So Amazon just announced they have reduced commissions, what does it mean to you as an affiliate?Amazon affiliate commissions have always been on the lower end, their cookie period just 24 hours, but what does this mean to affiliates and what should you do now?Amazon affiliate program commission was not the best before these recent cuts, you had to sell some high ticket products to make money.For everyone looking to earn some extra income, Amazon probably was a good option but I don`t think it is anymore for full-time affiliate marketers.
Amazon AssociatesFor anyone with a blog, Amazon is a good way to make money by referring buyers to buy products you have used and trust. Amazon commissions are between 4% and 10% of the sales your links make.Now, this might sound low but it can be very lucrative and a post you wrote years ago can get you sales years later.What most affiliates like about the Amazon affiliate program is not their commission rate which is significantly low compared to other programs that pay up to 25% commissions and have a 30 day cookie period or longer.What I enjoy as an Amazon affiliate are the high conversion rates, I get to earn commissions from everything and anything someone I refer to Amazon eventually buys, it does not matter if I do not offer that product in my blog.
Amazon Affiliate Program Commission Reduced
As said at the beginning of this post, Amazon did what they do and announced that they have reduced some affiliate fees.
Associates Operating Agreement – What’s Changed
As mentioned earlier, Amazon affiliate commission rates were quite low compared to other affiliate programs out there.
But let`s be honest, while Amazon’s volume has been increasing, their margins are decreasing, they are hiring more people as their volume increases.
Now let`s be clear, Amazon doesn’t need us, they built their business themselves and if we all went away they`d still be just fine.
What most affiliates love about Amazon is that Amazon has higher conversion rates than other equivalent retailers. If I want to admit it or not, Amazon is king on conversions.
Although Amazon`s commission rate maybe just 1% on some items, remember Amazon pays you for all products purchased by anyone you refer to Amazon.
Now all this changed with an email to affiliates
You could not have guessed what was in the email until you clicked and then were met with some very bad news.
Now, this is what may push me and many affiliates away from Amazon, how am I to make money with a 1% commission as an amazon affiliate?
Amazon New Fee Updates
Now that`s different if you compare it to the previous Standard Program revenue linked here in case you`re not an Amazon affiliate so unfamiliar with old commissions.
I have a skin care blog that promotes Amazon affiliate products, as the image above shows, health and personal care products now only earn me a 1% commission!!!
As you can imagine, most Amazon affiliates are already looking for other affiliate programs. I found this discussion by JeannineC to be so accurate.
Amazon Slashes Commission Rates – Again – Because They Can
If you`re unfamiliar with Amazon old rates, it`s also on Jeannine`s discussion post.
Amazon rates were not the best to begin with, I wrote it in an earlier post that I wrote some time ago and mentioned some Amazon alternatives with better rates and even better cookie period and I think now`s the time to act.
How Amazon Affiliate Program Commission Rate Affect Small Blogs
Imagine the mommy blogs blogging about food preparation, they are not going to promote Amazon coins to get 10% commission or, my skincare blog promoting skincare.I know some will say you have to sell higher ticket items but a food blog will sell food storage containers better than trying to sell an inflatable hot tub.In blogging relevance is the word, promoting the right products to the right audience. Understand your readers`problems solve their problems and make money, the process is well explained in detail here.So, now your mommy cooking blog needs a new affiliate program if you are blogging about smart grocery shopping and were promoting Amazon products because, with the new Amazon affiliate commission structure, you`ll struggle to make money to make it worth your time promoting Amazon products.You might also likeAmazon affiliate program alternativesMy #1 recommendation to making money onlineAmazon affiliate program reviewMake money with affiliate marketingWhat NextNow it`s not all bad news, there are still Amazon product categories that stay the same, but for blogs like mine mentioned earlier, it`s time to move somewhere else.Some experts believe it’s still possible to make money on Amazon, and it`s explained here how to still use Amazon and earn extra or full-time income.True it`s something I totally agree with, but with a 1% commission, I’m sure there are better programs out there that value my work as a blogger.I think it’s time for you to ask, can you really make money with the amazon affiliate program enough to make it worth your time blogging?Just because Amazon commissions no longer works for you does not have to mean bad news, there are ways you can make even more money with your blog and not rely on the lousy Amazon affiliate program commission that`s so low it`s laughable.Diversification When BloggingAs an affiliate you should never rely on one source of income, every business should have
diverse income streams. Here are some you can start right now:
Sell Digital Products
Digital products are consumed by almost everyone, music, online courses, ebooks. Many entrepreneurs have built very successful businesses with digital products.
