1-million USD Revenue Exemption For App Developers

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Canadian e-commerce giant Shopify is rolling back a revenue sharing exemption that allowed developers on its app store to keep the first $1 million USD ($1.39 million CAD) they generated every year. 

Now, the revenue sharing exemption will only apply to the first $1 million USD of a developer's lifetime revenue, with the 15 percent share on amounts above that remaining unchanged. Shopify added that earnings before Jan. 1, 2025 do not count toward the $1-million threshold, and that the earnings are aggregated at the partner level, including apps developed under associated developer accounts.

"The 'we did it to support small businesses during covid' rings a little hollow to me," Mathias Schrøder, who develops an analytics app on the Shopify store, wrote in an X post . "You don't cap at $1M and reset it every year if it's meant as temporary covid relief for 'small' businesses." 

"The first $1M break was originally intended to help dev entrepreneurs build their first apps on Shopify," Coates wrote. "Turns out the annual reset mainly benefits a few hundred (great!) partners who have reached revenue scale and not the tens of thousands still at ⁘hello world⁘ stage."

Disclosure: BetaKit majority owner Good Future is the family office of two former Shopify leaders, Arati Sharma and Satish Kanwar.

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