Amazon is also reducing its app store commissions

The company is cutting its current very high profit margin of about 30 percent as part of the Amazon Appstore Small Business Accelerator Program, which will launch last quarter. All of this, however, only affects smaller developers who generate less than $ 1 million in annual traffic, from which Amazon will already deduct “only” 20 percent. Partners earning more than $ 1 million will retain the current 30 percent commission.

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The quasi-competitor Apple and Google cut their app store commissions to 15 percent a couple of months ago, which is 5 points lower than the 20 percent reported by Amazon. Amazon is trying to make up for the difference in an unusual way. Developers participating in the program will receive 10 percent of their traffic in the form of AWS credits, meaning Amazon will offer a discount on its own cloud service. All of this will make sense only for those who can take advantage of the opportunities offered by AWS.

Amazon is the third big player after Apple and Google, which is loosening much of its criticized commission billing system. Back in November, Apple announced that it would reduce its uniform 30 percent commission on services and other digital goods sold through the App Store to 15 percent from January 1. The company has also come under increasing pressure in recent months from several major industry players for what they say is apparently using the high commission teased to Apple’s tax, in addition to increasing Apple’s revenue, to favor its own services, thereby distorting competition.

A rebate system similar to Amazon’s recently announced program, called the App Store Small Business Program, the company says affects a significant majority of app developers. Under the terms, if a developer’s traffic through the App Store exceeds $ 1 million in a given calendar year, it will automatically be automatically included in the 30 percent commission band, but if revenue does not reach the limit the following year, the developer can sign back into the program.


Source: HWSW Informatikai Hírmagazin by www.hwsw.hu.

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