ability to handle global currencies, you can save on every transaction, ultimately improving both customer satisfaction and your profit margins.