In the eCommerce landscape, offering a variety of payment options is key to providing a smooth checkout experience for customers. However, each payment gateway comes with its own set of costs, which can impact your store’s profitability. Cost of Goods for WooCommerce allows store owners to manage these costs effectively through the “Extra Payment Gateway Costs“ feature. This functionality enables you to add additional charges for orders based on the selected payment gateway, ensuring that your profit margins remain intact.
Understanding Extra Gateway Costs
Extra gateway costs are additional charges that you can apply to orders depending on the payment method chosen by the customer. These costs can be set as a fixed amount, a percentage of the order total, or a combination of both. This feature is particularly useful for covering transaction fees or other expenses associated with specific payment methods.
Configuring Extra Gateway Costs
To customize extra payment gateway costs in WooCommerce:
1. Navigate to WooCommerce Settings: In your WordPress dashboard, go to WooCommerce > Settings.
2. Access the Cost of Goods Tab: Find and click on the “Cost of Goods“ tab.
3. Go to Payment Gateways Subtab: Within this tab, look for the “Payment Gateways“ subsection.
4. Enable Extra Gateway Costs: Here, you’ll find the option to enable extra costs for each payment gateway you offer, such as Direct Bank Transfer, Check Payments, and Cash on Delivery.
Setting Up Costs
For each payment gateway, you can define the extra costs as follows:
Fixed Cost: Enter a fixed amount that will be added to the order total when this payment method is selected.
Percent Cost: Specify a percentage of the order total to be added as an extra cost.
These settings allow you to tailor the extra costs to match the expenses associated with each payment method, ensuring your store absorbs or minimizes these costs effectively.
WooCommerce also provides an option to reset these settings to their defaults. This can be useful if you’ve experimented with different cost structures and wish to start fresh.
Importance of Recalculating Order Costs and Profit
After adjusting the extra payment gateway costs, it’s crucial to recalculate your order’s cost and profit to reflect these changes accurately. This ensures that your financial reporting remains accurate and that you’re fully aware of how these costs affect your bottom line.