Amazon is ceased to drop the commission prices for its affiliate marketing business. The company is planning to cut the rates of the commission that affiliates associates of Amazon get for every sale generate through their link. The affiliate program of Amazon includes independent, e-commerce conglomerate, media organization, and small companies. The subsequent news has been proclaimed by CNBC in which they stated that the commission rate on the Amazon affiliate program would get a drastic cut on commission rates that leads to more than 50% on various categories of products.
The reduction in the rate will be started from 21st April, and it is going to mainly implement upon specific product categories such as home appliances that will face a cut up to 50%. In contrast, gadgets accessories such as Headphones will get a reduction of up to 50%. Earlier, the commission on Headphones was 6%, and now it has been altered to 3%. Alongside, products of pets and furniture or various home furnishing product’s commission will be dropped to 3% from 8%. Similarly, tools, equipment, baby cosmetics, outdoor, sports, and grocery will face a drop up to 70% as from now, the commission on selling of these products is altered to 1% from 4%.
The subsequent drops in the commission rate will be going to affect the business of various media organizations. As several of them have established their business upon the affiliate marketing program of Amazon. A significant part of small companies that have dedicated their several years to grow in the digital world of affiliate marketing will be face bankruptcy, especially in the USA. Although various big retailers such as Walmart and Best Buy also provide the service of the affiliate marketing program, their commission rates are too less in comparison to Amazon. Thus, it is the primary factor behind the enormous popularity of Amazon.
The reason behind the initiative must be a vast number of associates have been involved in the affiliate program of Amazon, which somehow affects the profit rate of it. Thus, the initiative led by Amazon is a major one about its profits and business. However, it will be going to have a significant impact on the growth of other affiliate program providers as associates will now migrate towards them.
There are numerous options for affiliate marketers, such as Walmart and Best Buy. The big digital media conglomerates such as the New York Times, Vox Media, and BuzzFeed are one of the most significant associates of the Amazon affiliate marketing program. Now, Amazon will be going to face a substantial loss in the USA if they loses them. So, for these big digital media companies, Amazon has planned something unique rather than small and individual associates.
Although, while informing CNBC about the subsequent news. Amazon didn’t give any explanation and reason behind sudden cuts in the rate of commission. Alongside, CNBC also didn’t provide any information or fact to justify Amazon all of a suddenly taken consent. So, it would be right to wait rather than assuming any reason behind Amazon’s decision. Thus, we all should wait till then to see if any explanation regarding subsequent initiatives led by Amazon comes out or not.
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