Affiliate Disclosure
If you buy through our links, we may get a commission. Read our ethics policy.

Amazon following Apple & Google's lead, cutting app store commissions

Credit: Amazon

Last updated

Amazon is cutting its commission rate on the Amazon Appstore to 20% for developers making less than $1 million, but it's also offering AWS credits that can further offset the rate.

Starting in the fourth quarter of 2021, developers that made less than $1 million in revenue in the previous calendar year will pay a 20% commission on app and in-app purchases under the Amazon Appstore Small Business Accelerator Program.

That's higher than the 15% cut offered by the Apple App Store and the Google Play Store, but Amazon is also offering promotional Amazon Web Services credits that could effectively cut commission rates to 10%.

According to Amazon, the promotional credits will be equivalent to 10% of a developer's revenue and will allow them to "take advantage of the benefits of building on the cloud." Developers will be able to add their AWS Account ID to the Appstore portal, and the credits will be sent monthly. The credits expire 12 months after grant date, however.

In addition to developers making less than $1 million in revenue in the prior calendar year, developers who are new to the Amazon Appstore are also eligible for the program.

The Amazon Appstore is an alternative app marketplace for Android operated by Amazon. It's also the standard app store for Amazon's own Fire OS operating system. Google Play is not installed by default, but the lockout is surmountable relatively easily.

Apple was the first major technology company to offer a reduced commission for smaller developers. The App Store Small Business Program launched in November 2020 amid increased antitrust scrutiny, though Apple executives have said that the program was in the works for years.

Google followed suit in March 2021, slashing its own 30% cut of app and in-app purchases to 15% on the first $1 million of revenue made on the Google Play Store.

Keep up with everything Apple in the weekly AppleInsider Podcast — and get a fast news update from AppleInsider Daily. Just say, "Hey, Siri," to your HomePod mini and ask for these podcasts, and our latest HomeKit Insider episode too.

If you want an ad-free main AppleInsider Podcast experience, you can support the AppleInsider podcast by subscribing for $5 per month through Apple's Podcasts app, or via Patreon if you prefer any other podcast player.

AppleInsider is also bringing you the best Apple-related deals for Amazon Prime Day 2021. There are bargains before, during, and even after Prime Day on June 21 and 22 — with every deal at your fingertips throughout the event.



3 Comments

lkrupp 10521 comments · 19 Years

Once again we find out the ‘competition’ has been charging the same amount of commissions but the tech media completely, totally ignores it and chooses to concentrate solely on Apple as the evildoer, bashing the company at every turn for its outrageous commissions. Google, Amazon, Microsoft (X-Box), Sony (Play Station) all get a pass.

Pathetic, clickbait journalism at its worst. Most Apple centric tech blogs  are pathetic as well.

KTR 280 comments · 4 Years

lkrupp said:
Once again we find out the ‘competition’ has been charging the same amount of commissions but the tech media completely, totally ignores it and chooses to concentrate solely on Apple as the evildoer, bashing the company at every turn for its outrageous commissions. Google, Amazon, Microsoft (X-Box), Sony (Play Station) all get a pass.

Pathetic, clickbait journalism at its worst. Most Apple centric tech blogs  are pathetic as well.

MFIGHT APPLE.  Fight.  I hope the apple tree keeps growing in to the heavens.  People want all the apple App Store has to offer.  It they don’t want to pay apple for it.

foregoneconclusion 2857 comments · 12 Years

When will Amazon cut the 30% to 70% commission for ebook authors/publishers making less than $1 million per year?