What makes them popular is that they are easy to maintain and distribute as there is no shipping needed.
With digital products, you only need to create once, keep selling the product and make passive income.
You don`t have to create your own products, there are millions of digital products to sell as an affiliate.
Add paid advertising on your blog
If you want more revenue streams to your blog, and have a good amount of traffic, running ads is the way to go, this is a very passive way of making money online.
Understand this is not a get rich quick scheme, your earnings will depend largely on your traffic and where that traffic is coming from.
Not all people who visit your website will buy, many will read your content and leave. Why not monetize that traffic starting right here totally free.
Join More Affiliate Programs
There are thousands affiliate programs available, with higher commissions. Do some affiliate marketing programs research and find networks with better affiliate commissions.
You will earn more while promoting quality products, other affiliate programs have just as high-quality products.
Programs like this one shows you how affiliates rate retailers so you know what to expect before you join. Still, never forget to check their customer service.
Sell your own products and services
There is so much you can do online to make money, be a freelancer, sell a course, VA, help people create websites, teach people something, sell your own course……… the list is endless. It can be as simple as creating printables.
Get everything done here with reliable and unbeatable support, trusted by entrepreneurs of all sizes.
Conclusion On Amazon Affiliate Commissions
There are thousands of affiliate programs out there, and millions of affiliate products to promote and make money, you just have to find what works best for your blog and niche.
The opportunities to make money with affiliate marketing does not have to look bleak just because.
Although promotion and sales might be different,in programs within easy to join affiliate network or this affiliate network where you have to apply to a program individually, their commissions are much higher and cookie locking periods much better.
If you are an affiliate marketer making money on Amazon, you can make money with any affiliate program out there.
I hope this post helped you look at things in a positive way and will help you look at other programs out there.
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I was floored by the reduction. Amazon commission used to make up a significant portion of my income.
After such a sucker punch, I am moving away from Amazon completely. So far I have tried ShareASale, which was good, and Travelpayouts, which was excellent. It won’t fit everyone because they are a travel affiliate network, but I have been able to fit them into my food blog. I used to market cooking equipment with Amazon but in these times we have to be more creative. I now put in a flight search widgets, if I am writing about regional dishes.
Travelpayouts has a good commission and a decent cookie lifetime. So I am counting on this to pay off once travel restrictions are lifted.
Hi there Olivia
You are not alone, one of my blogs was hit hard as my niche is one of those that got reduced to 1%, I felt insulted, how could Amazon expect affiliates to accept 1% commission and the Amazon 24 hour cookie period?
Glad to know you`re thinking out of the box and adding travel affiliate links .The end of Amazon for us does not mean the end of affiliate marketing, there are so many affiliate networks out there with better terms, better commissions and better affiliate cookie periods.
To be honest,I think Amazon is really not for anyone who wants to make serious affiliate commissions, but people new to affiliate marketing choose to go with Amazon because of their easy to navigate site.
Wish you all the best and Believe me, things can only get better after Amazon.
Hey nice interesting article you have there. The sudden reduction in Amazon commissions has really left so many Affiliate marketers wondering what would have triggered Amazon into taking such a drastic action without considering the fact that it was based on this commissions, most Affiliate marketers choose to promote their products. I honestly think Amazon needs to have a rethink of their decisions.
totally agree because as it is, they will sure lose over 50% of their affiliate marketers.I have a niche in skincare which has really been hit hard as most products I sell on that site are health ând health and personal care now only earn a 1% affiliate commission on Amazon.
I don`t think Amazon need to re-think, there are other affiliate programs out there with wonderful products to promote,Amazon is fine without you and me, and we too are doing just fine without them.
Hello there, The new of of amazon affiliate program commission reduction was really a heart breaking for a lot of affiliate marketters knowing that the commissions previously received by these affiliate marketers was not really satisfying to them, but i like that there are several affiliate program to choose from and affiliatr marketters should not tie themselves to amazon alone, there are more profitable affiliate programs especially the once you recommended on your post.
thanks for sharing.
Thanks for stopping by, I think many affiliates stayed with Amazon because they are easy to convert, but no affiliate wants a 1% affiliate commission.
