Another year, another Klaviyo pricing increase—but this one’s hitting harder. If you’ve been using Klaviyo for a long time for your business, brace yourself.
For e-commerce businesses relying on Klaviyo for email and SMS marketing, the latest increase is more than just an annoyance; they’re a game-changer. But not in the way you might hope.
Let’s break it all down. I’ll walk you through the changes, what they mean for your business, and why it might be time to explore better alternatives that won’t break the bank.
The 2025 Klaviyo Pricing Increase: What’s Happening?
Klaviyo’s pricing model has shifted dramatically over the past year, and the latest update in January 2025 is leaving many “legacy” users frustrated.
April 2024: Klaviyo moved from a send volume-based pricing structure to one based on the total number of contacts in a user account. This meant the user would be charged for every single contact, active or not.
Jan 2025: Klaviyo announced an automatic upgrade based on “active profile count” starting 18 February 2025.
With Klaviyo pricing increase, if your active profiles cross the plan limit, your plan will be automatically upgraded to the next pricing tier. This happens even if your total list size hasn’t changed significantly.
For example, let’s say you have 5,000 active profiles in January. If that number creeps up to 5,001, you could find yourself bumped to a higher-tier plan without warning. A user on social media says,
“[…] with the new enforced plans, there’s no way to be billed based on email sends! I didn’t think it was transparent to what is happening.”
How Will This Affect Your Business?
Many users and business owners have voiced concerns about the lack of communication around these changes.
“I am currently actively moving off Klaviyo. I haven’t made use of its core features well enough to justify the price.” one user noted.
1. Enforced Pricing Increase
Imagine receiving your monthly invoice and realizing it’s 25% higher than last month—but nothing about your strategy has changed. That’s exactly what you can expect with this new Klaviyo pricing increase.
This new Klaviyo pricing increase will go into effect in February 2025. After that user accounts going beyond the new limits will be auto-upgraded. The users who don’t clean up their email list before the deadline are in for an unpleasant surprise.
2. Hitting Growing Businesses Hard
For startups and small e-commerce stores, this Klaviyo pricing increase is especially harsh. As your business grows and your email list expands, you’ll find yourself paying more and more. Whether or not only a fraction of your audience engages with your emails and SMS campaigns.
Seasonal businesses, in particular, are at risk. Let’s say your list grows during the holiday season but shrinks in the off-season. With the new Klaviyo pricing increase, you’ll pay for that holiday growth all year round.
The Hidden Costs of Klaviyo’s New Pricing Model
Klaviyo’s “active profile count” includes any user who can be emailed through the platform. It means both subscribers and email addresses of people who never subscribed.
Effectively, you’re paying for profiles who haven’t consented to receive your emails and subscribers have never opened your emails.
For example, a business with 10,000 contacts might only engage 6,000 regularly. But they’ll still pay for all 10,000 contacts regardless of their engagement rate.
No Room for Flexibility
Automatic upgrades remove your ability to control costs unless you’re spending hours cleaning your email list at least every month.
If you’re a small business trying to manage a tight budget, this lack of flexibility can wreak havoc on your financial planning.
Is It Time to Look for Klaviyo Alternatives?
You’re not alone in thinking about switching. Businesses need platforms that align with their budgets and growth goals, not ones that penalize them for success.
If you can look past the enforced Klaviyo pricing increase, you may try cleaning up your email list more frequently to minimize costs. That strategy rarely works if you’re working with limited resources.
But if you’re looking for a permanent solution, start looking for affordable and better Klaviyo alternatives like TargetBay.
Practical Steps If You’re Considering Switching
Explore Alternatives
Look for better Klaviyo alternatives that are also affordable or at least have fair pricing plans. TargetBay offers competitive pricing, with robust features and automation. Compare options to see what fits your needs.
Audit Your Current Costs
Take a close look at your invoices over the past year. Project your expense with this price increase and compare it with the alternative.
Plan a Seamless Migration
Start early to ensure a smooth transition. TargetBay offers handholding guidance with dedicated support for seamless migration.
A Final Thought
Your business deserves a marketing partner that grows with you, not one that surprises you with higher costs at every turn. The 2025 Klaviyo pricing increase is a wake-up call for eCommerce marketers to reevaluate their tools and strategies.
Don’t let these changes derail your growth. Ready to explore an alternative?
Try TargetBay Email & SMS today to help your business grow without breaking the bank.
