Since Shopify was launched, more and more people have been telling us that they love what they see, but the unfortunately the price is a deal breaker because the transaction fee is too high. We are excited to announce that Shopify now has a number of pricing options available, all with lower transaction fees than the original 3% plan that everyone had to use up until now. We also have a free trial plan that lets people get a feel for Shopify and do some designing without entering any credit card information and without any pressure to upgrade right away.
Active shops can stay on with the plan their owners signed up for, or upgrade to one of the new plans through the administration interface. Inactive shops are moved to our free trial account automatically. More details about the rollover to the new plans can be found on our shiny new informational site.
...That’s right, we’ve got a new site to show off! We’re really proud of the new design and there’s a whole whack of new content there for visitors to peruse. One thing that I love about the new site is the page showcasing great examples of Shopify storefronts. For a while I’ve found that when people ask me about Shopify I often just point them directly to our shop of the moment feed, because I think the best way of showing off this product is with the great array of beautiful and well-designed shops that are built with it. Now that feed is mirrored directly on the examples page and I think it fits in beautifully.
One thing that might seem strange at first is the domain name we’ve got for the new site: shopify.info. Because shopify.com gets so many visitors every day, we decided that instead of continuing to use it as a brochure site we should use it to drive traffic directly to our users’ shops. The Shopify Marketplace will let customers globally search through products from all participating Shopify stores and will act as a platform for shop promotion in other ways as well. We are extremely excited about the potential for this new aspect of Shopify, and you’ll hear more about it really soon.
I just wrote a post with suggestions and show a cost chart. I started out pretty much saying, “What the Hell!” But then when I studied price a bit more, it actually isn’t too bad. It made me feel like as ass. I think for sure most of us signed up because we like the idea of only paying when you actually sell for sure.
You can check out my chart I created at http://www.brandonbuttars.com/2007/07/31/what-the-hell-shopify/ and leave your feedback there too.
There should for sure be better support with a price increase like that like a more traditional host. The change almost makes you feel like Shopify isn’t as special anymore.
Hi,
I’m in sync with the previous comments. This was a very drastic move for Shopify. The “only pay if you sell” was the best feature of Shopify. You have completely removed this option and now require a monthly fee. Please consider maintaining the old pricing available as an option.
This has changed my relationship with my clients who were expecting a completely different setup. I’m in a situation similar to Raymond Brigleb’s. I was going to setup a new client today.
Very disappointing!
PS: Any suggestions for an e-commerce open-source platform similar to Shopify?
I agree with the previous comments, the low barrier to entry was the best selling point. I could easily suggest to anyone to start up a shopify site and it would be totally easy for them to do without feeling the pinch first. They paid on what they earned. Why not still offer that pricing model? If it was working before and people have said that they want it, and it made more money for you as you said others wanted a lower transaction fee plan, just add it on so people are happy.
Sorry forgot the html. Check out the chart here:
Cost Chart
I think it should be obvious by the consensus above that yanking the rug out from under the original, fantastic pricing scheme and those promoting it was a big mistake. Especially with no notice whatsoever. After all, it’s what got you to the 20,000 stores built with Shopify, right? There’s something to be said about that. So simple, why complicate things so?
I also had recommended Shopify to a friend wanting to start a store, and she was very keen on Shopify. But, as this is her first foray into online commerce, I doubt that the new pricing scheme won’t keep her from going somewhere else. What a shame!
You’re allowing exisiting customers to use their original price plans. Please give the everyone else the opportunity to choose as well.
More feedback
Denying discount codes and domain names for Free accounts is just lame:
If someone wants to test out the system, why limit features? You expect them to market their store with your domain and then switch to their own later? What a pain! Think about it: marketing, search engines, linking!
Not allowing discount codes is just hurting the new user. Allowing discount codes helps them promote their store. Are you guys trying to help or hinder the new user?
The basic account is simply way too expensive for the new user. Look at Brandon’s chart, using t-shirts as an example, since that’s a very popular item to sell via Shopify. If you sell them for $15 a piece, and manage to move 7 shirts in a month, you get kicked up into the Basic account. Your revenue is $105, but you have to pay about 26% (!!!) of that to Shopify, not counting the cost to produce the shirts!
Looking at it from the % perspective, the person starting out small is really getting shafted, when they’re the ones who should get the biggest boost.
Come on Jadel Pixel. Don’t be so ‘jaded’. Let’s see some flexibility here.
My take on this.
Of course, as a person who swears by Shopify, I am agonizing over these turn of events.
