Amazon to affiliates: we don't need you anymore

[ergophobe]

At least that's how I read this. As of April 21, the commission structure is getting slashed

https://affiliate-program.amazon.com/help/operating/compare?ref=oa_update_change

See the current fees here
https://affiliate-program.amazon.com/help/node/topic/GRXPHT8U84RAYDXZ

[ergophobe]

Screenshots in case those pages go away - commission schedules - current and as of April 21

Luxury, beauty - 3% vs 10%
Furniture - 3% vs 8%
Grocery - 1% vs 5% (no surprise there)

[martinibuster]

Those are shocking changes!

[DrCool]

I have been telling people for years to not rely on Amazon for their affiliate revenue. And don't get too involved in industries where people just buy on Amazon. Those are becoming harder to find but they are out there.

The affiliate managers I talk to are seeing a big bump in applications and interest in their programs over the last couple days.

[ergophobe]

For many years, I've had the feeling that Amazon basically felt like they didn't need affiliates. As they become more and more of a default shopping choice, they generate their own traffic. And with Covid, I think they've shifted to lower margin products and more marketplace sales. So some cuts were inevitable.

Groceries are interesting. That change seems overdue. For a long time, Amazon said their problem was encouraging adoption. In that sense, inflated commission that may result in a loss on each sale makes sense. Now they are struggling to meet demand, so paying people to send them more traffic doesn't make sense.

>>big bump

Probably in MLM networks too. But that's desperation speaking, not opportunity. Affiliate applications are probably both. People who have no clue thinking they can close the income gap with affiliate sales, on the one hand, and on the other affiliate who know what they are doing but who see niches that are booming while their bread and butter niches may be flagging

[martinibuster]

This only affects Covid-19 related shopping categories. It's not an across the board cut in affiliate rates.

The motivation is it makes little financial sense to pay for traffic that is already hitting Amazon at unprecedented levels. They're said to be hiring 100,000 warehouse workers to meet these insane levels of demand.

Of course, from our point of view it would have fostered good will to share the bounty and let everyone's boat rise. The move is definitely creating negative feelings toward Amazon.

[ergophobe]

>>This only affects Covid-19 related shopping categories

Furniture is Covid-related?

Anyway, I noticed that many categories are, but I am 99% sure this is a one-way change. I do not think it's never going back to the old rates.

[rcjordan]

A fair number of the consumer-tech 'news' sites push Amz stuff almost exclusively.  Debbie says I'm going to lose some feed sites over this.

[Brad]

A fair number of the consumer-tech 'news' sites push Amz stuff almost exclusively.  Debbie says I'm going to lose some feed sites over this.

Buzzfeed does a lot of Amazon affiliate marketing.  I just saw a Buzzfeed affiliate post that was all products from Target.  Never saw that before.  Seen on Apple news app.

Looks like Buzzfeed is trying out alternatives to Amz.

[rcjordan]

Good find.  I've been watching BGR.com, and -so far- they've stayed Amz.

[DrCool]

Good article on the change: https://www.cnbc.com/2020/05/02/as-amazon-soars-mid-pandemic-affiliates-feel-theyre-left-behind.html

I have a few Amazon affiliate links on my one affiliate site I still have around. I think it has done about $50 in referral fees this year so not much. I have been telling affiliates for years to not get too reliant on Amazon and work direct with more, smaller merchants. The other merchants I work with have earned me over $5K so far this year (up ~400% vs. last year) so there is definitely affiliate life beyond Amazon.

At the day job we have some content affiliates driving tens of thousands of dollars in commissions every month.

So Amazon, affiliates don't need you any more either!