specification: FinOps Framework
specificationVersion: '1.0'
provider: Snipcart
providerId: snipcart
created: '2026-06-12'
modified: '2026-06-12'
billingModel:
  type: transaction-percentage
  description: >
    Snipcart charges 2% per transaction for merchants with over $1,000 USD
    in monthly sales. For merchants under $1,000 USD/month, a flat $20/month
    fee applies. The test/development environment is permanently free.
  currency: USD
  minimumMonthlyCharge: 20
  transactionFeePercent: 2
  thresholdUSD: 1000
focusColumns:
  - BilledCost
  - EffectiveCost
  - ChargeType
  - ServiceName
  - SkuId
  - UsageQuantity
  - UsageUnit
  - ResourceId
meters:
  - name: Transaction Volume
    unit: transaction
    description: Each completed purchase through the Snipcart checkout
    billingFormula: max(transaction_value * 0.02, 0)
    notes: >
      When total monthly sales >= $1,000 USD, each transaction is charged 2%
      of transaction value. When total monthly sales < $1,000 USD, flat $20/mo
      fee covers all transactions for the month.
  - name: Monthly Minimum
    unit: month
    description: Minimum monthly platform fee when sales are under $1,000 USD
    billingFormula: 20 USD flat if monthly_sales_usd < 1000
  - name: Payment Gateway Fees
    unit: transaction
    description: >
      External payment gateway processing fees charged by the selected
      gateway (e.g., Stripe, PayPal). These are in addition to Snipcart's fee.
    billingFormula: varies by payment gateway
principles:
  - name: Visibility
    description: >
      Monitor transaction volume and value monthly to forecast whether
      the $20 flat fee or the 2% transaction model applies. Use the
      Snipcart merchant dashboard and REST API orders endpoint to track
      sales in real time.
    actions:
      - Query the /orders endpoint to aggregate monthly sales totals
      - Track transaction count and value per billing period
      - Set up webhooks on order events to maintain real-time revenue visibility
  - name: Optimization
    description: >
      At low sales volumes (under $1,000 USD/month), costs are capped at $20.
      As sales scale, the 2% model becomes active. Optimize by monitoring the
      threshold and projecting monthly fees based on transaction trends.
    actions:
      - Calculate break-even point: $1,000/month in sales is the threshold
      - Use abandoned cart recovery features to maximize revenue per transaction
      - Evaluate payment gateway fee structures to minimize total cost per sale
      - Use test mode (free) for all development and integration work