What is a yearly subscription in Shopify?

A subscription plan billed once per year, typically at a discount vs. monthly, via apps like Recharge.

Should I offer yearly subscriptions?

Often yes — upfront revenue, lower churn, and higher LTV. Offer alongside monthly.

How much discount for yearly?

Typically 15-25% off the monthly price — enough to motivate, not too much to lose revenue.

How do I set up yearly subscriptions?

Use a subscription app like Recharge — it handles yearly billing and renewals.

Do yearly subscriptions reduce churn?

Yes — customers commit for a year, so churn is lower than monthly plans.

Glossary Term

Y

Yearly Subscription

A subscription billed annually — higher upfront revenue and lower churn.

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Key Takeaways
A Yearly Subscription is billed once per year.
It offers a discount vs. monthly in exchange for upfront payment.
It's offered via subscription apps like Recharge.
It boosts upfront revenue and lowers churn.
It's a subscription and revenue tool.

Overview

A Yearly Subscription is a subscription plan billed once per year, rather than monthly. On Shopify, yearly subscriptions are offered via subscription apps like Recharge — for products, services, or memberships. Yearly plans offer a discount vs. monthly in exchange for upfront payment.

Yearly subscriptions boost revenue and retention. A yearly plan means upfront revenue (cash flow), lower churn (customers commit for a year), and less billing overhead. For customers, a discount vs. monthly; for merchants, stable revenue and higher lifetime value.

Yearly subscriptions pair with subscription models (the broader concept), recurring orders (the mechanism), and Recharge Shopify integration (a tool). They're a subscription and revenue tool.

1

Why Yearly Subscriptions Matter for Shopify Merchants

1
Upfront Revenue
Yearly plans mean upfront payment — better cash flow.
2
Lower Churn
Customers commit for a year — lower churn than monthly.
3
Higher LTV
Yearly subscribers have higher lifetime value — committed longer.
4
Less Overhead
One billing per year vs. twelve — less billing overhead.
5
Customer Commitment
Yearly plans mean committed customers — deeper relationship.

2

Offering Yearly Subscriptions

1
Offer a discount
Offer yearly at a discount vs. monthly — typically 15-25% savings.
2
Use a subscription app
Use Recharge or similar to manage yearly plans.
3
Highlight savings
Show customers the savings — 'save 20% with yearly' — motivates.
4
Offer both options
Offer monthly and yearly — let customers choose their commitment.
5
Test pricing
Test the yearly discount — find the sweet spot for conversions and revenue.