Apple is today announcing some updates to its Digital Markets Act compliance plan in the European Union, with changes to external linking that give developers more freedom to direct customers to non-App Store purchase options and sales.
EU developers that are operating under the new App Store business terms or the prior ‌App Store‌ purchase terms can update their apps to communicate and promote offers for purchases available through websites, alternative app marketplaces, other apps, and more.
Links to external sources can direct customers outside of the app or to a website with a web view that is available directly in the app. Apple is not directing the design of communications provided to customers, nor is the company dictating what developers are able to say.
Developers can provide information about lower prices outside of the ‌App Store‌, more affordable subscriptions, or any offer available in or outside the app. External links and offer pages can include explanations and instructions about how customers can subscribe to offers outside of the ‌App Store‌ app, though Apple says that communications have to provide accurate information on the digital goods or services available for purchase.
Links can be tapped, clicked, or scanned to take users to their destination, and developers have no restrictions on the number of URLs they include. Links with additional parameters, redirects, and intermediate links are allowed, but not for ad tracking purposes.
Developers do not have to opt in to the new terms with the Core Technology Fee to take advantage of these link entitlement changes, but must agree to the StoreKit External Purchase Link Entitlement Addendum, which is coming this fall. These terms require developers to use the StoreKit External Purchase APIs, report external purchase transactions, and pay fees and commissions.
There are two fees that are associated with directing customers to purchase options outside of the ‌App Store‌. A 5 percent initial acquisition fee is paid for all sales of digital goods and services that the customer makes on any platform that occur within a 12-month period after an initial install. The fee does not apply to transactions made by customers that had an initial install before the new link changes, but is applicable for new downloads.
Apple says that the initial acquisition fee reflects the value that the ‌App Store‌ provides when connecting developers with customers in the European Union.
The store services fee, which is in addition to the initial acquisition fee, is a commission that developers pay Apple on all sales of digital goods and services that the customer makes on any platform that occur within a fixed 12-month period from the date of an install, including app updates and reinstalls.
According to Apple, the store services fee reflects the ongoing services and capabilities that Apple provides developers, including app distribution and management, ‌App Store‌ trust and safety, re-discovery, re-engagement and promotional tools and services, anti-fraud checks, recommendations, and ratings and reviews.
While the initial acquisition fee is the same for both developers that use the link entitlement under the new business terms and those that use link entitlements under the current terms, the store services fee varies. For the new business terms, the base fee is 10 percent, but it drops to 5 percent for ‌App Store‌ Small Business Program participants and auto-renewal subscriptions after one year. These fees are in addition to the Core Technology Fee of 0.50 euros per first annual install over one million first annual installs.
For developers who stick with the standard Apple Developer Program License Agreement, the standard store services fee is 20 percent, but it drops to 7 percent for ‌App Store‌ Small Business Program participants and auto-renewal subscriptions after one year. The standard ‌App Store‌ terms do not require a Core Technology Fee. Apple has a fee calculator that can help EU developers figure out what they’ll need to pay.
New business terms – Includes using alternative payment methods in the ‌App Store‌ or distributing outside of the ‌App Store‌ – 5% initial acquisition fee and 5% to 10% store services fee depending on app size, plus Core Technology Fee. Total is 10% to 15% commission, along with the CTF, though Apple estimates that 99% of developers will not be eligible to pay the CTF. There is also a payment processing fee of 3% when using the ‌App Store‌’s payment options.
Standard business terms – 5% initial acquisition fee and 7% to 20% store services fee depending on app size. Total is 12% to 27% commission.
There is one other notable change that Apple is making, and that’s giving customers an option to turn off in-app disclosure sheets. By default, Apple will still warn users when they are clicking a link that takes them to non-Apple purchase methods and options, but customers can choose to turn off these warnings when an app links to an external channel. An app that links to an in-app web view will only need to display the disclosure sheet once per session.
