Annual subscription plans help merchants plan the whole year and get a better deal based on the longer timeframe.
However, there is are key differences between Shopify's 30-days and Annual plans.
Annual plans do not allow charges;
Moving from an Annual to a monthly plan, the merchant needs to wait Annual plan to expire.
With that we need to say that:
Any time, the merchant can update from one Annual plan to another Annual plan, similar to monthly plans;
Pro-rate is used when merchant moves from 30-days to Annual plans, as well as between Annual to Annual plans.
With those things, the most important piece is that you need to know that if you move back to a monthly plan, it will start only after the Annual expire. And because of that, there is no pro-rate applied.
Frequently Asked Questions
I'm on an Annual plan and my shipment quota is depleted, what now?
You can always subscribe to a higher Annual plan, and your subscription will be pro-rated, so you do not need to be worried if you did not make the right choice.
Why charge limit is not allowed on Annual plans?
This is a limitation forced by Shopify to Annual subscription plans.
Why I cannot move to a 30-day plan in the middle of the Annual subscription?
This is a limitation forced by Shopify again. Monthly plans can start only after the Annual expire.
How do I know that I'm on an Annual plan?
During Approval of subscription, you will see that Billing states "Recurring yearly", as shown below:
As well as once you receive an email, you will see that the Charge amount states