Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.

I'm developing a "free" iphone app for selling shirts based in an Asian country. The payment method is by credit cards or wire transfer, not by Apple's in-app purchases.

Does Apple allow this kind of app in their store? If so, do I have to share revenue with Apple?

Gilt also sells items online in their app. Do you know what's Gilt's business model? Do they share revenue with Apple?

share|improve this question
Please contact me, as I am very interested in your app, but in a discussion that is not relevant to onstartups.com (I would rather not get flagged or voted down). (contact me at ron @ (my domain, listed on my profile) – RonGa Nov 29 '11 at 14:54

4 Answers

Apple in-app purchase is only for (and required for) non-tangible goods. For that, they get 30%.

IF you are selling tangible goods (shirts, etc) use other services like braintreepayments or zooz

share|improve this answer
I have done research on this already and this particular answer is the correct one. Voted up! – Ali Jul 17 '12 at 11:46

The TOS for apple is clear that IAP must be used when selling virtual goods, and cannot be used for selling tangible goods.

eBay will sell about $5B of merchandise this year via their app, without giving apple a cut from the sales.

While apple can always change the rules, under the current ones, you have nothing to worry about.

share|improve this answer

AFAIK Apple don't allow you to have "In App" purchases without using their system and giving them their cut. Doing so is a ToS violation and could get your app pulled.

As far as I can work out you can do a simple link to a web page from your app.

Even Amazon had to comply

http://www.computerworld.com/s/article/9218629/Amazon_caves_to_Apple_drops_Kindle_s_in_app_button

http://www.pcworld.com/article/227899/apple_inapp_purchase_policy_has_consequences.html

http://www.pcworld.com/article/227899/apple_inapp_purchase_policy_has_consequences.html

(Disclaimer - I am really not involved with Apple/Mobile business so may be talking rubbish!)

share|improve this answer

I can't give you a 100% answer from experience, but Amazon has an app for the iPad, and there is no way Amazon is giving apple 30% or anything really. They don't have such big profit margins and would use a web app instead if they were giving up a percentage of sales.

I know recently (a few months now) Apple changed their terms, and this is no doubt why you are worried. At the time I spoke to Apple and couldn't get a straight answer, however I think comparing to what others are doing might be the best evidence you can find.

share|improve this answer
Not sure you can take for granted that an unknown can get the same commercial terms from Apple as a company like Amazon. – Ryan Nov 18 '11 at 9:34
Good point Ryan, it certainly needs to be considered. I guess my experience was that you don't get a straight answer from Apple, they basically said submit your app and see what happens. With this is mind, other companies experience may be the best you get. – Joel Friedlaender Nov 18 '11 at 23:49

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.