Amazon Slashes Affiliate Commissions
The truth is Amazon doesn’t need you. They are helping you out more than you are them. Amazon has been the number 1 marketplace for many years and they are a household name like Coca-Cola and Disney. So it should come at no surprise that Amazon slashes affiliate Commissions.
Amazon’s commissions were quite low to begin with, already being cut as recent as March 2017. YouTubers, bloggers and review sites continued to use them because it was such an easy cash grab. They have over 150 million prime members and raked in $180.52 Billion in net revenue in 2019. Customers are already programmed to use the market place without really thinking about it.
Prior to March 2017 affiliates earned more percentage wise as well as through a volume thresh hold. The more you sold of a particular product the more you would earn. Now as of April 21 categories such as grocery fall from 5% to 1%. Headphones, musical instruments, beauty products, business and industrial supplies go from 6% to 3% . While Home improvement and furniture get cut from 6% to 3%.
Huge review sites like BuzzFeed and Wirecutter who rely heavily on the Amazon affiliate program are already turning to alternatives. Target, Home Depot, Wayfair and Bed Bath & Beyond are no getting the nod, paying out more than the e-commerce giant.
The little guy who runs an affiliate review operation by them self and YouTubers will really feel the pinch. Even though an influencer links to an alternate affiliate program doesn’t mean the customer will buy from the recommended source. For example, a YouTuber recommends their $1,000 camera from B&H Photo because the commission is higher. The consumer will still likely take the recommendation and buy it from Amazon. It’s just too easy to order from Amazon from 1 click buy options to the shipping process.
Product reviews can still be profitable for sites that get a ton of traffic. Changing out your links with some of these programs may be worth it. Affiliate networks like Share A Sale and CJ Affiliate offer a huge selection of independent retailers that offer higher commissions than Amazon. Target offers free shipping on purchases over $35. While Amazon’s biggest competitor, Walmart offers free shipping. Don’t forget about the OG ebay, which is also a great option. Do what is best for your business. I know i’ll be getting out before Amazon slashes affiliate Commissions even more.
If you like this be sure to check out our article How To Make Money While You Sleep.