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Amazon Shafts a Million Affiliates - Reduces Commision Payouts

  • idealmike Level X3
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    Amazon Shafts a Million Affiliates - Reduces Commision Payouts

    Anyone that earns with Amazon may see a reduction in the amount they are currently earning or can earn as Amazon reports moving to a new system based on product categories instead of based on volume of sales.

    This new system migration went live on March 1st and no doubt is being felt by millions of Amazon Associates (affiliates) all over the world and will mean a "significant reduction" in earnings from AA.

    Amazon made this change in 2015 but have largely played it down, obviously knowing there is going to be some flack in the community and that flack is causing rumblings by Amazon Associates affiliates.

    Flack and rumblings that have had a lot of them looking into alternatives and preparing to leave Amazon behind altogether and for good in favor of some other monetization method instead.

    You can read more about the Associates Operating Agreement and what’s changed here https://affiliate-program.amazon.com/help/operating/compare?ref_=pe_2511080_224596230

    Here's a basic breakdown of the changes and new rates;


    • Amazon will no longer offer a commission on Amazon gift card purchases.
    • Commissions for many electronics items will be sharply reduced.
    • Grocery commissions (including Amazon Pantry) increase from 4% to 5% for standard grocery purchases and 8% for Amazon Pantry.
    • Industrial product commissions decrease from 8% to 6%.
    • Amazon Associates will no longer receive 8.5% commissions for increased volume; there will be flat rates instead.


    This is a little surprising since Amazon has recently started putting it's prices up on its products. What with inflation and most business putting their prices up. So you'd think that in effect, they'd pay more for their affiliates that get them most of their sales not reduce them. It's like cutting off your nose just to spite your face.

    Have you noticed a drop in your Amazon affiliate earnings?

    Will you be looking for an alternative way to monetize following these reductions?

    What's your say on the whole matter?

    #Amazon Affiliate Marketing
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    Cristian

    Cristian

    Amazon Affiliates was one of the best alternatives to Google Adsense. I don't understand why Amazon made this move, its not like Amazon is having a hard time from a financial point of view, but if they keep this stuff with rising the price of products and lower the commission for affiliates it may get into trouble.

    On the other hand, maybe Amazon got so big it doesn't really care about losing some of its affiliates? I think this is the main idea behind all of these moves.
    9 years ago

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    robertman11

    robertman11

    I haven't seen a drop in earnings but I don't earn that much from Amazon. I bet affiliates are leaving en mass, but probably not enough that Amazon would be concerned about.
    9 years ago

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    clerkboy3

    clerkboy3

    The same old problem again:
    --> You have basically an Oligopoly between eBay and Amazon! Regarding Amazon, maybe it is closer to a Monopoly, but let's say Oligopoly...
    --> Amazon all powerful behaving well for a couple of years, now with the news saying Amazon will be a Trillion $ Company after a certain amount of years
    --> Everybody obsessed with Amazon and buying tons of stuff over there
    --> Several courses, articles, news, etc. about Amazon
    --> Fulfilment by Amazon (FBA)
    --> Amazon Drones
    --> = Amazon is so popular right now that "they can do whatever they want"
    9 years ago

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    jaymish2

    jaymish2

    Many people sell on Amazon. I would argue that the market is saturated. So many affiliate marketers promote Amazon products. Like Google I agree that Amazon is a monopoly and can change it's rules as and when it wants. Like the popular Google Algorithm that changes and disrupts people's business. I would urge this company to be cautious look at Facebook and the Cambridge Analytica drama.
    8 years ago

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    Kakashi2020

    Kakashi2020

    Amazon was the first site I registered into as an affiliate and it's not worth the time and effort, I think I've earned $6 in 2 months in Amazon, it's because of the sheer number of affiliates of Amazon and now their bringing the rate down. I've stopped working on Amazon a year ago.
    8 years ago

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