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Shopify to launch new revenue-share model, faster transactions as competition grows

Shopify will introduce a new revenue-share model for developers and speed up transactions as the COVID-19 pandemic continues to pit the company against Amazon. The Ottawa-based e-commerce firm announced Tuesday that as of Aug. 1 it won t take any share of the first $1 million in revenue developers make every year on the array of booking features, subscription tools and other products they design for the company s software. Shopify previously took a 20 per cent share of all revenues earned by each of the roughly 6,000 developers who create and sell tools that can be integrated and used with Shopify systems. It will now only take 15 per cent once the $1-million mark is reached.

Shopify to launch new revenue share model, faster transactions as competition grows

Shopify previously took a 20 per cent share of all revenues earned by each of the roughly 6,000 developers who create and sell tools that can be integrated and used with Shopify systems. It will now only take 15 per cent once the $1-million mark is reached. We believe that developers can build big businesses on Shopify and so we hope to signal that the revenue potential extends much upwards of $1 million, said Ian Black, Shopify’s managing director of Canada. Shopify, which is based in Ottawa but uses the internet, everywhere placeline on press releases, announced the new revenue share model at its annual Unite conference, which was held virtually because of the COVID-19 pandemic.

Shopify to launch new revenue share model, faster transactions

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