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Part 8 of 10 in Starting a Shopify store: the money side.
Two apps do the same job. One costs $19 a month. The other charges 5 cents an order. Which is cheaper depends on one number: how many orders you have.
The three models
| Model | You pay | Good when | Watch out for |
|---|---|---|---|
| Flat monthly fee | The same every month, often by plan tier | Steady, high volume | Paying full price in slow months; tiers that force an upgrade for one feature |
| Usage-based | Per order, per message, per response | Low or seasonal volume | No cap, or a cap set higher than you’d ever want |
| Revenue-based tiers | A tier based on revenue the app attributes to itself | You trust how it measures | The app decides what counts as “its” revenue |
Many apps mix these: a free tier up to some volume, then a monthly fee, or a monthly fee plus usage above a limit.
Find the break-even volume
Break-even = monthly fee ÷ price per use
For the example above: $19 ÷ $0.05 = 380 orders a month. Below 380 orders, the per-order app is cheaper. Above it, the flat one is.
Now add the details that move the line:
- A free allowance. If the usage app’s first 100 orders a month are free, the break-even becomes 380 + 100 = 480 orders.
- A cap. If usage charges are capped at $15 a month, the usage app is never more expensive than $15, so it’s cheaper at every volume.
- Only some orders count. An app that charges only for orders where it actually did something (a discount applied, a rule matched) costs less than one that charges for every order.
- Yearly discounts. A flat plan paid yearly is often about 20 to 25% cheaper per month, which pulls the break-even down.
A revenue-based example
Revenue-based tiers are common in discount and bundle apps. As one public example: Pumper Bundles’ App Store listing, checked November 14, 2026, offers a free plan up to $300 of extra revenue, then $9.99, $29.99 and $49.99 a month for up to $1,000, up to $5,000 and unlimited extra revenue.
Two questions decide whether that’s good value for you:
- How is “extra revenue” measured? Usually as the revenue of orders that used the app’s offer, which includes sales you’d have made anyway.
- Where are you in the tier? At $1,100 of attributed revenue you pay the $29.99 tier, the same as a store at $5,000.
Neither makes it a bad deal. It just means comparing on your real numbers, not on the plan names.
How Shopify protects you on usage pricing
Usage charges through Shopify billing need a spending limit you approve. Once an app reaches it, it can’t charge more in that 30-day cycle. Read the limit on the approval screen, and set it where you’d be comfortable in your busiest month. More on how app billing works.
Our own position, for the record
We make Shopify apps, and they’re free during launch. If that changes, Shopify will ask you to approve any price before anything is charged, and it’ll be listed on each app’s page. When it happens, use the math above on our apps too.
Next in the series: free Shopify apps: what’s the catch?
Questions people ask
Is usage-based pricing always cheaper for small stores?
Usually, but not always. If the per-use price is high or there's no cap, a busy month can cost more than a flat plan. Work out the break-even volume and compare it with your real numbers.
What is revenue-based app pricing?
Some apps set the plan by how much extra revenue they say they generated for you, for example free up to a few hundred dollars, then higher tiers. Check how the app measures that revenue, since that number decides your bill.
Can a usage-based app charge me an unlimited amount?
Not through Shopify billing. Usage charges need a spending limit you approve, and once it's reached the app can't charge more until the next 30-day cycle.