Here Are the New Amazon Affiliate Commission Rates and Why You Should Be Celebrating Instead of Throwing A Fit

Here Are the New Amazon Affiliate Commission Rates and Why You Should Be Celebrating Instead of Throwing A Fit

amazon commission ratesAffiliate marketing is a real way of life for hundreds of thousands around the globe. March 1st, 2017 marks a change in the Amazon affiliate commission rates and some are upset.

I think you’d agree that when you’re a creature of habit, any kind of change is met with resistance.

When commission rates change, and these commissions are what is putting food on the table for your family, it’s understandable that there would be concern.

Many claim they’ll be losing revenue because of the changes to the Amazon affiliate commission rates. But are the new Amazon affiliate commission rates something you should be upset about?

This article is going to show you exactly why you should be celebrating these new rates and exactly how to take full advantage of them.


Amazon Affiliate Commission Rates


New Amazon affiliate commission rates

 


Affiliate marketing is a $5 billion/year industry. If you don’t quite understand what affiliate marketing is and how it works, read this article first. After you’re up to speed, come back here. It’s ok, I’ll wait.

All Caught up? Good. Back to our story.

Before March 1st, 2017, Amazon had two different commission rate structures for their affiliate program: fixed rates and volume based rates. With fixed rates, the commission an affiliate receives is always the same. With volume tiers, commissions increase depending on the volume sold.

As an example, let’s use the Amazon affiliate program to promote electronics. Here’s a table showing the Amazon affiliate commission rates in place before March 1st, 2017:


Amazon affiliate commission rates


As you can see, an affiliate’s commission rate on all electronics was 4%. So a commission on a $500 item would be $20. This may not sound like much but those $20s sure can add up fast.

With products that fit under the “general” category (see table below), as the number of sales went up, so did the Amazon affiliate commission rates.


Amazon affiliate commission rates volume based


However, as of March 1st, 2017, volume tiers will be removed. As you can imagine, Amazon affiliates with high volume sales are upset to see volume tiers go. At 631 sales, their commission doubled from 4% to 8%.

Let’s take a look at the new Amazon affiliate commission rates:


New amazon affiliate commission rates


At first glance, some would notice drops in commission rates. And as I touched on, Amazon has removed the volume tiers.

People hate change. We’re creatures of habit. When touch screens became popular on smart phones I didn’t understand it. “Why are they taking away the buttons?!” Thankfully, I adjust quickly.

Sometimes a good change comes along, and it just takes time to better understand the benefits.


Why You Should Be Celebrating the New Amazon Affiliate Commission Rates


Amazon has been hinting about changing their commission structure for a while. Looking at the new commission rates, this isn’t a bad thing.

First, the changes to the commissions rates aren’t drastic. Several categories still retain their same rates.

Also, Amazon is going to continue pushing instant shipping across their platform. What does extremely fast shipping mean for Amazon affiliates? It means more people are going to be spending more money on Amazon.

As the average purchase increases, the affiliate benefits more and more.

Additionally, some of the categories have gone up with their commission rates. Pantry products (previously “groceries”) are now at an 8% commission, doubling from their previous 4%.

This is of particular interest, because trending of late is people buying their groceries online. Further, with Amazon pushing instant shipping you have yourself a profitable niche. People spend trillions on groceries every single year. Ladies and gentlemen, let’s make some money.


Don’t Put Your Eggs All In One Basket


Amazon has almost 500 million products and services to promote. Because of this, affiliates can promote just about anything and make money using the Amazon affiliate program.

It’s important to understand though that there are also tens of thousands of other affiliate programs you can use and turn a major profit with.

Some are huge affiliate networks, while others are independent affiliate programs. And sometimes it’s within these smaller programs where you can find the biggest consistent commissions.

(If you’re serious about making money in affiliate marketing check out my #1 recommendation for an affiliate marketing platform to join . It offers an incredible amount of training in all things online business. It’s free to start and has its own affiliate program that offers an average commission of $100 per customer retained. Yes, I said $100).

In conclusion, in online business we must roll with the changes. Sometimes what seems like a bad thing on the surface may actually be to your benefit. Affiliate marketing isn’t going anywhere, and choosing the right programs is the key to creating consistent revenue from a tool like the internet.


Feedback


How do you feel about the changes made to the Amazon affiliate commission rates? Are you a current Amazon affiliate? What independent affiliates do you use that have high commission rates? What are your highest affiliate commission rates currently? Share your experience in the comments below. And as always, feel free to share this article. Sharing is caring.

24 Comments

  • Eric – What a great post! I am still very new to this but I have already seen changes like you describe. This helps me frame my perspective moving forward. Love your writing style by the way! Thanks!

    • Eric Cantu says:

      Yes ma’am. These changes took effect a few months back, and by focusing in the areas where the commission percentages are highest, we can maximize our profits. I’d advise also finding other affiliate programs so your eggs aren’t all in one basket. The best commissions I’ve seen come from Wealthy Affiliate at over $100 per referral The training is spectacular if you’re looking for mentorship in affiliate marketing. Thanks for your comment!

  • Hi Eric,

    Hey Eric,
    Enjoyed reading this!
    I just actually joined Amazon today! I haven’t really looked around much so your information here is very helpful! I definitely can’t throw a fit cause I’m new… the changes sound great to me and I’m looking forward to be a part of Amazon!!

