Following the big slash in affiliate commission cut in April, Amazon just made more commission cuts on their UK & EU programs.
From the 1-st of February 2021, an indirect commission will pay 1.5% irrespective of the category. These changes apply to traffic referred to Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it, and Amazon.es.
As an alternative to being able to earn more commissions with these changes, Amazon has expanded the number of product categories that include commission tiers. If the traffic that you send to Amazon results in sales that exceed the first tier, you can earn higher commission rates, not only on sales beyond the initial tier but on all sales that you generate in a product category.
An example of how this all works
Below are a few scenarios that describe how the changes may, or may not, affect you.
- Scenario 1: Let’s say that you are a fashion-focused publisher who doesn’t generate a lot of sales on Amazon, but the vast majority of your earnings result from purchases in product categories related to fashion. If you do nothing, you will likely earn a 10% commission (where your affiliate links to fashion products result in a purchase in the fashion category).
- Scenario 2: Let’s consider the same scenario as above, but you *do* generate lots of sales. In this case, if the total qualifying revenue that you generate in fashion (where your affiliate links to a fashion products result in a purchase in the fashion category) is equal to or greater than £15,000 in a calendar month, you could earn 12% commission on *all* of the fashion sales that result from your content (where your affiliate links to a fashion products result in a purchase in the fashion category).
- Scenario 3: Now let’s say that you send most of your clicks to pages other than product detail pages. For example, you send most of your traffic to Amazon’s homepage. In this scenario, if you don’t change your linking strategy (and potentially your content strategy too), you would likely see your earnings decrease as you would receive a commission of 1.5%, in most product categories.
Be sure to plan your affiliate store’s expansion or acquisition plans, accordingly. Check it out for the official Amazon statement.