Amazon makes changes in its affiliate programme significantly due to pandemic covid-19. The stance adopted by e-commerce tycoon has affected all of Amazon associates in some way or other. Amazon has travelled a long journey to become market leader. Bloggers, shoppers and affiliates helped it to secure this prominent position. Before going to study the situation deeply, let’s discover about affiliate programme.
What is Amazon affiliate Programme?
Content creators, publishers and blog owners are provided with a facility to monetise their traffic. Users can make affiliate accounts to promote the products being sold by Amazon. Clicking on the associate links, the visitors can land on the product page directly to make purchase decision. Associates all around the world are provided with an opportunity to earn an amount of commission via Amazon affiliate link Programme.
How much commission is paid by Amazon
Amazon used to pay 5-8 % commission last year in first Quarter of 2020.
Why did Amazon dropped commission percentage?
Amazon made an abrupt change in lowering its commission while affecting its affiliate marketers all over the world. It was a shocking and discouraging for Amazon affiliates. It has been noticed that Amazon has made changes in its affiliate programme by changing its selling and supplies priorities. They have opted to prioritise for their orders and supplies of essential commodities. Consequently the Amazon affiliate marketers who were dealing in luxury items like car parts and non essential households like beds and other furniture and fixtures were also affected by this commission reduction stance of Amazon.
Online publishers like Vox Meida, Buzz Feed and New York Times publish buying guides. These guides convince the customers to make purchase decision. These publishers link out Amazon products in their content and earn commission amount subsequently. The commission reduction decision was not a positive gesture for these online publishers.
The commission on some specific product sales was dropped down to straight 1% which looks insane and outrageous. Though, there is not a clear cut answer behind these commission reduction moves of Amazon yet prevailing covid-19 is being considered one of the biggest factors. So, the marketers who were totally dependent on theses affiliate programs for their bread and butter are worst affected by this commission reduction decision of Amazon.
List of Categories under commission Cut
Amazon dropped commission percentage on following some of the major product categories including
- Commission on mobile accessories like ear buds, musical gadgets and cosmetics was decreased from 6% to 3%.
- Baby products, outdoor items and sports related accessories will see a dropping down commission from 3% to 1 %.
- Grocery like items where 5% commission was paid earlier have to meet a big blow of commission cut up to 1%.
- Commission on lawn and garden decoration and maintenance related items was decreased up to 3 %.
- Affiliates dealing in Pet products have to face the commission reduction of same %age of 3%.
Half of the sales of Amazon are made online in comparison to E-Bay and Wal-Mart. Digital media organisation in last few years focused to build e-commerce divisions. Purpose behind building these commerce wings was to persuade viewers to make particular buying decisions. Drastic changes of commission reduction will be a harsh blow for these media cells.