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Anyone that earns with Amazon may see a reduction in the amount they are currently earning or can earn as Amazon reports moving to a new system based on product categories instead of based on volume of sales.
This new system migration went live on March 1st and no doubt is being felt by millions of Amazon Associates (affiliates) all over the world and will mean a "significant reduction" in earnings from AA.
Amazon made this change in 2015 but have largely played it down, obviously knowing there is going to be some flack in the community and that flack is causing rumblings by Amazon Associates affiliates.
Flack and rumblings that have had a lot of them looking into alternatives and preparing to leave Amazon behind altogether and for good in favor of some other monetization method instead.
You can read more about the Associates Operating Agreement and what’s changed here https://affiliate-program.amazon.com/help/operating/compare?ref_=pe_2511080_224596230
Here's a basic breakdown of the changes and new rates;
- Amazon will no longer offer a commission on Amazon gift card purchases.
- Commissions for many electronics items will be sharply reduced.
- Grocery commissions (including Amazon Pantry) increase from 4% to 5% for standard grocery purchases and 8% for Amazon Pantry.
- Industrial product commissions decrease from 8% to 6%.
- Amazon Associates will no longer receive 8.5% commissions for increased volume; there will be flat rates instead.
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Cristian
On the other hand, maybe Amazon got so big it doesn't really care about losing some of its affiliates? I think this is the main idea behind all of these moves. Amazon Affiliates was one of the best alternatives to Google Adsense. I don't understand why Amazon made this move, its not like Amazon is having a hard time from a financial point of view, but if they keep this stuff with rising the price of products and lower the commission for affiliates it may get into trouble. On the other hand, maybe Amazon got so big it doesn't really care about losing some of its affiliates? I think this is the main idea behind all of these moves.
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