Transaction fees across Microsoft commercial marketplaces are being reduced to 3%

Microsoft had a bunch of announcements to share regarding its own products like Dynamics 365, Cloud for Sustainability, and Azure at its Inspire 2021 conference today. But perhaps something else that will attract businesses is the enhancements the company introduced for its commercial marketplaces for organizations.

A screenshot of the Microsoft AppSource homepage

Across the industry, commercial marketplaces usually take a 20% revenue cut on every transactable offer. However, moving forward, Microsoft will only charge a 3% transaction fee across AppSource and Azure Marketplace. The company says that it has noted a 70% year-over-year increase in transactable applications in the past year, and it hopes that this move will further encourage organizations to distribute their software via Microsoft's commercial platforms.

In the same vein, publishers will also be able to set separate prices for customers and Microsoft Cloud Solution (CSP) providers. This will further improve flexibility and inculcate a stronger and more direct partnership between independent software providers (ISVs) and resellers.

Yet another enhancement in this space is the ability to sell apps directly within Microsoft Teams. This will offer a more streamlined process for Teams IT admins and allow them to purchase organization-wide apps via credit card or invoice billing. Moreover, ISVs will be able to set private prices for customers as well. These capabilities will be rolled out to organizations later this summer.

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