Shopify Cuts App Store Fees For Developers On $ 1 Million In Revenue

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An employee works at Shopify’s head office in Ottawa, Ontario, Canada.

Chris Wattie | Reuters

Shopify, the e-commerce platform businesses can use to host online stores, announced Tuesday that it is reducing the share of revenue it receives from developers who publish apps to its app store.

Developers will keep 100% of their earnings from the first million dollars they earn on the Shopify App Store, starting August 1. The benchmark will be reset every year, the company said.

Shopify is following in the footsteps of other tech giants like Microsoft, Apple, Google, and Amazon, which recently cut fees for some developers. The developers objected to the high commissions they are required to pay platform operators. These complaints sparked prosecutions and antitrust investigations.

Shopify made the announcement at its annual developer conference, Shopify Unite, which ended on Tuesday.

In a presentation, Shopify president Harley Finkelstein said the company is also lowering its commission rates for developers who earn more than $ 1 million per year, from 20% to 15%. That’s “half of what other popular app stores cost,” Finkelstein said.

“We make it easier for you to change the direction of the future of commerce and to make a living doing it,” said Finkelstein.

The same 0% revenue sharing model will also apply to developers on the Shopify theme store, which is an online platform for custom website design and separate from the Shopify app store.


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