    It’s great to also be a member of Wealthy Affiliate as I do all my work on my site there, that’s how I came upon the knowledge of Amazon having an affiliate program… so very glad you’re there and thanks for the help!!

    You have a great site!!

    Regards,
    Monica

    • Eric Cantu says:

      Small world! Amazon’s affiliate program is definitely something we can take advantage of. It’s like having a bottomless pit of products to make money from. Thanks for stopping by! If you ever have any questions don’t hesitate to leave a comment and ask. If I can’t answer it myself I’ll do my best to find a source that can! Thanks again!

  • AfqmBiz says:

    Great important information that would certainly benefit me and others.

    Thanks 🙂

  • Ronnie Jordan says:

    I am glad I read this because I was not aware of their rate changes until now. It doesn’t bother me. I am forced to adapt to any changes if I want to continue to promote their program. It just means I have to step up my game and not let it discourage me. Thanks for the information.

    • Eric Cantu says:

      Absolutely right, and unless any of us are extremely high volume selling affiliates, the changes are not drastic at all. It’s a great platform to be an affiliate with. Between that and Wealthy Affiliate who i linked to above, you have yourself a large program with millions of products to promote and an independent program with extremely high commissions. That’s a great pairing to have in your tool belt. Thanks Ronnie!

  • Kenny Lee says:

    Good article. I’d heard of the rate change but I didn’t really read into it until this. This was helpful.

  • Derek Smith says:

    Thanks for putting this all together.
    Ive been looking into opening an amazon affiliate account.
    It looks like they simplified things, which I guess is never a bad thing.
    Thanks again!

    • Eric Cantu says:

      I see it overall as a positive, especially if you concentrate in those categories that have commission rate increases. Definitely a good time to get involved. I appreciate you stopping in. Thanks Derek.

  • Yvonne says:

    I wasn’t aware that Amazon changed their commission rates. It’s good to know that pantry goods will earn a 8% commission as I’m in the cooking niche.

    I’m not sure what you meant by WA offering an average commission of $100 per customer retained. Can you elaborate more on this?

    • Eric Cantu says:

      Sure. While most affiliate programs like Amazon offer commissions that depend on he cost of the item sold, Wealtjy Affiliate offers flat rate commissions.

      With Amazon, selling a $1000 television gets you a $20 commission since televisions are in the 2% commission category.

      With WA, if a customer decides to upgrade from free to a premium membership, while it only costs the customer a small monthly fee, you as the affiliate will get an avg commission of $100-$118. WA is able to do this because they have great customer retention.

      Because of this you’re able to make quicker and higher commissions without having to sell expensive, big ticket items.

      I hiiiiiiiighly recommend looking into it as an affiliate program to join. It’s a money maker. Thanks Yvonne!

      • Yvonne says:

        Isn’t the monthly WA recurring commission $23.50?

        • Eric Cantu says:

          That’s absolutely right. And with premium members staying on average for 4 to 4 1/2 months, that’s where you get the average of $100-$118/per customer retained. The great part is that so many stay for a year or more!

          And what I love is that each month you’re getting paid not only on the people who recently joined but also those who joined last month and the month before who are still a member. It really starts to add up quickly and you instantly see the power of being a part of a great affiliate program.

          Thanks for the comment, Yvonne!

  • Thanks for the informative information, it’s good to think of the removal of the volume based commission in another way and not just that we are loosing money.

    Definitely not as bad as people are saying after reading your point of view, Thanks

    • Eric Cantu says:

      I initially had the same knee jerk reaction everyone else did. But truly it’s only the ultra high volume sellers that would lose anything anyway. And with their high volume sales they can make it up in other categories where commissions went up. No need to worry. Plenty of money and commissions to go around lol. Thanks Chris.

  • Stuart Noel says:

    Eric,
    This is great stuff, there is so much good information, very detailed. Thank you for sharing this.

  • Sharon Whyte says:

    That’s interesting to read for me as I am not an Amazon Affiliate but will potentially be in the future when I design a niche website. Yes you are right, people are creatures of habit and don’t like change but if they make the rules you have to abide. And as you said, the changes aren’t too drastic. I look forward to using Amazon in the future as like you said they have millions of products and services and im definitely looking into Wealthy Affiliate $100 commissions! Good article!

    • Eric Cantu says:

      Thanks for the comment Sharon! I appreciate you taking the time to read it. We’re all creatures of habit and I’m the worst, but we gotta roll with the changes right? And yes I highly recommend WA! Thank you and take care!

  • Hailey says:

    Wow I did not even know that they were changing their rates. Thank you for an informative article! How did you hear about it? Is it something you found online or are you an amazon affiliate?

    I’m glad you posted this because i would have just focused on the percentages.

    Thanks! Your site is cool

    • Eric Cantu says:

      Thanks Hailey! I started not too long ago with amazon and luckily I’m not one of these huge high volume affiliates that might have looked right away and that option being taken away. I learned what i know about affiliate marketing through Wealthy Affiliate so thankfully while I can get larger commissions from WA, Amazon is right there too to supplement it and give me another revenue stream. Thanks again!

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