Are you looking for the right platform to launch your app?  App stores act as a channel to make the app accessible to the user. As an app developer, you can reach out to the target audience through this platform. To be listed in the app store, you must pay an app store fee or a percentage of the commission to the app store. The app store fees are for taking your app to a broader audience.

How is the app store fee calculated?

The Apple app and the Google App stores have regulations for accepting payments and promoting the service through the app. 

In addition to a default percentage that the app deducts for each app, the app store charges an annual fee.

App stores charge a percentage of an app’s profits for in-app purchases. These are the small transactions that take place within apps. Although the default commission rate for app distribution on the app store is 30%, it differs for each app in different app stores.

The app store charges a commission on:

  • in-app purchases and app subscriptions.
  • paid apps download.

Apple App Store fees

Apple app distribution is available to an expansive audience in over 175 countries through multiple iOS devices. The following is the fee and commission charged by Apple for the app distribution service:

  • An annual fee of $99 will be charged for the Apple Developer Program, and $299 is applicable for the enterprise version.
  • A percentage from the app revenue – 30% is charged from the app’s annual net revenue when it is more than $1 million, and 15% if the annual net app revenue is less than $1 million (when you have newly launched your app) or expiry of 12 months for a subscription-based app).
  • Apple does not charge a hosting fee. In addition,for apps with no in-app purchases, there are no charges.
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Google Play Store fees

  • A new developer account has a one-time registration fee of $25.
  • Google charges 30% of the app revenue in the first year, and later on, it is 15% annually.

How to manage App Store fees

  • As the app developer, you can make other payment methods outside the app available for the user to avoid the in-app store fees. e.g., PayPal, Apple Card, and mostly Debit and credit cards.
  • Avoid offering subscription services through the app. Instead route the users to the app’s webpage to log in and sign up for the services. 
  • Re-rout without disturbing sales and make sure user satisfaction is not compromised. 
  • You can include other payment methods in Google Play for purchase of services or physical goods, account transfers, and bill payments.

Points to remember

  • The app stores hosting your app give you several benefits like app credibility, popularity, and a smooth payment experience for the user.
  • An App Store listing enables you to generate more app traffic than other resources. Higher traffic leads to more sales, bringing more revenue to the app.
  • So, instead of quitting the app store because of the fee and commission charges, you can work to improve your user base with a proper ASO strategy
  • App store optimization  significantly improves app rankings and visibility, thereby drives more users.
  • So, before you launch your app, create the right ASO strategy. Plan your costs to experience steady growth in the app’s revenue.