Amazon has recently slashed the commissions that they’re offering to their associates in a bunch of different product categories. So where do we go from here?
What are some affiliate alternatives to Amazon that you should consider? Walmart, Home Depot, Target, eBay, and Clickbank all have affiliate programs that are worth considering. Going direct to the manufacturer can also set you up with some of the best commission rates and cookie validity. Or you may even want to try selling your own product instead!
In this article, I’ll explain what has recently happened with Amazon that is making some members of their Associates Program take a second look. And I’ll outline some affiliate alternatives to Amazon that you may want to consider for your own online business.
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The Amazon Affiliate Apocalypse
I opened up an email from the Amazon Associates Program on April 14th.
“We hope you are staying well during this time, ” it started out with.
“Aww, that’s sweet,” I thought to myself.
I figured it was just another one of those emails we’re getting from literally every company we’ve ever used, telling us what they’re doing to cope with COVID-19.
I was about to close the email, but then I decided to read further.
“We are writing to inform you of upcoming changes to the Amazon Associates Program Operating Agreement,” the email continued.
At that point I decided to click the “What’s Changed” link in the email and I was floored.
They were slashing commission rates in various categories. Some by as much as 5% for things like furniture, home improvement, pet products, and others.
Now, this isn’t the first time that Amazon has cut back on commissions for their affiliates. But people definitely are talking like it’s different this time, and they’re finally ready to cut ties with the online retail giant.
The Growing Skepticism of Amazon
Like I said, Amazon has made changes that hurt members of their associate program before.
But now as the commission rates continue to get lower and lower, online entrepreneurs are starting to wonder if Amazon is preparing to cut them out entirely a few years down the road.
It’s one reason why it’s not very prudent to have all your eggs in one basket. If most of your business revenue comes from referrals to Amazon, you’re totally at the whim of whatever policies the company decides to set.
Some website owners I know have had their monthly income cut in half by this change!
There are also constantly labor issues in the news about how Amazon treats its warehouse staff, which brings the ethics of working with the company into question for some people as well.
How Am I Reacting To This Change Personally?
I only signed up to be for the Amazon Associates program less than a year ago.
Since I live in Canada, I’m not eligible to receive payments from Amazon by direct deposit. For whatever reason, they now support international bank accounts in countries like Latvia and Romania, but not Canada.
So the only way I can get paid out for my Amazon commissions is by cheque, and they have a minimum earnings of $100.00 before they’ll mail it out.
Right now I have about $40 unpaid sitting in my account, so I plan on sticking with Amazon for the next few months until I hit the threshold. Then I may switch over to other programs.
I’m currently earning about $10 per month in advertising fees, so I expect it may be as much as 6 more months before I’m able to finally cash out.
But once that happens, I’m going to start seriously looking at some alternative affiliate programs that I could be using instead.
So Where Do We Go From Here?
With the risk of Amazon cutting out their Associates program in the future, what should you do to protect your online business?
I think the clear answer is that you need to diversify your income sources besides just taking commissions from Amazon.
Does that mean you should remove Amazon affiliate links from all of your websites or blogs? Ultimately that’s a decision you’ll have to make for yourself. I know some people are jumping ship and abandoning Amazon entirely for other programs, while others are just adding new links on to gradually transition away.
The Best Amazon Affiliate Program Alternatives
Here are some sites that I think make sense as alternatives to Amazon’s affiliate program.
Initially, you should expect a lower conversion rate than what you currently get from Amazon. People are very familiar and trusting of Amazon. They already have accounts and it’s easy for them to make purchases. But even on the websites of other big companies like Walmart, they may be less likely to check out.
Walmart
That brings me to the first Amazon affiliate alternative on my list. Walmart is a huge company that sells most of what people are looking for. From groceries, to clothing, to outdoors gear.
Chances are that you can find something to promote on your blog or website that they’re selling.
Walmart offers a 3-day cookie and pays a flat 4% commission on everything you promote.
Target
Target is another huge company that’s a major competitor of Amazon
Their commission structure is competitive with Amazon. If you reach their top sales tier, you may be able to earn as high as 8% commissions depending on what you’re promoting.
eBay Partner Network
Before Amazon came on the scene, eBay was the way that most people did their online buying. They’re still a very trusted and well-known seller to this day.
eBay offers an average commission of about 7%, depending on what you’re promoting and how many sales you drive to their platform per month.
I’m not familiar with using eBay’s affiliate program myself, so I’m not sure how it works exactly. I feel like eBay product offerings change rapidly. Even if it’s not an auction, a seller likely gets a few hundred of a particular item, sells it all, and never restocks. At least that’s how I picture eBay working. So you may end up dealing with more broken links and having to constantly update if you use eBay.
Home Depot
If you’ve got a website that’s focused on home repair, gardening, or anything that Home Depot sells, then you may want to consider their affiliate program.
They offer a flat rate of 3% on most products, but a 2% commission on appliances and an 8% commission on certain home decor products.
Even at 2%, if you’re linking to things like refrigerators, washers, or dryers, you could be getting $20 per sale in commissions.
The downside is that their cookie duration is only 1 day.
Barnes & Noble / Chapters / Indigo
As an alternative bookstore to Amazon, you may want to consider other large retailers like Barnes & Noble (or Chapters / Indigo here in Canada.)
Barnes & Noble has different commissions for different products. For example, you can get a 4% commission for selling Amazon Kindle devices, 5% on physical music products, and up to 8% on other items. But things like DVDs will only get you 2.5%
Chapters and Indigo offer similar rates in Canada on similar products.
Go To Individual Companies
Some of the most lucritive affiliate programs are with individual companies and going directly to a manufacturer’s website.
For example, Nike has an affiliate program that pays up to 11%! Samsung will pay between 6 and 8%.
In addition to higher commissions, these companies usually also have to offer longer cookies (like 30 days) in order to compete against retailers like Amazon. So they can be a great alternative.
The downside is that you may end up having to sign up for a dozen or more different affiliate programs, depending on what you want to promote.
Clickbank
I would personally stay away from Clickbank and similar platforms that are mainly designed for affiliate marketers to sell digital products and courses. To me it just has a more “shady” feel to it.
But if you’re in a niche like “get rich quick” then Clickbank could well be the lifeblood of your company.
I can’t argue with the fact that they have a good affiliate program. There are tens of thousands of different digital products that you can offer. Clickbank’s cookies are valid for 60 days. And individual sellers set their own commissions, which can range from 10% all the way to 100%!
Sell Your Own Products
If you really want to take your business to the next level, you can try selling your own products.
Making affiliate sales is easy, but selling your own product and taking 100% of the sale can be several times more lucrative.
You can sell an online course, consulting, physical products, or any number of other things.
The downside is that you’ll need to put a lot of time and effort into developing your own product to sell. But in the long run, I feel like this will pay off more than most affiliate options.
Conclusion
The future of Amazon’s affiliate program is uncertain at this point.
Who knows when they’ll slash their commissions again, or eliminate the program entirely?
So I recommend not relying too heavily on Amazon commissions for your income. Instead, start looking at alternatives like Walmart, Target, or Home Depot that may make sense for your business.
In the long run, you’ll create a safer and more stable income for yourself.