More information about these changes can be found on Apple’s developer website and in the specific Digital Markets Act page that Apple updates regularly.
EU developers can begin planning external linking options for their apps now, and customers will have access to these changes with the launch of iOS 18, iPadOS 18, macOS Sequoia, tvOS 18, visionOS 2, and watchOS 11 this fall.
As with all of the updates that Apple has made to comply with the Digital Markets Act, these changes are only applicable in the European Union. There are no ‌App Store‌ changes in other countries.
This article, “Apple Loosens App Store External Linking Rules and Changes Fee Structure in European Union” first appeared on MacRumors.com
Discuss this article in our forums
 Apple is today announcing some updates to its Digital Markets Act compliance plan in the European Union, with changes to external linking that give developers more freedom to direct customers to non-App Store purchase options and sales.
EU developers that are operating under the new App Store business terms or the prior ‌App Store‌ purchase terms can update their apps to communicate and promote offers for purchases available through websites, alternative app marketplaces, other apps, and more.
Links to external sources can direct customers outside of the app or to a website with a web view that is available directly in the app. Apple is not directing the design of communications provided to customers, nor is the company dictating what developers are able to say.
Developers can provide information about lower prices outside of the ‌App Store‌, more affordable subscriptions, or any offer available in or outside the app. External links and offer pages can include explanations and instructions about how customers can subscribe to offers outside of the ‌App Store‌ app, though Apple says that communications have to provide accurate information on the digital goods or services available for purchase.
Links can be tapped, clicked, or scanned to take users to their destination, and developers have no restrictions on the number of URLs they include. Links with additional parameters, redirects, and intermediate links are allowed, but not for ad tracking purposes.
Developers do not have to opt in to the new terms with the Core Technology Fee to take advantage of these link entitlement changes, but must agree to the StoreKit External Purchase Link Entitlement Addendum, which is coming this fall. These terms require developers to use the StoreKit External Purchase APIs, report external purchase transactions, and pay fees and commissions.
There are two fees that are associated with directing customers to purchase options outside of the ‌App Store‌. A 5 percent initial acquisition fee is paid for all sales of digital goods and services that the customer makes on any platform that occur within a 12-month period after an initial install. The fee does not apply to transactions made by customers that had an initial install before the new link changes, but is applicable for new downloads.
Apple says that the initial acquisition fee reflects the value that the ‌App Store‌ provides when connecting developers with customers in the European Union.
The store services fee, which is in addition to the initial acquisition fee, is a commission that developers pay Apple on all sales of digital goods and services that the customer makes on any platform that occur within a fixed 12-month period from the date of an install, including app updates and reinstalls.
According to Apple, the store services fee reflects the ongoing services and capabilities that Apple provides developers, including app distribution and management, ‌App Store‌ trust and safety, re-discovery, re-engagement and promotional tools and services, anti-fraud checks, recommendations, and ratings and reviews.
While the initial acquisition fee is the same for both developers that use the link entitlement under the new business terms and those that use link entitlements under the current terms, the store services fee varies. For the new business terms, the base fee is 10 percent, but it drops to 5 percent for ‌App Store‌ Small Business Program participants and auto-renewal subscriptions after one year. These fees are in addition to the Core Technology Fee of 0.50 euros per first annual install over one million first annual installs.
For developers who stick with the standard Apple Developer Program License Agreement, the standard store services fee is 20 percent, but it drops to 7 percent for ‌App Store‌ Small Business Program participants and auto-renewal subscriptions after one year. The standard ‌App Store‌ terms do not require a Core Technology Fee. Apple has a fee calculator that can help EU developers figure out what they’ll need to pay.
New business terms – Includes using alternative payment methods in the ‌App Store‌ or distributing outside of the ‌App Store‌ – 5% initial acquisition fee and 5% to 10% store services fee depending on app size, plus Core Technology Fee. Total is 10% to 15% commission, along with the CTF, though Apple estimates that 99% of developers will not be eligible to pay the CTF. There is also a payment processing fee of 3% when using the ‌App Store‌’s payment options.
