Do you work with Amazon Affiliations? Do you sell products consistently and with quality every month? Then follow me in this article because you may be interested in the new commission plan that Amazon is preparing for its affiliates.
Amazon Affiliate | How to Reschedule Advertising Commissions
The change will be active starting from 1 October 2021 and will be valid for all affiliates deemed eligible to whom a new commission plan will be applied with a remodeling of the remuneration according to the revenues made in the month
The new Amazon commission plan
As mentioned, if you make monthly sales of products consistently and with quality, you may be interested in the new Amazon commission plan which provides better percentage ranges for a specific product category.
When I talk about monthly sales I am not referring to the commissions you are entitled to, but to the amount of sales that thanks to your affiliate activity you generate monthly, that is the amount that you can read under the heading ” Revenue Items Shipped ” in your Amazon Affiliate Dashboard.
After comparing myself with other affiliates, it would seem that the new commission plan is ” built ” to measure for each individual publisher, based on the product categories it generally deals with and for which it generates sales.
How do I know if I will have the new Amazon fee plan?
To understand if you will be able to benefit from the new Amazon commission plan and the new percentages, access your Affiliate Dashboard and check that in the ” notifications ” section there is the message relating to the remodeling, it should be similar to the following: ” Notification of the tariff change ”
So open the email link and check how many and which product categories will be subject to the new commission plan.
The categories subject to change will have a yellow line on the left to highlight the new bands, for example as regards the ” Electronics and Computer ” category, this is the new plan that has been applied to me.
Differences between direct and indirect eligible purchase
The fee change will only apply to eligible direct purchases, but what are the differences between eligible direct and indirect eligible purchases?
Direct eligible purchase
A Direct Eligible Purchase means an Eligible Purchase (shipped) of a Product in the same Product Category as the Product detail page that was reached through the Special Link from which that Eligible Purchase resulted.
This means that if your link refers to a product in the ” Electronics and Computer ” category but then another product is purchased in the ” Electronics and Computer ” category, then it will still be counted as a direct purchase and will benefit from the new commission thresholds.
Indirect eligible purchase
An Indirect Eligible Purchase means an Eligible (shipped) Purchase of a Product in a Product Category other than that of the Product detail page that was accessed through the Special Link from which that Eligible Purchase resulted.
So if your link refers to a product of the ” Electronics and Computer ” category but then another product of a different category is purchased then it will be counted as an indirect purchase and will not benefit from the new commission thresholds.
Ineligible purchase
An ineligible purchase is a purchase that has been returned and therefore is not counted
The new compensation thresholds
Returning to the specific tables for my account, there will be 5 new compensation thresholds for the ” Electronics and Computer ” category
- 1.5% for eligible indirect purchase
- 3% for revenues from direct eligible purchases in the € 1 – € 1,999.99 range
- 4% for revenues from direct eligible purchases in the € 2,000.00 – € 3,999.99 range
- 4.5% for revenues from direct eligible purchases in the € 4,000.00 – € 8,499.99 range
- 5% for revenues from direct eligible purchases in the € 8,500.00 + range
Which will replace the standard thresholds
- 1.5% for eligible indirect purchase
- 3% for revenues from direct eligible purchases in the € 1 – € 39,999.99 range
- 4% for revenues from direct eligible purchases in the € 40,000.00 + range
While again related to my account, these are the new thresholds for the Clothing and Fashion category
So, in my case, we will go from minimum thresholds of 7,500 euros to 10% to much more granular thresholds with very interesting percentages:
- 1.5% for eligible indirect purchase
- 10% for revenues from direct eligible purchases in the € 1 – € 249.99 range
- 11% for revenues from direct eligible purchases in the € 250.00 – € 999.99 range
- 11.50% for revenues from direct eligible purchases in the € 1,000.00 – € 3,499.99 range
- 12% for revenues from direct eligible purchases in the € 3,500.00 + range
As you can see, the changes may have been applied to multiple product categories and for each of these you may have specific and customized values, in my case there are 7 of those subject to change.
The new strategies for those who work with Amazon Affiliation
As can be seen, the remodeling of the bands for direct eligible purchases has been profoundly revised, guaranteeing much higher and much more modulated percentages according to even low revenues (e.g. under € 8,500 for the Tech category )
These changes have an impact on all product categories with different ranges and amounts for each, they could even be customized for each individual amazon affiliate.
This is excellent news for those who made revenues with a band below 40K as they can have higher remuneration for quality purchases (direct eligible)
From this we understand how, for those who work with Amazon Affiliations, it will be increasingly important to focus on the following aspects:
- Quality purchases on the single product
- Focus on high-performance products to try to get customized thresholds
So quality and quantity will be more and more important if you want to work better with the best known Advertiser in the world.
How to check if you have reached the bonus threshold
Once you have received the email and verified that the new thresholds will be applied to you, you will be able to monitor the progress of direct eligible purchases through the specific report: ” Report ” – ” Report Bonus in Scaglioni “.
With this Report, present in your Amazon affiliate area, you can monitor in detail if and which bonus thresholds you have reached in the reference month, passing through these thresholds.
Check if your single product promotion strategy is working or if you need to correct and modify it to increase the number of direct eligible purchases.
Conclusions
In this article I have described to you why you may be interested in the new commission plan that Amazon is preparing for its affiliates.
We have seen together what the new commission bands could be and how to check them through your Amazon account and consequently try to focus on quality and quantity to increase affiliate revenues.