The world biggest online shopping mall Amazon recently slashed their affiliate commission up to 50% lower than what it used to be in some categories which we are going to look into. Amazon has thousands, if not millions of affiliate markers worldwide who solely depend on Amazon's monthly earnings to succeed but shocking news was escalated across all Amazon affiliate markers in a period when the world is fighting against COVID 19 Pandemic.
We still don't know why Amazon took the decision to reduce their affiliate commission but for the main time we are going to compare Amazon affiliate commission before and after the reduction but before then, I will like us to discuss the reasons and the impact the changes will have on affiliate marketers.
The shocking news of Amazon commission changes came to my mail just a few weeks after signing up to the affiliate program for the second time after failing to complete some sales within 90 days according to their terms and conditions. I have a personal blog that I thought will work well with Amazon but I was late to enjoy up to 8% commission like old marketers.
Why Amazon reduced its Affiliate commission
This question is what every Amazon affiliate marketers are looking for an answer to but the obvious truth is that Amazon reserved the right to make changes in their platform when they want and how they want. However, an important question was raised in one of the webmaster's forums asking whether the Amazon affiliate commission reduction is influenced by the COVID 19 Pandemic outbreak or was Amazon planning to make the changes before the outbreak.
Amazon on the other hand never explained why they have decided to make what looks like a negative change from the affiliate marketer's perspective. Whether the reduction is caused by the coronavirus outbreak or not, there is no evidence to prove it. Let not deny the negative impact of this COVID 19 Pandemic in a global economy, the world is currently standing still and a lot of things will never remain the same for the next couple of years to come.
Why Bloggers choose Amazon over other affiliate programs
As I said earlier Amazon is the world's biggest online shopping mall that everyone trusts, they have earned the popularity and reputation more than any other online shopping mall. Affiliate marketers understand that to make money they need to promote a product from a well recognized and trusted platform like Amazon.
Being trusted and recognized by more developed countries like the USA and UK guarantees a high conversation rate especially if you are good at what you do as an affiliate marketer.
High commission payout is another reason why marketers choose Amazon affiliate program but the same might not be said after this unfriendly commission cut by Amazon
In summary, high conversation + fair commission share is what drives thousands of affiliate marketers to Amazon program because trust plays a major role when it comes to product and service recommendations. Some times you might see an affiliate program that pays up to 30-50% commission but since they are not popular it will be hard for you to convince your audience to buy from the platform
What's next now after Amazon slashed their affiliate commission
We don't have much choice here, is either we stick with them or start promoting other small platforms that offer more and there is nothing else anyone can do about it. Better still we can re-strategize our marketing plans in any possible way we deem fit.
Honestly, I have not made a dim through Amazon affiliate program because my audience is basically Nigerians and it's hard to use Amazon to monetize Nigerian traffic but I know a lot of online marketers who make thousands of dollars from the program.
The new program update from Amazon will definitely shake marketers who depend on Amazon to make money. The obvious truth is that Amazon doesn't need affiliate marketers to succeed, they have grown and will still do well with Google search and direct visitors. That has been the biggest problem with the affiliate marketing program, after helping them grow you become useless to them forgetting how you have been moving all you visitors to their platform till they become this big.
I am not surprised anyway even Jumia that have grown to become the biggest online shopping mall in Africa did the same few years ago after Nigerians and other African based affiliate marketers helped them to grow above their competitors.
Amazon Commission changes
The Amazon Associates program is expected to slash commission rates from 8% to 3% for furniture and home improvement products and from 5% to just 1% for food products, CNBC first reported on Tuesday. For Grocery, Health & Personal Care and Amazon Fresh, daily item segments would be especially hit to see commission rates whacked down to just 1 percent.
The product category rate changes are as follows:
- Furniture, Home, Home Improvement, Lawn & Garden, Pets Products and Pantry will go from 8% to 3%.
- Headphones, Beauty, Musical Instruments, Business & Industrial supplies will go from 6% to 3%.
- Outdoors, Tools will be cut from 5.5% to 3%.
- Sports and Baby Product categories will go from 4.5% to 3%.
- Health & Personal Care will be slashed from 5% to 1%.
- Amazon Fresh will be cut from 3% to just 1% as well.
What do you think about the new Amazon commission cut?