Standard business terms – 5% initial acquisition fee and 7% to 20% store services fee depending on app size. Total is 12% to 27% commission.
There is one other notable change that Apple is making, and that’s giving customers an option to turn off in-app disclosure sheets. By default, Apple will still warn users when they are clicking a link that takes them to non-Apple purchase methods and options, but customers can choose to turn off these warnings when an app links to an external channel. An app that links to an in-app web view will only need to display the disclosure sheet once per session.
More information about these changes can be found on Apple’s developer website and in the specific Digital Markets Act page that Apple updates regularly.
EU developers can begin planning external linking options for their apps now, and customers will have access to these changes with the launch of iOS 18, iPadOS 18, macOS Sequoia, tvOS 18, visionOS 2, and watchOS 11 this fall.
As with all of the updates that Apple has made to comply with the Digital Markets Act, these changes are only applicable in the European Union. There are no ‌App Store‌ changes in other countries.Tags: App Store, European Union, Apple Developer ProgramThis article, “Apple Loosens App Store External Linking Rules and Changes Fee Structure in European Union” first appeared on MacRumors.comDiscuss this article in our forumsÂ
The Amazon Marketplace: Empowering Sellers and Shaping Consumer Behavior
The Amazon Marketplace has emerged as a powerful force in the global economy, redefining how businesses operate and how consumers shop. Since its launch in 2000, Amazon Marketplace has grown into one of the largest online marketplaces in the world, with millions of sellers and an even larger base of customers. This platform has not only democratized e-commerce, providing opportunities for businesses of all sizes, but it has also significantly influenced consumer behavior. This article explores how the Amazon Marketplace empowers sellers and shapes consumer behavior.
Empowering Sellers: Opportunities and Challenges
The Amazon Marketplace has opened up unprecedented opportunities for sellers, from individual entrepreneurs to large corporations. One of the most significant benefits for sellers is the access to Amazon’s vast customer base. With over 300 million active users globally, Amazon provides a ready-made audience for sellers, eliminating the need for extensive marketing efforts to drive traffic to their products.
Lower Barriers to Entry
One of the most profound ways Amazon empowers sellers is by lowering the barriers to entry into the e-commerce space. Traditionally, setting up an online store required significant investment in website development, payment processing systems, and logistics. Amazon Marketplace simplifies this process by providing a platform where sellers can list their products, handle transactions, and even manage shipping through Amazon’s Fulfillment by Amazon (FBA) service.
FBA, in particular, has been a game-changer for many small and medium-sized businesses. It allows sellers to store their products in Amazon’s warehouses, where Amazon takes care of packing, shipping, and even customer service. This service not only reduces the logistical burden on sellers but also ensures that their products are eligible for Amazon Prime, which can significantly boost sales.
Global Reach
The global reach of Amazon Marketplace is another significant advantage for sellers. With Amazon’s presence in numerous countries, sellers can tap into international markets with relative ease. Amazon’s Global Selling program enables sellers to list their products in multiple countries, allowing them to expand their customer base far beyond their home market. This global reach is particularly beneficial for small businesses that may not have the resources to enter international markets independently.
Data and Analytics
Amazon provides sellers with valuable data and analytics tools that can help them optimize their listings and marketing strategies. Through the Seller Central dashboard, sellers have access to detailed reports on sales, customer behavior, and advertising performance. This data-driven approach allows sellers to make informed decisions about pricing, inventory management, and advertising, ultimately leading to better business outcomes.
Challenges for Sellers
However, selling on Amazon is not without its challenges. The competition on the platform is fierce, with millions of sellers vying for the attention of customers. To stand out, sellers must invest in optimizing their product listings, managing reviews, and running targeted advertising campaigns. Additionally, Amazon’s fee structure, which includes referral fees, FBA fees, and other charges, can eat into sellers’ profit margins, especially for those selling low-margin products.
