Amazon affiliate fee reduction
Amazon is slashing payment rates for its affiliate membership scheme.
The organization has told program leaders, recognized as Amazon Associates,
that it will cut commission rates beginning April 21
according to an email obtained from Amazon Affiliate.
Amazon has been running the affiliate program for years,
allowing affiliates to promote and connect to Amazon
products in exchange for a portion of sales.
The software drives significant revenue in its content for online websites that connect to Amazon goods.
For online publishers like BuzzFeed,
The New York Times and Vox Media, it’s particularly
important to publish shopping guides that encourage
readers to purchase Amazon items for a cut in sales.
Tariffs are being imposed
Tariffs are being imposed on a variety of types of partner items.
For example,
the affiliate cut from furniture purchases and home
improvement items fell from 8% to 3%, while the profit rate
for grocery items fell from 5% to 1%, according to the latest update.
An Amazon spokeswoman stated to CNBC that U.S. associates were informed of the fee shift Tuesday.
The spokesman refused to comment about whether the decision was a result of the pandemic coronavirus.
He Further said Amazon periodically reviews its product
offerings to ensure it is competitive with the wider
market and added that these rate assessments are a common practice in the market.
Here’s what Amazon is telling its affiliate program members:
Hello Associate, we hope you stay well during this time.
We write to remind you of pending improvements to the
Amazon Associates Operating System Agreement, which
regulates your involvement in the Amazon Associates System.
All changes are effective with effect from April 21, 2020.
To see a rundown of those changes, visit the What’s Changed tab.
amazon affiliate fee reduction
If you would like to return to the existing, pre-change
versions, you will also find the Operating Agreement, System Rules, and the Fee Statement.
Sincerely, due to the coronavirus outbreak, the operation of
The Amazon Associates System Amazon was affected on a variety of fronts.
The company, hit by a flood of online orders, moved to prioritize shipments of critical products in its warehouses,
although it has since begun to wind down those restrictions.
The virus also forced Amazon to temporarily suspend its distribution service to Prime Pantry, while its pilot program
for Amazon Shipping would be halted in June.
Announcement
Amazon had already made some cuts to its marketing packages before the announcement Tuesday.
According to The Details, the organization told digital media
companies last month that it would suspend trade marketing deals.
One program leader, who requested to remain anonymous, said they could “not afford” the fee reductions that had been
implemented, as a large portion of their income comes from
commissions received from Amazon connections.
The member runs many Facebook groups, including
Amazon goods, which advertise shopping deals across the site.
amazon affiliate fee reduction
“All the affiliates that I speak to make most of their money
from these categories,” said the leader. “It’s going to affect a lot of people.”
Bloggers and online companies on Twitter and Reddit expressed their disappointment at the cuts.
One system leader wrote in a Reddit forum for affiliate marketing:
” Somehow These slashing are crazy. SEO / affiliate outlook is pretty grim, to be honest, along with a strong risk of a coming recession.
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