Who Receives Sales Faster? Comparison of Payment Cycle between Shopify Payments and Other Ecommerce Platforms
This article will compare the payment cycle of Shopify Payments and other e-commerce services!
Hello! I'm Kanahina.☆
Today, I'm going to explain about the payment cycle of Shopify Payments and other e-commerce services.😊
Kanahina works for a web production company and is often asked about the comparison of the payment cycle, so I'll explain the comparison and the importance of the payment cycle.
First, let's take a look at the comparison of services!
Please see the table comparing Shopify Payments and 7 other Japanese e-commerce services.
*This information is current as of October 2023, so please check the official websites for the latest information.
| Service Name | Deposit Cycle |
|---|---|
| Shopify Payments | Weekly Payments: 5 days minimum, 11 days maximum Monthly Payments】You can select the date from the administration page. |
| BASE | 10 business days after application Express transfer" = Next business day (1.5% of the amount applied for transfer is required as a service charge) |
| MakeShop Payment | Closing at the end of the month, payment at the end of the following month (If the end of the month falls on a holiday, the payment will be made on the previous business day.) |
| Shopserve | Payable on the 27th of the following month after the end of the month 2 or 6 monthly receipts available for a fee |
| futureshop | Payable at the end of the month and the end of the following month |
| STORES | Automatic payment】Payment at the end of the month and on the 20th of the following month Manual deposit】Payment is made on the next 1 to 2 business days after the transfer request is made. |
| Color Me Shop | Normal payment】Payment is due at the end of the month and paid on the 20th of the month after the month following the month in which the payment is made. Deposit on demand service】After paying 1.5% commission, payment can be made in as little as 3 business days. Early Payment Service】2,200 yen/month plus Early Deposit Service】2,200 yen per month plus 0.5% commission, paid at the end of the month on the 15th of the following month. |
| ecforce | Payment is processed 30 days after the end of the month |
Deposit cycle is very important!
Here is an easy-to-understand explanation of the payment cycle for online stores😊
Physical stores receive cash directly from the customer, so sales are immediately in hand.
However, this is not the case with online stores.
Payment methods include credit cards, carrier payments, convenience store payments, and bank transfers, and each method has a different payment cycle.
In other words, even if you sell a product, you will not get your money immediately.
This delay in the payment cycle can affect regular expenses such as product purchases and staff salaries.
If sales are made but money is not in hand, the business may not have enough funds to operate, resulting in a "blackout" situation.
Therefore, it is important to keep cash flow smooth by shortening the payment cycle and lengthening the payment cycle.
In summary, when operating an online store, it is very important to understand the timing of payment and to keep proper cash management in mind!😊
Among them, Shopify Payments can be received in as little as 5 days, and even with this speed, there are no "separate fees" or "transfer fees," which is much appreciated by businesses.
Finally, here are some frequently asked questions about the payment cycle, etc!
Frequently Asked Questions
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Q.1What is the deposit cycle for Shopify Payments?
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A.1
For weekly payment, the minimum is 5 days and the maximum is 11 days. For monthly payments, the date can be selected from the administration screen.
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Q.2How much is the fee for BASE's "Express Transfer"?
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A.2
The fee for the "Express Transfer" is 1.5% of the amount applied for transfer.
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Q.3When is the payment cycle for MakeShop Payments?
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A.3
The payment is made at the end of the month, and the payment is credited at the end of the following month. If the end of the month falls on a holiday, the payment will be made on the previous business day.
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Q.4How often can I receive my commission payments through Shopserve?
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A.4
You can receive twice a month or six times a month by paying a commission.
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Q.5What is the deposit cycle for "Manual Deposit" in STORES?
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A.5
Payment is made on the next 1 to 2 business days after the transfer request operation.
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Q.6What are the fees for the "Pay-as-you-go" service of Color Me Shop?
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A.6
The fee is 1.5%, and deposits can be made in as little as 3 business days.
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Q.7What is the difference in the deposit cycle between an online store and a physical store?
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A.7
In a physical store, sales are received immediately because cash is received directly, whereas in an online store, there are different payment cycles depending on the payment method.
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Q.8How does a delay in the payment cycle affect my business?
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A.8
Delays in the payment cycle can affect regular expenses such as the purchase of goods and staff salaries, which may result in insufficient funds for operations.
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Q.9What is "going bankrupt in the black"?
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A.9
It refers to a situation in which a company goes bankrupt due to lack of funds on hand and insufficient operating capital, although sales are generated.
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Q.10What is the payment cycle?
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A.10
It refers to the period of time after sales of goods or services are made until the proceeds are actually received.
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Q.11What are the advantages of shortening the payment cycle?
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A.11
Smoother cash flow and reduced risk of insufficient management funds or "blackouts".
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Q.12Is there any way to shorten the payment cycle?
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A.12
Some services offer the option to shorten the deposit cycle by paying a fee.
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Q.13What are the key points of cash management for online stores?
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A.13
It is important to understand the timing of deposits and to keep proper fund management in mind.
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Q.14What are the disadvantages of a long deposit cycle?
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A.14
A long deposit cycle may lead to insufficient management funds, disrupted cash flow, and increased management risk.
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Q.15What is the difference between a deposit cycle and a payment cycle?
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A.15
The deposit cycle is the period of time from when sales are made until the money is received, while the payment cycle is the period of time from when costs and expenses are incurred until payment is made.
