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What the 2020 Amazon Cuts Taught Affiliates

Amazon's 2020 commission cuts show why a beginner affiliate site should not depend on one merchant's payout table forever.

On this page

  • What changed in the 2020 commission cuts
  • Why merchant dependence creates fragile revenue
  • When to test specialist retailers or direct partnerships
Preview for What the 2020 Amazon Cuts Taught Affiliates

Introduction

For many beginners, Amazon Associates is the first affiliate programme they encounter. That familiarity can create a false sense of security. The commission cuts announced in April 2020 demonstrated that even the largest and most trusted affiliate programme can change its payout structure with little notice, immediately affecting publishers whose income depended heavily on Amazon. [Search Engine Land]searchengineland.comamazon affiliate commission rates cut 332966Search Engine LandBig Amazon affiliate commission rate cuts among latest…Apr 15, 2020 — The Amazon Associates program is set to cut co…

Rate Cuts illustration 1 The lesson was not that Amazon became unusable. Rather, it showed why a website built around affiliate links should avoid relying on a single merchant for long-term revenue. A business that earns almost all of its income from one commission table is exposed to decisions it cannot influence, regardless of how much traffic or trust it has built.

What changed in the 2020 commission cuts

In April 2020, Amazon informed Associates that new commission rates would take effect on 21 April. Several major product categories saw significant reductions, including:

  • Furniture, Home Improvement, Lawn & Garden, Pet Products and Pantry items falling from 8% to 3%.
  • Beauty products falling from 6% to 3%.
  • Grocery products falling from 5% to 1%.
  • Health and Personal Care falling from 4.5% to 1%. [Search Engine Land+2Marketing Dive]searchengineland.comamazon affiliate commission rates cut 332966Search Engine LandBig Amazon affiliate commission rate cuts among latest…Apr 15, 2020 — The Amazon Associates program is set to cut co…

These changes arrived during the early months of the COVID-19 pandemic, when online shopping volumes were unusually high. Many affiliates expected increased demand to improve earnings, but lower commission percentages meant that some publishers experienced large revenue declines despite healthy sales volumes. Industry observers reported that websites concentrated in the affected categories faced particularly severe reductions. [impact.com+2Empire Flippers]impact.comWhat Amazon associates can do to avoid losses afterThe decision was announced by email on Tuesday — the same day Amazon's stock closed at an all…Read more…

The announcement also reminded publishers that Amazon’s programme rules, including commission structures, are controlled entirely by Amazon. Affiliates participate under the programme’s operating agreement rather than negotiating individual commercial terms. [Amazon Associates]amazon.comAssociates Standard Commission Income Rates Standard Commission Income for all Qualifying Purchases of Products that are categorized as fAmazon AssociatesStandard Commission Income RatesStandard Commission Income for all Qualifying Purchases of Products that are categorized…

Why merchant dependence creates fragile revenue

The 2020 changes highlighted an important business risk that is easy for beginners to overlook.

A successful affiliate website does not merely depend on search traffic or content quality. It also depends on the commercial agreements behind every click. If a single retailer changes those terms, months or years of optimisation may suddenly produce much less income.

Consider two otherwise identical websites:

  • Both receive 100,000 monthly visitors.
  • Both convert readers into buyers at similar rates.
  • Both recommend products in the same niche.

If one website earns 95% of its affiliate income through Amazon, a commission reduction immediately affects almost the entire business. Another publisher with the same audience but income spread across several merchants experiences a much smaller shock because losses from one programme are partly offset by others.

This is why experienced affiliates often measure revenue concentration alongside traffic. A site with diversified income is generally more resilient than one relying on a single merchant, even if current earnings are identical.

The 2020 cuts also demonstrated that strong conversion rates cannot fully compensate for lower commissions. Amazon remains a highly trusted retailer that often converts visitors well, but excellent conversion cannot always overcome a large reduction in the percentage paid to the publisher. [Search Engine Land]searchengineland.comamazon affiliate commission rates cut 332966Search Engine LandBig Amazon affiliate commission rate cuts among latest…Apr 15, 2020 — The Amazon Associates program is set to cut co…

Rate Cuts illustration 2

When to test specialist retailers or direct partnerships

The practical response to the 2020 experience was not necessarily to abandon Amazon. Instead, many publishers began treating it as one option among several.

