The Amazon Associates program is set to cut commission rates for furniture and home improvement products from 8% to 3% and for grocery products to just 1%, down from 5%, CNBC first reported Tuesday. Everyday item categories will be especially hard hit, with Grocery, Health & Personal Care and Amazon Fresh to see commission rates whacked down to just 1%.

The product category rate changes areas follows:

• Furniture, Home, Home Improvement, Lawn & Garden, Pets Products and Pantry will go from 8% to 3%.
• Headphones, Beauty, Musical Instruments, Business & Industrial supplies will go from 6% to 3%.
• Outdoors, Tools will be cut from 5.5% to 3%.
• Sports and Baby Products categories will go from 4.5% to 3%.
• Health & Personal Care will be slashed from 5% to 1%.
• Amazon Fresh will be cut from 3% to just 1% as well.

Here’s a look at the current rate structure looks like:

Many of the current Amazon Associate fees shown here will be lowered on April 21.

The rate cuts are just one of the recent changes to Amazon’s affiliate programs.

No more middle man. Amazon is taking third-party affiliate networks out of the loop and will only work directly with publishers. Networks such as Skimlinks and Sovrn will no longer be able to get a piece of publishers’ Amazon affiliate commissions, Adexchanger reported last week. Amazon already has direct relationships with thousands of publishers.

COVID-19 pause. High consumer demand has significantly strained Amazon’s fulfillment capabilities. That strain has affected Amazon sellers, many of which have had to pull back advertising on products due to inventory shortages. Amazon also hit pause on direct affiliate programs with publishers such as BuzzFeed and Vox, according to The Information.

Affiliate trends. In the meantime, affiliate campaigns for casual clothing — t-shirts, yoga pants — are outperforming other categories during this time with so many people now working from home, according to data from Keywee, a content distribution platform. Family and home categories follow, driven by pet toys and children’s online safety products.

“All of these [campaigns] have been wrapped in a very positive tone and messaging on the campaign level, with emojis, for example, being far more prevalent compared to other types of paid distribution campaigns,” Inbar Yagur, Keywee’s head of product marketing, said in an email.

Why we care. The cuts could be a blow to publishers, influencers and content creators that rely on Amazon affiliate revenue streams at a time when sponsored content and ad revenue is already drying up. Expect to see campaigns shift to the product categories with higher commission rates.

Amazon has not commented on whether the coronavirus pandemic played a role in informing the new rate structure. The company has begun accepting some non-essential products from FBA sellers to its warehouses again. In March, Amazon temporarily stopped taking non-essential product shipments due to surging demand for household staples and other essential product categories as the coronavirus outbreak worsened in the U.S.

This story first appeared on Search Engine Land.

Ginny Marvin

Ginny Marvin is Third Door Media’s Editor-in-Chief, running the day to day editorial operations across all publications and overseeing paid media coverage. Ginny Marvin writes about paid digital advertising and analytics news and trends for Search Engine Land, Marketing Land and MarTech Today. With more than 15 years of marketing experience, Ginny has held both in-house and agency management positions. She can be found on Twitter as @ginnymarvin.

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For everybody wondering why the economic recovery feels like a recession, here’s the answer: We’re still at least five years away from regaining everything lost during the 2007-2009 downturn.

Forecasting firm IHS Global Insight predicts that real median household income — perhaps the best proxy for middle-class living standards — won’t reach the prior peak from 2007 until 2019. Since the numbers are adjusted for inflation, that means the typical family will wait 12 years until their purchasing power is as strong as it was before the recession. That would be the longest period of stagnation, by far, since the Great Depression of the 1930s.

Even though the recession officially ended in 2009, median household income declined until 2012 (which suggests maybe we ought to reconsider the way we define recessions). The total decline from the peak in 2007 to the bottom in 2012 was 8.3%. For a family earning $50,000, that means they would have been getting by on $4,150 less per year.

There's been a small uptick in incomes since 2012, but we're not even close to digging out of the crater caused by the recession. Census data going back to 1967 shows that to be the biggest drop in any recession, and the same probably holds true going all the way back to 1940. The second-worst drop in inflation-adjusted income was 6%, from a peak in 1979 to a bottom in 1983. This chart shows the trend (numbers after 2013 are projections):

By other measures, the recession is a distant memory. Total employment eclipsed pre-recession levels earlier this year. The stock market exceeded its 2007 peak in 2013, as did the total amount of household wealth — mostly home equity and financial investments. But the achingly slow recovery in incomes reveals the troublesome changes that are transforming the whole U.S. economy and holding back the middle class: Certain skills are becoming rapidly outdated, many jobs pay less than they used to and a greater share of income is flowing to the wealthy.

The stark disparity between the return of jobs and wealth, on one hand, and depressed incomes, on the other, shows the limits of the Federal Reserve’s ability to stimulate the economy. The Fed’s super-easy monetary policy has clearly helped boost stock prices and home values, which helps the wealthy most of all, since they’re the ones who tend to own stocks and homes. That's why some aggregate economic data looks pretty good — huge gains at the top pull up the averages. But the most aggressive Fed action ever has been unable to prevent an ongoing income depression. Of course, incomes might have been even lower had the Fed been less aggressive.

