Those who are just beginning their journey with Amazon affiliate marketing are often keen to know what the Amazon affiliate rates are. Many, especially those who are affiliates for digital products, are surprised by the low percentage that Amazon offers its affiliates, and the fact that these rates are based on volume of sales. This sliding scale is known as a performance fee structure.
The performance fee structure allows affiliates to earn higher fees when they generate a sufficient number of referrals within a month. The higher the number of items sold to customers that are referred by an affiliate, the higher the commission rate that the affiliate will receive.
The Amazon affiliate rates, also known as the advertising rates, can range from 4% to 15% based on the total number of qualifying items that are shipped in a calendar month. The same rate applies equally to both Amazon and third-party items.
Those affiliates whose referrals results in 1-6 sales within a month receive a commission of 4% of the price of the items sold. The next benchmark is the 7-30 item range, which rewards an affiliate a 6% fee for their efforts on all items sold in that month. The percentage continues to increase with the number of shippable items until it reaches a maximum of 8.5%. This percentage is awarded to any affiliates who are able to refer at least 3131 sales within a month.
There are, however, some exceptions to the outlined scale. For example, sales of any products from Amazon's electronics department are only compensated with a 4% commission. This is a flat rate and does not increase with higher volumes of sales.
Similarly, the following departments have a flat commission rate that is paid for affiliate referrals: Amazon MP3 Products, Amazon Instant Video, magazine products, and grocery products. Additionally, Amazon places a cap on commissions earned for sales of personal computers. Advertising fees for products found in this category are limited to $25.
Under Amazon's commission structure affiliates are rewarded for bringing in high volumes of sales, and it can be quite advantageous for affiliates to focus on quantity of sales rather than focussing on products that pay high commissions. For this reason, many affiliates will target both high-end and low-end products simultaneously. The high-end products pay greater commissions but if an affiliate can sell a large volume of low-end products they will benefit not just from these sales commissions but also from an increase in their Amazon affiliate rates.
Another way to boost your Amazon sales is to leverage well written content. There are lots of free articles to help you promote specific Amazon products at http://www.joepiercey.com
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