Amazon Gives Developers AWS Credits, Reduces Share of Application Revenue
Amazon has joined the App Platforms Pack to cut costs for small developers who use the Amazon Appstore to distribute apps. But it takes a slightly different approach, which prompts developers to use Amazon Web Services (AWS) for IT infrastructure and AI services.
Starting in October, developers who generated less than $ 1 million in revenue in the previous calendar year on Amazon’s Appstore will only have to pay Amazon 20% of the revenue they they earn through his shop.
The new commission structure is part of the Amazon Appstore Small Business Accelerator program and follows similar discounts recently introduced by Apple and Google that target small developers.
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The discounts aren’t as big as Apple’s and Google’s. In March, Google halved its commission from 30% on in-app purchases of digital products to 15% for developers earning up to $ 1 million a year on the Play Store. This matches Apple’s 30% to 15% drop in commissions for developers who made $ 1 million a year on the App Store, which began on January 1.
While Amazon’s reduction is smaller than that of Apple and Google, Amazon is leveraging its strengths with developers who use AWS to host their IT infrastructure. Being the leading provider of cloud infrastructure, this might appeal to many app developers.
âWhen the program launches, all eligible small developers will receive an 80/20 revenue share by default. In addition, we will provide AWS promotional credits in an amount equivalent to 10% of revenue, so that developers can enjoy the benefits of the construction. on the cloud, âwrites Palanidaran Chidambaram, director of the Amazon Appstore.
âBy helping small businesses get started with AWS through credit, we make it easier for them to build and grow their application businesses. AWS gives developers easy access to a wide range of technologies so they can innovate faster and create almost anything they can imagine. “
Amazon notes 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 remainder of the year.”
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But if the developer’s revenue drops below $ 1 million in any upcoming year, they’re eligible for discounts and credits in the next calendar year.
Credits apply to Compute, Storage, and Databases, as well as Machine Learning and Artificial Intelligence, Data Lakes and Analytics, and the Internet of Things.