Amazon offers more revenue to developers in Appstore

Amazon announced it will be reducing its commission in Appstore revenue starting in Q4 — enabling small developers to earn more income.
Amazon.com musicAmazon, the leading e-commerce and retail company based in the US, said it is increasing developer revenue share and adding Amazon Web Services (AWS) credit options for developers that earned less than $1 million in revenue in the previous calendar year.

This will bring total program benefits up to an equivalent of 90 percent of revenue.

“When the program launches, all qualifying small developers will receive an 80-20 revenue share by default. Additionally, we will provide AWS promotional credits in an amount equivalent to 10 percent of revenue, so that developers can take advantage of the benefits of building on the cloud,” Palanidaran Chidambaram, Director of Amazon Appstore.

If an eligible developer’s revenue exceeds $1 million in the current year, they will revert to the standard royalty rate and no longer receive AWS credits for the rest of that year.

If a developer’s revenue falls below $1 million in a future year, the developer will be eligible in the next calendar year.

Appstore Small Business Accelerator Program will enable app developers to build a scalable business by reducing cloud infrastructure costs, while also offering better revenue share to help them get started on their own day one.

AWS gives developers easy access to a broad range of technologies so they can innovate faster and build nearly anything they can imagine.

Over 94 percent of mobile developers indicated they use cloud services in their application development efforts.

With AWS, developers can access more than 200 fully featured services so that they can spend less time managing infrastructure and can focus more attention on customer feedback and growing their app businesses, the company said.

Google in March announced to reduce the service fee to 15 percent for all developers globally including in India on in-app purchases on Play Store from July 1 this year.

Google said it will levy a 15 percent rate on in-app purchases to all developers for annual sales up to $1 million and take a 30 percent commission from revenues over the $1 million mark.

Apple last year announced a new developer program to reduce the charge by half for small businesses that earn up to $1 million in revenue from January 1, 2021, after facing criticism for the App Store’s 30 percent standard commission for paid app revenue and in-app purchases.

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