Amazon, based in Seattle, is an American multinational conglomerate technology company, with over 7,50,000 employees. It is the world’s largest online marketplace, AI assistant provider, and cloud computing platform, as measured by revenue and market capitalization. Amazon is the world’s largest internet company by revenue. It is also the second-largest private employer in the United States and one of the most valuable companies in the world.
The reason behind Amazon Affiliate Commission Rate Drop
The recent move by Amazon to cut of commission rates for the affiliates clearly shows what amount of hold they still have over the digital marketing section. An Amazon spokesperson told CNBC, the changes being made are a part of Amazon’s standard business evaluations, the shifting time during the coronavirus pandemic- which has significantly impacted retail sales in numerous ways- and this could help the e-commerce giant make up for losses across some categories.
The most significant cuts to the commission are for categories like groceries that are expected to grow significantly. The opportunity for Amazon as consumers change their shopping habits during the health crisis, and a scheduled shift is undoubtedly going to boost up the online grocery shopping overall. Research shows that grocery sales were up almost by 26% in March, in all channels, the most significant increase in at least 25 years, this comes as sales have tanked across many other categories seen as non-essential. The news follows that Walmart cut it’s influencer affiliate programs with social commerce site Magiclinks and e-commerce giant Rakuten. Previously, Amazon affiliate taking significant steps to remove 3rd party vendors and making sure they can keep up to the point on cutting down rates. Thou, the affiliate marketers, are frustrated and starting tweeting out for such considerable cuts in prices, but we are yet to hear any statement from Amazon itself.
It’s hard to say, but it seems this is a permanent change, as announced by Amazon. So we might be seeing some new networks floating around and trying to increase their user base. Thou the trust amazon has earned over the years, it won’t be easy for other affiliates to get in so quickly.