Shopify (NYSE:) has increased the price of its Plus plan, a premium offering aimed at high-volume merchants, Business Insider (BI) reported Thursday.
The increase, representing a 25% increase from $2,000 to $2,500 per month for an annual commitment, follows a previous increase in the company’s base subscription rates last year, an adjustment that benefited Shopify’s financials. Merchants who agree to a three-year term can secure a monthly rate of $2,300.
However, they have until April 24 to lock in existing rates by opting for this longer contract, the report said.
In addition, there will be slight increases to third party transaction fees, variable platform fees for online sales and Shopify Payments rates, as well as a new 0.18% fee for B2B transactions.
“Today’s pricing update allows us to continue to solve the industry’s toughest problems and enable more businesses to realize their full potential, and to do so at the pace necessary to make commerce better for everyone,” a Shopify spokesperson told BI.
Expressing their views on the move, analysts at Moffett Nathanson Research issued a note saying they expect Shopify’s 2024 adjusted operating profit to increase by $120 million following the launch.
That “equates to 7.5% growth from our published estimate of $1.6 billion and 8.5% growth from the $1.4 billion consensus,” the analysts wrote.
“We estimate a 100% increase in AOI profitability given software scalability and changes starting in the second quarter. For simplicity, we separate the impact of price changes into three specific groups,” they added.
Moffett Nathanson maintained a Buy rating on Shopify and reiterated its $82 price target.