2 ms·

I'm not sure I understand where you're getting the "half" figure. I'm trying to compare the linked chart to this https://web.archive.org/web/20170106214444im_/

I'm not sure I understand where you're getting the "half" figure. I'm trying to compare the linked chart to this https://web.archive.org/web/20170106214444im_/https://images-na.ssl-images-amazon.com/images/G/01/associates/2012/associates_rates_table_20170101._V523087001_.png https://web.archive.org/web/20170106214444im_/https://images... and not seeing what is cut in half. (Also I notice that the new chart says musical instruments are 6%. For electronic musical instruments -- digital keyboards, for instance -- does this mean the fee has gone up from 4%?)

graeme 10y ago
They removed volume pricing. For instance, books used to start at 4% (I think), but it you sold even a nominal volume you quickly got a 6.5-7% commission. Now it's a flat rate 4.5% in that category. Which amounts to about a 33% cut, because almost everyone was earning 6.5-7%. This is likely to have a massive affect on the blog/article review ecosystem. Most of the review sites that exist today only do so because of amazon's fairly generous programs. I expect in aggregate there will be a shift in what lines of business people decide to get into, based on this. Of course, there's not really a good, easy replacement for amazon affiliates, so people will still use it. But I expect people will deprecate affiliate marketing as an activity to some extent: this is a major change in the niche.
- robbrown451 10y ago
  Ok, makes sense, thanks for the explanation.
- _delirium 10y ago
  That's true for some categories, but the HN headline says electronics rates were cut in half, which I don't see when I'm comparing the two tables. Electronics were already excluded from volume pricing, and had a flat 4% rate under the existing fee structure. The only electronics subcategory in which I see fees being cut in half is for televisions, which were previously under the general electronics category (4%) and are now in their own category (2%). Most other electronics stayed the same, e.g. PC parts were already at 2.5% (and stayed there), videogame consoles were at 1% (and stayed there), and miscellaneous/other electronics were at 4% (and stayed there).
  - graeme 10y ago
    Oh, I didn't note the electronics in the headline. Not sure where that's from – quite probably an error, based on what you wrote. In fact, the headline should have been something like "Amazon cuts volume pricing, greatly reducing affiliate commissions" I don't think it's half in most categories. (To be clear, I didn't write the headline. Had just been attempting to explain it)

graeme 10y ago

They removed volume pricing. For instance, books used to start at 4% (I think), but it you sold even a nominal volume you quickly got a 6.5-7% commission. Now it's a flat rate 4.5% in that category. Which amounts to about a 33% cut, because almost everyone was earning 6.5-7%. This is likely to have a massive affect on the blog/article review ecosystem. Most of the review sites that exist today only do so because of amazon's fairly generous programs. I expect in aggregate there will be a shift in what lines of business people decide to get into, based on this. Of course, there's not really a good, easy replacement for amazon affiliates, so people will still use it. But I expect people will deprecate affiliate marketing as an activity to some extent: this is a major change in the niche.

robbrown451 10y ago
Ok, makes sense, thanks for the explanation.
_delirium 10y ago
That's true for some categories, but the HN headline says electronics rates were cut in half, which I don't see when I'm comparing the two tables. Electronics were already excluded from volume pricing, and had a flat 4% rate under the existing fee structure. The only electronics subcategory in which I see fees being cut in half is for televisions, which were previously under the general electronics category (4%) and are now in their own category (2%). Most other electronics stayed the same, e.g. PC parts were already at 2.5% (and stayed there), videogame consoles were at 1% (and stayed there), and miscellaneous/other electronics were at 4% (and stayed there).
- graeme 10y ago
  Oh, I didn't note the electronics in the headline. Not sure where that's from – quite probably an error, based on what you wrote. In fact, the headline should have been something like "Amazon cuts volume pricing, greatly reducing affiliate commissions" I don't think it's half in most categories. (To be clear, I didn't write the headline. Had just been attempting to explain it)