We have some great news today for those promoting Amazon.co.uk and/or Amazon.de, Amazon.it and Amazon.es.
Previously a commission cap of £7 or €10 applied per item but on 1st March 2015 this will be removed. Please read the full post for other important details.
Here are all the important points from the new EU Associates Operating Agreement which will come into place on March 1st 2015.
Commission Rate Changes for amazon.co.uk
The £7 commission cap has been removed entirely.
There are now different commission rates for specific product categories, as follows:
- TV & Smartphones (1%)
- Video Games (2.5%)
- PC, Consumer Electronics (3%)
- Kindle (all devices), Musical Instruments, Major Appliances, Kitchen, Toys, Home improvement, DVD, Software, Digital products (5%)
- Office products, Home, Sports, Music, MP3, Baby, Personal Care Appliances & HPC, Grocery, Gift cards, Books (6%)
- Pet Products, Automotive, Lawn and Garden, Beauty, Amazon Local (7%)
- Shoes, Jewellery, Apparel, Watches, Luggage (10%)
- All other products (5%)
What does this mean to you?
This is a BIG improvement on the previous system and you will get a lot more commissions for most product areas. Electronics is still a low commission category but some categories (i.e. Major Appliances like a fridge freezer) will get a healthy 5%.
There is no longer a “sliding scale” on commissions and you get a flat rate no matter how many products you sell in a month.
If you are looking into new niches then Shoes, Jewellery, Apparel, Watches and Luggage will fetch the highest commissions at 10%. Pet products, Automotive, Lawn and Garden, Beauty and Amazon Local will give you a very nice 7%.
IMPORTANT – Commission percentages are a good indication but remember to do your figures. If you get 5% commission on this Fridge Freezer then you will earn £38.85 for every sale. If you make 30 sales in 1 month (just 1 per day) then you make £1,165.50.
Your bottom line is what matters and remember these questions. How many sales can you make in a month? How much commission per sale? What is your monthly profit?
My Recommendation: Get into Amazon.co.uk now (even if you live elsewhere). Many UK based Amazon marketers have been avoiding promoting Amazon.co.uk due to the commission gap and there is a LOT of opportunity now.
Commission Rate Changes for amazon.de
The changes to Amazon Germany are very minor. Previously there was no commission rate cap on amazon.de and no “sliding scale” on the commission rates.
The commission rates are now:
- TVs, Smartphones & Tablets without contract,PS4 consoles (1%)
- PC, Consumer Electronics, Major Appliances (3%)
- Software, Music, DVD, Video Games, Home Improvement, Toys, Kitchen, Sports (5%)
- Amazon Gift Cards (6%)
- Books*, Automotive, Home, Garden, Musical Instruments, Office products, Baby, Beauty, Grocery, Health & Personal Care, Personal Care Appliances, Pet Products (7%)
- Apparel, Jewelry, Luggage, Shoes, Watches, Digital Products (eBooks*, Music, Video, Software, Games, Apps), Kindle Products (10%)
- All other Products (7%)
My Recommendation: A lot of marketers are making big commissions with Amazon.de already because of no “per item commission cap” and high commission rates on important categories. If you speak/write German then I strongly recommend you get into this market. If you don’t speak German it is well worth outsourcing content creation to tap into this.
Commission Rate Changes for Amazon.it
The changes to Amazon Italy are minor and unfortunately there is still a €10 commission cap per item on most categories. The exceptions to the commission cap are “Books, Music and DVD Products”.
You can now get 10% commissions on AmazonBuyVIP products.
My Recommendation: If you are Italian or speak/write Italian then it is worth getting some websites up and running as a test. There is VERY little competition and despite the commission cap, you can still make good profit. I predict that the commission cap will be removed eventually so you can get a head start on other marketers by starting today.
I do not recommend you get into this market if you don’t speak/write Italian. The cost and work of outsourcing combined with uncertainty on commission rates makes this too risky.
Commission Rate Changes for Amazon.es
The changes to Amazon Spain are similar to Amazon Italy. The €10 commission cap per item still applies and there are some minor changes to commission rates.
You can now earn 10% on AmazonBuyVIP products.
The limitation on Advertising Fees of €10.00 does not apply to Qualifying Purchases from the following Categories: Books, MP3, Music, DVD, Shoes, Watches and Apparel Products.
My Recommendation: Spain is a lucrative market and untapped. If you can Speak/Write Spanish then get into this market, particularly in the Shoes, Watches and Apparel niches.
BuyVIP Commissions
You will now earn a bounty for each Qualifying Amazon BuyVIP Registration in the amount of (a) €3.00 for Qualifying Amazon BuyVIP Registrations on de.buyvip.com or (b) €2.00 for Qualifying Amazon BuyVIP Registrations on es.buyvip.com and it.buyvip.com.
From what I understand, BuyVIP is an online shopping club. It was acquired by Amazon in October 2010 and currently operates in Germany, Spain and Italy.
My Recommendation: I am not entirely sure what BuyVIP is and can’t recommend at this stage. You receive commissions based on registrations. If you are from Germany, Spain or Italy (or speak the language) then check out buyvip.com to learn more.
The Announcement on Amazon
WARNING – the content on this link will change and may be out of date:
https://affiliate-program.amazon.co.uk/gp/associates/promo/whatschanging?ref_=pe_307141_64340471
Conclusion
Finally the commission rates for European Amazon affiliates are improving. The UK is in a very strong position and this is your biggest opportunity. Get into this market QUICK and you will reap the benefits.
I know from experience that Amazon.co.uk is dominating many markets on price and quality of products. I noticed this in myself last year especially – I bought everything from kitchen appliances to christmas gifts, DIY repair products, a bicycle, garden hose, bar stools, alcohol (a nice bottle of Gin!), protein powder, a doorbell, coconut water and a 16kg kettlebell.
Using a store format is still the best way to maximize your commissions by locking in a 90 day cookie, increasing basket sizes and making sure all your product information is 100% up to date.
Fresh Store Builder is the most advanced tool for promoting Amazon on the market today. I still use it to make commissions today (7+ years after I created the first version!).
Here are some recent success stories to prove it:
- http://www.freshmarketingforum.com/threads/new-store-some-proof-fsb-works.7398/
- http://www.freshmarketingforum.com/threads/14-sales-in-the-launching-week.7657/
- http://www.freshmarketingforum.com/threads/my-biggest-amazon-fee-for-a-single-sale.6395/
- https://www.freshmarketingforum.com/threads/woohoo-breaking-records.7506/
You can currently get Fresh Store Builder (unlimited store license) for a lifetime price at this link:
==> http://www.freshstorebuilder.com/order/
I hope this article helps you get into new markets and maximize your online profits. Take action today!
Carey Baird,
Founder of Fresh Store Builder
