The Sky Is Not Falling (And Amazon is Still King)

Amazon Commission Updates

Amazon announced yesterday reduced commissions for many product categories effective April 21, 2020.  We've heard a lot of concern about these changes, and I want to give you some thoughts on how this affects our industry and online businesses. It hurts anytime commissions and margins are reduced on products we sell!  But good business owners are focused on the long-term.

1)  The Pie Is Growing!  Although we will get a smaller slice of the pie (reduced commissions), the good news is that the pie is getting much larger.  Amazon is hiring over 100,000 new workers just to handle the demand.  For all but essential products, ship times are increasing as Amazon simply can't keep up with all the orders.  This is great!  The pandemic is accelerating online commerce like never before.  We are seeing growth in almost all sectors.  The increased online commerce activity will largely offset the reduced commission rates.  Will it hurt at first?  Yes.  Will your business be even better and bigger in 12 to 18 months from now?  Yes (if you stick with it).  I'd rather see commission rates drop and the pie grow larger (ecommerce), than the pie getting smaller.  This event will weed out the non-serious sites and leave the market stronger for serious entrepreneurs.

2) Amazon's Conversion and Related Product Sales are HUGE – I've got 75 product links on my men's care affiliate site.  Yet, I sold over 283 products from my site last month.  Amazon gave me commissions for all the other products these visitors purchased — even the ones I don't have an affiliate link for!  Amazon is king at conversions — this opportunity can't be missed or overstated.  With very little work, Amazon nets us so many other sales.  This is hard to beat — especially from speciality affiliate programs you can join.  Where Amazon's commission rate may be only 4%, I would likely need some other affiliate program to have commissions double that to match the same conversion rate and revenue that Amazon brings.  Doubt me?  Do some research — you'll find lots to back this up.

3) 90-Shopping Cart Cookie and 24 Hour Visitor Cookie — Again, you can benefit from related purchases and repeat shopping.  Anything the visitor purchases over a 24 hour period, you will get commission!  And if they place one of your advertised products in their shopping cart, you'll get commission for those purchases for 90 days.

4) Building a Solid Business — good businesses don't rely on a single supplier.  Amazon is the best option to get started with, but you should focus on building a business that is resilient — so you should be looking at multiple monetization opportunities.  I would never ignore Amazon — but I would add other options to my site (other affiliate programs, ads, dropship, etc…)

5) Diversification – every business should have diverse income streams.  Here are some we encourage:

  • Ads – Running ads on your site is a completely passive way to increase your earnings.  We have a special relationship with Ezoic and can get you setup and going FAST (even if you don't meet the minimum traffic requirements).  Contact me for details.
  • More Affiliate Programs!  There are many affiliate programs available — some offering higher commissions.  We can help you research, setup, and update your site to begin working with other affiliate programs.  Contact me for details on how we can help.
  • Dropship / Ecommerce Shop — want 50% commissions or more?  Create a shop and sell products directly from your content site.  We offer a turn-key package to add a shop to your existing site – complete with product research, manufacturer recommendations, product setup, shopping cart configuration, and more!  Contact me for details.

Keep developing great content, be smart about diversification, and don't stop working at it!  Those who work hard today will be reaping the benefits in the months and years ahead.  Amazon is going to continue to be a huge money-making opportunity for all of us who stick with it.

36 thoughts on “The Sky Is Not Falling (And Amazon is Still King)”

  1. At the end I can say you are right, anyone can’t bid amazon. If can that would be great. Your last words are gold -“Keep developing great content, be smart about diversification, and don’t stop working at it! Those who work hard today will be reaping the benefits in the months and years ahead. Amazon is going to continue to be a huge money-making opportunity for all of us who stick with it.” But Jeff can respect affiliators also, but ……………..

  2. Hi Bryon – thanks for the detailed post. Do you think Amazon is finished with their cuts? I don’t. I think it is the beginning of their bean-counters looking for every conceivable way possible to cut expenses – and eventually cut out affiliates. Thanks – Kent.

