Affiliates Face Financial Shock as Amazon’s Associates Programme Cuts Commission Rates

Affiliates are also experiencing reduced performance visibility due to reporting system changes.

​In recent months, affiliates on Amazon’s Associates programme have been under strain. As reported by Adweek, the programme has undergone a significant but unpublicised restructuring, which has left affiliates with less money and lower performance visibility.

The giant’s Associates programme was the first of its kind, and has grown to become one of the largest affiliate programmes in the world. However, as Amazon reportedly works to reduce programme costs, affiliates in the programme are feeling the crunch.

Commission rates have reportedly been reduced by up to 50%, in some cases, while premium commission rates in categories that previously brought in up to 10% have been lowered to 4 and 5%. That said, Adweek reported that these cuts have not been applied across the board, with some unaffected.

In tandem, affiliates have also taken a hit on milestone-based bonuses, which rewarded affiliates for reaching certain sales benchmarks. These bonuses have now been “eliminated” for most publishers.

Alongside this financial set back, affiliates on the programme now have less visibility into performance. Indeed, the programme’s new reporting system requires affiliates to pass a certain sales volume threshold before they can access detailed metrics — something which has significant implications for affiliates’ strategies to scale converting products.

In terms of where this leaves affiliates, opinions are mixed. While some in online discussion forums have urged affiliates to submit feedback requesting a reporting system reversal, others have argued that the changes are part and parcel of belonging to such a programme, and that diversification is a fail-safe against such financial hits. Meanwhile, some commentators have suggested the situation also opens up more potential for direct seller-publisher relationships.

Ultimately, there’s no silver bullet solution, but for those already battling the new zero-click landscape, this is just another challenge to contend with.