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| Amazon plans to cut commission rates significantly |
Amazon plans to significantly reduce the commission rate for its marketing plan. When customers reach a product page and buy products through special links, media organizations, e-commerce companies, and small independent businesses can make some revenue.
The company has informed plan members that they will link their products to the Amazon Associates to obtain a percentage of sales (Amazon Associates). As of April 21, commission rate will be emailed, and some decrease in product category will exceed 50% (CNBC).
Commission rate for home décor, furniture, lawns, garden, and pet products dropped from 8% per sale to only 3% The commission for headphones, cosmetics and musical instruments will drop from 6% to 3%.
Commission increased from 5 other categories (including groceries) to 5%, causing many websites that rely heavily on the Amazon program for a big hit to make money, as these sites spent many years with the sales department building to recommend Amazon products.
Other retailers like (Best Buy) and (Walmart) run similar marketing programs, but Amazon is still a pioneer in e-commerce in the U.S. and accounts for nearly half of online sales. A company spokesman has not announced whether these changes were directed against the Coronavirus. Answer, but it confirms that the epidemic has caused some changes in Amazon operations.
Amazon is one of the few American companies that intensified its activities during the epidemic and employs 100,000 new employees to meet the demand in its warehouse, where people tend, despite the sharp rise, to shop online to get services from home, but Amazon is still struggling to maintain operations.