20i Reseller Hosting

Amazon.co.uk Commission Cap Removed

Discussion in 'Fresh Store Builder' started by careybaird, Feb 23, 2015.

Thread Status:
Not open for further replies.
  1. careybaird

    careybaird from Fresh Store Builder

    Joined:
    Sep 2010
    Posts:
    116
    Likes Received:
    3
    Hey guys, thought you might like this - the £7 per item commission cap is being removed from the UK Amazon Associates program :cool:

    That means you can now get much better commissions on high ticket items. There is also a change in commission rates for certain product categories (e.g. watches are 10%).

    I broke it all down with the full details here: http://blog.freshstorebuilder.com/amazon-co-uk-and-eu-commission-cap-removed
     
  2. Domain Forum

    Acorn Domains Elite Member

    Joined:
    1999
    Messages:
    Many
    Likes Received:
    Lots
    articles.co.uk
     
  3. Admin

    Admin Administrator Staff Member

    Joined:
    Jun 2004
    Posts:
    10,771
    Likes Received:
    284
    Good information, thanks for sharing.

    Admin
     
  4. Edwin

    Edwin Well-Known Member Exclusive Member

    Joined:
    Apr 2005
    Posts:
    9,817
    Likes Received:
    533
    If the change sticks, that could potentially increase the value of descriptive domains matching high-ticket items in categories with a decent % commission rate.

    For example, if a product is £1,000 on average and it falls into the 5% "other" category, then that's £50/sale which is more than 7x what Amazon capped the commission at before.
     
  5. careybaird

    careybaird from Fresh Store Builder

    Joined:
    Sep 2010
    Posts:
    116
    Likes Received:
    3
    I do think it will stick as well - they had the commission cap for over 6 years so they must have given it some serious thought.

    Amazon covers so many niches now that even EMD domains in obscure niches will increase in value.

    Previously I only promoted amazon.co.uk niches with products around the £100 mark, now its wide open to higher ticket items also.
     
  6. Retired_Member38

    Retired_Member38 Banned

    Joined:
    Jun 2013
    Posts:
    1,773
    Likes Received:
    43
    Haha, what a load of nonsense.

    Any 'real' affiliate site is going to be sending traffic to a legitimate end user rather than Amazon market place. And the days of setting up some crappy amazon powered store with no unique content etc, are long gone.

    So anyone who is/was ranking those sites, already had a way to monetise them. Amazons changes aren't going to change demand or price for junk exact match domain prices, no matter how much you wish for it :p

    If there were some high ticket price items for sale that you could only buy through Amazon then perhaps your post would make sense; but as things are now its just a lot of drivel.
     
  7. DaveP United Kingdom

    DaveP Well-Known Member

    Joined:
    Mar 2010
    Posts:
    2,890
    Likes Received:
    50
    I have my feet up and pringles ready. Please Edwin and Monkey, continue... :)
     
    • Like Like x 1
  8. Retired_Member38

    Retired_Member38 Banned

    Joined:
    Jun 2013
    Posts:
    1,773
    Likes Received:
    43
    If anyone disagrees with me I'm open to being convinced - please post a domain name that has went up in value with this announcement.
     
  9. DaveP United Kingdom

    DaveP Well-Known Member

    Joined:
    Mar 2010
    Posts:
    2,890
    Likes Received:
    50
    21stBirthdayPresents.co.uk has surely gone up from £1,250. :)
     
  10. Murray

    Murray Well-Known Member

    Joined:
    Sep 2012
    Posts:
    3,704
    Likes Received:
    268
    How many domain sales do you see where you think the buyer must be stupid?

    Not everyone thinks like you, so it doesn't matter what is factually correct, all that matters is what people think is right.
     
  11. getmein Portugal

    getmein Active Member Exclusive Member

    Joined:
    Sep 2008
    Posts:
    282
    Likes Received:
    11
    Precisely the sort of 'legitimate end user' who will have a number of glaring holes in their tracking mechanism including non tracking telephone numbers, physical stores, live chat etc which all serve to reduce the amount attributed to the affiliate who generates the sale.

    It's obviously very much product dependent - I might want to speak to someone about a new washing machine, less so for a new pair of headphones that I've already done some research on. In a niche like clothing or jewellery if they are competitively priced I think they'd get the sale especially for higher value branded products.

    The trump card is that most users will already have their payment/delivery details with amazon, trust the company so pressing the buy button is just that little bit easier.
     
