- Shopify Plus customers
Halt Shopify Plus' price increase.
Shopify will be implementing the following changes to their Shopify Plus platform. This petition is a protest to the changes and a request for Shopify to halt said changes.
"To The Shopify Plus Merchant Family,
Congratulations to all of you for what you accomplished in 2016. It’s awe-inspiring to watch the innovation, work ethic and hustle each of you show everyday in building your businesses and your brands. We are honoured to play a role in your stories, and thank you for continuing to be apart of the Shopify Plus family.
I also want to say thank you for making 2016 another amazing year for us at Shopify Plus.
From huge increases in the number of merchants who call Shopify Plus home, to significant growth in the teams we’re building to support you, 2016 has been a tremendous year, and we truly believe that together with you, we’re creating the future of commerce.
I would like to take some time in this letter to provide more context on the decision we made to change our pricing model, which you heard about from your Merchant Success Manager.
Since its inception, Shopify has been the best platform in the world to launch and grow your online business. Entrepreneurs use Shopify to bring their dreams to life. In some cases our merchants’ ideas are so unique, innovative and disruptive, they spawn rapidly growing, global businesses. In 2014, some of these businesses started to grow exponentially. As they grew, they needed to adapt to larger transaction volume, higher revenue, more customers, more employees, and more complex environments. These merchants started asking if Shopify was going to adapt to support their growing needs, or if they’d have to leave Shopify for another, more “enterprise level” solution. With these merchants in mind, we launched Shopify Plus. It started as an experiment, but has grown into a critical aspect of Shopify’s value proposition for all entrepreneurs.
We want Shopify to be the place where entrepreneurs not only start their businesses, but grow those business to any size imaginable. Shopify Plus allows the Shopify platform to scale alongside our most successful merchants, as well as provide an innovative, future-proof platform for successful merchants wanting to upgrade from their existing solutions.
Growth is hard at any stage of a business. It requires constant adjustment, experimentation, and reflection. We’ve experienced this ourselves at Plus. As we’ve grown, we’ve worked very hard to meet the needs of our merchants, while maintaining an innovative position in the market.
Investing in our product and merchant success
At Plus, we recognize the best way to help our customers be successful is to provide them with the best commerce platform in the world. That’s why in 2016 we invested heavily in product management, design and engineering teams, focused 100% on Shopify Plus. This investment includes the recent acquisition of Boltmade, which helps accelerate our ability to deliver on the Shopify Plus roadmap. In 2017, we’re focused on leveraging that investment to deliver features and capabilities to help you sell on new channels, expand into global markets, integrate Plus into your overall business systems, go mobile, and continue to grow and scale your brands.
Along with our ongoing investment in our product, we are continuing to build our merchant success team to better serve you. We want you to see your Merchants Success Manager (MSM) as an extension of your team; helping you utilize Shopify Plus to its fullest, identifying efficiencies and strategies for growth, and working with you to achieve your business goals. We’re adding resources and tools to help train people to use Plus, and will continue to improve the frequency and quality of the interactions with the MSM team as we move forward.
You made a choice when you selected Shopify Plus. You believed we would provide the best value for your business. As we make changes in our pricing model, It’s our job to ensure that we continue to give you that value.
Our pricing philosophy
It’s been our objective to provide merchants with a world-class commerce platform, and the tools to achieve global success. We believe technology has shifted so dramatically in the last five years, merchants now have an opportunity to experience unprecedented power, flexibility and insight, all without needing to pay huge sums of money and wait years for full implementation (I wrote about this extensively in this Blog post).
Our challenge is selecting a pricing model which reflects the diverse nature of our business.
There are numerous ways to price a software platform and associated services, and no single model is ever perfect. Since we started Plus in 2014 we have been charging a flat rate for the platform. This worked in the beginning when our merchant group was similarly sized, and had similar needs. But as more merchants call Plus home, and the size and complexity of our merchant group has evolved, we’ve had to adapt.
As we looked to select a new pricing model for Shopify Plus we had three goals: we wanted to ensure it would be Easy To Understand, that it would remain Disruptive and be Balanced.
