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Shopify’s Starter Plan Pricing Experiment

Shopify’s Starter Plan Pricing Experiment

Experimenting with pricing to boost market share.

Experimenting with pricing to boost market share.

Rob Litterst recently shared this interesting pricing experiment he spotted at Shopify. They’ve been testing price points on their Starter plan — their lowest tier used by merchants that need a simple way to start selling without needing a full store. Rob made a great point that FREE would be an option worth exploring. Since 70% of Shopify’s revenue comes from transaction fees, having a free plan would allow them to capture market share while still monetizing. A/B testing price points can be tricky, especially when customers get talking. But for low-ticket products with lots of web traffic, it’s a great way to rapidly test different price points and see which converts best.

Example

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