2 months ago industry buzz28Jake

empire flippers market place and amazon's amended commission structure

All Amazon associates have been affected one way of another, by the recent change in the commission structured in the associate’s program. It has caused quite the stir and upset a lot of affiliate marketers. Like it or not, change has happened, and we might as well just get used to it.

The same is true for Justin and Joe who runs the empire flippers marketplace. Majority of the listings on thir site as either fully or partially monetized via the amazon associates program, and because of this, valued incorrectly when based on the former commission structure. They are well aware of this, and currently in the process of getting this updated.

email from empire flippers

What Will Happen to Affiliate Site Valuations?


There’s no getting around it, making less money directly translates into a less valuable business. The valuations will go down, in some cases quite significantly as is the case for technology sites earning all their revenue from the Amazon Associates program. Again this clearly depends on the category of the site – some sites might see a slight increase in their earnings, but those are definitely in the minority.

Note from Justin & Joe: We will be repricing ALL of the Amazon Associates sites on our marketplace to reflect this change. Our methodology for this will include using the seller’s earning report from Amazon. We have created a formula using historical sales that adjusts the commission percentage based on the new rates that Amazon has rolled out. These rates are adjusted in every category and accurately updated with the historical earning amounts. Since every item is in a different commission category, we will take every category that the website is selling in into account for the new adjusted valuation price.

For example: If you mainly sell items in the Outdoor niche at the new 5.5%, there might be some of your items that fall under the Apparel category at 7%. The new prices will now reflect all items sold in their new dedicated category. If a 3/6/12 month average is used, then every month has been updated with the corresponding commission changes. We will clear this change with the sellers and, once approved, push the change live on the marketplace. As we’re in the middle of rolling this out and you’re wondering which sites have been changed (and which haven’t) look for any that have had their prices updated after February 27th, 2017.

You can read the whole thing here. This is another quality stamp to Justin and Joe for their efforts to run an honest and transparent website flipping marketplace. If you shop around on a site like flippa.com, this is an aspect you will need to keep in mind when performing your own due diligence. On Empire Flippers, they do the work for you.

Jake