Amazon earns $4.5 billion per week. Previously, affiliate marketers had a monetary share of Amazon’s success. Nowadays, the situation seems dull. Do not worry; the COVID 19 does not have anything to do with that.
It is the opposite. Nowadays, Amazon reported that in the spring quarter, the company got “Net sales increased 26% to $75.5 billion in the first quarter, compared with $59.7 billion in first-quarter 2019.” This report you can find in this report.
Here comes the question which is still a riddle for me. Why?
You will see the reasons why Amazon affiliates do not jump from joy hearing about new commissions that come to the order from April 21, 2020.
Why does Amazon be important to affiliates?
First, Amazon was the most prominent online retailer and the most comfortable place to earn affiliate commissions. Do you wonder why the past tense used in my sentence? It happens because of decisions to cut drastically affiliate commissions in all Amazon’s departments.
I experienced it on my website. Previously, health products had 8-10% of commissions on sold items.
I guess that you know how affiliate marketing works. If not, here is a simple explanation. Additionally, it is not high science, just hard work at the beginning, tedious research in the middle, and sweet rewards at the end of the month or year when you rip fruits of your job.
An affiliate marketing works like that:
- You have your functioning website.
- You pick a niche
- You write content according to your niche.
- You create an affiliate account after approval from the chosen company.
- You post given affiliate links on your website.
- When people buy something through affiliate links, you will get commissions depending on the company’s policies.
Is it all?
As I told, it is not a big deal. The essential issue is writing valuable content to customers and picking the right company as a partner.
Okay, let’s go back to the Amazon
Amazon was and is an affiliate steered company. Thousands of affiliates help to sell products offering information on their websites and interacting with them on social media.
It is easy to apply as Amazon affiliate but not easy to stay afloat when commissions went nose down.
Here you see commission rates that eligible starting on April 21.
You see that promoting health products is the pain in the but. For example, ReMag costs approximately $60. ReMag is a health product that can help you stay well many years ahead. Anyway, let’s go to the Amazon rates.
According to this tab, you get 1% commissions. It will be o.60. How about that?
How many items do you need to sell to make a decent living? I know this is saying that penny after penny will bring you some of the money. However, it is not the best way to earn a living.
Let’s take another example, such as furniture. Previously you can get an 8% commission if somebody bought an armchair. Now the commission rate cut to 3%.
It is a more as 50% difference that does not inspire to work for Amazon as an affiliate marketer.
Of course, there are high priced items, but they are nor for mass consumption.
What it bugs me that Amazon does not explain why commissions lowered. I feel that they care only about shareholders and leave behind people who help them to create this vast empire.
Additional stones to Amazon’s garden
Many reviews raise doubts about their legitimacy. Amazon tries to protect customers from fake reviews, but it does not work successfully. Sometimes there are good reviews and bad for the same product. I try to avoid these and choose another brand.
Short cookie life
I guess that you know that cookie is. It is not a pastry from the jar but a way to track customers’ habits and steps when he or she searches the Amazon website.
You can fast understand cookies when after searching for particular shoes, you will find the same item on your Facebook.
Amazon cookies have a short period, only 24 hours. After that, they disappear as the snow on a sunny day in spring.
What does it mean?
It means that if somebody used an affiliate link on your website but did not buy a product, you will not get commissions. Reasons why people do not buy straight away can be various such as:
- People want to compare products.
- They want to ask opinions from friends and will return the next day.
- Customers can’t decide right away
You cannot use your images
Amazon requires to use their product widgets without any negotiation. I wonder why the company behaves in that way. Affiliate marketers who promote Amazon’s products can use their pictures or videos and show potential clients how this item or service will benefit or will solve the problem.
For me, it seems like a static lack of flexibility.
The constant dishonest play with affiliates
Amazon does not explain future changes and why it will happen. Of course, there are announcements about lowering commissions, but for affiliates who use Amazon as the direct source to earn for a living, it does not help. To create a business online takes time.
Usually, affiliate marketers write reviews about products, gather information, make videos, and blogs.
If commissions go down, all job loses value.
Some products overpriced
Having a Prime account does not save money too much, especially when you look for particular items that absent at the Amazon. The Wealthy Affiliate founder mentions that he finds cheaper and useful quality items at local grocery stores. Besides, Amazon forces sellers to lower prices to attract clients.
Amazon is, without doubt, the biggest online retailer. The company’s success partially depends on people who sell and promote products. Low commission rates do not inspire affiliate marketers. Entrepreneurs do the right thing when they look for other companies that offer high commissions, lifetime cookies, and honest interaction.
Amazon does not explain at all why it lowers commissions. It seems that shareholders play an essential role. Nobody cares about affiliate marketers’ business and all activities associated with that such as social media and commerce providers.
Thankfully, there are companies that value affiliate marketers. They know that this particular cooperation brings monetary benefits for both parts.