  12. Retired_Member38

    Retired_Member38 Banned

    Joined:
    Jun 2013
    Posts:
    1,773
    Likes Received:
    43
    So what do you think of the 24 hour cookie period? Thats fine if you want to sell the the latest John Grisham novel or a Kasabian cd, they're spur of the moment purchases for under a tenner.

    Do you want a 24 hour cookie when you're trying to sell someone a £5000 sofa or a £3000 hifi?

    At least the legitimate end users are going to give you a reasonable cookie time for something that is obviously a considered purchase.
     
  13. Retired_Member38

    Retired_Member38 Banned

    Joined:
    Jun 2013
    Posts:
    1,773
    Likes Received:
    43
    I see quite a lot where if you were being mean you'd say the buyer was stupid. Or if you're being charitable you'd say they were naive and a big portfolio owner seen them coming and did an 'astute bit of business' that left the buyer bamboozled, and acorn cheerleaders singing 'caveat emptor' when the customer realises he can't ever make his money back let alone make a profit.
     
  14. Retired_Member38

    Retired_Member38 Banned

    Joined:
    Jun 2013
    Posts:
    1,773
    Likes Received:
    43
    But seriously I'd still love to see a couple of examples of domains that have increased in value with this Amazon change.
     
  15. getmein Portugal

    getmein Active Member Exclusive Member

    Joined:
    Sep 2008
    Posts:
    282
    Likes Received:
    11
    I think it's short, I think it's cheeky and I think Amazon do it, because they can. It's for an affiliate to compare how Amazon as a merchant backs out compared to anything else. At least with the 24 hour cookie you can test fast :p

    No, I don't - obviously I want as much commission as possible and very long duration cookies, preferably forever :cool:. For the examples you've cited I don't think Amazon is a good fit as a merchant, irrespective of cookie duration. For a £600 pram - I think it's definitely a contender and that represents a substantial increase in potential earnings for an affiliate.
     
  16. Retired_Member38

    Retired_Member38 Banned

    Joined:
    Jun 2013
    Posts:
    1,773
    Likes Received:
    43
    But a 60 second check shows me there are already plenty of household names selling Pram stuff with 5% commission and no cap. And with a genuine cookie length rather than 24 hours.

    I'm not really feeling that buyprams.co.uk suddenly shot up in value because of this Amazon announcement.
     
  17. Skinner

    Skinner Well-Known Member

    Joined:
    Jul 2008
    Posts:
    4,660
    Likes Received:
    137
    I don't know about domains going up in value, I do believe websites WILL go up in value because of this.

    I have a number of websites, which do ok, rank ok, selling xxx+ items now I have a wider product base from a trusted company, so it could bring in some additional sales. This will translate into a higher monthly revenue and this make my site(s) should I choose to sell.
     
  18. careybaird

    careybaird from Fresh Store Builder

    Joined:
    Sep 2010
    Posts:
    116
    Likes Received:
    3
    Keep in mind that using the store format (i.e. the remote shopping cart) will give you a 90 day cookie with Amazon instead of the normal 24 hour cookie you get with a direct link.
     
  19. Retired_Member38

    Retired_Member38 Banned

    Joined:
    Jun 2013
    Posts:
    1,773
    Likes Received:
    43
    Your website won't really go up in value to a savvy buyer. If Amazons price cap removal means the earnings go up, then it was badly monetised in the first place.

    If you were repeatedly seeing commissions marked at the maximum cutoff point then surely that was telling you you needed to get off Amazon and move to another legit end user and get paid the full amount?

    [​IMG]
     
  20. careybaird

    careybaird from Fresh Store Builder

    Joined:
    Sep 2010
    Posts:
    116
    Likes Received:
    3
    I recorded this quick video to show which situations give you a 90 day cookie and which give you a 24 hour cookie.

    It isn't quite as simple as you think. Hope it helps:

    https://www.youtube.com/watch?v=ntbzIzrBeC0
     
  21. Skinner

    Skinner Well-Known Member

    Joined:
    Jul 2008
    Posts:
    4,660
    Likes Received:
    137
    Its down to how your selling your site. If your selling on multiples of monthly revenue, the new items a monster like Amazon could bring, would inflate those numbers.

    Personally, I never really used Amazon (or ebay) on many of my sites. Mostly because of the rubbish percentages (<5%), the commission cap, rubbish cookie durations and stupid basket rules. The improved commissions, cap removal makes it significantly more attractive.

    I agree if you stayed with amazon, while hitting the £7 limit constantly, you prob need a good kicking.

    I also just noticed this was in the FSB section, which I don't use.
     
Thread Status:
Not open for further replies.