Shopify, an e-commerce platform, announced today that it will also lower its developer revenue share across its app marketplace, Shopify App Store, and the Shopify Theme Store. This follows similar moves made by Amazon, Google, Apple, and more recently Amazon. This news was announced today at Shopify's Unite 2021 Conference. It included updates on Checkout, APIs and developer tooling, as well as other news related to Shopify.Shopify claims that its app developers earned $233 million in 2020, more than in 2018 and 2019. This increase can be attributed to the COVID-19 pandemic as well as the shift to ecommerce. There are more than 6,000 apps available on the Shopify App Store today. A merchant will typically use six apps to manage their business.Shopify has announced that it will reduce its commissions on app developers' revenue to 0% from 20%. This is for those who earn less than $1million annually. This benchmark will be reset every year, giving developers, especially those at the threshold of $1 million, more potential earning opportunities. Shopifys will only pay 15% on marginal revenue when Shopifys revenue sharing kicks in. Developers will only pay 15% on revenue above $1 million.Shopifys Theme Store will follow the same business model. Developer submissions are open July 15.The $1 million revenue share metric is applicable to each store separately as the stores are distinct entities. Developers who register through their partner dashboard will have access to the new business model starting August 1, 2021.Shopify claims that the more developer-friendly business model will result in a decrease in company revenue. However, Shopify doesn't expect this to have a material impact because it will encourage innovation and development.Shopifys App Store changes follow a shift within the wider app store market around developer compensations.Apple announced last year that it would lower the App Store commissions for small businesses, amid increasing regulatory scrutiny of its App Store. The new program would allow developers making up to $1,000,000 per year to only pay a 15% commission for in-app purchases. Amazon and Google have followed suit with their own unique spins on the idea. In Google's case, the fee is 15% for every million earned by the developer. Amazon charges a higher percentage of 20% but offers AWS credits as an added perk.Apple and Google in particular hope that these changes will help them avoid antitrust investigations regarding their alleged app-store monopolies. Developers also have a better reason for participating in the app economy.Microsoft, outside of mobile, has agreed to match Epic Games' 12% cut on games sales on its Windows Store this year, in an effort to increase competition. It will let developers use their own payment channels, while maintaining its 15% commission on apps.The market's momentum has been centered on lowering app and game sales. Shopify's app platform is unique. It includes apps that can be used to improve e-commerce businesses, such as those that assist with shipping and delivery and marketing merchandising. Store design and customer service are just a few examples. Although these apps are not intended for consumers, they can still be marketed in an app store setting.Unite 2021's big news today is the changes for developers businesses, but that doesn't diminish the number of updates Shopify has announced regarding its larger platform.Online Store 2.0 is the latest update. This is a flexible and customizable update of Shopify's Liquid platform (its template language) that can be customized to your needs.Today, the company shared additional business metrics. For instance, Shopify saw over 450,000,000 people visit its site last year, resulting in $120 billion in gross merchandise volume. Shopify's Shopify Partners, which includes app developers, theme builders and designers, as well as agencies and experts, earned $12.5 billion in revenue for 2020. This is an 84% increase year-over-year and 4x more than Shopify's own platform.
