The Amazon Appstore has now joined Google in following Apple’s lead in cutting commissions for small developers – but with an interesting twist. The Amazon Appstore is an alternative place for users to download Android apps.
Apple last year announced its Small Business Program, a smart way to reduce antitrust pressure by slashing its app sales cut to 15% for all but the biggest developers. Google has done the same this year, in a slightly fairer way, and now Amazon has found its own twist …
Apple was under close scrutiny from antitrust regulators over the 30% commission it charged developers on app sales and in-app purchases.
The company made its first concession in 2016, when it slashed its app subscription cut to 15% in the second year. But the drastic change has happened in his so-called small business agenda.
While billed as something for small developers, the reality was that 98% of them would benefit. Apple was effectively switching to a standard 15% commission, with a 30% higher commission only applying to larger developers. Since these generate most of the money, this had a limited impact on Apple’s App Store revenue.
Google did the same, but gave everyone the 15% rate for the first million dollars in revenue, unlike Apple’s all-or-nothing approach.
Amazon Appstore Commission
AFTV News Amazon reports that Amazon is also reducing its commission for developers earning less than $ 1 million per year, but with two possible rates.
Instead of lowering the commission to 15%, Amazon reduces it to 20%, but offers many ways to reduce the effective rate to 10%.
The Amazon Appstore has announced that it will reduce its reduction in developer revenue from 30% to 20% for developers who earn less than $ 1 million in revenue per year.
The new terms, which Amazon calls the Amazon Appstore Small Business Accelerator program, will also provide developers with AWS promotional credit in an amount equivalent to 10% of the developer’s revenue if they earn less than $ 1 million in revenue per share. year. If a developer chooses to use these AWS Credits, that brings their total Amazon Appstore revenue share from 70% to an equivalent of 90%.
Many developers use Amazon Web Services (AWS) to host their websites and servers, so as long as these bills amount to 10% or more of their Amazon Appstore revenue, their effective commission rate on app sales won’t. will be only 10%.
FTC: We use automatic affiliate links which generate income. After.
Check out 9to5Mac on YouTube for more Apple news: