AWS Marketplace Tweaks: Expanded Resell Opportunities, Lower Listing Costs

Amazon Web Services this month announced several enhancements to its app marketplace, including the ability to resell third-party professional services.

The AWS Marketplace currently lists roughly 10,000 products across 50 categories, with an active customer base north of 310,000 users, according to Amazon. More than 1,600 independent software vendors (ISVs) list their apps on the marketplace. There's also a storefront within the AWS Marketplace for professional service sold by AWS partners. These services include things like product support, assessments, implementation, training and managed services.

This week, AWS announced it is letting both ISVs and partners resell all of those services within its marketplace, via the Channel Partner Private Offers (CPPO) program.

As AWS Marketplace senior program manager Lauren Drigotas explained in a blog post this week:

AWS Marketplace Sellers, including ISVs and channel partners can now authorize other AWS Marketplace Sellers to resell their services through CPPO. ... Professional services sellers can create a resale authorization for another ISV or channel partner to resell their professional services in AWS Marketplace Management Portal (AMMP). Once a resale authorization is created, the reseller can customize pricing, contract terms, and billing options on the private offer and send it to customers.

The resell announcement comes on the heels of new, lower listing fees for AWS Marketplace sellers. The pricing changes, announced by AWS earlier in January, are as follows:

  • Public subscriptions for software-as-a-service (SaaS) and AWS Data Exchange product types are reduced to 3%.
  • AWS Marketplace private offer listing fees for software and data are reduced to between 1.5% and 3%. For deals under $1M TCV, there‚Äôs a 3% fee, for those equal to $1M and under $10M, a 2% fee, and for those equal or greater than $10M, a 1.5% fee.
  • Listing fees associated with the renewal of private offers for software and data are 1.5%.
  • Any listing fees not described above remain the same. For example, professional services fees remain at 2.5%, and channel partner private offer (CPPO) transactions continue to have a .5% uplift.

The changes are aimed at giving sellers "a simpler and more consistent fee structure," according to AWS. "This change continues to help minimize friction for sellers as they bring business to and generate new revenue streams through AWS Marketplace."

About the Author

Gladys Rama (@GladysRama3) is the editorial director of Converge360.


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