One of the reasons the physical 'Shopping Mall' was seen as a great place to be alongside the retail High Street is because it leveraged the power of the brand collective and was/is a 'social experience' e.g. you might want to go and shop for certain items but will get drawn into other stores because of their physical presence, along with the tempting offers you never knew about until you made the trip with friends or family.
The so called 'Christmas Market's are a really great modern day example of this behaviour, especially during the festive period.
Then came the internet, and with it the promise of eCommerce which could level the playing field for big and small retailers alike.
If your internet footprint is miniscule in comparison to some of those big name retailers, how on earth could you ever hope to grow and compete?
For many brands choosing to list on 'Amazon' it has definitely proven to be a way to drive those sales, but not necessarily a relationship with it's customer.
So, as 'Amazon' look to continue to increase its own margin (again) at the expense of squeezing the brand or retailer utilising the affiliate model to drive traffic to their own products on the platform it seems the big guys/gals at Amazon are not looking to curtail this activity as well.
Amazon appears to be tightening up this business model to keep more profits from its sales, especially as consumers search the platform for new products after clicking links from external sources. By cutting off these third-party affiliates, Amazon could increase its own profit margins and potentially increase returns for publishers that send traffic directly to the e-commerce giant.
All sizeable online 'Marketplaces' have been a must for the smaller guy or girl to gain access to much bigger numbers of customers than they could garner on their own, so it's a logical assumption that the mighty 'Amazon, eBay' and others are an attractive place to get your product/service in front of millions of people that will spend, spend, spend and help to grow your business.
However, it's worthwhile considering that 'Marketplaces' are indeed a great place to grow your revenues, but at what cost?
Here's some of the trade off that you may or may not be aware of;
All in all, there are many pro's and con's to being on a Marketplace, but if your entire business revenues are reliant on a third party then you're business is operating in extremely turbulent waters.
Maybe it's time to take a look at 'Social Commerce' instead of 'Marketplaces' - with over 60% of the world's population on various social platforms around the globe, shouldn't you be thinking of ways to go cold turkey from 'Amazon'?
Publishers without direct relationships to Amazon will likely take a hit if the pullback on affiliate marketing continues. These developments come as publishers are already hammered on the revenue side as marketers cut ad spend and block ads from running on coronavirus-related stories.