Amazon Cuts Commission Rates for Advertising Affiliates

In a memo obtained by CNBC, Amazon said it is lowering commission rates from April 21. A spokesman for the tech giant would not say whether the move was prompted by the COVID-19 pandemic. According to the memo, commission rates for various categories of affiliate products will be significantly reduced. For example, the tariffs for furniture and household items were reduced from 8% to 3%, while the commissions for food products fell from 5% to 1%. The commission on advertising for headphones, beauty products, musical instruments, and commercial and industrial supplies has been reduced from 6% to 3%.