Cloud marketplace fees are the transaction costs charged by AWS, Azure, and Google Cloud when an ISV's product is purchased through their marketplace. The fee is deducted from each transaction and paid to the cloud provider as part of the marketplace distribution agreement. Understanding these fees is essential for ISVs building a marketplace-first revenue model.
The standard 3% rate
All three major cloud marketplaces charge a 3% transaction fee on marketplace revenue. This rate applies to all listing types — SaaS subscriptions, AMI listings, container-based products, and professional services (with some variation on the latter).
The fee applies to the contracted transaction value. A $100,000 annual SaaS contract generates a $3,000 fee to the cloud provider. The ISV nets $97,000.
AWS Marketplace fees
AWS Marketplace charges a 3% standard transaction fee on all marketplace revenue. This applies to public listings and private offers equally.
- Standard transaction fee: 3% of the contract or subscription value
- ISV Accelerate program: Eligible ISVs may qualify for a reduced fee. The specific reduced rate depends on the product category, program tier, and deal terms — ISVs should confirm current rates with their AWS Partner Development Manager (PDM).
- No listing fee: There is no charge to create or maintain a listing on AWS Marketplace.
- CPPO (Channel Partner Private Offers): The fee is calculated on the reseller's end-customer sale price, not the ISV's wholesale price to the partner.
- Professional Services listings: A different fee structure applies to professional services offerings — confirm with your PDM.
ISV Accelerate note: Passing the AWS Foundational Technical Review (FTR) is a prerequisite for ISV Accelerate enrollment. See our AWS FTR Guide for what that involves.
Azure Marketplace fees
Azure Marketplace charges a 3% standard transaction fee for most transactable SaaS listings. This was reduced from 20% in 2021 — a significant change that substantially improved ISV economics on Azure.
- Standard fee: 3% (down from the previous 20% standard rate, reduced in 2021)
- Co-sell eligible listings: Same 3% rate. Co-sell status does not further reduce the transaction fee.
- AppSource (Microsoft commercial marketplace): Aligned to the 3% rate for SaaS transactable listings.
- Private offers / private plans: Standard 3% applies to privately negotiated deals too.
- Multi-party private offers (MPPO): The fee is on the partner's end-customer sale price, consistent with the standard model.
- MACC eligible: Azure Marketplace transactions count toward a buyer's Microsoft Azure Consumption Commitment (MACC) — this is a buyer benefit, not a cost to the ISV.
Google Cloud Marketplace fees
Google Cloud Marketplace charges a 3% standard transaction fee on marketplace transactions, consistent with AWS and Azure.
- Standard fee: 3% of the transaction amount
- ISV Advantage program: GCP's ISV program includes potential fee support for qualifying ISVs. Consult your Google Cloud partner manager for current ISV Advantage terms and eligibility.
- Google Cloud Commit eligible: GCP Marketplace transactions count toward a buyer's committed use agreement (Google Cloud Commit), giving enterprise buyers a strong procurement incentive.
- Listing types: The 3% fee applies to SaaS, virtual machine, and Kubernetes application listings.
Fee comparison table
| Factor | AWS Marketplace | Azure Marketplace | GCP Marketplace |
|---|---|---|---|
| Standard transaction fee | 3% | 3% | 3% |
| Previous fee (before reduction) | N/A (3% has been standard) | 20% (reduced in 2021) | N/A (3% has been standard) |
| Fee reduction program | ISV Accelerate (rate varies) | None additional | ISV Advantage (rate varies) |
| Applies to private offers | Yes | Yes | Yes |
| Applies to reseller / CPPO offers | Yes (on end-customer price) | Yes (on end-customer price) | Yes (on end-customer price) |
| Listing fee | None | None | None |
| Committed spend drawdown program | EDP (Enterprise Discount Program) | MACC (Azure Consumption Commitment) | Google Cloud Commit (committed use agreement) |
Total economics: what ISVs actually net
The 3% fee is simple to model. Here is a worked example across two deal sizes:
For comparison: an ISV billing the same $500,000 directly would gross $500,000 — but would also carry the cost of billing infrastructure, payment processing, tax compliance, contract management, and collections. The 3% marketplace fee effectively outsources all of that to the cloud provider, plus adds co-sell eligibility and committed spend drawdown access for buyers.
Most ISVs find the 3% a favorable trade, particularly once co-sell programs begin generating deals that would not have been accessible through direct sales alone.
What the fee covers
The 3% transaction fee gives ISVs access to infrastructure and programs that would cost far more to replicate independently:
- Cloud provider billing infrastructure: Invoicing, payment processing, and collections handled by the cloud provider at global scale.
- Committed spend drawdown: Buyers can use MACC, EDP, and Google Cloud Commit allocations to fund your product — dramatically expanding the buyer pool for enterprise deals.
- Co-sell program eligibility: ISV Accelerate (AWS), Azure IP Co-sell, and GCP ISV Advantage — programs where cloud provider sales teams actively bring your product into customer deals.
- Single-click procurement: Enterprise buyers purchase without separate vendor onboarding, contract negotiation, or new payment setup.
- Tax and compliance coverage: The cloud provider handles tax calculation and remittance across 200+ countries where they operate.
- Consolidated billing: Your product appears on the buyer's existing cloud bill — eliminating a separate payment relationship and accelerating procurement approval.
Model your marketplace economics
Automatum manages the listing, private offer workflows, and co-sell operations across 80+ marketplace listings. Talk to our team about the economics for your specific situation.
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