Before today April 21st 2020 blog owners used the Amazon Affiliate program to send their website traffic to Amazon.com for commission on any items purchased over a 24 hour window, that process stays the same today. However, what did change is the fact that Amazon cut the commissions they would pay out to affiliate marketers by as much as 50% effective today!
Why and how could they do something like this in the face of a pandemic? Well, simply because they can! Amazon is on fire right now despite Covid-19. Quite a few different Amazon sellers I know are reporting 4 and 5x sales right now. Also, Amazon has been paying out sizable commissions for quite some time now. In line with the whole point of an affiliate program Amazon might not be needing affiliates as much as they used to anymore.
You see an affiliate program is meant for a company who doesn’t have the ability to collect their own sales. So in order to get those sales they collaborate with outsiders who bring them sales in exchange for a cut of the action. In 2020 Amazon is the worldwide leader in eCommerce. They service almost every country in the world and almost print money with their sellers and storage fees.
Because of their eCommerce dominance Amazon can afford to dial back on their affiliate program commissions. Although, this decision affects many entrepreneurs around the world Amazon frankly doesn’t need affiliate markers as much anymore.
Is it Over?
While many people are calling this latest commission reduction the end of Amazon affiliate sites as we know it but its not that bad. What it does mean is that you need more volume to make up for potential profit loss. So it’s time to double down and create more content. In most businesses content is king and the affiliate marketing business is no different.
This chess move from Amazon also means that we as affiliate marketers need to think outside the box and identify other opportunities to take advantage of. A few of the other affiliate networks to look out for are Walmart, Target and Way Fair. If your niche fits products sold on these marketplaces consider switching some of your products over to them. On average their commissions are a full 1 to 2% higher than Amazon’s at this point in time.
So for now it’s not over Amazon is still paying out hundreds of thousands of dollars per month to affiliates. What this does for me is adjust my thinking from one of being comfortable in one position and keeps me on my toes looking to shift gears whenever it makes the most sense. Amazon could at anytime cut affiliate revenue all together then what? It’s better now to at least be thinking about these types of scenarios versus being blindsided.
Is 3.3% Enough?
For my business the 3.3% commission that Amazon is paying still works. Maybe in the near future it won’t anymore and I’m already starting to prepare for that. Checkout my article here to get some alternative monetization ideas. Maybe one day in the near future the Affiliate Niche website model will be dead but for now it’s still alive and well. Even during the Covid-19 pandemic my websites are earning money each and everyday.
Thanks for reading, now get out there and execute!