Having said that, a few days ago, someone clicked on my still existing Amazon affiliate link and bought food stuff, could you imagine for a carton of yogurt my affiliate commission was $ 0.02.What a waste of my time
Amazon market place is big and they are fine without us and we affiliates too are fine without them, I`m bringing my traffic to other affiliate programs because I don`t see myself working for someone who does no appreciate my efforts as an affiliate.
Hi,
To be honest, I think that Amazon have really done a disservice to all of the affiliates that have worked tirelessly to promote their products and drive millions of people to them and then have those people spend their hard-earned money while there.
Amazon was (and still is) good because of the ease to get started. Once someone is a little more experience in this, then agreed, they should be looking at extra ways to ensure that they get the rewards for their efforts.
I found this very helpful indeed. Thank you.
Ken
Glad you found the article helpful.I enjoyed being an amazon affiliate, I never liked Amazon 24-hour cookie period for affiliates but I learned to live with that.
But there is just no way I can accept spending my time working so hard, tolerating the 24-hour cookie then to be paid 1% affiliate commission.
As you mentioned, it`s the right place(or should I say it was)for those new to affiliate marketing but once one is experienced,it`s time to join other affiliate networks.
Thanks for sharing this amazing article. This is hope for affiliate marketers that feel frustrated as a result of Amazon’s new commission structure. This is in a way similar to what YouTube did when they increased the number of subscribers and view hours before one can monetise his channel. That aside by the way.
It’s very important not to put all our eggs in one basket. Diversification is key to making real and sustainable passive income. Your recommendations are definitely welcomed and appreciated too.
Regards.
Glad you found the post informative,Amazon may be affiliate giants but I`m sure we affiliates helped get them where they are,it`s time for us to move on and join other affiliate networks with better commissions than Amazon.
Good article thanks for the information I have a blog and am an amazon affiliate I was not making much with them before they reduced the rates and was thinking of trying some other affiliate programs anyway as if amazon ever pulled their program at least all my eggs would not be in one basket so to speak. My blog is about farming and i found amazon had a lot of products related to my niche. I am not sure what other programs have but I think it is time to start looking. thanks for the information
Like you, I have a very targeted niche where most products are only on Amazon but that does not mean I have to stay and accept their low payments, it`s time to move on, look for something different.
Thankfully there are other affiliate programs out there. To tell u the truth I never liked Amazon’s affiliate program all because of the low commissions. All the money that company was making and they gave lousy commissions. Not to mention how it was reported how they treated the workers were paid very low wages until they were pressured to pay them $15 an hr.
It’s sad how all the people that got Jeff Bezos where he is he feels like he doesn’t need them now, but the way the economy is going right now he may be needing those affiliates again somewhere down the road and then he will have bump up those commission rates higher than they were before.
But thank u for the info on the Amazon alternatives I knew about Clickbank but I knew to the others.
Thanks a lot
I`d say don`t hold your breath that Amazon will increase affiliate commissions any time soon,I think what they are planning next will be to reduce affiliate commissions on luxury beauty products.
Luxury beauty products still earn you 10% affiliate commission on Amazon but I don`t think that will go on for long.Thankfully there are so many other affiliate networks out there and we do not need Amazon to survive.
A thoughtful article you have there on ” Amazon affiliate program commission reduced”
The news of reduction of commission broke the heart of many because it wasn’t much of an income and the reduction just made it worse.
Of course you don’t put all your eggs in one basket, if one way closes just look around, there are other opportunities out there. Just look for the one that best suits you!
Thanks Lizzy, the problem is that many affiliate marketers( me included) depended so much on Amazon affiliate sales and commissions.
It`s sad that Amazon has decided to treat affiliates like dirt, what will a 1% commission be if you sold a $5 article and how many articles will an affiliate need to sell to make a decent income?
As you mentioned and I also did on my post, it`s time to move on. Amazon has just a 24-hour cookie window,which is really tight for affiliates. Small purchases are ok, but I don`t think anyone who wants to spend thousands on shopping will rush it, and that`s a loss to the affiliate who first brought them to Amazon.
Thanks for stopping by.
To be honest, I’ve always been a little surprised that Amazon even still has an affiliate program. As you point out, they really don’t need traffic coming from outside. At this point, inconvenient as it might be for affiliate marketers, I feel like affiliate commissions are just an unnecessary expense for them that might be starting to force them to raise prices. You mention how their overhead has increased with their sales volume, but another thing to consider is that Amazon doesn’t actually sell most of the products that are sold through their site. They’re basically an online mall renting to thousands of stores. They’re only making a percentage on most of “their” sales themselves. But the third party venders are not paying the affiliate commissions (not directly, anyway), Amazon is. Just things to consider.
