Shopify Entrepreneur Weekly

Welcome to your weekly newsletter! This week, there’s been a lot of buzz about the Klaviyo price hike. We’ve put together a simple breakdown of what to expect, plus tips on how to manage and save money. By the way, are you thinking about switching away from Klaviyo? Let us know!

In this week's newsletter:

• Klaviyo pricing update: What it means for you & how to save money!

• What's new with our app partners

• Ecommerce news and updates

• Pic of the week

🚨 Klaviyo pricing update: What it means for you & how to save money!

Starting February 18, 2025, Klaviyo will roll out significant pricing changes that may increase costs for many businesses—especially subscription-based brands and those with slower purchase cycles. Here’s everything you need to know and how to navigate the update effectively.

What’s changing?

1️⃣ Active profiles now determine pricing:

Klaviyo will now base pricing on all active profiles in your database, rather than just emailed contacts. This includes anyone who interacts with your site, even if you don’t email them regularly.

2️⃣ Automatic upgrades & downgrades:

• Plans will auto-upgrade if your active profiles exceed your current plan limit, helping accommodate growth but potentially increasing costs.

• If your active profiles drop below the threshold, your plan will auto-downgrade at the start of the next billing cycle.

3️⃣ Discount for existing customers:

To ease the transition, existing customers will receive a discount that caps email plan cost increases at 25% until they downgrade their plan or their active profiles stabilize.

Who will be affected most?

• Subscription brands: With many active profiles but infrequent email campaigns, these brands may see significant increases.

• Brands with longer purchase cycles: Companies emailing less frequently could feel the pinch as costs rise while engagement remains steady.

How to manage the impact:

💡 Option 1: Optimize your use of Klaviyo

• Clean your list:

• Suppress inactive profiles—those who haven’t purchased, visited your site, or engaged with emails in the last 6+ months.

• Set up a sunset flow to automate this process for future inactive profiles.

• Review and clean your database quarterly to maintain a lean, engaged audience.

• Segment smarter:

• Group subscribers by engagement, purchase behavior, or preferences to send targeted, relevant campaigns.

• This improves ROI and helps you make the most of your email spend.

• Re-engage before removing:

• Launch targeted campaigns offering value or asking if subscribers want to remain on your list. If they don’t engage, consider suppressing them.

• Review your integrations:

• Ensure you’re fully utilizing Klaviyo’s integrations and features like predictive analytics, dynamic segments, and multi-channel campaigns.

💡 Option 2: Switch to another platform

While switching providers is a big decision, it might be worth exploring platforms with pay-as-you-go models or those offering pricing better suited to your business. However, consider the potential opportunity costs of migrating versus maximizing Klaviyo’s existing tools.

How shopexperts can help you

At shopexperts, we specialize in helping businesses adapt to changes like these:

✅ Optimize your Klaviyo setup: We’ll clean your list, implement advanced segmentation, and set up automations to ensure you’re using the platform to its fullest.

✅ Seamless migration support: If Klaviyo no longer fits your needs, we’ll guide you through a smooth transition to a new platform, minimizing disruption to your business.

Take action now

Don’t let rising costs slow you down! Create a new project and describe your challenge—whether it’s maximizing Klaviyo or finding a better fit. Our experts are here to help you save money and thrive. 🚀

What's new with our app partners

❇️ FastBundle shares often overlooked feature on their new video: Volume Discount.
This video provides a quick walkthrough into how this functionality can benefit a Shopify store.

By the way you can get 25% off all FastBundle plans for the first 3 months with this code:

shopexperts25for3

❇️ Judge.me announced a new product update with Shopify to celebrate their Customer Accounts Extension launch! Customers can now leave reviews with Judge.me directly from their Shopify Customer Accounts, including the Orders page, Order Status page, and View My Reviews page. Simplifying reviews helps you highlight the best ones, build trust, and drive repeat purchases!

Ecommerce news and updates

Shopify has launched the Partner Solutions Center, offering pre-built solutions from partners like Accenture and Deloitte to address the complex needs of Enterprise merchants. This initiative aims to help businesses quickly implement new commerce capabilities, similar to how the Shopify App Marketplace supports SMBs.

Shopify acquired the domains shop.ca and shop.us from Emerge Commerce for $375k USD. Emerge, a Toronto-based e-commerce aggregator, originally used the domains for a coupon and shopping guide platform but decided to sell them due to lack of revenue. The domains now redirect to Shopify's Shop App.

Amazon has introduced the Amazon Ad Retail Service, allowing US multi-brand retailers to use its ad tech for managing product ads on their platforms. Leveraging machine learning, it offers targeted ads, customization, and AWS-based security. However, critics highlight risks of driving advertisers and customers toward Amazon, potentially undermining retailers' own platforms. The service is in beta with brands like iHerb and Tilly’s.

Meta is ending its fact-checking program on platforms like Facebook, replacing it with "Community Notes" to reduce censorship errors and promote free expression. While some support the change, critics warn it may increase misinformation. The program will still operate in the EU due to stricter regulations.

eBay has partnered with Meta to display eBay listings on Facebook Marketplace in the US, Germany, and France. This follows the EU's decision to fine Meta €797.72M in 2024 for antitrust violations related to Facebook Marketplace.

Amazon is ending its "Try Before You Buy" program in January, which let customers try items at home and return unwanted ones for free. The company is shifting focus to AI-powered features like virtual try-on, personalized size recommendations, and enhanced size charts to help customers find the right fit.

Photo of the week

McDonald’s and graniph team up for their fourth collaboration, unveiling a new collection inspired by iconic menu items and characters. The lineup includes seven pieces, such as a tracksuit with french fry details, T-shirts, a long-sleeved top, an embroidered hoodie, and a tote bag styled like a McDonald’s takeout bag. Pre-orders are open now, with the collection releasing on January 21.

That's it for today!

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