app subscription update

[nikhitha]

Hi, we've developed an app called 'Some Test App' and implemented a subscription plan for users. For instance, when a merchant installs our app, they can choose a plan that suits their needs. Now, if a merchant wishes to change their plan after a few days, where can they do this? Should we provide the option for plan updates within our app or through the Shopify platform? I need clarification on whether the option to update the plan should be available before login, after login to our app, or in another section.

[Liam · Accepted solution]

Hi Nikhitha,

Merchants should be able to upgrade or downgrade their plan from within your app. As a developer, you should provide a clear, easy-to-use interface within your app for managing subscriptions which should include options for upgrades, downgrades, pauses, cancellations, and product changes. This interface needs to be accessible after a merchant has logged in to your app. When a merchant upgrades or downgrades your app, the old subscription is canceled and replaced with a new subscription. The new subscription takes the same 30-day app billing cycle as the previous purchase. This also applies when a merchant uninstalls or reinstalls an app.

Hope this helps!

[Perumaljii]

cool, I have one question,,

1. The merchant initially subscribes to the $30 per month plan on January 1st.
2. They decide to upgrade to the $50 per month plan on January 15th, halfway through the billing cycle.
3.  I manually cancel the $30 plan through the cancellation subscription API(https://shopify.dev/docs/api/admin-graphql/2024-01/mutations/appSubscriptionCancel) on January 15th when the plan was updated.

Now, there are a couple of possibilities:

a) Prorated Charge: Shopify might prorate the charge for the remaining period of the month. In this case, the merchant would be charged a portion of the $50 plan for the remaining 15 days of the month. Let's say the prorated charge is $25. So, they would pay $25 for the remaining period of January.

b) Full Charge: Alternatively, Shopify might charge the full $50 for the upgraded plan immediately upon upgrade, regardless of when in the billing cycle the upgrade occurred.

what happened in this scenario?

[demianardus]

Hey!

We are facing the same scenario you did here, can you let me know if you found out an answer for this or which approach you took? 

Thanks!