As a website gains authority, it becomes easier to compare alternative merchants for the same products. Specialist retailers may offer:

  • Higher commission percentages.
  • Longer attribution or cookie windows.
  • Better support from affiliate managers.
  • Exclusive promotions or discount codes.
  • More stable commercial relationships in particular product categories.

Software companies, online services and specialist brands frequently pay substantially higher commissions than general retail marketplaces because their margins and customer lifetime values differ. The best choice depends on the audience rather than on the headline commission rate alone.

Direct partnerships can also become viable once a website has demonstrated consistent traffic and sales. Smaller manufacturers sometimes negotiate customised arrangements that are unavailable through large affiliate networks, reducing dependence on standard programme-wide rate tables.

That said, beginners should not switch programmes purely because another merchant advertises a higher percentage. A retailer with poor conversion, weak customer trust or limited product availability may still earn less overall than Amazon. The goal is diversification based on total revenue, not simply chasing the highest advertised commission.

The lasting lesson for affiliate websites

The importance of the 2020 commission cuts extends beyond the specific percentages that changed. They became a widely cited example of platform risk in affiliate marketing.

For beginners, Amazon Associates remains a useful benchmark for learning affiliate fundamentals, testing buyer intent and understanding how commercial content performs. However, the events of 2020 showed that long-term businesses should avoid assuming today’s commission structure will still exist tomorrow.

A healthier affiliate website gradually reduces its dependence on any single merchant by expanding into additional retailers, relevant affiliate networks and, where appropriate, direct brand partnerships. That approach does not eliminate commercial risk, but it makes one company’s policy change far less likely to determine the future of the entire business.

Rate Cuts illustration 3

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Endnotes

  1. Source: impact.com
    Title: What Amazon associates can do to avoid losses after
    Link: https://impact.com/partnerships/what-amazon-associates-can-do-to-avoid-losses-after-massive-commission-cuts/
    Source snippet

    The decision was announced by [email]({{ 'email/' | relative_url }}) on Tuesday — the same day Amazon's stock closed at an all...Read more...

  2. Source: affiliate-program.amazon.com
    Link: https://affiliate-program.amazon.com/help/node/topic/GRXPHT8U84RAYDXZ?tag=searcht-20
    Source snippet

    Amazon AssociatesStandard Commission Income RatesStandard Commission Income for all Qualifying Purchases of Products that are categorized...

  3. Source: amazon.com
    Link: https://www.amazon.com/amazon-co-uk/s?k=amazon.co.uk&tag=searcht-20
    Source snippet

    quality items from trusted brands. Explore gift cards, books, and household goods...

  4. Source: amazon.com
    Link: https://www.amazon.com/?tag=searcht-20
    Source snippet

    Spend less. Smile more.Free shipping on millions of items. Get the best of Shopping and Entertainment with Prime. Enjoy low prices and gr...

  5. Source: searchengineland.com
    Title: amazon [affiliate commission]({{ ‘disclosure-967c81/’ | relative_url }}) rates cut 332966
    Link: https://searchengineland.com/amazon-affiliate-commission-rates-cut-332966
    Source snippet

    Search Engine LandBig Amazon affiliate commission rate cuts among latest...Apr 15, 2020 — The Amazon Associates program is set to cut co...

  6. Source: marketingdive.com
    Link: https://www.marketingdive.com/news/report-amazon-cuts-affiliate-commissions-across-categories/576160/
    Source snippet

    Marketing DiveReport: Amazon cuts affiliate commissions across categoriesApr 16, 2020 — Groceries, which currently garner a 5% commission...

  7. Source: empireflippers.com
    Title: amazon commission changes end era opportunity
    Link: https://empireflippers.com/amazon-commission-changes-end-era-opportunity/
    Source snippet

    Amazon Commission Changes in 2020: The End of an Era?Apr 17, 2020 — Amazon announced today a site-wide rollout of commission structure ch...