Moreover, Amazon’s control over the marketplace means that sellers are subject to its policies and regulations. This can be a double-edged sword; while Amazon’s strict guidelines help maintain a level of quality and trust on the platform, they can also be restrictive for sellers. Policy changes, such as adjustments to fee structures or new regulations regarding product listings, can have a significant impact on sellers’ businesses.
Shaping Consumer Behavior: Convenience and Choice
The Amazon Marketplace has not only empowered sellers but also transformed consumer behavior in profound ways. The platform has become synonymous with convenience, choice, and competitive pricing, which are key drivers of consumer decisions.
Convenience and Speed
One of the most significant impacts of Amazon on consumer behavior is the expectation of convenience and speed. Amazon’s streamlined shopping experience, coupled with services like Amazon Prime, has set a new standard for online shopping. Consumers now expect fast, often same-day, delivery, easy returns, and a seamless shopping experience across devices. This has raised the bar for other e-commerce platforms and even brick-and-mortar stores, which have had to adapt to meet these heightened expectations.
The convenience offered by Amazon extends beyond just delivery speed. Features like one-click purchasing, personalized recommendations, and a user-friendly mobile app have made shopping on Amazon almost effortless. This ease of use has contributed to the platform becoming the go-to destination for many consumers, particularly for everyday purchases.
Broad Product Selection
Amazon’s vast selection of products is another factor that has shaped consumer behavior. The marketplace offers a seemingly endless array of products across virtually every category, from electronics to groceries. This extensive selection is possible because of the millions of third-party sellers who list their products on the platform, alongside Amazon’s own offerings.
This breadth of choice has shifted consumer expectations, leading to a preference for platforms that offer a wide variety of options. Consumers are now less willing to visit multiple websites or stores to find what they need, preferring the convenience of one-stop shopping. This trend has also put pressure on traditional retailers to expand their product offerings and improve their online shopping experiences.
Price Sensitivity and Competitive Pricing
Amazon’s pricing strategies have also influenced consumer behavior, making customers more price-sensitive. The platform’s dynamic pricing model, where prices can change frequently based on factors like demand and competition, encourages consumers to compare prices and seek out the best deals. Additionally, features like Amazon’s price tracking tools and the ability to view historical prices have made consumers more aware of price fluctuations and more likely to wait for discounts before making a purchase.
This increased price sensitivity has impacted the broader retail landscape, forcing competitors to adopt more aggressive pricing strategies to stay competitive. It has also led to the rise of price comparison tools and apps, further empowering consumers to find the best deals.
The Role of Reviews and Ratings
Amazon’s review system is another key factor influencing consumer behavior. Customer reviews and ratings have become a critical component of the decision-making process for many shoppers. Positive reviews can significantly boost a product’s visibility and sales, while negative reviews can deter potential buyers. This has led to a culture where consumers rely heavily on the experiences of others to guide their purchasing decisions.
The importance of reviews has also created a new challenge for sellers, who must actively manage their reputation on the platform. This has given rise to practices like review solicitation and even, unfortunately, fake reviews. However, Amazon has taken steps to combat these practices, implementing stricter policies and algorithms to detect and remove fraudulent reviews.
Conclusion
The Amazon Marketplace has had a profound impact on both sellers and consumers, reshaping the e-commerce landscape in the process. By empowering sellers with access to a global customer base, powerful data tools, and logistical support, Amazon has lowered the barriers to entry for businesses of all sizes. At the same time, the platform has transformed consumer behavior, setting new standards for convenience, choice, and pricing.
As Amazon continues to evolve, its influence on the global economy and consumer culture will likely only grow. For sellers, the challenge will be to navigate the complexities of the platform and find ways to stand out in an increasingly crowded marketplace. For consumers, the Amazon Marketplace will continue to be a driving force behind the expectations and behaviors that define the future of shopping.
