some data to explain this change better...

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Imagine losing 62.50% of your monthly revenue. That is crazy. Stop putting all your eggs in one basket. I have a friend who lost his Amazon business overnight. An Amazon delivery third partner lost their contract. Depending on Amazon is too risky!
 
Ouch, that's a killer. Somewhat relieved I sold my home and furniture Amazon niche site while I can. Could not imagine having to sell it at a fire sale price.
 
You have no idea how worried i was when i first saw this thread, because the niche i am in does not have it's own affiliate program other than amazon, and then saw your reply and looked at walmart. Guess what? It has ALL of the products i promote, thank you for your reply. You just saved my 2k invested in my affiliate website.
Cheers
Actually that's a relief. I may change it too. But I have used the AAWP plugin and thinking does it supports Walmart API! LOL
 
I don't like what Amazon did, but in many countries (in EU at least) there are so many other stores that offer affiliate commission. Amazon is not so big here, and they are not so competitive either. It's easy to find better prices at local online stores in every country. I don't know about US but for EU this is not such bad news.

It is just a matter of time. Amazon is already the ecommerce leader in most European countries. Real and online shops are having a really hard time against Amazon. In my country, Amazon Prime only costs 49 euros (it is more than double price in the USA) which is a bargain because they want to attract tons of customers before leveling up the price like they did in the USA.
And it is really hard to find an ecommerce with such a good conversion rate.
I really looked hard at other affiliate programs in the past but always had to come back to Amazon as they had the best commission rates, a good conversion rate and a homemade program easier to deal with than the horrible redirection links coming from affiliate platforms such as Awin or TradeDoubler.
Some brands sometimes change of platform too so you have to change all your links otherwise you lose all your commissions. It can be a real pain in the ass. That is why I much prefer homemade affiliate programs.
The US changes make me reconsidering everything though. I will do tests in my next affiliate project which will operate without Amazon links. I still haven't seen anyone successful with Amazon direct competitors so I guess it won't be an easy task. As I said before, from now, I would consider new Amazon links only in a comparison price tool which gives extra value to the reader. Diversification becomes absolutly necessary, especially in Europe where Amazon still have some competitors.
 
It is just a matter of time. Amazon is already the ecommerce leader in most European countries. Real and online shops are having a really hard time against Amazon. In my country, Amazon Prime only costs 49 euros (it is more than double price in the USA) which is a bargain because they want to attract tons of customers before leveling up the price like they did in the USA.
And it is really hard to find an ecommerce with such a good conversion rate.
I really looked hard at other affiliate programs in the past but always had to come back to Amazon as they had the best commission rates, a good conversion rate and a homemade program easier to deal with than the horrible redirection links coming from affiliate platforms such as Awin or TradeDoubler.
Some brands sometimes change of platform too so you have to change all your links otherwise you lose all your commissions. It can be a real pain in the ass. That is why I much prefer homemade affiliate programs.
The US changes make me reconsidering everything though. I will do tests in my next affiliate project which will operate without Amazon links. I still haven't seen anyone successful with Amazon direct competitors so I guess it won't be an easy task. As I said before, from now, I would consider new Amazon links only in a comparison price tool which gives extra value to the reader. Diversification becomes absolutly necessary, especially in Europe where Amazon still have some competitors.
I agree it's only a matter of time, in its many years since it's been present in EU, Amazon managed to become a bestseller in UK France Spain maybe Germany and Italy. There are still many other countries to conquer and there are quite few competitors like Otto from Germany, eMag from eastern Europe, Tesco and others that are fighting for their share of the ecommerce market.
 
I had a quick look at Walmart commission rates : https://affiliates.walmart.com/#!/benefits
They definitly suck. Amazon clearly got inspired by Walmart rates for their new 1% and 3% rates.
I don't see how you can do better with Walmart. They have 1% and 4% rates and quite often more expensive prices.
It seems Amazon had that cut planned a long time ago. No need to give more than Walmart who is so far behind.

If I was head of marketing at Walmart I would enjoy the Amazon move to rise the affiliate commission and put an army of affiliate marketers on my side. It would be an easy and lowcost strategy to take market shares but those old companies seem completly dumb when it comes to online marketing.
 
