Shopify lowers app developers fees on first $1m in revenue

Shopify has announced it is lowering the share of revenue it collects from developers that publish apps on its own App Store.

The ecommerce platform will allow app developers to keep 100 per cent of their revenue from the first $1 million they make, the benchmark will then reset each year.

Shopify joins tech giants Microsoft, Apple, Google and Amazon in lowering the fees for developers after there were objections over the price of commissions developers are subject to pay platform operators.

The complaints prompted lawsuits and investigations into possible antitrust violations.

Shopify president Harley Finkelstein said during the company’s Shopify Unite presentation that the platform will cut the commission rates for its developers who make more than $1 million annually from 20 per cent to 15 per cent.

READ MORE: Shopify generated over 100,000 jobs in the UK last year

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

Shopify will use the same 0 per cent revenue model which for developers on the platform’s Theme Store, which is used for custom website designs.

Shopify has expanded its ecommerce operations in recent months, announcing extended deals with Google, Square and WooCommerce.

Google announced in May over 1.7 million merchants using Shopify’s platform will now be able to sell products more easily on Google search, Maps and YouTube, while launching the integration of Shopify’s payment function Shop Pay as an option for consumers.

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