Amazon Affiliate Commission Structure | Small business

Through Updated January 25, 2019

Amazon Associates is an affiliate marketing program run by Amazon that allows you to sell its products on your own website in exchange for reduced profits. This allows you to increase your product line, test new types of products on your audience, or even build a full business around this program and maybe other affiliate programs. For small businesses that currently sell products online, it could be a great source of additional income if you sell additional products through Amazon, without worrying about getting the products yourself. Amazon makes the sales and ships them directly to the customer.

Commission fee structure

Amazon operates a volume-based advertising fee structure. The more products you ship through your affiliate links, the more money you will earn per sale. Once you’ve sold enough products to switch to a different ad rate, all subsequent sales will give you a commission at that rate, until you hit the next fee level. Note that some products are exempt from this commission structure.

Commission fee schedule

Until 2017, Amazon offered a tiered commission structure so that affiliates who sold a lot of products received a higher commission than those who sold a little. However, Amazon eliminated this structure and started using fixed commission rates for different types of products. While this is likely to continue to evolve, examples of the commission structure in 2018 are as follows:

  • 1.0% for video games and game consoles
  • 2.0% for digital TVs and downloadable games
  • 2.5% for computers, computer components, DVD and Blu-Ray
  • 3.0% for toys
  • Amazon tablets and Kindle devices: 4.00%
  • 4.5% for paper books, health, personal care, sports, cooking, car and baby products: 4.50%
  • 5.0% for downloads of digital music and videos; groceries, handmade items or musical instruments
  • 6.0% for headphones, cosmetics, musical instruments, commercial and industrial supplies
  • 7.0% for clothing and accessories, Amazon TVs, Amazon Echo products and jewelry
  • 8.0% for furniture, lawn and garden, home improvement, pantry and pet products
  • 10.0% for Amazon fashion items and Amazon coins

Most other categories will earn affiliates a four percent commission, while Amazon wine and gift cards pay no commission.

Receive payment from Amazon

Amazon won’t pay you unless your affiliate sales hit a threshold of $ 10 if you choose to be paid by direct bank deposit or Amazon gift card, or $ 100 if you want to be paid by check. If you do not meet the threshold, your affiliate balance is carried over to the next month and added to the sales you make then. Amazon pays affiliate sales 60 days net. So, for example, sales that reach the threshold at the end of January will be paid at the end of March.

Aurora J. William

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