  3. Hello
    Very unique piece of article
    But as an affiliate, it affects me a lot in amazon affiliate commission
    If that continuous all amazon affiliate will be in trouble including me
    Thank you

  4. Mahmudul rubel

    Hi Bryon

    Thanks for your motivation. I am really scared. My income already drops 40% and looking for other monetization options. Yeah, ads and other affiliates are great options…

  5. “Necessity is the mother of invention” I think is the phrase that most defines this situation to me. In the coming months and years the shunning of the Affiliates may well be the worst decision Amazon make in their history.
    Through necessity Affiliates are now forced to consider alternatives to the Amazon Affiliate programme.
    The truth is, there may long have been better alternatives out there but the “cost to move” was too great to justify the change. Now the cost of NOT moving is huge, the movement to alternative programmes is inevitable.

    Through necessity, the definition of affiliate sites and niche sites is likely to go on a journey of re-invention in my mind. Amazon has long been the defacto standard. With “Niche Website” being Synonymous with “Amazon Affiliate Site”.

    Now is the time for the disruptor – the platform, the approach or the programme that’s going to become the new “defacto standard” and a few are going to be vying for the title – but only time to tell who comes out on top.

    I actually think many Amazon affiliates will be thanking Amazon for forcing them down this path ultimately, as there’s a rich vein of commissions available elsewhere. Does that mean Amazon won’t have it’s place? Definitely not – but the benchmark for minimum product sales price for products Affiliates promote on Amazon has just increased to maintain it’s business case viability. i.e. you may have survived with average order values of $30 before, but now it needs to be $50…

    Looking forward to see how the guys at HPD take advantage of this movement on the ground – change breeds opportunity for all

  6. Hi Bryon,
    Thanks for sharing you thoughts.
    I tend to agree with you, but I think affiliates should abandon Amazon in favor of other affiliate programs, which pay way more than Amazon.

  7. Hey Bryon,

    Thanks for the great article. Amazon’s commission rates for affiliate marketers are way too low, imagine getting only $30 in a sale of $1500+! I love Amazon but not their commission rates, they only offer high commission rates for Cosmetics niche which I am not in, lol.

    Thanks,
    Jhon.

  8. This is awesome by Amazon to provide commission on other products also, which are not on your affiliate links.

  9. Hey Bryon,
    You have picked up very articultaed blog , and surely as you said keep developing great content and to be smart about diversification, and don’t stop working , this motivation will definetely help us excel in our fields. amazon part was worth the read.
    Thanks

  10. I will, by and large, agree with you, anyway I figure partners should abandon Amazon for other branch programs, which pay substantially more than Amazon. Thanks for a great article.

  11. Great article it helps me to motivate my self. But Amazon’s commission rates for affiliate marketers are way too low. If will create very negative effect on the person mind. Because if a person not getting any good amount then what is the profit to do the task.
    So I thought that Amazon should increase the affiliate rates.

  12. I took a hit as well among my sites when Amazon dropped their commission rate.

    I am working on building a non-niche site to allow me to promote a wider range of products similar to GEAR HUNGRY. Hope it works.
    Good Luck everyone.
    Khun Greg

  13. I planned to create a blogging site and I was thinking of using Amazon for affiliate marketing. I just want to ask if Amazon is still the king or is there anything better than Amazon for affiliate marketing?

  14. Hi, Bryon! Comparing to all Affiliate Programs, the Amazon Affiliate program is the best available in the world. If you are loyal to your advertising site, Amazon will be very loyal to you. Promoting products are made very easy on the platform. Moreover, Amazon made it very easy for associates to promote their different products internationally by introducing “OneLink”.
    The reports are very transparent and helpful to associate.No doubt, the advertising fee payment system is to be appreciated. Thanks for the article! Regards

  15. I just love reading your articles and I want you to please keep making these amazing articles that are just straight to the point. I really appreciate the effort you put into each and every post. Regards

  16. Yeah In this century everyone is a fan of e-commerce and amazon is a king in this market you can get even a needle if you want and I agree that Amazon is providing and everything.

  17. Adrian Frutiger

    Loved this article since I was looking for new ways to increase my income as well, this has been very motivating! Thanks for writing this and sharing.

  18. All of your post are informative and motivational for beginners as like me, I read recently the post giving information about sandbox and loved it! And this post also has a lot of knowledge to start a blog and start earning. Thank you for sharing such valuable content.

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