Making the work
Growing an audience
Running the business
Lemon Squeezy charges 5 percent plus 50 cents per transaction with no monthly fee, built specifically for digital products and software with tax handled as merchant of record. Shopify charges a monthly plan starting at $29 billed yearly plus a card rate from 2.9 percent down to 2.25 percent as the plan rises, built for a shop selling physical goods across a site, social and in person. Shopify's own guidance states it plainly: a single digital download is overbuying Shopify, and Lemon Squeezy costs nothing until something actually sells.
Digital product sales with the tax handled
A storefront whose card rate falls by plan
Lemon Squeezy | Shopify | |
|---|---|---|
| Starting price | Free | From $29 |
| Pricing model (they differ) | Free | Paid subscription |
| Free tier (they differ) | Yes | No |
| Billing (they differ) | Usage-based | Monthly or annual |
| Free trial | Not stated | Not stated |
| API | Not stated | Yes |
Digital product sales with the tax handled
Lemon Squeezy acts as merchant of record, so sales tax and EU VAT stop being your problem. That alone justifies the fee for anyone selling internationally. Subscriptions, licence keys and affiliates are all included.
Our note
Worth the 5 percent the first time an EU VAT return would otherwise be yours to file. Against Gumroad it is half the rate and more setup, which is a good trade at any real volume.
Only on this side
A storefront whose card rate falls by plan
Shopify runs the shop itself, the checkout and the card processing, which is why its pricing has two numbers rather than one: a monthly plan and a card rate that drops as the plan rises. Selling on social, in person and through a site all report into the same catalogue and stock count. The plans are otherwise similar enough that most people choose on the card rate and the staff seats. Using a payment provider other than Shopify's own adds a transaction fee on top, so the cheap plan is not always the cheap option.
Choose Lemon Squeezy for digital products and software specifically, since there is no monthly fee and international sales tax is handled as part of the 5 percent plus 50 cents charge. A quiet month costs nothing at all, which suits a catalogue that has not proven itself yet.
Choose Shopify if physical goods are involved or the shop needs to sell across a site, social and in person from one catalogue, since the card rate falls as low as 2.25 percent at higher plans. Using a payment provider other than Shopify's own adds a transaction fee on top, so price that in before assuming the cheap plan is the cheap option.
Ratings are the average of reviews readers left. The facts are stated by each tool’s own listing and are not verified by CloutStack. How we make money.
| Data export | Not stated | Not stated |
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| Their cut | 5% of what you earn | Not stated |
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| Runs on | Not stated | Web, iOS, Android |
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| Covers | Digital Products & Storefronts, Creator Finance, Monetization & Payments | Monetization & Payments, Digital Products & Storefronts |
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| Works with | Nothing in particular | Nothing in particular |
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| Founded | Not listed | Not listed |
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| Reader rating | No reviews yet | No reviews yet |
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| Live deals | None right now | None right now |
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Shaded rows are where the two answers disagree and both listings have answered. A row where one side has not stated a fact is left plain, because silence is not a difference.
Our note
Work out the crossover between plans on your own card volume before choosing, because 0.2 percent of a busy month covers the difference between two tiers and most people pick on features instead. If a third-party gateway is a requirement rather than a preference, price that transaction fee in first, since it can cost more than the plan itself.