information Amazon is planning to make dramatic cuts to commission rates for its affiliate marketing

[equity78]

Amazon is planning to make dramatic cuts to commission rates for its affiliate marketing program, which allows media organizations, e-commerce companies, and small and independent businesses to receive a cut of revenue from a sale if a customer lands on the product page and purchases the item through a provided link. The cuts go into effect on April 21st, according to CNBC, and some product categories will see drops of more than 50 percent.

For instance, commission rates under the categories home improvement, furniture, lawn and garden, and pet products will see a commission rate of 8 percent per sale drop down to just 3 percent. For headphones, beauty products, and musical instruments, commission rates will go from 6 percent down to 3 percent. Many other categories — including grocery, sports, baby products, and outdoors and tools — are all dropping down to 3 or 1 percent, CNBC reports, from 4 percent or higher.

https://www.theverge.com/2020/4/14/...iate-marketing-links-commerce-commission-cuts

 

[WhoaDomain.com]

and I was just about to start promoting them as an affiliate.

eehhh Amazon is not the only game in town.

niche affiliate programs from smaller companies have always given more commission percentages.

there are still affiliate programs out there willing to give 10% or even 25%. a simple Google will show you.

I was gravitating towards Aliexpress maybe Walmart or Target. Homedepot. Bestbuy costco BJs.com

and you've got Rakuten and CJ.com etc etc.

It's not the end of the world.

perhaps Amazion did this because the affiliate pool has become saturated with all these "at home workers" thinking they can make money with Amazon's affiliate program? like I did?

 

[stargoldsilver]

you dont get all that $ by being fair to people!

 

[draco]

Amazon is now worth $1.1 trillion. So I guess they have to cut costs wherever they can.

 

[Primary Names]

another cunning move by jeff.. now he gets to say - hey ... we cut commissions because the sales were directly influenced by unnatural corona spike and we suffered huge losses.... while the truth is just the opposite. Amazon is raking it in during the pandemic.

It only makes sense to extort from people when they are sooo dependent on it. This change is gonna be permanent though. This will have a serious effect on lives of affiliates dependent on it.. the small timers will be hit 10x in comparison to corporate-backed entities like wirecutter.

 

[Bob Hawkes]

Thanks for sharing. I no longer personally try to make any affiliate revenue with Amazon, but as article points out, there are many who depend critically on it.

It is good that there are some other options, as the more a few companies dominate the market, the more fragile are reasonable and stable terms.

It seems to me that the amount of notice they are giving is insufficient, given that for some companies that cut of a factor of 2 will be catastrophic to a profitable business.

Bob

 

[equity78]

Amazon stock hits new all-time high as coronavirus spurs demand
Amazon's market cap broke $1.1 trillion

https://thenextweb.com/hardfork/202...ew-all-time-high-as-coronavirus-spurs-demand/

 

[nameaura]

Not planning they already did

 

[BrandEntrance.com]

They really squeezed and screwed up for many others who are going at it on competeing platforms.

Never forget eh?

 

[J. Carlos Bapue]

Amazon has one of the lowest rates in commissions when it comes to online affiliate marketing. With these cuts, independent affiliate marketers that rely on Amazon will have to skyrocket sales if they want to make a living from this stream alone. Amazon has become a Trillion Dollar company by being mean.

 

[Chinwong]

This is quite absurd. Bad time for affiliate marketers.

 

[Samer]

Careful Amazon maybe people will remember this and not buy your extensions.

 

[DomainRecap]

Jeff finally gets his "Let Them Eat Cake!" moment.

Good job and the next generation will just roast you a bit longer for that deep-aged flavor.