  8. Source: adweek.com
    Title: amazon associates affiliate rate cuts publishers
    Link: https://www.adweek.com/media/amazon-associates-affiliate-rate-cuts-publishers/
    Source snippet

    Amazon Cuts Affiliate Commissions Up to 50% for Publishers18 May 2026 — Amazon has quietly restructured its Associates program over the p...

    Published: May 2026

  9. Source: flippa.com
    Link: https://flippa.com/blog/amazon-affiliate-commission-rate-cuts/
    Source snippet

    April 21, 2020. Here are some tips on other affiliate programs to turn to...

    Published: April 21, 2020

Additional References

  1. Source: ebusinessinstitute.com.au
    Link: https://www.ebusinessinstitute.com.au/amazons-affiliate-commission-cuts-what-to-do/
    Source snippet

    Amazon's Affiliate Commission CutsHave you been affected by the recent cuts to the Amazon Affiliate Program? Are you looking for alternat...

  2. Source: facebook.com
    Link: https://www.facebook.com/AmazonUK/
    Source snippet

    (@AmazonUK)Something's blooming this month… Amazon Spring Deal Days is coming back! From March 10 to 16, it's seven days of epic savings...

  3. Source: hellopartner.com
    Link: https://hellopartner.com/affiliates-face-financial-shock-as-amazons-associates-programme-cuts-commission-rates/
    Source snippet

    Affiliates Face Financial Shock as Amazon's Associates...20 May 2026 — Commission rates have reportedly been reduced by up to 50%, in so...

    Published: May 2026

  4. Source: emarketer.com
    Title: amazon cuts affiliate commissions by up 50 raising pressure on publishers
    Link: https://www.emarketer.com/content/amazon-cuts-affiliate-commissions-by-up-50–raising-pressure-on-publishers
    Source snippet

    Amazon cuts affiliate commissions by up to 50%, raising...19 May 2026 — The news: Amazon has quietly slashed affiliate commissions by up...

    Published: May 2026

  5. Source: feedvisor.com
    Title: what to know about the drastic cuts to amazon associates referral rates
    Link: https://feedvisor.com/resources/amazon-marketing-advertising-strategies/what-to-know-about-the-drastic-cuts-to-amazon-associates-referral-rates/
    Source snippet

    What to Know About the Drastic Cuts to Amazon...Jun 4, 2020 — The product categories affected by Amazon's drastic affiliate com...

  6. Source: martech.org
    Title: big amazon affiliate commission rate cuts among latest program changes
    Link: https://martech.org/big-amazon-affiliate-commission-rate-cuts-among-latest-program-changes/
    Source snippet

    Big Amazon affiliate commission rate cuts among latest...Apr 15, 2020 — The Amazon Associates program is set to cut commission rates for...

  7. Source: amazon.co.uk
    Link: https://www.amazon.co.uk/?tag=searcht-20
    Source snippet

    Low prices at Amazon on digital cameras, MP3, sports, books, music, DVDs, [video]({{ 'video/' | relative_url }}) games, home & garden...

  8. Source: businessinsider.com
    Title: amazon cuts commission rates for affiliate program 2020 4
    Link: https://www.businessinsider.com/amazon-cuts-commission-rates-for-affiliate-program-2020-4
    Source snippet

    Amazon Cuts Commission Rates for Affiliate Program17 Apr 2020 — Commission rates for furniture and home improvement items will fall from...

  9. Source: reddit.com
    Link: https://www.reddit.com/r/news/comments/g1e7l6/amazon_slashes_commission_rates_for_program_that/
    Source snippet

    t it will slash commission rates beginning April 21, according...

  10. Source: hackernoon.com
    Title: Outside, Tools will be sliced from 5.5% to 3%.Read more
    Link: https://hackernoon.com/amazon-affiliate-new-commission-rates-from-21-april-2020-fq4532f6
    Source snippet

    Amazon Affiliate New Commission Rates From 21 April, 2020May 8, 2020 — Earphones, Beauty, Musical Instruments, Business, and Industrial s...

    Published: May 8, 2020

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