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Shopify Inc. is changing a revenue share exemption it launched in the COVID-19 pandemic to help small developers.
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The exemption stopped Shopify from taking any share annually of the first US$1 million in revenue that developers make on booking features, subscription tools and other products they design for the e-commerce company’s software.
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As of June 16, Shopify says it will sunset the annual exemption but not take any share of the first US$1 million in revenue developers make across the lifetime of their products. After that US$1 million, Shopify will take a 15 per cent cut.
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The company did not immediately respond to a request for comment on why it is making the change, but its vice-president of product Glen Coates says on X that the annual break benefited a few hundred developers making revenue but not the tens of thousands at earlier stages.
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Shopify says in its blog that the revenue it will now receive as a result of the change will fund tools, infrastructure and innovations that benefit developers at every stage.
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Before Shopify launched the exemption in the summer of 2021, it took a 20 per cent share of all revenues earned by its then-6,000 developers who created and sold tools that can be integrated and used with Shopify systems.
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This report by The Canadian Press was first published May 2, 2025.
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Companies in this story: (TSX:SHOP)
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