Shopify will reduce developer fees and waive commissions for orders below $1 million

It is reported that Canadian e-commerce service platform Shopify recently announced that it will reduce the revenue share it collects from developers and waive the first $1 million in commission for developers who develop applications on the platform.

Shopify announced the news at its annual developer conference on June 29 local time. The company said the policy will provide developers with more revenue potential. Starting August 1, developers will keep all the first $1 million in revenue earned in the App Store, and the benchmark will be reset every year .

“This means that if you build an app on Shopify, your first $1 million is yours, ” said Harley Finkelstein, president of Shopify. “Small businesses are becoming the main driving force behind the economic rebound, and we hope to have more developers building on Shopify.”

In addition, Shopify is reducing its commission for developers who make more than $1 million a year from 20% to 15% , which Finkelstein said is "half of what other popular app stores charge."

The $1 million royalty-free stipend also applies to developers who work on the Shopify Theme Store, an online platform for custom website designs that is separate from the App Store.

Shopify is not the first development platform to announce a commission reduction. Since last year, giants such as Apple, Google and Amazon have reduced fees for some developers because some developers believed that the commissions collected by the platforms were too high and filed complaints, which triggered lawsuits and antitrust investigations. These giants hope to avoid lawsuits and antitrust investigations by reducing commissions, and also attract more developers to join their platforms.

As Amazon imposes more and more restrictions on merchants on its platform, switching to other platforms and building your own independent website to spread the risk seems to be an option. Shopify’s announcement of a reduction in commissions makes the option of building an independent website more attractive. However, sellers should be reminded that in addition to considering funds and costs, building an independent website also requires considering factors such as site traffic and later operations. It is necessary to consider comprehensively based on one’s own capabilities and the stage of enterprise development.

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