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In-apps purchase finally coming to the Amazon Appstore

April 11, 2012

After an extensive bout of testing, Amazon has finally given the green light for developers to start offering in-app purchasing in the online retailer’s Android Appstore. The new rule, which will help developers generate more revenue, will take effect today.

In-app purchasing has been a permanent fixture in Apple AppStore and Google Play Store, where app developers can charge customers who want to buy coins to unlock special features or publishers who want to sell digital subscription within the apps. Similar to Apple, Amazon will get a 30% cut of the profit from each transaction.

Utilizing the same one-click service that customers of the online store have been enjoying, the new payment platform on the Appstore can be integrated seamlessly by developers into their apps – allowing for a simple and secure one-click purchasing experience. According to Amazon’s Appstore director Aaron Rubenson, “[the in-app purchasing service] gives developers access to millions of Amazon customers who are already familiar with the 1-Click payment system.”

The news won’t necessarily make developers jump up and down on their seats, but it certainly is a step in the right direction for Amazon, which often has to resort to making the apps on the store  free as part of their promotion. Different from AppStore and Google Play, Amazon also has the final say of how much an app should be selling for. These are just some of the things that don’t resonate well with developers.

Storm8, one of the developers that were involved in the testing of the in-app purchasing service in Amazon Appstore, revealed to AllThingsD that it was able to make a gross revenue of about $700,000 in March. This shows the money-making potential of the new payment platform. Based on the experience of  developers in other app stores, they were able to offer their game for free but still get tons of money from in-app purchasing.

It’s worth noting that, according to a study conducted by mobile apps research company Flurry, Amazon’s Appstore is ahead of the Google Play Store in terms of the generated revenue,  though it comes behind Apple’s AppStore. For each $1 that Apple makes from its user, Amazon Appstore gets $0.89, while Google Play only fetches $0.23. The number may change again soon to favor the Amazon Appstore with the implementation of the in-app purchasing service there.