Amazon plans to cut commission for retailers

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Amazon affiliate sellers will see commissions on the e-commerce platform drop significantly as the company plans to dramatically cut fees across the platform.

For some categories, the commission rates drop by more than 50 percent, for the products listed in the “Pet Products, Home Improvement and Lawn & Garden” categories, the commission rates drop from eight to three. Percent.

Drastic cuts mean hard times for traders

This essentially means that big publishers like BuzzFeed, social media influencers and small website owners who advertise Amazon products through dedicated links to get a percentage of the profit experience a dramatic drop in sales. measure up.

Other categories that are expected to shrink are baby products, groceries, and sporting goods, which are expected to decrease from three to one percent per sale.

Amazon
Image courtesy of Shutterstock.

Amazon’s affiliate marketing program, known as Amazon Associates, has become very popular alongside the company itself. Because Amazon controls a significant portion of all online retail sales in the United States, the affiliate marketing platform has been able to leverage the company’s extensive product portfolio.

The service was also praised for its strong customer support and some additional benefits. So far, some of the major media companies, including Vox Media and the New York Times, have used Amazon subsidiaries as a source of income. Some even have dedicated teams that buy and rate Amazon products in bulk.

Is everything part of the Amazon Coronavirus pivot?

It’s unclear whether the cuts will be in response to the COVID-19 pandemic, although it wouldn’t be a big surprise given the virus’s powerful effects on Amazon in recent weeks.

Amazon had to cope with an increase in customer requirements due to orders to stay at home. This lawsuit tested the company’s ability to meet deliveries, and it had to hire thousands of new employees to keep up with demand.

So far, the company has made other drastic changes to focus more on its essential delivery service. The company recently discontinued its main pantry service, which supplies non-perishable goods and household items in bulk. The Amazon Fresh service also had trouble managing volume as Americans turn to online e-commerce amidst the blockade.

Amazon

It’s also worth noting that Amazon isn’t the only company making such changes. Earlier this month, Business Insider reported that Walmart Canada had discontinued its influential partner programs with Rakuten and MagicLinks.

These changes will be difficult for everyone, and if COVID-19 continues to impact market activity, it is unknown how many more cuts we could see.



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