Shopify announces app store commission cut for developers’ first $1M annual revenue

Shopify
Shopify-drops-its-App-Store-commissions-to-0%(source: SaaS Industry)
At a Glance

Cloud-based multi-channel commerce platform Shopify has brought down app store commission rates to zero for developers making their first $1M in revenue. Commission rates are cut for other developers (earning over $1M/year) as well, from 20 to 15 percent. This new revenue share model is extended to Theme Store developers as well.


Cloud-based multi-channel commerce platform Shopify has announced its new revenue share model that allows developers making less than $1 million annually on its platform to keep a hundred percent of their revenue from August 1 this year.

In a series of announcements made during its annual conference for developers, Shopify Unite, Harley Finkelstein, president of Shopify, stated that the company would also cut its commission rates from the current 20 percent to 15 percent for developers making more than $1 million per year. 

Recently, companies like Amazon and Microsoft had announced their commission cut for developers. Shopify stressed that the announced benchmark ($1 million) would be reset every year to increase the earning potential of developers.

“Shopify is the best place for developers to build, grow, and scale their businesses–and it just got even better. Introducing our developer-first business model: 0% revenue share for the first $1M in annual revenue on the Shopify App Store and the Shopify Theme Store,“

Shopify said in a press release.

The new revenue share model would also be extended to Theme Store developers, as over 1.7 million customers use Shopify themes. Shopify enunciated that more themes imply more opportunities for merchants to showcase their brands and strengthen connections with consumers.

“Commerce is rapidly evolving for merchants all over the globe. These updates mean more merchants will have their diverse needs met through a larger selection of apps and themes, and developers will have more entrepreneurial opportunities than ever before,“

Shopify said.
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