Amazon follows Google and Apple in lowering its app store revenue cut
Apple announced the App Store Small Business Program last year to promote smaller developers on the App Store. As part of the program, the company cut its commission rate to 15% for developers making less than $1 million in yearly revenue. Google followed suit in March this year and cut Play Store fees to 15% for the first $1 million of revenue every developer earned each year. Amazon is now finally jumping on the bandwagon with its Appstore Small Business Accelerator Program.
The Amazon Appstore Small Business Accelerator Program aims to promote small developers on the platform (via AFTVnews) by increasing the developer revenue share and adding AWS credit options. As part of the program, developers who earn less than $1 million in a calendar year will qualify for an 80/20 revenue share by default. Additionally, eligible developers will receive AWS promotional credits equivalent to 10 percent of revenue. It’s worth noting that Amazon will also extend the program to developers who are new to the Appstore.
The promotional AWS credits will make it easier for small developers “to build and grow their app business. AWS gives developers easy access to a broad range of technologies so they can innovate faster and build nearly anything they can imagine.” Developers will be able to use the AWS credits for a variety of services, ranging from infrastructure technologies like compute, storage, and databases to emerging technologies like machine learning and artificial intelligence. Developers will be able to use their AWS promotional credits for 12 months from the date they’re granted.
In a blog post on the matter, Amazon further adds that if an eligible developer’s revenue exceeds $1 million in the current year, they will revert to the standard royalty rate and no longer receive AWS credits for the rest of that year. Additionally, if a developer’s revenue falls below $1 million in a future year, they will be eligible for the program the following year.
At the moment, Amazon has not revealed when the program will go live. The company plans to announce additional details later this year.