Does usage of externally hosted images hurts SEO?

moonlighsunligh

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So lets say i use externally hosted images - such as merchantsite.com/picture123.jpg. Off course i am gonna use mod rewrite on those images, so it will look like as image is actually hosted on my site.
Code:
RewriteEngine On
RewriteBase /
RewriteRule ^pictures/picture123.jpg$ http://www.merchantsite.com/picture123.jpg [R,L]

Is that much worse when it comes to SEO, compared to (really) hosting those images on my site?

I mean google can notice this way that i am an affiliate.
 
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A rewrite is detectable by a crawler (or any browser, for that matter, as it must be in order to request the end content), but aside from SEO, this is just not good for performance reasons as well.
 
But most merchants doesn't allow hosting images myself.

I asked few of them such as some hotels affiliates and they never told me exactly if i can host their images myself.
 
How bad is it for seo compared to self-hosting. keep in mind my site got around 10K pages, so there are 10 000 outlinks from that domain to amazon/other merchant.
 
If i host images on my site then i break copyright laws, since the merchant doesn't allow self-hosting images, but every other affiliate is hosting their merchant's images them-self.

I cannot buy 2 000 pictures.
 
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using maxcdn or other cdn is good for SEO (so i heard from watching google's blogs)

but in that way, our images are hosted in CDN (external)
 
Using externally hosted images is no different to using externally hosted videos.

The only potential downside would be if ALL your images are externally hosted. Google are luke warm on affiliate sites as it is - having all your images coming from a merchant would tend to shout out 'affiliate leech'. Mix it up if you can.

No need for mod rewrite - just looks even more artificial.
 
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