Shopify transactions fee – when to upgrade to decrease the fee

Shopify's 3 most popular plans come with slightly different features, obviously the more expensive the plan the more features it has.

One "feature" that all the 3 plans have is a transaction fee. A fee that Shopify charges when customers pay by using one of their payment solutions. The fee is 2.0% for the $29/month basic plan, 1.0% for the $79/month professional plan and 0.5% for the $179/month unlimited plan.

If you are accepting lot of payments and using one of these monthly plans there might actually be a time when it is a good idea to upgrade to simply decrease the transaction fee %. We have created the table below to illustrate how much you have to generate in monthly payments to justify upgrading to a more expensive (when speaking about the basic monthly fee) plan.

The table is relevant as of 1.1.2015, if Shopify changes their plan prices or makes change to the fee structure the thresholds change.

Current plan

When to upgrade to professional

When to upgrade to unlimited

Basic

$5,000+ in monthly transactions

$20,000+ in monthly transactions

Professional

N/A

$20,000+ in monthly transactions

You can use the above table also if you are considering downgrading your service: e.g if you are thinking about downgrading from unlimited to professional plan your monthly transaction volume should be below $20,000 for that to make sense. 

Notes: 

The above table is based on few assumptions. 1) there is no monetary value on the other features that you get by upgrading or lose by downgrading (in most cases not true). 2) you are using the monthly subscription plan. That is relevant because Shopify offers 10% discounts for yearly plans and 20% discounts for 2 year plans. 3) it naturally only makes sense to upgrade if you expect the transaction "limit" to be sufficient transaction volume to keep occurring in the future. In other words, don't change just because, for an example, December was a month during which it would have made sense to be on other plan.

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