How to Know When to Upgrade Your Squarespace Plan: Business vs Commerce

How to Know When to Upgrade Your Squarespace Plan: Business vs Commerce

By Michael Turner

January 14, 2025 at 11:33 PM

Commerce transaction fees can significantly impact your bottom line. Upgrading from a Business to Commerce Basic plan eliminates these fees and becomes cost-effective once your annual sales exceed $1,600 USD (approximately $130 monthly).

Consider upgrading to Commerce Basic when you:

  • Generate over $3,200 USD in annual revenue
  • Need professional analytics tools
  • Want to track sales by product
  • Require purchase funnel analysis
  • Need advanced store management features

Upgrade to Commerce Advanced if you:

  • Want to sell subscription products
  • Need complex shipping options
  • Require advanced marketing features like:
    • Abandoned checkout recovery
    • Automatic discounts
    • Advanced promotional tools

Cost Comparison:

  • Business Plan: 3% transaction fee on all sales
  • Commerce Basic: $48 USD more annually than Business plan, but no transaction fees
  • Break-even point: $1,600 annual sales

To calculate potential savings:

  1. Add up your annual sales
  2. Calculate 3% of total sales (current transaction fees)
  3. Compare this amount to the plan price difference ($48 USD)
  4. If transaction fees exceed $48, upgrading saves money

All plans include core features like:

  • Custom domain connection
  • SSL security
  • Mobile optimization
  • 24/7 customer support

You can upgrade at any time and pay a prorated amount based on your current plan's remaining time. Your site automatically transfers to the new plan with all content intact.

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