Amazon Associates: Check The 2021 Commissions Worth It?
The fact that one of the biggest companies in the world also runs one of the biggest affiliate marketing programs out there, comes as a surprise.
The Amazon Associates program is accountable for creating passive income streams for bloggers, YouTubers, influencers, and other social media marketers.
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But in April 2020, affiliate marketers took a big hit when Amazon decided to change the payout rates. While this issue might seem insignificant in light of the pandemic-induced economic crisis, it is worth noting that the people who were dependent on this stream for their income have been at the receiving end of some serious and devastating losses.
Amazon Affiliate Program
Affiliate publishers can earn Amazon commissions for referring customers who convert to sales.
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Amazon is a trusted brand, which has made it a great affiliate partner. A motivated referral converts at Amazon at a higher rate than a less trusted brand.
The pandemic impacted this popularity in April 2020. Consumers began shopping directly on Amazon to avoid being caught and perished.
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Due to a large number of consumers, it became less urgent to pay affiliates. Amazon took the sensible step of lowering the affiliate commission rate.
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Affiliate commission rates for luxury and beauty products fell by six percentage points, from a 10% rate to 4%.
Furniture commission rates fell from 8% to 33%, while grocery commissions dropped from 5%
How Does Amazon Affiliate Marketing Work?
When a person earns a commission for advertising a company’s or another person’s product through their content or marketing campaigns, it is known as affiliate marketing.
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Lately, the process of promoting the products has become easier due to Amazon Associates.
The affiliate only has to search for the product that they like and include it in their blogs or videos via a technical link provided by Amazon.
Now, every time someone buys the product through that link, the affiliate gets a small piece of that profit.
The eligibility for the payout may vary from customer to customer some might get paid per click, while others get paid for the number of leads they are generating, but most of them get paid per sale.
Amazon Raises Commission Rates
Amazon Associates (Amazon’s affiliates) received an email announcing a limited-time promotional commission rate expires on May 4, 2022.
The email states
This is a great way to get more commissions in the most popular categories. Earn more if your audience purchases more.
Promo rates are available until May 4
A modest increase in Amazon Affiliate Commission Rates
There is not an overall increase in commissions.
Amazon has increased the commission rates for the following categories:
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The new rates are still one to three percentage points lower than the pre-Covid rates.
The Home and Home Improvement affiliate rates were increased from 3% to 5 %, but this is still three percentage points less than the 8% commission rate products in these categories used to command.
The Business & Industrial Supplies commission rate rises from 3% to 5%. This is less than the 6% preCovid commission rate.
The Health & Personal Care commission rates have increased from 1% to 2%. However, it’s still lower than the 4.5% pre-Covid rate.
Promotional Amazon Affiliate Commission Rates
These are the new Amazon.com promotional rates:
Shoes, Accessories (old rate), 4.00% (new) 6.00%
Office Products (old rates) 4.00% (new rates) 6.00%
Kitchen (old rate), 4.50% (new) 5.50%
Home (old rate), 3.00% (new) 5.00%
Home Improvement (old rate), 3.00% (new) 5.00%
Beauty (old rate), 3.00% (new price) 5.00%
Business & Industrial Supplies 3.00%
Health & Personal Care 1.00%
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