What you need to know
- Shopify has lowered its App Store fees to $0 for developers making less than $1 million.
- Developers who make more than $1 million will only pay 15% in fees.
Even Shopify is getting into the App Store commission drops.
As reported by TechCrunch, Shopify has announced that it will drop its commissions on its app store to $0 for developers making less than $1 million on its platform. The company says that the benchmark will also reset annually and that, if they do make over $1 million, Shopify will only charge a 15% fee of revenue over that million-dollar mark.
The same business model will apply to Shopify's Theme Store, which opens to developer submissions July 15.
As the two stores are separate entities, the $1 million revenue share metric applies to each store individually. The new business model will begin on August 1, 2021 and will be made available to developers who register by providing their account details in their partner dashboard.
Shopify says the more developer-friendly business model will mean a drop in company revenue, but says it doesn't expect this impact "to be material" because it will encourage greater innovation and development.
Shopify's move is the latest in a long line of technology companies decreasing fees on its platforms. Last year in November, Apple announced the App Store Small Business Program, a new program that lessened fees for in-app purchases to 15% for developers making less than $1 million in revenue. Apple said that the program applies to about 98% of developers in the App Store.
Apple today announced an industry-leading new developer program to accelerate innovation and help small businesses and independent developers propel their businesses forward with the next generation of groundbreaking apps on the App Store. The new App Store Small Business Program will benefit the vast majority of developers who sell digital goods and services on the store, providing them with a reduced commission on paid apps and in-app purchases. Developers can qualify for the program and a reduced, 15 percent commission if they earned up to $1 million in proceeds during the previous calendar year.
If you're a developer who builds apps on the Shopify app store, today is certainly a good day.