OK, so amazon decided to kill the "amazon associates program" let's think how we can replace that program together.

my draft idea is to build a platform that will help amazon affiliate marketers to connect with amazon product owners/sellers, let's think together what is important features that this platform must have.

1. a fair compensation for the marketer
2. reliable 3rd party tracking (transparent in a way amazon see only the marketer site and not the trackers)
3. a business model that must bypass amazon (the platform must work with no relation to amazon) so amazon can't block it in any way (due to overthrowing the current amazon associate program)
4. need to develop a model that can work for the masses where sellers can bid on targeted traffic directly to their product page.

for example Dan is a seller on amazon his product is "N95 masks"

Dan will be able to register on that platform and bid on targeted traffic to his product page.
Dan's competitors will also be able to do so, and the bid per CPM (cost per mile) may raise by the demand

on the other end, there are the marketers that can select from a list of amazon product to market
they will be paid for the traffic they send to the sellers product page.

the seller will know who is the best marketer/s that convert well and will have the option to increase the bids to get more of their traffic
 
Well, it appears that commissions will be cut once again on April 21st. Highest rate is now 3% for some shopping categories, while many have fallen to 1%.

Unreal, looks like this is going to affect a lot of people. They just sent out an email.
I am furious. I just got a site doing really well in home and garden and it went from 8% to 3%. What are they thinking??? This is a time we need money not less of it. I did complain. To add insult to injury they gave us a three day notice. I am waiting to hear back since Associates no long has a customer service dept and only answers emails which take forever. Any ideas on how to get this out to so many people they have to change it back.
 
Should turn all of them blog posts linking to Amazon into NEGATIVE reviews. Teach the greddy SOB's
 
Every Amazon affiliate should stop pushing amazons products immediately. The big problem I see is they don't really have competition. Basically they can do whatever they want. Too many people depend on Amazon...not only affiliate marketers, but also POD, FBA etc. its definitely a mess for those who make a living from Amazon.

Imagine earning 40-60% less with the same traffic and amount of sales. Fucking ridiculous
 
I hate to be the bearer of bad news, but other affiliate programs for physical products aren't any better. Take the home Improvement niche, for example. Home Depot is the closest competitor in that field, and they have a 2% commission and a lower conversion rate. Walmart offers 4%, and BestBuy less than 1%. Any retailer that offers high commissions does so because it sells products at insanely high prices compared to Amazon. Amazon's higher rates have always been the anomaly in the retail affiliate marketing world, not the other way around. Not to mention that nothing converts as good as Amazon.

I see people dreaming about 20-50% comission. Well, no. The only place to find such commissions is shitty Clickbank products. Also, please forget about uniting our efforts to take Amazon head on. That's some utopian shit that's never gonna happen. As someone else has mentioned, for better or worse, Amazon is the one doing you a favor by accepting you into their aff program, not the other way around.

Now, I too think this is a bitch move, especially during this time of need, and especially on such a short notice. But let's look at it from another perspective and see the opportunity here. The number of clicks waiting to be harvested is the same.

Large publishers with high content production costs aren't going to bother with low volume keywords anymore. At the same time, the ton of casual marketers with cheap blogs clogging up low to mid volume keywords aren't going to be able to sustain operations. This leaves any publisher that can control costs in a position to harvest all the low to mid volume traffic

If 100 clicks were being diverted to 10 sites then, they will now be shared by 3 sites. Higher volume, lower rates should balance out.

Take this as a lesson. Learn from it, diversify your sources of income, and move on. Whining isn't going so solve anything.

Also, jeez people, stop blaming Bezos for everything that's happening. It's not like he's sitting on an iron throne making such decisions alone. They're the results of extensive data research.
Care to enlighten on this part?

If 100 clicks were being diverted to 10 sites then, they will now be shared by 3 sites. Higher volume, lower rates should balance out.
 
You want to hurt Amazon?

Mass spam negative product reviews.

But it won't make your situation any better
 
It sucks for everybody who was involved in affiliates for Amazon.
On the other hand, it will open the doors for competitors. Hopefully, guys we can't just let Amazon keep the monopoly.

I was an Amazon seller for 3 years. They treat everybody like shit.

