The allure of e-commerce has led countless businesses to platforms like Shopify, a beacon of ease and efficiency. However, as businesses scale, the question that often niggles at the back of many owners’ minds is whether to upgrade from Shopify Advanced to Shopify Plus. Is the $2,000 jump justifiable? Let’s dive deep into the numbers and features to furnish you with a comprehensive answer.
Breaking Down the Financials
To determine if the upgrade is financially astute, you must weigh the upfront cost against potential savings and increased revenue. Here’s a breakdown:
- Cost Difference: Shopify Plus charges $2,000/mo vs Shopify Advanced charges $299/mo. But, can the added features make up for this price differential?
- Transaction Fees: Lower transaction rates in Shopify Plus can result in significant savings, especially for high-volume stores.
Pricing
| Shopify Advanced | Shopify Plus |
| $299/ 1 store | $2,000/ 10 stores OR 0.25% of Revenue* |
| 2.4% + $0.30 transaction fee | 2.15% + $0.30 transaction fee |
Consider the following scenario:
Let’s say your monthly sales volume is $300K ($3.6M/yr). When determining your volume I would go on the conservative side as most businesses fluctuate throughout the year. Do this calculation with the highest month and the lowest month.
The monthly transaction fee savings would be:
$300,000 x (2.4% – 2.15%) = $750 Saved!
So
$2,000 (Shopify Plus Cost) – $299 (Shopify Adv cost) – $750 (Transaction savings) = $951 (Additional cost to increase your plan)
By manipulating the sales volume $V, you can determine the breakeven point where the savings in transaction fees make the upgrade cost-neutral. Beyond this point, you’d essentially be saving money!
Here are a few scenarios at a glance:
| Monthly Sales | Platform Cost Monthly | Shopify Adv Cost Monthly | Transaction Savings | Cost to Increase Your Plan |
| $100,000 | $2,000 | $299 | $250.00 | $1,451 |
| $300,000 | $2,000 | $299 | $750.00 | $951 |
| $500,000 | $2,000 | $299 | $1,250.00 | $451 |
| $700,000 | $2,000 | $299 | $1,750.00 | -$49 |
| $1,000,000 | $2,500* | $299 | $2,500.00 | -$299 |
Beyond the Numbers – The Value Proposition
But finances are just one side of the coin. Now take your number from above and see if the value is there with the features below:
- Customizable Checkout Experience: This is probably your biggest advantage. While Shopify’s checkout process is optimized based on vast amounts of testing and user data, Shopify Plus provides the flexibility to tailor the checkout to your brand. This can lead to improved user experience and potentially higher conversion rates.
- Operational Automation with Shopify Flow: Streamline tasks and automate workflows, freeing up precious time and resources to focus on scaling the business.
- Unified Dashboard for Multiple Stores: Unlike Advanced, where each store incurs separate costs, Plus allows for up to 10 stores at one cost, all accessible from a single dashboard.
- Launchpad: An invaluable tool for automating product launches and sales events.
- Script Editor: This grants merchants unparalleled discount flexibility, enabling nuanced promotional strategies without relying on cumbersome codes.
- Custom Shopify Audiences: We still haven’t had luck with using these to boost our ROAS for our clients, but I always think it’s worth testing as Shopify claims it will give you a better ROAS.
Below are some ideas on how you can customize your checkout with Shopify Plus
Is the Upgrade Right for You?
The decision to upgrade hinges on a blend of quantitative financial metrics and qualitative operational efficiencies. If your sales volume is approaching the breakeven point, and you believe your business would benefit from the enhanced features, making the leap to Shopify Plus is a sound decision.
For those already in the higher echelons of sales volume, the decision becomes even more straightforward. Beyond a certain point, not only will the transaction fee savings effectively subsidize the cost difference, but the suite of features provided can further fuel your growth trajectory.
In conclusion, each business is unique, and while Shopify Plus offers an enticing package, the final decision rests on your specific circumstances and aspirations.
As always, if you need expert advice tailored to your situation, Sagum is here to guide you on your e-commerce journey. Let’s maximize your online potential together.
