Amazon

Amazon Cuts Affiliate Commissions

Amazon will cut commission rates for members of its commission program, which is called Amazon Associates and allows companies to advertise Amazon products in exchange for a percentage of sales.

The overture, not directly linked to the coronavirus pandemic, will sweep across a number of industries including home and furniture, grocery and more.

The program ends up resulting in strong revenues for companies that link to Amazon products in their content, which means BuzzFeed, The New York Times, Vox and other media outlets publish buying guides that end up leading readers to the eCommerce giant.

For furniture products, the rate will fall from 8 percent to 3 percent, and groceries will see rates dropping from 5 percent to 1 percent.

Meanwhile, outdoors and tools supplies’ rate will go from 5.5 percent to 3 percent.

The company let associates know this information on Tuesday, April 14, and the changes will take place on April 21.

Amazon, according to spokesperson, often looks at the ways it can compete with rivals. The company said changing fees are a natural part of the landscape.

The direct letters to associates doesn’t offer much elucidation, simply directing associates to the new list of charges after April 21.

The coronavirus outbreak has affected Amazon by way of making the eCommerce giant shift the focus of its massive shipping operation toward only dealing in essential items such as medical necessities — though that has not been as strict as it was weeks ago. The Prime Pantry delivery service was halted because of the virus, and the Amazon Shipping pilot won’t take place in June as initially planned.

A member of the Amazon Associates program, who asked to remain nameless, said the fee cuts would be harmful because the company relies on Amazon’s fund percentages to maintain its income, even though the company runs other ad campaigns on social media. The source said “all the associates” they talk to make significant amounts of money through the Associates program.

Amazon has been seeing a spike in stocks even as the pandemic rages.

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