I stayed on Basic way too long because I didn't realise the transaction fees were eating into margins. Once I did the math, upgrading to Shopify paid for itself in the first month just from fee savings.
FAQ
When should I upgrade from Basic to Grow?
Upgrade when your annual sales reach the break-even point for your region and payment setup. For US merchants using Shopify Payments, that's around $200,000 USD annually. If you're not using Shopify Payments, the threshold drops to $60,000 USD annually. You may also need to upgrade earlier if you require more than zero additional staff accounts or need advanced reporting.
Can I start with the Advanced plan as a new store?
Yes, but it usually doesn't make financial sense. The Advanced plan's main benefit is lower transaction fees, which only save money at high sales volumes. If you're launching a new store, start with Basic and upgrade once your sales justify the cost difference.
What happens to my store if I downgrade my plan?
Your store continues operating, but you may lose access to features included in higher-tier plans. For example, if you downgrade from Grow to Basic, you'll lose advanced reports and additional staff accounts. Any staff accounts beyond the Basic plan limit will be deactivated. Review what you'll lose before downgrading.
Do transaction fees apply to all sales or just online orders?
Transaction fees apply to all sales processed through Shopify, including online orders, POS transactions, and sales through other channels. The fees are the same regardless of where the transaction originates. This is why break-even calculations are based on total sales volume, not just online revenue.
Is Shopify Payments required to get the best rates?
No, but it gives you the lowest overall fees. If you use a third-party payment provider, Shopify charges an additional transaction fee on top of your payment processor's fees. This makes the total cost higher and lowers the break-even point for upgrading. Compare your total processing costs with and without Shopify Payments before deciding.
Shopify Payments is not currently available in India. Indian merchants will incur the third-party transaction fee in addition to their payment provider's fees, making the break-even calculation for upgrading plans especially important to run.
