Following similar moves by Apple, Google, and more recently Amazon, among others, e-commerce platform Shopify announced today it’s also lowering

Shopify drops its App Store commissions to 0% on developers’ first million in revenue

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2021-06-29 18:30:04

Following similar moves by Apple, Google, and more recently Amazon, among others, e-commerce platform Shopify announced today it’s also lowering its cut of developer revenue across its app marketplace, the Shopify App Store, as well as the new Shopify Theme Store. The news was announced today alongside a host of other developer-related news and updates for the Shopify platform at the company’s Unite 2021 Conference, including updates to Checkout, APIs, developer tooling and frameworks, among other things.

Shopify says its app developer partners earned $233 million in 2020 alone, more than 2018 and 2019 combined — an increase that can likely be attributed, in part, to the COVID-19 pandemic and the rapid shift to e-commerce that resulted. Today, there are over 6,000 publicly available apps across the Shopify App Store, and on average, a merchant will use around six apps to run their business.

Now, Shopify says it will drop its commissions on app developer revenue to 0%, down from 20%, for developers who make less than $1 million annually on its platform. This benchmark will also reset annually, giving developers — and, particularly those on the cusp of $1 million — more earning potential. And when Shopify’s revenue share kicks in, it will now only be 15% of “marginal” revenue. That means developers will pay 15% only on revenue they make that’s over the $1 million mark.