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July 23rd, 2007, 11:29 AM #1Possible Reason for Walmart's Commission Decrease
I just saw this on cnn, Walmart is reducing prices on back-to-school items and is making a big deal about the price reductions. They claim to have more price reductions planned for the holidays.
I think the first line in the article may sum it up, "As Wal-Mart continues to struggle with soft sales amid a housing slowdown and gas price pressures..."
So, I'm guessing they can't pay high affiliate commissions on these reduced priced items and make a profit. Or, perhaps they are running their affiliate program at a loss to gain web traffic and now things are getting really tight...
Regardless, it really hurts to sell a 40 dollar item and get a 40 cent commission. I've kept them on my site for now because I like to give my users choices. But... if they keep up this nonsense during the holiday shopping season, then they will be gone from my site. I can't afford that kind of loss.Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!
July 23rd, 2007, 12:20 PM #2
good article. We can only speculate.
"last month with better-than-expected June same-store sales, helped by strong demand for its expanded array of name-brand electronics, including the newly launched Dell computers and other flat panel televisions."
No doubt that price of gas will have an impact on everybody's pocket but I need to make decent $$ too. Thinking of dropping them and just go with Target only.Ma, where the beer? :escape:
July 23rd, 2007, 12:23 PM #3
Don't know if its right, but the Linkshare people in Miami told us they did not think the reductions would stick and that commissions would go back to prior levels before the end of the summer.
I hope they are right and I hope they do it before the back to school traffic has come and gone.
July 23rd, 2007, 02:26 PM #4
I think they're just running low on money due to lackluster sales at their B&M stores. Apparently their online store is doing well in comparison, but since it provides less than 1% of their total volume it's not enough to make up for the problems with their offline stores. Thus they just can't afford to pay the commission they've been paying. At least that's what I gather.
- ScottHatred stirs up strife, But love covers all transgressions.
July 23rd, 2007, 03:42 PM #5
July 23rd, 2007, 04:18 PM #6
I have never been in a walmart and never will.
They are expanding too fast, and in too many places that don't need a walmart. I also don't believe the same store numbers they gave. They are this countries largest employer and by them saying sales are down would make the country go into a recession which the powers in charge won't let happen.