Starting April 21, Amazon affiliates, which include publishers and influencers, will see lower commissions from affiliate link sales across many product categories.
Amazon Associates is set to cut commission rates on furniture and home improvement products from 8% to 3% and grocery products to just 1%, down from 5%, CNBC first reported Tuesday. Everyday item categories will be particularly affected, with commission rates dropping to just 1% at grocery, health and personal care stores and Amazon Fresh.
The product category rate changes regions as follows:
- Furniture, Home, Home Improvement, Lawn & Garden, Pet & Store Products will rise from 8% to 3%.
- Headphones, cosmetics, musical instruments, commercial and industrial equipment will rise from 6% to 3%.
- In the open air, the tools will be cut from 5.5% to 3%.
- The sports and children’s product categories will move from 4.5% to 3%.
- Health and personal care services will be reduced from 5% to 1%.
- Amazon Fresh will be reduced from 3% to just 1%, too.
Here is a look at the current price structure as follows:
The price cuts are just one of the recent changes to Amazon’s affiliate programs.
No more middle man. Amazon is taking third-party networks out of the loop and will only work directly with publishers. Adexchanger reported last week that networks like Skimlinks and Sovrn will no longer be able to take a portion of Amazon affiliate commissions for publishers. Amazon already has direct relationships with thousands of publishers.
COVID-19 paused. Rising consumer demand has greatly strained Amazon’s fulfillment capabilities. This strain affected Amazon sellers, many of whom had to back off product ads due to a lack of inventory. According to the information, Amazon has temporarily discontinued direct affiliate programs with publishers such as BuzzFeed and Vox.
Affiliate trends. Meanwhile, campaigns for casual wear – T-shirts and yoga pants – are outperforming other categories during this time as more people are now working from home, according to data from Keywee, the content distribution platform. Keep track of family and home categories, driven by pet toys and kids safety products online.
“all of these [campaigns] “It has been wrapped in very positive tone and messages at the campaign level, with emojis, for example, becoming more prevalent compared to other types of paid distribution campaigns,” said Inbar Yagur, Head of Product Marketing at Keywee, in an email.
Why do we care. The cuts could be a blow to publishers, influencers and content creators who depend on Amazon’s revenue streams at a time when sponsored content and ad revenue are already drying up. Expect to see campaigns shift to product categories with higher commission rates.
Amazon has not commented on whether the coronavirus pandemic has played a role in informing the new price structure. The company has started accepting some non-essential products from FBA sellers into its warehouse again. In March, Amazon temporarily stopped receiving shipments of non-essential products due to increased demand for household essentials and other essential product categories as the coronavirus outbreak in the United States worsened.
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