Amazon will reduce Appstore fees for smaller developers later this year – Amazon will lower its commission rates from 30% to 20%. Amazon has followed the footsteps of Apple and Google in reducing app store fees for smaller developers. Amazon has declared that it is lowering the commission it takes from developers who earn less than $1 million a year.
Commencing in the fourth quarter of the year, it will be reducing its cut from 30% to 20% percent as part of its new Amazon AppStore business accelerator program. In addition, the company is giving eligible developers AWS promotional credits in an amount equivalent to 10% of their revenue.
In December last year, Apple launched a new policy that lowers commission rate from 30% to 20% for developers earning less than $1 million a year as well, Apple made this change when companies spoke out against having to pay 30% commission.
Google also announced in March, that it is lowering its play store commission rate to 15% from 30% starting July 1st. Since the new policy will apply to developers earning less than a million in revenue per year, Google said 99% of android developers will benefit from the change.
Amazon will be taking a bigger cut than Google and Apple. Developers could be getting a better deal with the company if they already spend more than 10% of their revenue on AWS fees.