Before this scheme, Shopify used to charge 20% on every sale made through its service, but now, smaller businesses will take the whole value of the sale, with Shopify’s cut of 15% only kicking in once the annual $1 million threshold has been passed.
The best part? At the end of every year, the numbers reset. Every single year, your 1st million is all yours. pic.twitter.com/jA5QXHq3i4 — Harley Finkelstein (@harleyf) June 29, 2021 While the pricing of the Shopify platform itself seem to be staying the same, with three tiers costing $29 per month, $79 per month, and $299 per month, this will now be the only Shopify-associated cost that smaller developers will have to worry about. Numerous developers have responded to this announcement with near-universal praise, as this extra 20% drastically increases their profit margins.
— Richard Blair (@RichardLBlair) June 29, 2021 This is an especially large move as Shopify’s App Store doesn’t carry nearly as much sway as Google or Apple’s, both of which charge around 15% commission on every sale. This move by Shopify might be enough to put them on the same level as these heavy hitters, as developers look to favor Shopify over other options. While there’s no sign of that coming up, it will be interesting to see if this lack of commission on developers will inspire an exodus from other app stores in favour of making more money. While only time will tell, the initial reception to this decision has been almost entirely positive, and can only mean good things for any developers on the Shopify App Store. Considering Shopify? See our guide to the Best Ecommerce Platforms to choose
