Microsoft lowers marketplace transaction fee from 20% to 3%

The tech giant says it wants to show it is investing in its partner ecosystem

Microsoft has lowered its marketplace transaction fee from 20% to 3% in a bid to help partners get to market faster and build apps for every customer need.

Speaking at this year's Microsoft Inspire, the tech giant said it wants to demonstrate its commitment to the success of its partners on its platform and help them keep more of their margin to invest in their growth. The reduction in the fee applies to every transactable application published in the commercial marketplace, including its digital storefronts, Azure Marketplace and Microsoft AppSource. 

“This reduced transaction fee demonstrates our commitment to the success of partners creating value on our platform—and helps partners keep more of their margin to invest in their growth,” said Charlotte Yarkoni, chief operating officer of Microsoft Cloud and AI.

Microsoft is also expanding the payment instruments available in Microsoft AppSource, to give customers the flexibility to purchase using credit card or invoice, and independent software vendors (ISVs) can offer custom pricing using private plans.

Furthermore, ISVs will soon be able to sell their apps within Microsoft Teams. This aims to expand the ability for ISVs to monetise their offerings and provide a simplified experience for Teams IT admins to purchase apps and subscriptions directly from the Teams admin centre.

Related Resource

Must-haves for your next e-commerce platform

Five capabilities needed to win in tomorrow’s digital marketplace

Man on a laptop in a colourful bubble - whitepaper from AdobeDownload now

Starting in the summer, customers will be able to buy applications within Microsoft Teams with either credit card or invoice, giving ISVs access to the platform’s 145 million daily active users.

From next autumn, publishers with transactable Microsoft commercial marketplace offers will also be able to set one price for customers and another for Microsoft Cloud Solution Provider (CSP) partners of their choice. This is meant to allow publishers to provide a margin to CSP partners upfront while CSP partners can also add a price markup when reselling to customers outside of the commercial marketplace. Essentially, publishers can develop their channel with partners in the CSP programme and compensate them for generating sales.

Microsoft hopes this new flexibility will create stronger connections among partners and incentivise ISVs to share margin with resellers. The overall goal is to make it more profitable for partners to engage and sell Microsoft commercial marketplace offers.

Featured Resources

B2B under quarantine

Key B2C e-commerce features B2B need to adopt to survive

Download now

The top three IT pains of the new reality and how to solve them

Driving more resiliency with unified operations and service management

Download now

The five essentials from your endpoint security partner

Empower your MSP business to operate efficiently

Download now

How fashion retailers are redesigning their digital future

Fashion retail guide

Download now

Recommended

Google, Microsoft fight over documents in antitrust lawsuit
Policy & legislation

Google, Microsoft fight over documents in antitrust lawsuit

30 Jul 2021
Microsoft cracks down on sophisticated BEC scam campaign
scams

Microsoft cracks down on sophisticated BEC scam campaign

20 Jul 2021
Security researchers uncover more Print Spooler vulnerabilities
vulnerability

Security researchers uncover more Print Spooler vulnerabilities

19 Jul 2021
Microsoft customers will be able to record, report, and reduce their emissions
cloud computing

Microsoft customers will be able to record, report, and reduce their emissions

14 Jul 2021

Most Popular

RMIT to be first Australian university to implement AWS supercomputing facility
high-performance computing (HPC)

RMIT to be first Australian university to implement AWS supercomputing facility

28 Jul 2021
Samsung Galaxy S21 5G review: A rose-tinted experience
Mobile Phones

Samsung Galaxy S21 5G review: A rose-tinted experience

14 Jul 2021
The benefits of workload optimisation
Sponsored

The benefits of workload optimisation

16 Jul 2021