Amazon Rival Shopify Just Cut its App Store Fees for Developers

E-commerce platform hosting service Shopify, one of Amazon’s direct competitors, has slashed its app store fees for developers on first $1 million in revenue.

The company made the announcement this week at its annual conference for developers, Shopify Unite, revealing it would no longer take a cut of the first million dollars a developer makes on its app store.

Apple, Google, Microsoft, Amazon and others have also reduced app store fees for some developers.

Shopify said that developers will keep 100% of their revenue from the first $1 million they make on Shopify’s app store, starting Aug. 1. The benchmark will reset each year, the company said.

“The internet is the world’s largest city, and Shopify is building its commerce infrastructure,” said Tobi Lütke, CEO of Shopify. “Especially over the past year, we saw independent businesses succeed by showing up creatively and uniquely in this city. The future of commerce on the internet relies on creative expression at every touch point. Together with developers, we are building the infrastructure to make this possible.”

During a presentation, Shopify President Harley Finkelstein said the company is also cutting its commission rates for developers who make more than $1 million annually to 15% from 20%.

That’s “half of what other popular app stores cost,” Finkelstein explained.

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

The same 0% revenue sharing model will also apply to developers on Shopify’s Theme Store.

In 2020, more than 450 million people checked out on Shopify, and the company processed nearly $120 billion in Gross Merchandise Volume (GMV). As the world’s commerce platform, Shopify keeps innovating to give entrepreneurs endless possibilities to creatively present their brands and grow their businesses.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article