1. September 2018 - Advertising Fee Changes FAQ

FAQ: New EU Associate Advertising Fee Structure (September 1) for Softlines

 

  1. What is changing?

From 1 September 2018, Amazon will modify the advertising fee rate structure for its EU Amazon Associates Programme for the following categories: Apparel, Jewelry, Luggage, Watches, Shoes, and Amazon Fashion Women, Men & Kids Private Label (“Fashion Categories”). Associates may now earn a 10% rate for qualifying purchases in those Fashion Categories if a customer makes a “Direct Qualifying Purchase” on Amazon through the Associates’ Special Link, i.e. a Special Link to a Product detail page in the Fashion Categories results in a qualifying purchase in those categories. Associates can now earn an additional 20% in advertising fees (a net rate of 12%) on these Fashion Categories if they generate 250 or more Direct Qualifying Purchases in a calendar month in these categories. The increased rate applies to all Direct Qualifying Purchases, not just those in excess of 250.

 

For all “Indirect Qualifying Purchases”, which are all qualifying purchases that are not Direct Qualifying Purchases, a flat rate of 2% will apply e.g. a Special Link to a camera product detail page or the Amazon homepage results in a qualifying purchase in the Fashion Categories.

 

You will find these new rates and more details in the EU Associates Programme Advertising Fee Schedule section of your Operating Agreement available on your Associate Central account page, changes effective 1 September 2018.

 

  1. Can you give me a few more examples of how this works?

As an example, if you post a Special Link on your site to a pair of shoes on Amazon, and a customer clicks through that link and purchases that pair of shoes, or any other Amazon product in the Fashion Categories, you may earn a 10% advertising fee for that qualifying purchase. If your site(s) generates 250 or more qualifying purchases in these categories in a calendar month that are the result of the Special Links that you place on your site(s) to products in these Fashion Categories, you may earn 12% in advertising fees on all of those qualifying purchases.

 

Here is another example, if you post a Special Link on your site(s) to a camera on Amazon, and a customer clicks through that link but ends up purchasing a pair of shoes, you may receive 2% in advertising fees for the qualifying shoe purchase (in addition to the advertising fees associated with any other qualifying purchases made by that customer).

 

  1. Why are you changing the advertising fee rate structure?

We want to encourage and reward Associates who focus on creating high-quality content that drives intentional end user purchases of products in the Fashion Categories.

 

 

  1. And what about sales referred to other Amazon sites?

These changes apply to the Fashion Categories for qualifying purchases referred to Amazon.co.uk, Amazon.fr, Amazon.it, Amazon.es and Amazon.de.

 

  1. When will this change be applicable?

The new advertising fee rates will become effective from 1 September 2018 onwards. All qualifying purchases prior to 1 September 2018 will follow the advertising fee rates previously set out in the EU Associates Programme Advertising Fee Schedule.

 

  1. How do I understand whether I am driving Direct Qualifying Purchases and my rates?

On 10 September 2018, we will be releasing an update to Associates Central and you can check the Earnings report in the Reports section to find out whether you are driving Direct Qualifying Purchases and the associated advertising fee rates, as shown below:

 

FAQ Associates True Value1

 

The numbers within the brackets show metrics associated with your Direct Qualifying Purchases.

 

  1. How can I understand how close I am to reaching 250 Direct Qualifying Purchases in these categories to get the 12% rate?

From 10 September 2018, in the Earnings report in the Reports section of Associates Central, when you group by “Category”, you will find a note which specifies how many Direct Qualifying Purchases you have generated. As below:

FAQ Associates True Value2

What do you think?

Do you have a suggestion or comment about the Associates Central website? Let us know.