The affiliates make money by recommending a product on Amazon on their own websites or channels and get a cut of the revenue when the consumer ends up making the purchase.
Some of the worst-affected categories included "Grocery," where the commission has been reduced from 5% to 1%, according to the changes posted on its website.
For health and personal care items, the affiliates will also only receive 1%, compared to the earlier 4.5%. Commission on Amazon Fresh products has been reduced from 3% to 1%.
Home items, including furniture, will bag a 3% commission for the affiliates, compared to the 8% earlier.
Amazon confirmed the change to CNBC but declined to say if the cuts were related to the novel coronavirus (COVID-19) pandemic.
Why It Matters
Amazon's business has been differently impacted by the coronavirus outbreak than others. While the e-commerce giant almost denied the deliveries of items deemed "non-essential" during the pandemic in the U.S. until recently, it is seeing increased demand for essential items.
The Seattle-based company hired an additional 100,000 workers over the past month and is looking to add another 75,000 people to its workforce as soon as possible.
Amazon's shares closed 5.3% higher at $2,283.32 on Tuesday. The shares traded 0.6% lower in the after-hours session at $2,270.
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