Shopify, our favorite Canuck company viewed by many as Amazon’s main competitor, slashed prices, or, to be more precise, announced that it will no longer tax the first $1 million that a developer makes on its app store.
This is great news for developers on the platform, but truth be told, Amazon and other made this move first, as well as other big tech companies like Google and Apple, i.e. they all cut app store fees for developers before Shopify.
This move is most probably due to lawmakers and regulators scrutinizing big tech companies looking for anticompetitive behaviors.
So, to make a long and boring story nice and sweet, if you’re a Shopify app developer, you will keep 100% of your revenue for your first million bucks, and, best of all, the benchmark will reset each year, which means the next year you’ll start from zero.
Shopify also announced that it is cutting its commission rates for developers who make more than $1 million annually to 15 percent from 20 percent, thus making it easier for developers to change the direction of the future of commerce and make a living doing it.
The new revenue share model is also applied to the Theme Store, which is separated from the Shopify Store. There are also new features available, including the launch of Shopify Online Store 2.0, improvements to Shopify’s headless commerce APIs, and new functionality for Shopify Checkout.