The sharp and prolonged drop in incomes could have far-reaching consequences beyond those that are already apparent. “People are starting to realize that something serious has happened,” says IHS economist Chris Christopher. “What the younger generation, people under 35, is experiencing is something very different than their parents or grandparents experienced.” Recent college grads are finding it far tougher to land decent jobs and pay off student debt. They’re getting married and having kids later in life, while also delaying purchases of big things like cars and homes. Young workers without a college degree face limited opportunities, and some may never earn enough to support a family.

Lower incomes means less consumer spending and slower economic growth overall. The longer that persists, the longer it will take for the U.S. economy to create the kinds of well-paying jobs that allow the middle class to prosper. Meanwhile, more and more people will come up short on things such as education funding for their kids and retirement nest eggs.

IHS regards 2014 as an inflection point, a year in which real incomes ought to turn upward for good and continue to rise gradually, until they finally reach pre-recession levels in 2019. Still, a 12-year downturn in incomes would span President Obama’s entire eight-year tenure in office. That might tip the odds in favor of a Republican president in 2016, but Obama’s successor could suffer from the same weak spending power among consumers. And a slower-growing economy will keep federal tax revenues down, assuring that large budget deficits continue and the national debt, now a whopping $18 trillion, will become even more unmanageable.

Debate will probably intensify over whether there’s anything policymakers can do to make incomes grow faster. There might be — cleverly crafted infrastructure projects, tax reform, or widespread and effective job training might give incomes a boost. But national politicians have already had seven years since the recession began to combat its corrosive effects. Its efforts have been underwhelming. At least we may be closer to the end of the income depression than the beginning.

Rick Newman’s latest book is Rebounders: How Winners Pivot From Setback To Success. Follow him on Twitter: @rickjnewman.

2014 Baseball World Series Scheduled to Produce a Bunch of Winners

The upcoming Major League Baseball Championships and World Series marks another important opportunity for entrepreneurs to benefit from one of the Nation's most celebrated sporting traditions. The number of job and entrepreneurial opportunities created by the Baseball industry is almost without par in American business. From pee wee baseball, little league, high school, college, minor league, and right through the major league activities, the Baseball cash register is constantly ringing and has done so for decades.

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The Little League World Series has just concluded with the Seoul Asia-Pacific Group team winning over Chicago's Jackie Robinson West team. A fantastic young female pitcher Mo’ne Davis from Philadelphia made headlines during the season and World Series demonstrating Baseball's prodigious reach not only into the American dream, but also its worldwide appeal and cash rendering prowess. What is traditionally billed as America's national pastime may have lost some of its professional steam to Football and Basketball, but its leadership in overall worldwide cash delivery is unchallenged.

In 1989 Major League Baseball initiated its Reviving Baseball in Inner Cities (RBI) program which also hosts its own World Series. RBI provides opportunities for young men and women from underserved communities to utilize Baseball and Softball to attain educational scholarships, and engage in numerous other beneficial activities. Over 200 RBI players have also been drafted by Major League Baseball Teams. It is estimated that the 30 Major League Teams have provided over $40 million in resources to over 300 programs within 200 cities worldwide. The 2014 RBI World Series hosted by the Texas Rangers was completed in early August just prior to  the Little League World Series. 

Now the World awaits the biggest of the events, the upcoming 2014 Major League Baseball championships and World Series. Cities, communities, and  entrepreneurs eagerly await what historically promises to be a major cash register ringing phenomenon. Various estimates are that each City involved in the World Series can potentially reap up to 16 million dollars per game, with attendant media attention stretched out over several weeks bringing additional economic benefits to the environs.

In estimating what the World Series meant to the Boston Community the City determined that when a regular season game would bring in $500,000 to one million dollars, a World Series Game could realize as much as $10 million dollars for the community.

The National Market Exchange Corp (www.nationalmex.com) estimates that the overall benefit to entrepreneurs within the host Cities can be as much as $150 million, and can easily be the largest economic opportunity such entrepreneurs will ever have, even including an often overblown Super Bowl visit. The 110th rendition of Major League Baseball's World Series combined with its best of seven playoffs will provide the Host Cities with a prolonged period of economic activity which no other Professional Sport currently provides. Add this to the long regular Baseball season and it is easy to see what Baseball means to the entrepreneurial class of any Major League Baseball City.

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American Baseball has done an excellent job spreading its influence around the Globe, and building its heirarchical system of succession from Pee Wee baseball through its Minor League system. While other major league sports have attempted to replicate this structure and success it has been difficult despite the inroads made by Professional Football and Basketball. Entrepreneurs within the Sports and other Industries should carefully study the business of Baseball in America to learn how to build and maintain a world class business operation.

The 2014 World Series is expected to begin around October 22, 2014 and entrepreneurs are already preparing for what could be their biggest opportunity and payday to date.