Last updated: May 15, 2023
If you are a subscription brand selling on Shopify, you may be hearing a lot of noise about a recent announcement that Shopify made around needing to migrate to Shopify Checkout. If your head is spinning to set the record straight as to what does and does not need to be done as you scroll through the Shopify Help Center and talk with your ecommerce friends, don’t worry, Upscribe is here to help.
Upscribe has developed a list of questions and answers to help set the record straight around the timing of the Shopify mandated migration, as well as clarifying what businesses need to be migrated and how your business may (or may not) be impacted by the migration deadline that they have set.
Browse through our questions and answers below so you can be up-to-date and informed regarding all that you need to know about the Shopify Checkout migration!
I’m a subscription brand that is not on Shopify Checkout, when do I need to migrate to Shopify Checkout?
If you are a brand that currently offers subscriptions, Shopify has set a deadline for you to migrate to Shopify Checkout by October 18, 2024. After this date, subscription apps that are not directly integrated with Shopify Checkout will no longer be able to accept or process subscription orders.
What happens if I don’t migrate to Shopify Checkout by the migration deadline (October 18, 2024)?
If you are a brand that offers subscriptions and you don’t migrate to Shopify Checkout by October 18, 2024, then your store will no longer be able to accept or process subscriptions. This means that if you have existing subscribers, you will no longer be able to process their payments and orders on Shopify and therefore you will lose the revenue from any and all subscribers that you have. You will also subsequently no longer be able to accept any subscription orders from net new customers.
Knowing this, if you are a brand that is not currently on Shopify Checkout, it is essential that you migrate to Shopify Checkout in order to not interrupt your subscribers prior to October 18, 2024.
How do I know if my store needs to migrate to Shopify Checkout?
If your brand currently processes and accepts orders for subscriptions through a payment processor that is not Shopify Checkout, then you need to migrate to Shopify Checkout. This includes checkout solutions like “Recharge Checkout.” Said another way, if your subscription transactions (for both net-new order and for processing existing subscribers) are not running through Shopify Checkout today, then you need to migrate to Shopify Checkout by the deadline.
I’m currently using Recharge Checkout, does this mean that I need to migrate to Shopify Checkout?
Yes. If you are currently using Recharge’s legacy checkout solution, you will need to migrate to Shopify Checkout. You can either work with Recharge to migrate to Shopify Checkout (and the new version of Recharge) or explore other subscription apps that integrate with Shopify Checkout.
What other subscription solutions are available to merchants using a solution that is not on Shopify Checkout?
If you are currently using a subscription app that is not integrated with Shopify Checkout you have a number of options to choose from within the Shopify App store. Upscribe is a retention management solution that helps fast growing Shopify merchants build, grow and scale their subscription and reorder business. Upscribe processes over $800 million in subscription revenue annually from some of the fastest growing Shopify brands such as Athletic Greens and RYZE Superfoods.
Upscribe is built on top of Shopify Checkout meaning that if you use Upscribe to power your subscription business you will be compliant with Shopify’s new mandate. We understand that this deadline may be causing angst and change is always scary, however if you choose to power your subscription business with Upscribe, we aim to make the migration process pain free. We will white-glove migrate and onboard you onto Upscribe, eliminating any stress and extra work on your team’s plate.
I’m a subscription brand that is not currently using Shopify Checkout to run my subscription business and I don’t want to migrate to Shopify checkout. What are my options?
If you are a subscription brand and don’t want to migrate to Shopify Checkout, then you will not be able to accept or process subscriptions for your Shopify business after October 18, 2024 as we outline above. If you don’t want to migrate to Shopify Checkout, but want to continue to offer subscriptions then you will need to find another ecommerce platform (like WooCommerce or BigCommerce as two examples) to power your subscription business.
What is Shopify Checkout?
Shopify Checkout is the native payment gateway that Shopify offers merchants. It is a secure checkout to accept orders and take payments whenever you sell online. After a customer adds products to their cart, they use Shopify Checkout to enter their shipping and billing information before they place their order.
Do I need to pay extra for Shopify Checkout?
No! When you sign up for Shopify and build out your store, Shopify Checkout comes out-of-the-box with your Shopify subscription. You don’t need to worry about engaging with any third party developers or adding an app for Shopify Checkout.
Will Shopify Checkout integrate with other solutions in my tech stack?
Yes! One of the great advantages of using Shopify Checkout is that just like the rest of your Shopify store, it seamlessly integrates with the rest of your tech stack. When your business is running on Shopify Checkout, not only will you be able to integrate with your subscription solution (like Upscribe for example), but you will also be able to easily integrate any other Shopify third party application with it. This will make it more seamless to connect your entire business operation together to make it run more efficiently.
Will Shopify Checkout perform the same or better than my current checkout?
The answer is likely, yes! Shopify is a world-class ecommerce platform that has spent years building out their team and ecommerce checkout solution. As such, Shopify Checkout is one of the reasons as to why over 4 million businesses from over 175 countries around the world trust Shopify to power their business.
Shopify processed close to $200 billion in transactions in 2022, meaning that over $200 billion in revenue was transacted through Shopify Checkout. The sheer volume transacted through Shopify Checkout should tell you what you need to know; it is fast and reliable which should lead to you growing your subscription business once you are migrated to Shopify Checkout.
The faster and more reliable the checkout for your store is, the less likely it is that a customer will abandon your checkout. And based on the facts outlined above, it is clear that Shopify Checkout is both fast and reliable which should make the thought of the migration be a positive for your business.
Does Shopify Checkout accept Shopify Payments?
Yes! Shopify Checkout allows you to accept Shopify Payments out-of-the-box. No integrations or headaches are required in order to enable it on Shopify Checkout.
What are the benefits of using Shopify Payments?
Shopify Payments allows you to accept credit cards and any other form of payment (for example Apple or Google Pay) so you can begin accepting payments instantly. And Shopify Checkout allows you to leverage Shopify Payments, which among other benefits allows you to leverage Shop Pay. Shop Pay helps boost checkout conversion. In one study, it was estimated that Shop Pay has on average a checkout-to-order rate of 1.72X times higher than a regular checkout.
Additionally, when you migrate to Shopify Checkout and subsequently Shopify Payments, all of your orders will be processed by one payment processor. Why is this an advantage? Let’s say that you are selling on Shopify and use a third-party payment processor, like Stripe or Recharge’s hosted checkout to power your subscription business. Under this scenario, you would have to manage two separate payment processors which would be a headache for your finance team because they would need to reconcile two different accounts. When you run your subscription business through Shopify Payments (and Shopify Checkout), then both of your stores’ regular orders and your subscription orders will be processed through a singular payment gateway, making it easier for your teams to keep track of your finances.
You can learn more about the benefits of using Shopify Payments here.
We know that October 18, 2024 may seem like it’s a long way off now, but as we all know, time goes by faster than ever. Upscribe will be happy to white glove migrate and onboard you onto our subscription solutions that integrate directly with Shopify Checkout. It is best to give you and your team time for the migration to happen given how important that the migration is for your subscription business.
Feel free to set up time to chat with our team now so you can learn more about how Upscribe can help you take your subscription business to the next level!