Patreon today confirmed upcoming changes to its iOS app, which will see fees for new subscriptions go up because Apple is enforcing its App Store rules on digital purchases. Apple is requiring Patreon to adopt the in-app purchase system, a process that Patreon started at the beginning of the year.
In January 2024, Patreon started using in-app purchases and paying Apple a 30 percent fee on digital products, but beginning in November, new Patreon memberships will also need to be done through in-app purchase and will be subject to the fee as well. Right now, when you subscribe to a creator through Patreon, Patreon directs you to a purchase flow that skirts built-in ‌App Store‌ payments, and Apple does not take a 30 percent cut.
To account for the 30 percent fee that Apple will collect, Patreon will give creators the option to either increase their prices just in the iOS app, or absorb the fee themselves, keeping prices the same across platforms. The changes to Patreon payments will only affect new memberships purchased through an iPhone or iPad from November onwards, and not existing subscribers.
Patreon says that the increased subscription fee will be the default option, and that it does not recommend that creators opt to absorb the fee themselves.
That said, you deserve the chance to decide whether that’s something you want. So, while the automatic price increase is the default option, you also have the choice to keep your prices the same and pay the 30% fee from your earnings. We don’t recommend this, because it means you’d earn less per membership on in-app iOS transactions – but ultimately we believe it’s important to give you agency to make your own decisions.
Apple will collect a 30 percent ‌App Store‌ fee for all new memberships purchased via Patreon for iOS and for other digital goods purchased from a Patreon shop, and creators that use first-of-the-month billing or per-creation billing plans will need to swap to subscription billing for their iOS supporters because the in-app purchase system does not support the other flexible payment types.
Per-creation billing allows Patreon members to pay their membership amount for each paid post a creator makes, with a monthly maximum. First-of-the-month billing comes into play with subscription models where a creator allows an upfront fee to unlock a backlog of content, with future payments made on the first of the month.
Because of the limitations of in-app purchase subscriptions, Patreon is transitioning all of its creators to subscription billing, a process that it plans to complete by November 2025. Creators that already use the subscription model do not need to make changes, but creators using other methods will need to update.
Patreon says that if it does not adopt the in-app purchase system for all iOS transactions, it risks being kicked out of the ‌App Store‌. As fees are not changing on other platforms such as the web and the Android app, Patreon suggests that creators send their fans to the Patreon Help Center article to explain the iOS fees compared to the fees on other platforms, so customers can “better understand the implications of where they choose to make their purchases.”
It is worth noting that Apple’s 30 percent cut of Patreon subscriptions will be higher than the amount that Patreon keeps from creators. Patreon keeps between 8% and 12% of paid membership subscriptions, along with payment processing fees. Patreon also collects five percent from digital product sales.
Apple will cut its fees from 30 percent to 15 percent after a subscription has lasted for one year, which is standard operating procedure for the in-app purchases. Apple has been cracking down on the sale of digital goods post-pandemic, and Facebook has also been required to pay Apple’s in-app purchase fees for ad purchases on iOS devices.
This article, “Apple Requiring Patreon to Use In-App Purchase and Pay 30% Fee for Memberships” first appeared on MacRumors.com
Discuss this article in our forums
 Patreon today confirmed upcoming changes to its iOS app, which will see fees for new subscriptions go up because Apple is enforcing its App Store rules on digital purchases. Apple is requiring Patreon to adopt the in-app purchase system, a process that Patreon started at the beginning of the year.
In January 2024, Patreon started using in-app purchases and paying Apple a 30 percent fee on digital products, but beginning in November, new Patreon memberships will also need to be done through in-app purchase and will be subject to the fee as well. Right now, when you subscribe to a creator through Patreon, Patreon directs you to a purchase flow that skirts built-in ‌App Store‌ payments, and Apple does not take a 30 percent cut.
To account for the 30 percent fee that Apple will collect, Patreon will give creators the option to either increase their prices just in the iOS app, or absorb the fee themselves, keeping prices the same across platforms. The changes to Patreon payments will only affect new memberships purchased through an iPhone or iPad from November onwards, and not existing subscribers.
Patreon says that the increased subscription fee will be the default option, and that it does not recommend that creators opt to absorb the fee themselves.
That said, you deserve the chance to decide whether that’s something you want. So, while the automatic price increase is the default option, you also have the choice to keep your prices the same and pay the 30% fee from your earnings. We don’t recommend this, because it means you’d earn less per membership on in-app iOS transactions – but ultimately we believe it’s important to give you agency to make your own decisions.
Apple will collect a 30 percent ‌App Store‌ fee for all new memberships purchased via Patreon for iOS and for other digital goods purchased from a Patreon shop, and creators that use first-of-the-month billing or per-creation billing plans will need to swap to subscription billing for their iOS supporters because the in-app purchase system does not support the other flexible payment types.
Per-creation billing allows Patreon members to pay their membership amount for each paid post a creator makes, with a monthly maximum. First-of-the-month billing comes into play with subscription models where a creator allows an upfront fee to unlock a backlog of content, with future payments made on the first of the month.
Because of the limitations of in-app purchase subscriptions, Patreon is transitioning all of its creators to subscription billing, a process that it plans to complete by November 2025. Creators that already use the subscription model do not need to make changes, but creators using other methods will need to update.
Patreon says that if it does not adopt the in-app purchase system for all iOS transactions, it risks being kicked out of the ‌App Store‌. As fees are not changing on other platforms such as the web and the Android app, Patreon suggests that creators send their fans to the Patreon Help Center article to explain the iOS fees compared to the fees on other platforms, so customers can “better understand the implications of where they choose to make their purchases.”
It is worth noting that Apple’s 30 percent cut of Patreon subscriptions will be higher than the amount that Patreon keeps from creators. Patreon keeps between 8% and 12% of paid membership subscriptions, along with payment processing fees. Patreon also collects five percent from digital product sales.
Apple will cut its fees from 30 percent to 15 percent after a subscription has lasted for one year, which is standard operating procedure for the in-app purchases. Apple has been cracking down on the sale of digital goods post-pandemic, and Facebook has also been required to pay Apple’s in-app purchase fees for ad purchases on iOS devices.Tag: App StoreThis article, “Apple Requiring Patreon to Use In-App Purchase and Pay 30% Fee for Memberships” 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.
