Amazon Updates - Don't Put Your Eggs All in One Basket
As an Amazon Associate, I was reminded once again about how important it is to make sure that your income stream, your livelihood, is not tied to one company. Or one type of product.
Today, we received an update from Amazon. They were notifying us that the commission rates are being reduced effective May 1, 2019, for a couple of categories.
These reductions applied to categories that have been paying between 7%, for luggage and shoes for instance to 10% for the apparel.
This is an excerpt:
Here are some of the most important updates we made to the Amazon Associates Program Operating Agreement and Program Policies on May 1, 2019,:
- We have changed the rates for Amazon Fashion Women's, Men's & Kids Private Label, Apparel, Amazon Cloud Cam Devices, Amazon Element Smart TV (with Fire TV), Amazon Fire TV Devices, Amazon Echo Devices, Ring Devices, Watches, Jewelry, Luggage, Shoes, and Handbags & Accessories to 4.00%
I remember seeing blog posts in the past about some WA members that lost a chunk of their monthly income when Amazon changed rates in the past.
I feel bad for people that have been actively promoting the apparel in particular. Let's say you were making a $100 a month in commission income from Amazon. For the same amount of sales, they will be earning $40. Ouch....
Don't put all your eggs in one basket.
That said, stay postive. Focus on what you can control.
Have a great week.
Sondra
Recent Comments
156
Thanks for the warning! Staying clear of Amazon. I wasn't planning on becoming affiliated with them in the first place. During a little research, I saw brighter
horizons☀️
I am thrilled that you found a program(s) to affiliate with that provide better opportunities than Amazon.
Realistically, any company could do this. So, it is best to not have all of your eggs in one basket.
That’s interesting. I may consider that as I will be signing up soon.
And there are plenty of other companies that have affiliate programs in my niche, too
Still, I’d be interested to know how you do with other programs. Because amazon is obviously very popular with purchasing customers!
Elaine
Hi David. It all depends on your niche.
I will still be using Amazon. I just want to ensure that I am not promoting products that are all one type from Amazon.
Continually be on the look out for companies that sell things in your niche. Take the time to see if they have an affiliate program.
Also look out for training programs/courses in your niche. I have stumbled across cooking classes, photography classes, writing classes etc.
Thank you for the heads-up Sondra. I just started the affiliate training today. I think I will bypass amazon and look for greener pastures. Literally ....
Jay
Congrats on starting the affiliate training.
Amazon is still a great program to start working with. In part, they are willing to accept new affiliate marketers with young websites.
It can get demoralizing to get rejection letters for companies that think your website is not established or does not have enough to earn traffic.
If you work with Amazon, it is very important to read their guidelines and know they can change.
This is why I don't rock with Amazon; they're such flakes when it comes to their policy and there's always something shady about them or about something they're doing. I'm sorry if I come off as offensive but I stopped rocking with them because I got fed up with their policies. Ebay is where you'll likely find me promoting these days.
I've actually been thinking about signing up for Ebay myself. My retail shop has a number of vintage items that are sold on Ebay, so it would be a good fit for me.
Best wishes!
Agreed. You should do it, at least you won't have to worry about Ebay kicking you out for any reason.
Yep, not a great idea to put your eggs in one basket, I believe that there are many other affiliates companies that offer better commissions rates.
Jacqueline
So true.
The commission rates depends on what you are promoting also. I do try to focus on the product first and then the commission rate.
Who knows, maybe Amazon has been losing some sellers because they were charging too high a commission for listing the products on their site?
As a potential seller, I don't want to use Amazon because they charge sellers too much, especially for the fulfilled by Amazon. Yet as an affiliate marketer, I want to cry they don't pay us enough commission. I am not sure what the answer is.
Thanks for the heads up - I'm not promoting much from Amazon, and the stuff I am promoting doesn't seem to be affected, but I will make sure to try to keep multiple stream of revenue open because of it.
I'm curious now, if they are changing this, are they going to be changing other categories soon too? And why can't any of the categories go up in commissions instead of down? Lol.
They do changeamounts for various categories at times, not sure of time intervals. Think they may have raised commissions on electronics they make like Alexa but not sure.
I am glad that the things you promote have not been affected.
I do think the multiple streams of income or even a couple of different niche websites is the best strategy in the long run.
For commissions to go up, I would assume they would need to charge sellers more. Sellers won't like that either.
I didn't even think to look at it from their products, aside from the clothing line.
I would think they have to stay sort of competitive with the commissions that other programs are offering for similar merchandise.
Thank you Sondra for the update much appreciated
Yes I agree in not having all my eggs in one basket.
That is a big drop.
Have a great week too
Jennifer
Hi Jennifer.
Yes, I was surprised to see such a huge drop on apparel. Disappointed about the drop on luggage because I was thinking of promoting it. Oh well
Sign of the times.
I have promoted both. It will just take longer to make good commission.
Jennifer
I got this first thing this morning. So disappointing.
The writing is on the wall for Amazon Associates; it's past time to expand to other affiliate networks and programs.
After your said this, I realized that I too had the message come in overnight.
I just didn't think to take the time to open it.
Yet, I am learning the importance of reading the "boring updates" as sometime they do contain important info.
I am glad that Amazon is friendly to newbies. Yet, no one should focus only on promoting one companies products.
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This is good to know. Thanks for the information.
I am wondering (since I am new to affiliate marketing), is it ok to include links from different companies your are affiliates for all in the same post?
Elaine,
Make sure you read the rules for each program that you are signed up for.
I've noticed that some book publishers will use three or four affiliate links for every book they publish. That way, if someone people have a choice for Amazon, Barnes & Noble, Alibris or whomever..
When I have seen it done, the link only had the company name. It didn't show prices in the post.
Thank you Sondra. Just began level 2 of the training so I’m not as of yet signed up for any but there are several companies for my niche that have affiliate programs including amazon. So I was just wondering.
So just to clarify, assuming the rules for each program say it’s ok, I could include links to purchase products from multiple companies all in the same post. Is that correct?