Shopify has urged online retailers on its eCommerce platform to switch from monthly to annual payment plans to avoid a steep increase in fees from April 23, 2023.
The price increase will see monthly fees across all of its plans increase as follows:
Monthly Shopify Subscription Fees
- Basic: From $29 to $39 – an increase of 34%
- Shopify (Standard): From $79 to $105 – an increase of 33%
- Advanced: From $299 to $399 – an increase of 33%
By locking into an annual agreement before the April 23 deadline, retailers will continue to enjoy current pricing for the next 12 months. However, retailers renewing annual subscription fees after the deadline will also see significant price increases.
Why Is Shopify Doing This?
Explaining the need for the above inflation increase in subscription fees, Kaz Nejatian, Shopify’s VP of Product and Chief Operating Officer, described the move as “A small change that enables big change.”
In a post on the Shopify blog, Kaz said:
“The idea behind the products we create has always been the same: we offer merchants the most powerful, innovative, and reliable tools in the industry at a price that’s unmatched in the market. But what that means, and the resources required to live up to that promise, have changed dramatically since we started.
“In order to not change the value of Shopify, we’ve had to change the price.
“This change allows us to continue to solve some of the most difficult problems in the industry with the people that are best suited to solve them. It allows us to continue making more possible and empower more people to become entrepreneurs, and to do it at a pace that’s necessary to make commerce better for everyone.
“Above all else, it means that we don’t have to compromise. It allows our merchants to continue to exist in a world where their dreams for what their businesses can become never have to contend with what is possible.”
The Cost of Doing Business Online
So what does this all mean for your eCommerce business?
We believe that SaaS eCommerce platforms like Shopify continue to offer exceptional value for money, especially compared to legacy eCommerce systems. However, we also understand that the price increase will not sit well with many online retailers struggling with their own issues, like the ongoing cost of living and supply chain crises.
With this in mind, we recommend speaking to an expert before committing to any eCommerce solution. While there may be more cost-effective solutions for your business, there may also be solutions that provide more appropriate functionality for your eCommerce needs.
To learn more about how Frooition can help you select the best possible eCommerce platform for your business, book a free 15-minute discovery call with one of our eCommerce experts.