Amazon Shafts a Million Affiliates - Reduces Commision Payouts
Anyone that earns with Amazon may see a reduction in the amount they are currently earning or can earn as Amazon reports moving to a new system based on product categories instead of based on volume of sales.
This new system migration went live on March 1st and no doubt is being felt by millions of Amazon Associates (affiliates) all over the world and will mean a "significant reduction" in earnings from AA.
Amazon made this change in 2015 but have largely played it down, obviously knowing there is going to be some flack in the community and that flack is causing rumblings by Amazon Associates affiliates.
Flack and rumblings that have had a lot of them looking into alternatives and preparing to leave Amazon behind altogether and for good in favor of some other monetization method instead.
You can read more about the Associates Operating Agreement and what’s changed here https://affiliate-program.amazon.com/help/operating/compare?ref_=pe_2511080_224596230
Here's a basic breakdown of the changes and new rates;
Amazon will no longer offer a commission on Amazon gift card purchases.
Commissions for many electronics items will be sharply reduced.
Grocery commissions (including Amazon Pantry) increase from 4% to 5% for standard grocery purchases and 8% for Amazon Pantry.
Industrial product commissions decrease from 8% to 6%.
Amazon Associates will no longer receive 8.5% commissions for increased volume; there will be flat rates instead.
This is a little surprising since Amazon has recently started putting it's prices up on its products. What with inflation and most business putting their prices up. So you'd think that in effect, they'd pay more for their affiliates that get them most of their sales not reduce them. It's like cutting off your nose just to spite your face.
Have you noticed a drop in your Amazon affiliate earnings?
Will you be looking for an alternative way to monetize following these reductions?