Shopify cuts app store fees for developers with first $ 1 million in revenue

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

Chris Wattie | Reuters

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

Developers will keep 100% of their revenue from the first $ 1 million they earn on the Shopify app store, starting August 1. The benchmark will be reset each year, the company said.

Shopify is following in the footsteps of other tech giants like Microsoft, Apple, Google, and Amazon, who have recently cut fees for some developers. Developers have objected to the high fees they have to pay to platform operators. Those complaints have triggered antitrust lawsuits and investigations.

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

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

“We are making it easy for you to change the direction of the future of commerce and 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 designs and is separate from the Shopify app store.

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