With over half a million companies using Shopify, it’s become the premier platform for people building their own business or e-commerce sites. While many traditional businesses are still dipping their toes into the e-commerce waters, savvy companies are becoming experts. When you’re in the middle of a growth spurt or just getting your first plan, you need to become acquainted with the Shopify pricing model.
For every sale on Shopify, you have to pay a certain amount for processing. The more advanced your plan, the less you have to pay but also the more committed you are to the platform.
If you’re still weighing out the pros and cons of selecting your Shopify pricing plan, follow these 5 tips.
1. Watch Your Current Budget
If you’re currently spending more on your Shopify subscription than you’re getting in return, you might want to pump the brakes before you commit. However, the limitations of your current plan could be what is getting in the way of your increased profits.
If you’re not balancing your budget carefully, you could be overpaying for services you don’t need. On the flip side, you could be depriving your company of growth by being stingy with your current subscription. Your pricing plan influences your growth and your profit immensely, so you need to measure your plan wisely.
If you’re paying for an advanced subscription but you don’t have the time or energy to take advantage of everything it offers, reconsider your plan. You could easily downgrade if none of the features that you rely on would make a major difference in how you do business.
2. Track Your Current Sales Figures
You need to know how well you’re currently doing with your current plan before you decide to upgrade or downgrade. Thankfully, Shopify keeps meticulous records of the sales you do. If you’re doing sales through multiple channels, be sure to take the time to compare how you’re doing.
You should take a serious and sober look at how much you’re making across the board, outside of Shopify. While you might like the great point of sale experience or the e-commerce platform in general, you might be being stifled by the smorgasbord of options. There’s such a thing as having too many decisions to make.
If you need something simpler, the basic subscription could keep you in the Shopify system without forcing you to find a new platform. If you have clients who would be missing your presence on the platform, you’re better off sticking around and sweating it out.
3. Project Your Growth
Thanks to the sales figures that you have in front of you, you can project your growth to some degree. While your Shopify account might be the thing that’s doing a lot to measure your growth, you can make a back of the envelope calculation with the data Shopify provides. Your pricing plan will determine your profit and how much you can take home at the end of the day.
If you don’t ever take the time to assess how well you’re doing, you don’t know how to position yourself to grow. Without an accurate measurement of how you could be growing, you could end up stuck under a glass ceiling of a profit margin.
You need to have a meeting with your core team and try to come up with how much growth you could see and how it depends on Shopify. If expanding your subscription is the way to go, you should take that consideration seriously. If downgrading might be the answer, don’t consider it a failure, but a success on the other channels that you’re selling on.
4. Measure Your Online Presence
Your overall online presence will determine the success of your Shopify account. If you’re neglecting your presence online for in-store, over the phone, or individual sales, you might not need to have a Shopify account. If your clients are sold the most products by people who they meet door to door, Shopify might not be the model for you.
However, if you’re doing any business online at all, you should consider the benefits that Shopify can add to your company. The kinds of advanced reporting you get with the highest level accounts can be a way to see the roadmap of how you’re doing and where you’re headed next.
If features like gift cards and abandoned cart recovery don’t matter to you, you don’t have to feel obligated to pay for them “just because”. You should only be paying for the services you need and if you’re not taking advantage of them, you should feel free to scale back.
Make sure you take a long hard look at your Shopify SEO tactics before you make any major decisions about your online presence.
5. Balance With Your Other Systems
Is Shopify your only system for e-commerce or you only POS or are you juggling multiple products at the same time?
Depending on your answer, you may want to commit to only one. One of the benefits of using one main system for e-commerce is you won’t have to train new employees on multiple systems. You’ll also be able to whittle down the number of subscriptions you’re paying for with software.
If you’re not getting much from your other e-commerce systems, you should focus on building your Shopify presence. If this is the case, you should look how Shopify prices compare with other systems you’re considering. Shopify could be the clear winner if the other software you’re working with is overpriced and doesn’t deliver everything you need.
Shopify isn’t the only product on the market, but juggling multiple products might be more trouble than it’s worth and damage your overall profits.
Shopify Pricing Is the Key to Growth
If you’re reckless with your Shopify pricing plan, you’ll be stifling your growth and limit your ability to take important risks. If you’re not pricing smartly, you’ll quickly regret your investment.
To make sure you’re getting lots of traffic and people entering your sales funnel, follow these simple Shopify SEO tactics.