Now i m working directly with factories and sell them myself. Be creative and build good networks with factories, warehouses and freight forwarder. It will be more time consuming and you won't be able to do many businesses at the same time. The one business you have however, will be more profitable.
 
You know what is more fucked up? Even though this is a chance for competitors to increase their market share by offering attractive affiliate programs, most of them won't do it. Sadly, Amazon got too big to fail. Any other company would have done the same.
 
Yeah, it absolutely sucks. But here's the deal:

1. Don't hold your breath. The change is permanent.
This wasn't a rush decision. They have data to back it up, and they've probably considered all scenarios.
Some of you have already contacted Amazon and their responses confirm this.

2. We had a good run, but they're moving on. And we're not their business partners or majority shareholders.
Yes, this change sucks. Yes, it affects us. Yes, the change was too drastic. Yes, they're letting us know just days before. And?
They're not a charity. They're a business.
When I find a better option to get results, I don't worry about how using a different supplier will affect my old supplier's economy. You don't stick with your old suppliers just because you don't want to hurt them. Amazon is the same. It just so happens that they're so big that this change affects a lot more people in a bigger way, but it's the same principle. They didn't plan this to hurt us or affect us or because they're evil. It just made business sense, based on whatever data they have.

3. And it definitely made business sense. This was coming.
The reason we were relying on Amazon is that it was bountiful. I mean, look at the percentages from other big brands like Walmart or Best Buy. It's not like they were much better than Amazon. Hell, some of them were/are even worse. And those brands don't have the conversion, shipping, refund, or reputation as Amazon.
Just read the thread. Most of us are asking, "If it isn't Amazon, then where do we turn to?" and there's no clear answer. Why? Because there was no better option than Amazon. There isn't one right now, either.
So why would Amazon, the best option pretty much across the board, be the one paying the most to affiliates?
And don't go "Oh, this site pays a way bigger percentage than Amazon." I mean, as far as your actual income goes, Amazon was on top, no question.

4. No one cares about our plight.
We could get all major networks and newspapers all over the country to tell our story and show the world how Amazon is affecting us. Guess what? No one cares.
We're like a beautiful traveling Instagram model, complaining about how this pandemic is affecting her upcoming photo shoot in Ibiza and how a six-figure contract with a makeup brand fell through because of travel restrictions. Do you think normal people care about her plight? Of course not!
And just like her, normal people won't care about our plight. Do you think normal people are going to care about how we're not going to be able to make as much residual profit from a laptop while they just lost their jobs and are looking at zero income? Put it into perspective.

5. Amazon will grow bigger.
Come on. I've been reading replies saying this will affect Amazon. Really?
Stores and malls were already having a bad time BEFORE this pandemic.
And I can bet a lot of people that didn't use Amazon, are using it now.
And you can bet a lot of brands that didn't want to be on Amazon are calling them to reopen talks.
Besides, why are you thinking that moving somewhere else will not bring the same issue further down the road? They're all businesses. If we all get together and move to Walmart or whatever other option is out there, then Walmart will ALSO lower the commissions at some point in the future. It's not Amazon, it's every business.

6. Percentages will keep dropping.
Nowadays, it's not about helping people get to know Amazon. Everybody knows Amazon right now.
Think like a company, guys and gals. They don't need to be on the top 1,000 search results. They just need to be on the top 50. They already have that.
What's the next step? They want to skip their middleman, Google. It's better for them if people go and stay at Amazon (instead of Google, then Amazon).

7. Put it into perspective.
We're still able to make a living or make a buck while working from home.
Just think of how many unemployed people, scared not just because they lost their jobs, but because they don't even know if there will even be an available job out there... don't you think they would jump at the opportunity of being able to earn that extra 3% or 1%?
We're the little fishes that are swimming behind the great white shark. We have a mutualist relationship. Amazon allows us to earn money, and we send customers their way. The difference is there's just one Amazon, and we're thousands of little fish (some bigger than others, of course). If some of us go away, the shark won't notice because new ones will join. If we ALL go at the same time, we affect ourselves more than we affect the shark. And the shark will be able to go on for quite a while, assured he will gain new little fishes.

In the end, the shark is a jackass, but I'm staying with this shark.
 
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