Shopify has announced a significant change to its revenue share agreement with app developers, sunsetting an exemption that allowed the first $1 million earned each year to be free of revenue cuts. The new policy limits the $1 million threshold to a lifetime basis, meaning developers can no longer reset this exemption annually. This sudden shift has caused concern among developers who need to re-evaluate their budgets for 2026, as Shopify will continue to take a 15% cut of revenue earned beyond this lifetime cap. The additional revenue collected will purportedly fund tools and innovations for developers.
"During the pandemic, we lowered our revshare to help small developers and introduced an exemption on the first $1M earned each year. Our ecosystem is stronger than ever..."
"The previous revenue share agreement allowed developers earning over $1 million a year an extra $150,000 in their budgets, forcing adjustments to their financial plans now."
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