App developers will be able to earn between four and six per cent of the cost of purchases with the newly launched Mobile Associates API, which will be available across the Kindle Fire and other Android devices.
Previously, Amazon only allowed developers to make money using digital in app purchasing, subscriptions or with mobile ads, and it claims that now developers will be able to monetise their apps and game.
Mike George, the vice-president of Amazon Appstore, Games and
He said: "Imagine, a developer of a nutrition and fitness app can now offer their customers the ability to purchase vitamins, supplements and fitness gear within the app, directly from Amazon.com. It offers the customer a more relevant experience and provides the developer with a new source of revenue."
The scheme will enable developers to sell an item from Amazon in an app or game, showcase a category of goods relevant to the app, or to sell a physical product in a bundle if a digital purchase is made.
Developers Animoca, Fismos, Days of Wonder and Spring2Partners are early testers of the program, and are currently integrating it into their apps and games.
Animoca, the developer of titles such as 'Thor: Lord of Storms', and Fismos, which has developed games including 'Creatures of Olympus', plan to offer in-game currency when players buy products offered in the apps.
Days of Wonder, which makes digital and physical board games such as 'Ticket to Ride', will give away a copy of a board game within the digital game.
Amazon's ad revenue is on the increase, with eMarketer, the market research company, estimating that Amazon took in $610 million (£393.1 million) last year in new ad revenues, up 45.5 per cent from 2011.
The eMarketer research calculated worldwide ad revenue after traffic acquisition costs would increase this year to $835.05 million.
This article was first published on mediaweek.co.uk