Amazon Affiliate Marketing Program

Amazon Removes Third-Party Vendors From Its Affiliate Program – AdExchanger

Amazon Removes Third-Party Vendors From Its Affiliate Program – AdExchanger
Written by publishing team

Amazon has removed third-party sellers from its affiliate program.

As of the beginning of this month, affiliate networks like Skimlinks and Sovrn (which has acquired VigLink) are no longer able to send traffic to Amazon and get pieces of transactions, according to sources at several affiliate networks and publishers.

Removing third-party affiliate networks creates significant profit margins for Amazon, and possibly for publishers that funnel sales directly to Amazon.

Amazon offers different commissions for different types of purchases – beauty products and clothing can be up to 10%, while video games return less than 5%.

But affiliate networks not only got a portion of the individual item they linked to, they got their commission for any products added to the cart within 24 hours of the original item. This means that if someone buys a $10 pair of socks via an affiliate link, and then adds another $300 worth of products, at checkout, the affiliate network will earn $30 on those $10 socks.

While Amazon may have limited commissions on products added to your cart only, rather than removing third-party sellers, this policy change is a kind of sourcing path improvement, said one publisher executive with a large affiliate.

Amazon declined to comment.

Amazon has direct relationships with thousands of publishers, including its main bidding network. So the e-commerce giant isn’t giving up on the affiliate entirely – it’s just creating a single channel between Amazon and digital publishers.

Another publisher said: “Amazon has enough publisher relationships now, and TAM (Amazon’s transparent ad marketplace, offer-side ad exchange) is strategic enough at this point that it clearly outweighs the value of affiliate network traffic, even if it’s profitable. Exec monetization .

Live publisher programs paused due to COVID-19

Information last week reported that Walmart and Amazon have suspended direct e-commerce (i.e. affiliate marketing) deals with digital media companies including BuzzFeed, Vox and Vice.

However, Amazon is suspending only direct programs for publishers due to its nervousness due to the COVID-19 pandemic, according to two executive publishers and two source at affiliate sellers. With many products out of stock and no additional multiples of non-essential products currently shipping, Amazon is temporarily halting e-commerce deals with other publishers.

By contrast, excluding third-party vendors is a real policy change, not just a response to the health crisis. According to an affiliate network executive who said he was warned of the change, Amazon has been planning to remove third-party networks since before February.

Rethink Amazon Affiliate Strategies

The policy change for Amazon affiliates has major implications for e-commerce advertising technology. In recent years, affiliate sellers like VigLink have added publishers to their listings by creating products that list dynamic links to Amazon and other e-commerce sites, based on factors including commission rates, consumer history, and conversion potential.

Consumers are generally more likely to convert on Amazon, and therefore get the most traffic. But publishers had the flexibility to funnel traffic to other sellers for higher commissions or as part of larger marketing deals. (Barnes & Noble, for example, might make a deal with BuzzFeed, for example, to create stories about the best games and books to order during quarantine — and those books will obviously be associated with B&N.)

Now, digital media companies will need thoughtful Amazon and non-Amazon strategies, and they won’t be able to dynamically insert links to drive audience value, one publisher monetization executive said. Many publishers will commit to focusing 100% on Amazon.

Mayuresh Kshetramade, CEO of CJ Affiliate, said Amazon has created an opportunity by removing third-party sellers from its affiliate program.

“We are actively working with our publishers who are looking for ways to diversify their affiliate commerce outside of Amazon and our advertisers who see this as an opportunity to increase their market share,” he said.

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