Amazon changed their affiliate program yesterday by cutting the payout for most affiliates by half or more. Has HubPages addressed how these changes will affect content providers here?
Always something, maybe we should consider using e-Bay again.
When I placed Amazon links on my hubs, Hubpages (in niche-ing my work to "Exemplore") removed them.
We have a non standard agreement with Amazon and they haven't approached us about changing it, but we saw the changes as well.
Just for those that come here and don't know about it: https://affiliate-program.amazon.com/he … _228039340
Thank you. I'm trying to make sense of it and I'm so confused in what the actual changes are - have you seen any good blog links with explanations?
Which part are you confused about?
Basically what Amazon did is this: They've removed the tiered system. There is no more volume based incremental percentage on sales(other than special promotions/categories, if any).
You will now be paid at a fixed commission rate depending on the Amazon Category the product falls under.
If your product category is not mentioned you will earn a 4% commission on the product whether you sell 1 or 100. And if you sell luxury items for instance you get 10% whether you sell 1 or 100.
There were already fixed commissions on a range of products (although some were up to 15% previously).
However it looks as if this gives users more control over what they earn; for instance anyone writing in pet products, home improvement and fashion can immediately get a higher commission without selling 130+ products to reach it. There's no mention of any changes to the Amazon bounty program, which means we can still get nice commissions on baby registry signups, Amazon prime and other Amazon programs.
Correct me if I'm wrong but I feel like this may make it easier for many affiliates, as long as they choose their products and topics with care?
You are right. Amazon depends heavily on their affiliate program (they do have the brand name, but affiliates are a major part of their business). They will never make it harder for people to earn.
In my case, on my range hood site, I was always earning a fixed 4% as it was in the appliances sector. It's still going to remain the same in my case.
But as you say the bounty program, etc. are not changed (so far).
Yup, it does make it a lot easier for many affiliates to earn more than what they were getting in the past (on their own websites and blogs). May not be the case here on HP as there's almost always a 8% fee (if I'm not wrong, I never used the HP Amazon program) and as Paul says they have some sort of direct contract with Amazon.
I rarely make any Amazon sales so the changes will make little difference to me, I guess. Half of nothin' is nothin'.
Amazon is constantly pushing affiliates in one direction or another. Too many people selling TV's? Cut the commission. Not enough people selling bath mats? Boost the reward.
Amazon will always tell affiliates they are responding to their demands, of course.
The worrying thing is Amazon's market dominance. As soon as there is no competition, commission will simply fall across the board.
Isn't there always going to be competition? It should only increase now that more and more small businesses are choosing to sell online directly via their own website..
Google seems very picky when it comes to affiliates, so as far as content marketing goes, there appears to be no near rival to Amazon.
55% of online shoppers check Amazon.com first
Amazon took 53% of all of the sales growth of online retailers in the U.S. last year. For comparison, Wal-Mart's overall U.S. sales increased just 3.3%
We received a stock message about the changes, so we are expecting them to modify our fee schedule. Once we know the details, we will share them.
That's unfortunate. Looks like this is about a 15-20% drop in commission for most. Perhaps, you'll have the ability to negotiate further; however, from what I'm seeing from other large affiliates, it's unlikely.
Excuse me but 4% is 50% of 8%; that would be cutting our commissions in half. Right now as an affiliate, I earn 4% on the first 7 items I sell. After that it jumps to 6%, until I sell 30 items, when it jumps to 6.5%. Often I sell 113+ items bringing the commision rate up to 7%. This change is terrible, but to be expected. I see a quarter of my income evaporating with this change.
But on some items you're going to be making a higher cut. On the whole it may decrease, but not necessarily by 50%?
I am not aware of any luxury items in the pet supply market.
Oh - I found your link and pet products are in the 8% category. I'll shut my mouth now lol.
If anyone, I should be the one complaining, my niche was always at 4% and still is. The occasional unrelated buys were always at 7% or so, it may not be the case now.
Don't you have some gardening hubs? I see lawn and garden is in the 8% commission category.
A lot of the areas were already at 4% and 2.5%. Also, several areas are staying above 4%. It's net about 15 to 20% for an affiliate that gets max tier. I've done calculations that have come to right around that amount and have heard from others as well. That being said I'm comparing with normal rates and HubPages has some favorable rates that may make it a somewhat more substantial decrease.
It looks like Amazon is favoring the small affiliates by removing the tiered system of payments. However, the percentage cuts in most of the categories will hurt the larger affiliates.
Since HubPages is considered as one large affiliate rather than each Hubber as an individual, this is not a good thing for us.
Since half my HP earnings comes from Amazon, I expect to take hit. But that all depends on how the non-standard agreement that HubPages has with Amazon is written. We'll just have to wait to see how that works out. As Paul said, he will let us know the details once that's determined.
Just did some analysis on sales I received for the last 90 days - if HP get the same % rates that are published - then I will lose about 60% of my amazon revenue.
The majority of the items I sold were 8.5% - I sell mostly toys which are down to 3% and some computer equipment which is down to 2.5%.
Overall I was averaging about 8% - now it looks like I'll average about 3%
Has management heard anything else on this from Amazon? I see it has taken effect on my personal account, but the old rates still apply at HP. If they make a change here, is it possible it will be applied retroactively?
I get Amazon sales almost every day and I also still see the old rate throughout March on HubPages Amazon earnings.
I wouldn't worry about reported earnings being reduced retroactively because there is a star (*) next to the Amazon sales that are "incomplete or unaudited earnings, value may change" — as it says at the bottom.
As of today those stars are gone already for the entire first week of March, which means the amount listed in the report will not change.
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