Affiliate Links

Amazon reportedly planning drastic cuts to affiliate commission rates starting next week

Amazon reportedly planning drastic cuts to affiliate commission rates starting next week
Written by publishing team

Amazon plans to make significant reductions in commission rates for its affiliate marketing program, which allows media organizations, e-commerce companies and small and independent businesses to receive a reduction in revenue from a sale if a customer lands on a product page and purchases the item through the link provided. The cuts will take effect on April 21, according to CNBC, and some product categories will see declines of more than 50 percent.

For example, commission rates within the categories of home improvement, furniture, lawn, garden and pet products will see an 8 percent commission rate for each sale dropping to just 3 percent. For headphones, beauty products and musical instruments, commission rates will drop from 6 percent to 3 percent. Several other categories — including groceries, sports, baby products, and outdoor gear — all drop to 3 or 1 percent, CNBC reports, of 4 per cent or higher.

The changes would be a severe blow to digital media organizations, many of which have spent the past few years building commerce divisions dedicated to recommending highly bought products, at least in the US, on Amazon. Other retailers, such as Best Buy and Walmart, run affiliate marketing programs, but Amazon remains the leading e-commerce company in the United States with nearly half of all online sales. Last month, Amazon and other retailers also began suspending custom merchandising deals, which are separate from its standard affiliate program, with large digital media companies amid the COVID-19 pandemic.

Digital media companies like BuzzFeed And The New York Times-owned wire cutter Among the leading trade providers in the industry. the edgeParent company Vox Media is another company that has affiliate partnerships that include Amazon. (For more information, please see our Ethics Policy.)

But there are dozens of other news organizations that do the same and non-news companies that have built small to medium-sized businesses around online deals and product reviews. Quoting CNBC, one person – who runs some Facebook groups dedicated to sharing deals online – said he “can’t afford” the cuts and that the changes “would hurt a lot of people.” The change will hurt not only websites, but YouTube channels with deals, high-profile e-commerce, and even deal with plug-in makers and stores like Honey and Rakuten.

Amazon doesn’t mention any single reason for lowering commission rates, according to an email it sent to members of the program that got it CNBCThe company declined to comment on the situation.

Amazon is one of the few US companies that have become more vital during the COVID-19 pandemic. The company is hiring hundreds of thousands of new workers to keep up with demand in its warehouses, grocery and parcel delivery platforms.

However, despite the skyrocketing demand for Amazon’s services, the company is struggling to maintain operations such as Amazon Fresh’s grocery delivery option, which now has a waiting list for use, and pause some services such as Prime Pantry for ordering larger homes. Non-perishable goods and materials. It said only yesterday that third-party sellers can now resume sending non-essential products to ship to customers, after the company restricted its warehouse shipments to essential goods such as health and cleaning products and non-perishable foods.

About the author

publishing team