The first real decision in any Shopify app project isn't a framework or a budget — it's distribution type. Custom app, public App Store app, or Theme App Extension? That one choice sets your cost, your timeline, whether Shopify reviews your code, and whether you pay revenue share. Get it wrong and you either burn months in App Store review for an app one merchant will ever use, or you build a one-off that you can't sell to anyone else. Here's how to decide in 2026.
TL;DR
- Custom app — built for one merchant (or a small group), installed via a direct link, not reviewed by Shopify, no revenue share. Fastest to launch. Best for bespoke functionality a specific (usually Plus) merchant needs.
- Public app — listed on the Shopify App Store, built for many merchants, reviewed on every submission, subject to Shopify's revenue share. Slowest to launch, but it's a product you can sell repeatedly.
- Theme App Extension — storefront UI that installs into a merchant's theme. Lowest friction, narrowest scope.
- The deciding question: are you building a product (many merchants) or a solution (one merchant)? Product → public. Solution → custom.
The three types, side by side
| Custom app | Public app | Theme App Extension | |
|---|---|---|---|
| Built for | One merchant | Many merchants | Storefront UI |
| Distribution | Direct install link | Shopify App Store | Embedded in a theme |
| Shopify review | No | Yes — every submission | Yes (as part of a public app) |
| Revenue share to Shopify | No | Yes | n/a |
| Time to launch | Weeks | Months | Days–weeks |
| You own the Partners app | Yes | Yes | — |
When a custom app wins
Choose a custom app when:
- One specific merchant needs functionality no public app provides. This is the classic Shopify Plus scenario — bespoke logic for their catalog, ERP, or checkout that would never make sense as a marketplace product.
- You need it live in 6–10 weeks, not 6 months. Skipping App Store review removes the single biggest source of timeline risk.
- You don't want to pay for review iteration (typically 3–7 cycles for public apps — see the cost breakdown).
- The functionality is differentiated enough to be worth bespoke spend, but too niche to productise.
The trade-off: a custom app earns nothing beyond that one engagement. You own the maintenance burden and the hosting, but there's no marketplace upside.
When a public app wins
Choose a public app when:
- You're building a SaaS product, not a one-off feature — the same app installed by many merchants.
- You can tolerate a 3–6 month path to revenue through Shopify's review process.
- You have a way to drive App Store discovery — App Store Optimization, content, and paid acquisition. A listed app that nobody finds earns nothing.
- Your unit economics survive Shopify's revenue share (a percentage of app revenue, with terms that favour smaller developers up to a threshold).
The upside is leverage: build once, sell repeatedly. The cost is review friction, marketing, and an ongoing compliance surface (GDPR webhooks, API-version churn, performance budgets).
When a Theme App Extension is enough
Choose a Theme App Extension when you only need storefront behaviour — a UI block, a performance widget, a design element merchants drop into their theme. It's the modern, Online Store 2.0-compliant way to render in a storefront without script-tag injection. Lowest install friction, but narrow by design: it can't be your whole app, only its storefront surface.
The honest middle path: start custom, productise later
A pattern we see work: build the first version as a custom app for a paying anchor merchant, validate the functionality and the willingness to pay, then productise it into a public app once you've proven demand. You earn revenue during validation instead of spending six months in review on an unproven idea. The rework to go public (Polaris polish, GDPR webhooks, billing API, listing assets) is real but far cheaper than building a public app for a market that doesn't exist.
What this decision changes downstream
Your distribution choice cascades into everything else:
- Cost — public apps cost more for the same core features because of review iteration, listing assets, and compliance. See the full cost breakdown by type, or get an instant range from our Shopify App Cost Estimator.
- Process — public apps add a review-and-resubmit loop that custom apps skip entirely. See the Shopify app development process.
- Hosting — both custom and public apps need a backend you own; our hosting guide for developers covers the options.
FAQ
Can a custom app become a public app later? Yes, and it's a common path. You'll need to add public-app requirements (Polaris compliance, GDPR webhooks, the Billing API, listing assets) and pass App Store review, but the core logic carries over.
Do custom apps skip Shopify review entirely? Yes. Custom apps install via a direct link and aren't reviewed by Shopify. Plus merchants may apply their own governance, but there's no App Store review cycle.
Does a custom app pay Shopify revenue share? No. Revenue share applies to public apps that bill through Shopify. A custom app is a direct engagement between you and the merchant.
Which type is cheapest? A Theme App Extension or simple private/custom app is cheapest to launch; a public app is the most expensive for equivalent functionality because of review, compliance, and marketing overhead.
Deciding which Shopify app type fits your business? First Bridge Consulting builds custom apps, public App Store apps, and Theme App Extensions for Plus and SMB merchants. Tell us what you're building →