Upgrading from Squarespace Business to Commerce Plans
TL;DR:
- Upgrade when your annual sales hit $3,200 USD or more to save money on transaction fees
- Commerce Basic removes the 3% transaction fee and adds better analytics
- Commerce Advanced includes subscriptions and advanced marketing tools
- You can upgrade anytime with prorated billing based on what you've already paid
- Check your sales figures against potential savings before making the switch
The decision to upgrade from Squarespace's Business plan to a Commerce plan comes down to numbers and needs. If you're selling products and hitting decent sales volumes, or if you need features that only Commerce plans offer, it's time to crunch the numbers.
When Commerce Basic Makes Sense
The biggest reason to upgrade to Commerce Basic is the 3% transaction fee that comes with the Business plan. Once your annual sales reach $3,200 USD, you're paying $96 per year in transaction fees. Since Commerce Basic costs $216 per year compared to Business at $144, you're looking at a $72 annual difference in plan costs.
Here's the simple math: if you're selling more than $3,200 worth of products annually, Commerce Basic pays for itself through eliminated transaction fees. Beyond that point, you're actually saving money while getting better features.
Commerce Basic also gives you proper e-commerce analytics. You'll see sales by product, purchase funnel insights, and customer behavior data that the Business plan doesn't provide. This information becomes valuable when you're trying to understand what's working and what isn't.
Moving Up to Commerce Advanced
Commerce Advanced makes sense when you need specific features that Commerce Basic doesn't offer. The main reasons to consider this upgrade include:
Subscription products – If you want to sell recurring subscriptions or memberships, Commerce Advanced is your only option. This feature alone can justify the upgrade cost if subscriptions fit your business model.
Advanced marketing tools – You get abandoned checkout recovery emails, automatic discounts, and more sophisticated promotional tools. These features can directly impact your conversion rates and average order values.
Complex shipping needs – Advanced shipping calculations and options become available, which matter if you're shipping different product types or to multiple regions with varying rates.
The key question is whether these features will generate enough additional revenue to cover the higher plan cost. For many businesses, abandoned checkout recovery alone can boost sales by 5-10%.
Timing Your Upgrade
You can upgrade your Squarespace plan anytime, and billing gets prorated based on what you've already paid in your current billing cycle. This means you don't need to wait for your renewal date.
The best time to upgrade is when the numbers clearly support it. Track your monthly sales for a few months, then project your annual revenue. If you're consistently hitting numbers that make the upgrade financially worthwhile, make the switch.
Don't upgrade just because you think you should. Upgrade when it makes financial sense or when you genuinely need features that your current plan doesn't offer.
FAQs
Can I upgrade my Squarespace plan at any time?
Yes, you can upgrade anytime. Squarespace adjusts your billing based on what you've already paid in your current billing cycle.
What happens to my transaction fees when I upgrade to Commerce Basic?
The 3% transaction fee from the Business plan disappears completely. You'll only pay standard payment processing fees from your payment processor.
Do I need Commerce Advanced if I'm just selling physical products?
Not necessarily. Commerce Basic handles physical products well. You only need Advanced if you want subscriptions, advanced marketing tools, or complex shipping options.
How do I know if the upgrade will save me money?
Calculate 3% of your annual sales. If that amount is more than the difference in plan costs (about $72 per year between Business and Commerce Basic), you'll save money by upgrading.
Jargon Buster
Commerce Plan – Squarespace's e-commerce focused subscription plans with enhanced selling features
Prorated Billing – Billing adjustment based on how much time is left in your current billing cycle
Transaction Fees – Percentage fees charged on each sale, separate from payment processing fees
Abandoned Checkout Recovery – Automated emails sent to customers who added items to cart but didn't complete their purchase
Subscription Products – Products that customers pay for on a recurring basis (monthly, yearly, etc.)
Wrap-up
Upgrading your Squarespace plan should be a numbers-driven decision. If you're selling enough to justify the cost difference, or if you need specific features only available in Commerce plans, the upgrade makes sense. The $3,200 annual sales threshold is your guideline for Commerce Basic, while Commerce Advanced depends on whether you need its specific features.
Don't overthink it. Run the numbers, consider what features you actually need, and make the decision that supports your business growth without overspending on features you won't use.
Ready to take your Squarespace skills further? Join Pixelhaze Academy for in-depth tutorials and expert guidance.