Many affiliate marketers make money from amazon affiliate marketing but the little bad news for them as amazon announce Amazon Affiliate Commission Rate cut.
The Amazon Associates Program is set to cut commission rates for furniture and home improvement items from 8% to 3% and staple items to only 1%, down from 5%.
Regular thing classifications will be particularly hard hit, with Grocery, Health and Personal Care and Amazon Fresh to see commission rates whacked down to simply 1%.
The item class rate changes are as per the following:
Furniture, Home, Home Improvement, Lawn and Garden, Pets Products, and Pantry will go from 8% to 3%.
Earphones, Beauty, Musical Instruments, Business, and Industrial supplies will go from 6% to 3%.
Outside, Tools will be sliced from 5.5% to 3%.
Sports and Baby Product classes will go from 4.5% to 3%.
Well being and Personal Care will be sliced from 5% to 1%.
Amazon Fresh will be sliced from 3% to only 1% also.
Why we care:
The slices could be a hit to distributors, influences, and substance makers that depend on Amazon offshoot income streams when supported substance and advertisement income is evaporating.
I hope to see crusades move to the item classes with higher commission rates.
Amazon has not remarked on whether the corona virus pandemic assumed a job in educating the new rate structure. The organization has started tolerating some unimportant items from FBA vendors to its stockrooms once more.
In March, Amazon briefly quit taking unimportant item shipments because of flooding interest for family staples and other basic item classes as the corona virus episode declined in the U.S.
Still, if you have more traffic or if you are capable to generate more traffic on your site, then affiliate marketing is still good to make money online.
many category products still has good commission rate so you can try on those particular category product.
Commission Fee Structure
Amazon operates a volume-based advertising fee structure. The more products that are shipped as a result of your affiliate links, the more you’ll make per sale. Once you have sold enough products to move up to a different advertising rate, all subsequent sales will give you commission at that rate, until and unless you reach the next fee level. Note that some products are exempt from this commission structure.
Commission Fee Schedule
Until 2017, Amazon offered a stepped commission structure so that affiliates who sold a lot of products were paid a higher commission than those who sold little. However, Amazon eliminated this structure and began using flat commission rates for different types of products. While this is likely to continue evolving, examples of the commission structure in 2018 are as follow:
- 1.0% for video games and game consoles
- 2.0% for televisions and digital download games
- 2.5% for computers, computer components, DVD and Blu-Ray
- 3.0% for toys
- Amazon tablets and Kindle devices: 4.00%
- 4.5% for paper books, healthcare, personal care, sports, kitctchen, car and baby products: 4.50%
- 5.0% for digital music and video downloads; grocery items, handmade items or musical instruments
- 6.0% for headphones, beauty products, musical instruments, business and industrial supplies
- 7.0% for clothes and accessories, Amazon TVs, Amazon Echo products and jewelry
- 8.0% for furniture, lawn and garden, home improvement, pantry and pet products
- 10.0% for Amazon fashion items and Amazon Coins
Most other categories will earn affiliates a four percent commission, while Amazon gift cards and wine do not pay any commission.
Receiving Payment from Amazon
Amazon will not pay you unless your affiliate sales reach a threshold of $10 if you choose to be paid by direct bank deposit or Amazon gift card, or $100 if you want to be paid by check. If you fail to reach the threshold, your affiliate balance is carried over to the next month and added to the sales you make then. Amazon pays affiliate sales at net 60 days, so, for example, sales that reach the threshold at the end of January will be paid in late March.