Amazon Furloughed Affiliate Driven Businesses From Afar

eCommerce
Written By Rick Watson

I have a soft spot in my heart for affiliates. That's why Amazon's recent moves kind of break my heart. Boo Amazon.

Affiliate publishers get paid when they send traffic to another website, and someone buys there. In April, Amazon cut the affiliate payout rates by over 500% in some categories, 50% in others, and more.

What categories? Well, the ones that are doing well right now of course! Seems like a profitability and demand control move at the wrong time.

Category: From : To

  • Furniture: 8% to 3%

  • Headphones: 6% to 3%

  • Outdoors, Tools: 5.5% to 3%

  • Grocery: 5% to 1%

  • Baby: 4.5% to 3%

  • Health & Personal care: 4.5% to 1%

Affiliates are the backbone of so much eCommerce traffic. But guess what, Amazon doesn't need the traffic right now. They are overwhelmed.

I get it, Amazon is literally asking people to buy less. But the problem is, with affiliates these businesses rely on this revenue. And make no mistake, it's like Amazon is furloughing workers from these businesses from afar, without them even knowing. Boo Amazon.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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