Tobi and the guys, we would appreciate receiving some heads up before yanking the plug, right?
I’m currently (in the middle) of deploying a project http://theroomupstairs.myshopify.com and this is not a good way to squirm back to our client and say, “Opss”.
We didn’t misinform my client about Shopify. I sold them the idea that’s stated in your site, “If you don’t earn anything we don’t either.” (3.75%)
Of course, you guys can change your TOS anytime. But please as professionals, you should have made sure we got the message (like a discrete screaming bold letter banner in the admin, siet, blogs, email dispatches?). 2 weeks, 1 month, 3 months. Much like the uproar with Yahoo!-Flickr.
Because it doesn’t mean “if we don’t put our credit cards” yet that we are NOT a serious user. We were just about to setup something.
So, after the anger & frustration, I figured out that this makes business sense for Shopify and a lot more VC/investor friendly. Good luck.
Still, you guys get your act together in talking to us, your avid fans who has been WOM (word of mouth) you guys since your pre-launch days.
Not impressed guys. No monthly fees was what I loved about Shopify. And this “percentage too high” excuse is a poor one at best. I think you really had something going beforehand and I while short term you might rake in a few dollars, long term I think this is a bad business move.
Only 40 megs of image storage and no SSL for US $24 a month? And why is there any limitation at all on SKUs for the enterprise plan?
I think a much more sensible structure would have been to have two plans: a “sole trader” plan with all the nubbins, but fees based on the 3% commission; and an “enterprise” plan with all the storage options etc turned up to 11 for, say, US $200 a month.
Currently, too many overly-similar options with an exorbitant cost structure.
I agree with all of the above comments. I actually described this turn of events to my friends and stated that I was broken-hearted. I was working feverishly on trying to figure out how to use shopify and finally made a good amount of headway when I realized that I could no longer benefit from the main reasons that I joined. I simply cannot afford to pay the second tier level to benefit from the two main reasons that shopify seemed like a dream come true – coupons and detailed statistics.
In order to charge this level of expense, you quite frankly have to do a much better job of explaining how to use your service. Your description on how to use the language is quite simply lacking.
I have decided to invest my money into learning how to create my own shopping cart system for myself at lynda.com.
This is a very bad turn of events. I’ve been recommending Shopify to friends and clients because of the previously low barrier to entry; now that has been completely blasted away. Now Shopify is just like every other online hosted shop service — way, way too expensive, particularly for those who are just starting out.
Casual sellers and people who wanted to test the waters can no longer afford to do so.
Sorry to say it, but Shopify has just dropped their single greatest competitive advantage. I can no longer recommend Shopify to most people. It’s a real pity, because as a web designer I held Shopify in the highest regard for its user friendliness and its use of web standards.
I like the features that allow me to see exctly what days I am being hit the most and where those hits are refered from. Just so you know your site has given me quite a few. As a fantasy artist with a unique product I need exposure. Art clothing that is affordable it not offered often
Have A Magickal Day!
marjorie Dulaney
I agree with all of you. I just signed up, and the 3% of sales is what drew me in. I was in the middle designing my shop when the change occurred. Now Im not sure if Ill be able to afford the basic plan as Im am just starting out. And no notice on this change is really unprofessional.
and now the delay in any word on this from Shopify is forcing a decision to go somewhere else. Big Cartel has a price much closer to what my client is willing to pay. I want to stay with Shopify, I want to give you $10 / month + 2% sales, or 3% of sales. but I can’t wait around for you to make up your mind. it’s fine if you don’t want that… would you respond directly and publicly to your customer’s comments?
Sorry for not getting back to you earlier here. We used our forums as main means of communication so far.
First of all, there was no announcement because it was not practical in our situation for two reasons:
a) There is no change to any of our existing customers. The only thing which changes to people who use Shopify is that the signup page of our brochure page quotes a different pricing structure. We grandfathered every one of our existing customers for lifetime. This includes people who were in the middle of setting up a store and had no prior sales yet. It did not however include people on demo accounts ( the ones which say that they are automatically deleted ). However we have grandfathered everyone who send us an email with a demo account if the store was about to be launched.
b) Because shopify is free in signup we could not announce this change because it would have meant that people would have set up hundreds of accounts to be grandfathered which they could then sell later on to people who feel that the old pricing system was better.
Speaking of which, i know that the feedback here on the blog is pretty negative but this is by no means a fair reflection of the feedback we are receiving here at jadedPixel. A lot of our customers are saving a good deal of money and expect to save even more when they grow bigger. The only pricing model was prohibitory expensive to some of our clients and this had to be addressed.
