Shopify, the ecommerce platform companies can use to host online stores, will be lowering the share of revenue it collects from developers that publish apps on its app store, CNBC reported.
Shopify said app developers will keep 100 percent of their revenue from the first $1 million they make on Shopify’s app store, starting Aug. 1. The benchmark will reset each year, the company said.
Shopify’s following in the footsteps of tech giants like Microsoft, Apple, Google and Amazon, which have recently reduced fees for some developers. Developers have objected to the steep commissions they’re required to pay to platform operators.
Shopify made the announcement during its annual conference for developers, Shopify Unite.
Shopify President Harley Finkelstein said the company is also cutting its commission rates for developers who make more than $1 million annually to 15 percent from 20 percent. “That’s half of what other popular app stores cost,” Finkelstein said.
The same 0 percent revenue sharing model will also apply to developers on Shopify’s Theme Store, an online platform for custom website designs and is separate from Shopify’s app store.