by Updated January 25, 2019
Amazon Associates is an affiliate marketing program operated by Amazon that allows you to sell their products on your website for a portion of the profits. This enables you to enhance your product range, test new types of products on your audience or even build entire businesses around this and possibly other affiliate programs. For small businesses that currently sell products online, this can be a great source of additional revenue, if you sell additional products through Amazon, without worrying about getting the products yourself. Amazon makes sales and ships them directly to the customer.
Commission fee structure
Amazon operates a volume-based advertising fee structure. The more products shipped as a result of your affiliate links, the higher your earnings per sale. Once you sell enough products to move to a different ad price, all subsequent sales will give you a commission at that rate, until and unless you reach the next fee level. Note that some products are exempt from this commission structure.
Commission fee schedule
Until 2017, Amazon offered a tiered commission structure so that affiliates who sold a lot of products got a higher commission than those who sold few. However, Amazon scrapped this structure and started using flat commission rates for different types of products. While this development is likely to continue, examples of commission structure in 2018 are as follows:
- 1.0% for video games and consoles
- 2.0% for TV and digital download games
- 2.5% for computers, computer components, DVD and Blu-Ray discs
- 3.0% for toys
- Amazon tablets and Kindle devices: 4.00%
- 4.5% for paperbacks, healthcare, personal care, sports, kitchenware, cars, and baby products: 4.50%
- 5.0% for digital music and video downloads; Grocery items, hand tools or musical instruments
- 6.0% for headphones, beauty products, musical instruments, commercial and industrial supplies
- 7.0% off clothing, accessories, Amazon TVs, Amazon Echo products, and jewelry
- 8.0% for furniture, lawn, gardening, home improvement, pantry, and pet products
- 10.0% off Amazon Fashion Items and Amazon Coins
Most other categories will earn a four percent commission for affiliates, while Amazon Gift Cards and Wine pay no commission.
Receive payment from amazon
Amazon won’t pay you unless your sales reach the $10 limit if you choose to be paid by direct bank deposit or Amazon Gift Card, or $100 if you want to be paid with a check. If you fail to reach the threshold, your referral credit will be carried over to the next month and added to the sales you make at that time. Amazon pays affiliate sales at a net 60 days, so, for example, sales that hit the bottom line at the end of January will be paid out in late March.