People making money from schemes set up by large companies like Amazon have been taking a hit recently. Good commission rates are a key part of deciding what programs you promote to earn money online. Of course, with recent cuts, we are all struggling to keep things operating as normal.

In this blog, we are going to look at the Amazon commission cuts in order to determine the knock-on effect around the world.

Amazon Cuts Commission

In mid-April, Amazon Associates notified their affiliates that they would be making cuts to the commission rates that they offer. The Amazon affiliate scheme has been running for many years and is one that both individuals and larger companies take advantage of.

Many of the affiliate product categories are affected by the cuts and information of this was sent on to any affiliates affected. One example of a product category to be affected is the furniture and home improvement category. Anyone selling these products via affiliate links will see a drop of commission from 8% to 3%.

In the grocery category, commission rates are set to drop from 5% to a low 1%. Commission for baby products will drop from 4.5% down to 3%. These changes have come into effect as of 21st April 2020.

Who is Affected?

Amazon Associates is a scheme that many people rely on as their side hustle for making money online. A large percentage of the affiliates involved in this scheme will be affected and this will reduce the amount of money being made online. Many individuals relying on this income will struggle with the extremely low commission rates now in place.

That’s not all – there are also some larger companies who rely on Amazon commission that is generated through their website. This includes Vox Media, The New York Times and BuzzFeed who all publish guides that highlight Amazon products. As of April 21st, the income generated from these will be slashed.

Will this affect your opportunities?

If you have been earning money online through Amazon Associates, then you will probably notice your income is significantly reduced in the coming months. While some categories have been hit harder than others, most of the categories on Amazon have been reduced. For those in the grocery or home improvement category, things will be tough.

So, what if you aren’t on the Amazon Associates scheme? Well, the truth is that Amazon is one of the bigger companies out there and so many others take the lead from them. This could lead to a knock-on effect of other companies thinking that it is okay to slash their rates.

Other companies taking the lead from Amazon could result in your ability to make money online through your side hustle being affected. This is why it is really important that you are paying attention to what your affiliate program is doing right now.

Summary

When a large company like Amazon makes changes, there is often a larger ripple effect. Even if you are not someone who receives commission through Amazon, there is a chance that your side hustle income will be affected. Stay on top of things and make sure that you are aware of any cuts.