Thanks for pointing out the things to rely on other than Amazon. No business model should depend on only one source. The end of Amazon’s affiliate program will by no means end affiliate marketing.
So true, bloggers and affiliate marketers will not stop blogging just because Amazon no longer suits them but there is just a problem for some affiliates( myself included) My skincare niche, the products I promote are so targeted to specific people and hard to find on other platforms like Awin.
That mean`s I`ll have to change some of my pages to focus on other products but it`s a must, the products I targeted fall under personal care. Amazon new commission for personal care products is 1%. so it`s a no brainer to change things and move on.
thanks for stopping by.
Sarganser,
Thank you for this post about Amazon affiliate program commission reduced. I was really down in the dumps about this, but you have inspired me. I will be taking your recommendation for signing up with an affiliate program with a higher commission rate. Thank you for the comparison of the new vs. old Amazon rates but, most of all, thank you for making my day!
Hi there Russ
My niche was heavily affected so there`s just no way I could promote Amazon products. My blog is in skin care niche so most products I promote are personal care products. I feel my work is worth more than 1% affiliate commission.
Thankfully there are better affiliate commissions out there promoting other brands and that`s what I`ll be doing in the future.
Thanks as a commercial Blogger myself and one who has had a n association with Amazon you have done much of the work here that I was contemplating having to do for myself and for that I am grateful. I am of the same opinion as you definitely time for a move hence your article arrives at an opportune moment.
Have you actually tried any of your recommendations so far and if not where do you think you are likely to go?
Thanks great post really appreciate it
Hamish
Hi there
I mostly promoted Amazon affiliate products because my niche is very narrow and most of the products are mostly only on Amazon. But, being in a skincare niche, most of the products I promoted are what went down to 1% affiliate commission. I just can`t do that.
Having said that, I use Awin and Flex offers. Unlike the Amazon affiliate program, you have to join the affiliate programs individually which is time-consuming really.
A solution for that to me was by joining this programas you do not have to apply to the other programs individually. all you have to do is find a product and they get you a link quite easy.
The best part is that they also accept new blogs and you do not get kicked out if you do not make any sales in a given time as Amazon does. I did a blog about it in detail here in case you missed it. Because I find it to be a must join for new bloggers.
Amazon is fine without us as affiliates and we`re fine without them so it`s no loss for anyone.
Hi Sarganser. You have confirmed what a lot of us affiliate marketers saw coming. I am looking to find better more dependable partners as I am trying to make this business my retirement income. I do love blogging for the people that use my content and I figure that a recommend to a product has value. I will be looking closely a some of the links you offer in the post as I will be searching products that really deserve my recommend for my readers. Not looking at making a killing, but our work is a labor of love and deserves enough of a payment when people shop and buy.
thanks for stopping by, being an amazon affiliate, I sometimes felt my work driving clients to Amazon was not really appreciated, but now, I`m convinced it was not the right place for me to begin with.
With Amazon short cookie period and the now with the amazon affiliate program commission going down up to 1%, I feel it`s not really worth it. My time is better spent on promoting other affiliate products.
It`s funny that I did an amazon affiliate program review and advised new bloggers to join as they convert very well, I wish I could take my words back now.
Why do I say this? I have a skin care blog and Amazon reduced affiliate commissions on personal care to 1%.
As an Amazon affiliate, I can say its true amazon has not been the best affiliate online shop but still it is a good genuine way of earning yourself some little cash although you need to put in the effort. I love the way you have also suggested other ways to still make money online that will be helpful to many people for sure.
So true, conversion on Amazon is great, but now with affiliates learning as low as 1%, I feel it`s time to move on.
I loved the product selection on Amazon but now with amazon affiliate commissions so low, it`s not even worth the time really. I feel for food bloggers promoting amazon grocery shopping their commissions too are now at 1%, and there is just no common sense a food blogger promoting Amazon luxury beauty items to toy and earn more commission as this is not what their readers are looking for.
It`s time for many bloggers who depended on Amazon for their sales to start looking somewhere else( I know I`m one of them, I have a skin care blog where I only promoted Amazon products)