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| Image by Muhammad Afaq|afaqnewsfourm |
Key Notes 1
On 14th April 2020, Tuesday, Amazon
has shared with his partners of affiliate associate program that cuts in amazon
affiliate commission rates will be commence from April 21.
Key Notes 2
Multiple product categories of
affiliate Associate Program are on the edge of the knife from April 21 and
onward. For instance, categories like
Lawn and Garden, Home improvement, Home will have rates 3% which are now 8%
that a straight cut of 5%.
Surprisingly, the flash news of
severe decline in amazon affiliate commission rates on Tuesday, 14th
April 2020 by Ecommerce Giant Amazon.com.
This news spread more rapidly all over the world if comparing with
pandemic coronavirus covid-19. This news
has setback all the direct and indirect partners all together at the same time.
The company has notified the
members or participants of the program, famous as Amazon Associates, via email that
new dropped amazon affiliate commission rates will be replaced the present on
April 21.
Amazon is patronizing the
affiliate program for years which permits participants to use amazon products
link through advertisement and get some percentage in return on sales. This program has enabled many affiliate
websites to earn revenue by linking up Amazon products in their contents. Its significance further increased when
online publishers like Buzz feed, The New York Times, and Vox Media that publish buying guides that converts
reader into potential buyers of Amazon product
in exchange of commission (in percentage ) on sales.
The cut in rates will be applied
directly on variety of product categories. For instance, the cut on the
purchase of furniture, home, home improvement, Lawn and Garden will have been
dropped from 8 % to 3 %, while the rates on grocery slid to 1 % from 5 %, as
reported by Amazon.
Below both charts are presented
for more clear illustration.
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| The slab describing the affiliate program commission rates prior April 21, 2020 |
Now have a look on future feestructure beginning on April 21
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| The new fee statement by Amazon for its affiliate program members effective from 21-04-2020 |
The amazon spokesperson added,
The Company has informed the USA based associates Tuesday the change in the fee
structure, Reported by CNBC. Further he refused to comment on coronavirus
pandemic is the reason behind this decision.
The spokesperson said Amazon
continuously engaged in evaluating program offering for analyzing its
competency efficiency and capacity within broader ecommerce based industry,
such adjustments in affiliate commission rates are part of standard industry
practice.
Here is Indeed, covid-19 pandemic
drastically hit the amazon‘s business at multiple fronts. With hard dent on
online orders, the company has started limit its shipments services only to essential
goods like grocery items from its warehouses on priority basis. Therefore keep
in line with demand, company is induction new workforce. The pandemic virus compelled Amazon to place
its Prime Pantry delivery services on pause mode on temporary basis. Also its Amazon Shipping Program will be stopped
in June.
The Amazon already began making
cuts in commerce marketing deals before Tuesday’s Official Notification. The digital media company knew about the suspension
of commerce market deal from the last month because the company had informed
them.
Other than news and non-news
organization many small and medium sized business rely on online deals and
product reviewing are affected with this surge. According to CNBC one person-requesting
to keep undisclosed-who run few Facebook groups getting his share from online
deals-said they “can’t afford” the cut in affiliate commission rates and the
new fee structure will hurt a lot of people and their families as well. This
surge will not limit to websites only, it will hurt other sources like ecommerce
YouTube channels, and plugins developers who contributed their roles in Amazon
affiliates programs.
Twitter and Reddit are reflected
frustrated voices which have aroused by bloggers and online business community
about the drop in rates. A member of an affiliate program forum on Reddit has written
that these changes are hilarious. He added: These slashes are the clear signals
of future recessions.
Some says these slashes are only
for amazon associate USA. No evidence in support.
As of December 2019, 200 million
websites are active on Google Servers while registered figure is 1.7 billion.
The affiliate marketing ads have significant share in the overall earning of
Google that seems to be shrink as the result of new reduced fee structure.
The impacts of cuts in commission
rates will escalate more adversely in upcoming months in three ways. First the
existing actors will move to sell their sites and switch to other affiliate programs,
and secondly will quit from the amazon
affiliate program. Thirdly, those
who are in the phase of creating a website
for amazon affiliate to earn income are in the state of shocks.