Amazon Associates will lose a lot of money from the end of April 2020!
The company notified members of the program, called Amazon Associates, that it´ll slash commissions, starting April twenty-twenty.
Amazon has managed the affiliate program for years, which allows members to advertise and connect with Amazon products in exchange for a percentage of sales. The program generates significant revenue for websites that link to Amazon products in their content. It is especially important for online publishers like BuzzFeed, the New York Times and Vox Media that publish shopping guides that encourage readers to buy products from Amazon to reduce sales.
Prices are being lowered for a number of associated product categories. For example, reductions in affiliate products from home furnishings declined from 8% to 3%, while commissions for groceries dropped from 5% to 1%, according to Amazon.
An Amazon spokesman confirmed to CNBC that the company had notified U.S. associates on Tuesday of a fee change. Amazon regularly evaluates its programmatic offerings to ensure it competes with the broad industry and added that such rate estimates are common industry practice, he said
Here are the rates for product categories before the change:
See here what happend to the comissions!
This means: if you have an existing business as an Amazon affiliate you will lose money because you get paid less and only from the items you have linked to. If someone buys more items, you won´t get anything anymore. In the past, there were also commissions for that.
For newcomers who have only a few visitors to their sites, the Amazon Associates business is not worth is. For the established sellers: you have to scale enormously.
Amazon is certainly the most famous online department store in the world. It has become so well known that affiliates are no longer needed.
I myself look there first when I buy something online. Prices and service are great. If you are struggling with the fact, that Amazon has taken his commissions down, here are some alternatives who still pays pretty good commissions and are very similar.
So, let me introduce you to a few alternatives:
Did you know that Walmart has an affiliate program? See what they pay. The lowest is 8 and then it´s up to 20%!!
And Walmart charges no fees for setup, subscription or listing. Just a referral fee for each sale you make.
Next one is Target.com
They sell Apparel and Accessories, Home, Outdoor, Furniture and Health, and Beauty products as well. There is no charge to join the Target affiliate program. It is free to sign up and free to add banners, widgets, and links to your site. They have a different commission structure. It starts at 5%, but if you sell more it´s going up to 8%.
→ This is interesting for those who still have a shop or site with a high number of visitors!
Jet.com. There is a basis of 15% commission on all items. You can see exceptions in the table below. That goes from 20% for jewelry and drops to 6% for computers. And they have more!
“Jet is currently seeking content and blogger publishers to join their program. They have teamed up with Acceleration Partners and Rakuten Marketing to offer affiliates an attractive commission rate of $10 for acquiring new customers and 6% on returning customer orders. Affiliates will have access to a media kit filled with seasonal content ideas, and a dedicated, award-winning affiliate team.”
I could not find anything about fees.
Similar to Jet.com: Wayfair.com/Shareasale.com /cj.co
I just want to talk about Wayfair here as an example, the other two work similarly.
Wayfair also is not a website but a network. They offer a huge list of online-shops and retailers you can promote. You will find furniture, appliances storage, etc. And their affiliate program is attractive too. They offer base commissions from 5-7% across the board.
And last but not least:
In my opinion, ebay would be the best alternative to Amazon. I Think they offer as much as Amazon and you get paid unbelievable affiliate commissions I could hardly believe it! Nothing lower than 50% !! Bonuses and Bounties too! And they charge very reasonable fees.
Bonuses and Bounties:
There are two ways to increase your earnings:
- New affiliates make double commissions the first three months
- Affiliates get a 100% bonus when referring a purchaser who is new to eBay or a reinstated one.