That being said, we are incredibly sorry about the inconveniences the switch may have caused to our designers, advocates and pitchers out there. We are establishing a new communication channel with our affiliates so that such changes can be announced in a controlled manner. Not that there are any more such changes in the pipeline, mind you.
Thank you for understanding. We launched with a pricing scheme which was unsustainable in the long run and had to correct the problem. We believe that the shopify software delivers value far greater then its cost and we hope you think the same, especially with the new pricing system.
I agree that would have been a better way to handle the situatio.
We all learned a lot about this in the last few days.
Just to give an official line on this: The 3% / 0$ plan will not come back in the near future.
Tobi, thanks for the comments. I had been watching the forums as well. I’m more looking for a response to those wondering if you’ll go back to offering the 3% account, or an option cheaper than the $24 / month. I guess it’s obvious that it’s a “no”.
it’s strange to me that you’re trying to me the people here feel better about the price change because you’re saving some of your customers a good deal of money.
if I were in your shoes, letting people set up hundreds of accounts to get the 3% account option would have been ok. particularly anybody that had been planning on using the site at that account level. you could have given us a cut off date to create stores that we’re planning for. maybe get more strict with when a store was de-activated so the stores wouldn’t just sit around.
what’s a few hundred accounts (if that would have happened) out there that do make you money and would have saved you from some ill will? particularly in the long term.
oh but you could still re-open the gates and give a cut off date. I appreciate your attitude while interacting with your customers, but the apology doesn’t alleviate my disappointment with having to find another system to use that isn’t as fun to use as Shopify. :)
In short: Shopify is waltzing the politicians way. Reduce prices for big players and rise them for the infantry. The mass is paying for the benefits of a privileged society. Or Hobbit, you’re crap; Princess Avarice may I kiss your feed?
I’ve to admit that I’m a bit disappointed, because now the break-even for sale is nearly three thousand bucks per month. Or in other words, by far over one hundred, rahter high priced, sold T-Shirts. Compared to former pricing. Which means the deathblow for future small by side sellers. But perhaps that’s intended to elope with oh, so lovely Princess.
In the end the pricing advantage for by side sellers or startups e.g. compared to BigCartel is definitely blown away now. Somehow that hurts.
I also am hugely disappointed. No longer is Shopify going to work for us. We’ve even quoted clients and started designing concepts but we can’t now turn to them and tell them there is suddenly a minimum monthly charge of US$24. It’s a real real shame.
If anything, it’s motivated us to finally start working on our own in-house system. I’m sure we’ll see several alternatives to Shopify start to spring up around the place.
I’ve been really impressed with you guys and, contrary to some of the messages here, have found your response times and standard of replying to be exceptional. I have no hard feelings at all but am sad that we won’t be able to use Shopify for clients in the future I don’t imagine.
Good luck with it all and I look forward to continuing to work with you on the sites we already have.
Cheers,
Galen
Everything that has previously been stated I agree with. I just wanted to throw my hat into the ‘Bad move Shopify!’ ring. This seriously sucks.
I picked Shopify because of the pricing plan. Seemed to make sense. If you wanted to switch to another subscription type model, then by all means.
Oh yeah, kudos for not letting us independent consultants know about the upcoming change. Thanks a hell of a lot. I don’t think I’ll be using your bug ridden service any more.
I hope you’ll reconsider and allow users to start at 3% / $0 and then move to the monthly plan if their sales warrant it. I for one is looking elsewhere.
Bad move.
Maybe I’ll go with Yahoo now. The pricing is about the same and traffic is higher.
You have intentionally driven away the small businesses with low volume.
One suggestion: change the pricing plan to give us start-ups a break.
Try 3% of sales up to $750 (the break even point for small businesses), and then $24 + 2% etc.
OR LISTEN UP EVERYONE: Go find one of those 20,000 shops that have been grandfathered in and buy the store from them. OK? Nothing like and after-market!! Actually, maybe it already exists…where can I find it?
This is really disappointing. I just signed on to setup a shop for my friend and went to show him the pricing (thinking it was still the 3%). Needless to say, I’ll be coding up a shop by hand for him now. I was really looking forward to using your shops.
I guess this opens the door for someone to make a shop system priced like the one you used to have.
All I can say is that I’ve been giving many alternate e-commerce solutions a 4-month-long, discerning, objective look — comparing notes, features, options, etc.
You’ve made my decision a lot easier, now, with this new pricing schedule. I can cross Shopify off my candidate list.