Updates to revenue share for Shopify App Store developers

Starting August 1, 2021 at 10:00 am PST (1:00 pm EST), app developers can register for a reduced revenue share plan for apps sold through the Shopify App Store. In this plan, Shopify collects 0% on the first 1,000,000 USD in annual gross app revenue earned through the Shopify App Store. Total app revenues in excess of 1,000,000 USD annually are subject to a 15% revenue share, reduced from the previous 20%.

Registering for the new revenue share plan

To benefit from the 0% revenue share plan, Partners need to register on or after August 1, 2021. Registration is available in the Partner Dashboard as of August 1, 2021 at 10:00 am PST (1:00 pm EST).

Registration details

All partner accounts need to complete a one-time Shopify App Store Registration to access the 0% revenue share plan.

New Partner accounts created on or after August 1, 2021 at 10:00 am PST (1:00 pm EST) pay a one-time 99 USD fee per partner account. The fee does not apply to custom or private apps.

Developers must identify all Associated Developer accounts during registration.

Steps:

  1. In the Partner Dashboard, go to Settings.
  2. In the App Store registration section, click Register now. A link to the registration page is also available in a banner on the Apps page.
  3. On the Register for the Shopify App Store page, enter the following information:
    • whether your account is owned by an individual or an entity
    • whether you have any Associated Developer Accounts
    • an owner email address and business name for each associated account
  4. Review your information to verify that it adheres to the Associated Developer Accounts requirements in the Partner Program Agreement.
  5. If your Partner Account was created on or after August 1, 2021 at 10:00 am PST (1:00 pm EST), then click Add payment method and enter your payment information.
  6. Click Register.

Calculation of app store revenues

Revenues are calculated across apps, so total revenues for the purposes of calculating the 1,000,000 USD threshold are determined per App Developer, which includes any Associated Developer Accounts.

Revenues are calculated across apps, so total revenues for the purposes of calculating the 1,000,000 USD threshold are determined per app developer, which includes any Associated Developer Accounts.

Examples of the new revenue plan

A Partner that doesn't exceed 1,000,000 USD in app revenue in a calendar year receives 100% of their revenue for the entire year. For example, a Partner earns 800,000 USD in app revenues in a calendar year. They pay 0% revenue share, and receive 100% of the app revenue. App revenue is reset to 0 USD every year on January 1.

A Partner that equals or exceeds 1,000,000 USD in app revenue in a calendar year receives 85% of their revenue on any additional app revenue for the remainder of the calendar year. For example, a Partner earns 3,000,000 USD in app revenue in a calendar year. For the first 1,000,000 USD, they pay 0% revenue share, and receive 100% of the app revenue. For the remaining 2,000,000 USD, they pay 15% revenue share, and receive 85% of the app revenue. In that calendar year, the Partner pays 300,000 USD in revenue share. App revenue is reset to 0 USD every year on January 1.

A Partner that earns revenue across multiple apps has revenue share calculated based on the total cumulative revenue of all apps. For example, a Partner earns 700,000 USD on one app, and 400,000 on several other apps. For the first cumulative 1,000,000 USD, they pay 0% revenue share, and receive 100% of the app revenue. For the remaining 100,000 USD, they pay 15% revenue share, and receive 85% of the app revenue. In that calendar year, the Partner pays 15,000 USD in revenue share. App revenue is reset to 0 USD every year on January 1.

A Partner that earns revenue across multiple Associated Developer Accounts has revenue share calculated based on the revenue of all accounts. For example, a Partner earns 800,000 USD on apps in one Partner Account, and 400,000 USD across all other Associated Developer Accounts. For the first cumulative 1,000,000 USD, they pay 0% revenue share, and receive 100% of the app revenue. For the remaining 200,000 USD, they pay 15% revenue share, and receive 85% of the app revenue. In that calendar year, the Partner pays 30,000 USD in revenue share. App revenue is reset to 0 USD every year on January 1.

Associated Developer Accounts

App developers are responsible for reporting Associated Developer Accounts at the time of Shopify App Store Registration.

An Associated Developer Account is any Partner account that an App Developer or Associated Developer has registered through the Shopify Developer program page. An Associated Developer is an individual or company that controls (owns 50% or more of) an App Developer, is controlled by an App Developer, is under another individual or entity's common control with an App Developer, or is otherwise designated by Shopify as an Associated Developer.

Revenue reset

Every year on January 1, the amount a partner has earned resets to 0 USD. Partners pay 0% revenue share until they reach 1,000,000 USD in app revenues for that calendar year. After they reach 1,000,000 USD, partners pay 15% on app revenues for the remainder of that calendar year.

Billing fees and sales tax

All billing is subject to a 2.9% processing fee and applicable sales tax. As of August 1, 2021, fees and taxes are charged separately in the new revenue share plan.

Frequently asked questions

Is gross app revenue calculated retroactively for this year?

No. Gross app revenue is reset to 0 USD at the time of registration, and then resets annually on January 1 every year.

Is the 15% revenue share retroactive?

No. Partners pay 0% revenue share until gross app revenue reaches the 1,000,000 USD threshold. After reaching the threshold, partners pay 15% revenue share on the additional gross app revenue earned after reaching the threshold only.

Does revenue share calculation take refunds into account?

No. Revenue share is calculated based on gross sales, not net sales. Refunds are not taken into account when revenue share is calculated.

Does revenue from other sources count towards the threshold?

No. Other income, such as from the Experts Marketplace or referrals, is not included in revenue share calculation for the Shopify App Store.

Will there be any changes to revenue share for the Experts Marketplace or the Theme Store?

Yes. The revenue share model for Theme Store revenue will be updated on September 15, 2021. The changes to Theme Store revenue share will operate independently of the 1,000,000 USD threshold for app store revenue share.

How will payouts be handles across multiple Associated Developer Accounts?

Even though total gross app revenue is calculated across all Associated Developer Accounts, revenue share is still paid out separately at the Partner Account level.

Do all partners pay the 99 USD Shopify App Store Registration fee?

No. The Shopify App Store Registration Fee is waived for all Partner Accounts created before August 1, 2021 at 10:00 am PST (1:00 pm EST).

Do I need to register if I've already published apps and don't need to pay the Shopify App Store Registration fee?

Yes. Even though the registration fee is waived for Partner Accounts created before August 1, 2021, you need to associate all of your partner accounts to take advantage of the new revenue share model. Associating your partner accounts is done through registration.

Do I have to use the Shopify Billing API in the 0% revenue share plan?

Yes. The Shopify Billing API is still a requirement for submitting an app to the Shopify App Store because it's a better experience for both merchants and partners.

For merchants, using the Shopify Billing API displays app charges on the merchant's Shopify invoice. A centralized, Shopify-branded experience makes it easier for merchants to trust the app and to understand ongoing costs.

For partners, using the Shopify Billing API handles billing payments, chargebacks, retrying failed payments, and prorating when merchants upgrade or downgrade their plans. Payouts are supported in over 150 countries, only requiring a valid PayPal account.

Learn more about the advantages of using the Shopify Billing API.

Where can I view a breakdown of my earnings and processing fees?

There are several ways to review your earnings and fees in the Partner Dashboard:

You can also use the Shopify Partner API to programatically access the data found in your Partner Dashboard to automate your front and back office operations.