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.”