Easy to understand - I personally hate complicated pricing models, so our new approach clearly lays out exactly what you’ll pay based on your monthly sales volume. We want to make it clear so it’s easy for you to budget and plan.
Disruptive - Plus has always been focused on giving you ‘enterprise’ class commerce technology, without the legacy platform costs or timeframes. We’ve kept our Plus pricing well below comparable market participants, while reflecting the new requirements of supporting both our fast-growing and large volume merchants.
Balanced - Our pricing philosophy is built around creating a fair exchange of value. Our new pricing reflects what we believe is a balanced approach that respects your needs as a merchant and our obligation to build a business that is here to support you for the long term.
The new Shopify Plus platform pricing
Starting February 1, 2017, Shopify Plus will begin transitioning to a variable rate pricing model. This model ties the monthly cost of the Shopify Plus platform to the sales volume of a merchant using the platform.
Why are we changing pricing?
Shopify Plus has maintained the same pricing model since our launch almost three years ago. In that time, thousands of new customers have come to Shopify Plus, ranging in size, scope and complexity. We want to ensure that we continue to provide the best solutions to all of our customers, and the reality of supporting such a wide variety of merchants requires that we adapt our pricing model.
Why did we choose this model?
The Shopify Plus platform is largely a usage based platform. The more a merchant “uses” the platform (order volume, storefront traffic, checkouts, merchant success resources, etc.), the more it costs us to support that merchant (server costs, support load, etc.) The Shopify Plus merchant group ranges greatly in volume, needs, and support. A variable rate model best reflects the reality of maintaining and improving the platform, while recognizing the huge variation in size and complexity of Plus customers.
The Shopify Plus platform will now be charged at 0.25% of monthly store sales. The platform fee structure will have a floor of $2,000 USD/month and a cap of $40,000 USD/month. As I mentioned previously, I don’t believe any software platform has infinite value for its customers. While we do believe Shopify Plus provides a tremendous amount of value for the investment, if you build an amazing business, which continues to scale, Shopify Plus should not get the benefit of that forever. Therefore, the Shopify Plus platform fee will have a cap of $40,000 USD per month.
Here are some examples to illustrate how the new model will work:
Should your store(s) transact $800,000.00 USD per month or more, Shopify Plus will be charged at 0.25% of store(s) sales per month (aggregated across all stores under the same Plus contract)
Should your store(s) transact between $0 and $800,000.00 USD per month, Shopify Plus will be charged at a flat $2,000.00 USD per month
Should your store(s) transact $16 million USD per month or more, your monthly platform fees for Shopify Plus will be capped at $40,000.00 USD per month and you will not pay more regardless of additional transaction volume
Payment transaction fee
In 2017 Shopify will be extending the payment transaction fee that exists on all Shopify plans to Shopify Plus for any store not using Shopify Payments. The transaction fee for Shopify Plus will be set at 0.15% of store sales per month. This fee covers the costs associated with the maintenance and support of the gateway module within Shopify, which allows customers to use over 100 external payment gateways. Should a store use Shopify Payments, or move to Shopify Payments, this fee will be waived for any transactions processed during the time Shopify Payments is enabled.
What does all this mean for you?
We recognize that any change to pricing can cause concern, and requires adjustments to planning and budgeting on your part. Our goal during this transition is to provide our customers with a fair and reasonable amount of time to prepare for these changes:
You can consider this letter the official notification of future changes to Shopify Plus pricing.
There will be NO change to your Shopify Plus monthly charges for a period of six (6) months from February 1, 2017, or until the end of the current term of your contract, whichever is longer.
I hope this letter provides more insight into how we got here, and why we are making these changes. I believe it’s important for us to be as transparent with you as possible as we continue to build Shopify Plus. Our goal remains as always to provide you with the best experience possible.
Thank you for your continued support, and here’s to an incredible 2017.
VP & GM of Shopify Plus
- Shopify Plus customers
Halt Shopify Plus' price increase.
David Dietz started this petition with a single signature, and now has 71 supporters. Start a petition today to change something you care about.