Fees: Woocommerce vs BigCommerce

So in addition to the widely mentioned Woocommerce plug in, for stores selling physical goods (widgets), there are also e-commerce plugins from BigCommerce and Shopify, plus a fork of WooCommerce 3.5.3 called ClassicCommerce.

Note; I'm aware mentioning the the latter opens a can of worms into discussions of ClassicPress, and I'd rather we try not getting sidetracked with conversation regarding WordPress vs. ClassicPress – so I urge restraint – please – and let's make/keep this a valuable discussion regarding ecommerce fees.

What started this was learning about the BigCommerce fee structure, for example, they have thresholds. Thresholds mean as monthly sales go up, so does their cut . . . does Woocommerce have thresholds, also? This isn't entirely clear to me else I don't waste everybody's time so I'd be interested in learning from others because fees adds up. So let's work through some simple example numbers.

Thus, while the Woocommerce-plugin is free, for the BigCommerce-plugin the fee is;

• $30/month – up to $50k/year of sales, then it goes to
• $80/month – to $180k/year in sales, then it jumps to
• $300/month – $400k/year in sales
• +$150/month for each additional $200k/year in sales

So everybody begins small (or perhaps, come from an established business). Anyway, assume they begin small and are perfectly served with a $30/month plan. Assume they begin growing, and keeping this simple, let's say they only have ten SKUs (stock keeping units), e.g. 10-products (or widgets).

These turn out to be wildly popular and through your efforts at making your widgets and promoting/advertising them, folks come to your site expressly to add to cart and check out (meaning through no special effort by BigCommerce, or similar to help sell, they merely perform the transaction), your sales grows and grow and grow. Let's say to where sales are $1M/year – for the same 10-widgets.

Now let's put pencil to paper and work through some example numbers. BigCommerce fees work out to $300+$150+$150+$150=$750/month for the plugin ($9000/year). Add to this credit card fees of 2.9%+0.50¢ per transaction (so $29,000/year + Transaction fees of 0.50¢ per, so for 10,000 individual sales charges, then figure another $5000), so . . .

• This comes out to 0.9%+2.9%+0.5%, or about 4.3% of sales

. . . and before anyone says, 'You're making $1M and getting disgustingly richer than me, why do you care?', allow me to get ahead of you by saying, such a simple minded approach totally disregards the realities of how business actually works. So, respectfully please keep that thought to yourself as unproductive toward the discussion regarding ecommerce fee structures.

Note; I've made such a pointed-statement (borderline rude) intentionally because in my experience (I've been making payroll for 41 years and have several recessions under my belt so don't diss what I bring to the table in the way of experience), what I am really saying is this; being successful at business entails sharpening the pencil on every single cost. Major point being, unless you're the type who wings it without a plan, then for achieving success, all expenses matter. So circling back around to the title, what about Woocommerce?

• Are there thresholds?

And where are the best deals on CC-fees in your experience? Reason I ask is because when I look at Woocommerce pay-as-you-go fees for USA, there I see 2.9% plus 0.30¢/transaction plus what I refer to as the 1% you to death business model with other things, like 1% for currency conversion, plus 1% for international, plus $15/dispute fee, etc.

And no mention whatsoever of PayPal, who charge 2.99% plus transaction fees so if you prefer to use PayPal, are these on top of their fee structure, thus, now 2.9% for Woocommerce plus 2.99% for PayPal, so call it 5.89% on sales plus transaction fees – or – are Woocommerce performing the role of merchant service provider for the 2.9% plus transactions?

Look, I am gathering numbers for our beancounter, so a) I submit these questions to our base of experienced Woo-Redditors and please, let's keep this 100% about the numbers. Saying it's a very distant second for anything to do with opinions, experienced responses only . . . please!

Note; I'm also asking within /r/woocommerce, but in asking here I am hoping for responses from folks who have not drunk the Woocommerce-Koolaid and thus, are experience with other things.

Last thing, for those so offended at how I've asked the less experienced to stay out of this, please let me add this; excepting software, pretty much everyone making and selling widgets ends up in the neighborhood of 10% in their pocket after all expenses and taxes. Major point being – 4% is BIG TIME – saying if you run a site that does $10k/month you're maybe not really experienced enough (yet) to where the numbers affect you but I trust you hope you'll be there so this may be a very, very valuable thread, but only if we can keep emotions under control and act like adults.

Most respectfully, flame suit on.