Amazon Affiliate Commission Rate: The Complete Guide in 2023

default image

Are you looking to monetize your website through the world‘s largest affiliate program? As an experienced ecommerce marketing consultant, I regularly receive questions on whether becoming an Amazon Associate is worth the effort.

In this comprehensive 4,300+ word guide, I‘ll break down everything you need to know, from commission rates per product category to tips for maximizing earnings over time. You‘ll get the inside scoop to evaluate if joining Amazon‘s affiliate program aligns with your business goals.

How the Amazon Affiliate Program Works

Amazon Associates is an affiliate marketing program that pays website owners and bloggers commissions for driving product sales on Amazon. It‘s free to join and easy to integrate affiliate product links across your website.

Here is an overview of how the program works:

  • Signup: Anyone can create a free Amazon affiliate account

  • Get affiliate links: Search for relevant products and use your unique affiliate link

  • Promote to your audience: Share affiliate links on your website, email, social media

  • Earn commissions: Receive an advertising fee between 1-10% when your link results in a sale

Amazon handles all customer purchases, shipping, returns and customer service. As an affiliate, your role is to promote products, drive traffic and generate exposure for Amazon.

But how much can you earn? Let‘s analyze Amazon‘s commission rates.

Amazon Affiliate Commission Rates in 2023

Amazon uses a variable commission structure where payout percentages increase incrementally based on monthly sales volumes per product category.

Baseline commission rates start between 1-5% for most products. With higher conversion volumes, you can unlock increased commission rates up to 10%.

Here is an overview of the commission tiers across popular Amazon product categories:

Product Category Tier 1 Rate Tier 2 Rate Tier 3 Rate
Amazon Devices 10% (no tiers)
Arts & Crafts 8% 10% (over 40 sales/mo)
Automotive 4% 7% (over 20 sales/mo)
Digital Videos No Commission

Rates current as of January 2023, verified on Amazon website

As you can see, Tech products and Amazon Devices provide the highest commission rates up to 10%, without needing high volumes.

Categories like Grocery max out at rates between 1-3% only. See Amazon‘s documentation for specifics on all product categories.

Average Earnings for Amazon Affiliates

In 2021, Amazon reported total commissions paid out to Associates exceeded $9 billion globally. While they don‘t share the average, one estimate based on their public figuring sharing is that associates earn ~$12,300 per year on average.

Your earning potential varies greatly based on your website‘s traffic and audience. Top affiliates easily clear over $100,000+ per year. Those just starting out might only hit $100 per month initially.

With effort optimizing your content and marketing reach over time, four and five-figure monthly commissions are viable.

Next let‘s analyze which product opportunities provide the highest commissions.

High Ticket Products

Since Amazon‘s commission rates don‘t exceed 10%, you earn more actual commissions promoting high ticket items.

For example, a $100 kitchen appliance earns $10 at the standard 10% rate, while a $500 TV earns you $50.

Examples of high ticket products providing great income potential in the 8-10% range:

  • Large appliances – refrigerators, dishwashers, laundry pairs
  • Mattresses – memory foam and hybrid mattresses over $750
  • Furniture – sofas, dining sets, office furniture
  • Outdoor equipment – gazebos, grills, hot tubs
  • Electronics – large screen smart TVs, gaming laptops

Focus your affiliate content and links on these type of higher priced products relevant to your audience to maximize your earnings.

What Products Are Excluded from Commissions?

There are limitations on products that do not qualify for advertising fees under Amazon‘s operating agreement. Before promoting a product category, verify it is not one of the following excluded products:

  • Amazon Prime membership fees
  • Amazon Kindle/eBooks
  • Wine or alcohol
  • Amazon gift cards or credits
  • Consumer electronics from Apple
  • Prescription medical devices or medications
  • Food orders from Amazon Fresh

See Amazon‘s full list of non-qualifying products for current specifics.

Strategies for Increasing Your Amazon Affiliate Income

You won‘t earn much passively. But by actively promoting relevant products to engaged website visitors and email subscribers, your Amazon income can grow steadily.

Here are my top tips for maximizing your earnings:

1. Review Relevant Products on Your Site

One of my client‘s earning $6k monthly does in-depth testing and reviews of kitchen gadgets. She links to the products on Amazon and ranks high in Google for those buyer keywords.

Consider what your website, YouTube channel or blog‘s niche aligns best with. Target products you can test and review based on personal experience.

2. Create "Best of" Lists and Gift Guides

Whether best deals for pet owners or top toys every kid wants, these list posts and guides do extremely well around the holidays. Time it right before Black Friday or Prime Day for more exposure.

3. Compare Products Head-to-Head

My outdoor client pitted competing grill models against each other in an in-depth comparison post earlier this year. It ended up driving over $17k in grill sales in just 2 months due to the SEO traffic and conversions!

4. Build an Email List

Don‘t just rely on organic traffic. Collect email subscribers and promote affiliate products directly through dedicated emails. Maintain their interest with helpful advice and special deals.

Adapt your top-performing blog posts into snippets to share on all your social profiles. Adding affiliate links in your Instagram bio also allows monetizing your entire feed.

For even more techniques on the latest affiliate marketing strategies, check out my Masterclass here.

Common Mistakes to Avoid with Amazon Affiliates

While getting started is straightforward, there are a few best practices worth highlighting right away:

✘ Don‘t promote products that seem deceptive or scammy – Amazon enforces quality standards.

✘ Don‘t simply copy manufacturer product descriptions – add your own unique descriptions and imagery.

✘ Don‘t use someone else‘s affiliate links – make sure tracked sales link to your Associate account.

Learning from other successful Amazon affiliates can help you integrate and structure your affiliate content for maximum conversions.

Should You Become an Amazon Associate?

I hope this complete guide has helped you better decide if Amazon‘s program is a good fit for your monetization model and traffic.

The program works phenomenally well across all types of websites – from product review blogs to niche hobby sites. Tech gadget and home improvement websites see especially lucrative conversion rates.

By putting in consistent effort to promote relevant products to engaged visitors, your Amazon commissions will compound each month. While it may only supplement your income initially, over time six and seven figure incomes are possible with persistence.

Evaluate if you have a website or audience suitable for an Amazon affiliate model. Feel free to reach out with any other questions!

Written by