How to price your Shopify app?
When I was starting off with my Shopify app nearly 3 years ago, I was thinking "Oh, it would be great to get $5 a month." In fact, at the time this was the most common price in the app store, at least checking a few popular apps.
After a while, coming across the "charge more" advice here and there, I was considering increasing my app's pricing. I was timidly and carefully testing $5.99 or $6.99.😬What convinced me to finally rise the price to $9 and introduce a higher tier was the moment when I saw an overall view of the entire Shopify App Store. I collected prices of all apps and calculated the median and average price. Seeing that other developers already increased their prices helped me justify my increase. Well, maybe it's not the best pricing strategy, but it definitely helped to increase my revenue.
So now, I'm sharing with you what's the current state of the Shopify App Store in terms of pricing.
The first-tier plan's median price is still $9, followed by $25 for the second-tier. Then goes $49.99 and $89.99 for higher tiers.
Average prices are even higher.
It's interesting to see how median and average prices vary significantly across categories.
By the way, it's astonishing that the Trust and Security category is valued the least. 🤷♂️
You can check the interactive report here: https://datastudio.google.com/reporting/c9f857a3-31e8-472e-968f-1c6ef70314fd/page/q46mB
How do you price your Shopify apps?
Are there any other metrics or charts that you would want to see?
Thanks for the report! Amazing!
I'm happy you liked it. 😊
Interesting report. I started out developing Shopify apps years ago and remember it as being very, very easy to start a 5-6 figure SAAS. Nobody really talked about it because it might bring in competition. 👏 Thanks on bringing your analysis!
The sentiment these days is that competition and race to the bottom have made the App Store quite hard to start now. Not following the ecosystem as much as I used to, but is that still the feeling for Shopify partners?
Thanks Simon! You're right that the competition is nowadays high in the Shopify App Store. There are multiple apps solving the same problem. However, I wouldn't call it race to the bottom. Probably new developers try to compete with lower prices, but the average prices have been maintained or even slightly increased over the last 2-3 years.
You are also right, that those who started early had a big advantage. See: https://www.indiehackers.com/post/100k-mo-from-4-shopify-apps-solo-not-me-9ab6034f5c