Amazon as an Affiliate Marketer and commission rates

Amazon, who is one of the precursors of Affiliate marketing program has lowered down its gear currently on the 21st of  April, wherein Amazon has communicated to most of its Affiliates to reduce den the commission structure drastically.

This was one of the most successful programs driven by an e-commerce company in the entire ecosystem as Amazon was carrying almost 25 lacs affiliates on its account, wherein they were part of a vast product line of amazon as 350 million products in its cart.

Almost 3.5 billion visitors hit this conglomerate's website and almost 8 percent traffic is being generated by affiliate’s i.e 200 million.

We may go with the category of product, where commission structure has reduced directly but rather crux is this that the average commission rate for peaked in mid of 2012 was 9.25%, which has landed down to an average of 3.10 % in April 2020.

Above rates are in percent category

The April 21at 2020 update moved the grocery category to 1% flat.

Now it's obvious and can be understood by a simple example that sales generated by your affiliates links around 10 lacs with an average commission of 8 %  could have given you revenue of 80,000 rather in the present scenario of merely 30 k.

So on the flip side of the coin, most of the affiliate may sell their websites and we may expect many new bees in business and former one moving to other hefty structure partners.

Nevertheless, Amazon, due to his huge traffic, ratio of product sales conversion for ordinary customers as 16% and for the prime segment as 60 % will remain always on top for affiliates.