Play.com Commision 0.5% on PC's And Electronics

[dave1167]

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Just had an email from Play.com

Commission has been changed down to 0.5% on PC's and Electronics What a joke

Ah well guess what I'm doing tonight?......

Changing all my links to merchants who appreciate Affiliates!!

[averasolutions]

Hi,

The problem is that retailers are no longer making the profits they used to.

I was in retail for over 10 years and I closed my company because in the end we were only making 5% profit.

So don't blame them for a reduction in commission, as they probebly either reduce their aff commissions or stop selling electricals alltogether.

...Just my two peneth...

[TheBoy_78]

Hi There. First post for me here, have been visiting this forum for a long time and now would like to contribute. Do you think this could be due partly to the ongoing 'credit crunch' that occupies the front page of the newspaers daily? It stands to reason that many companies are struggling right now, DSG's share price recently took a hit with a profits warning after poor summer sales...and there are many more in similar situations

Maybe its the only way to survive, cut overheads and try and ride out the storm. I cant help thinking that 0.5% will decimate their traffic overnight and lead to a huge drop in sales...maybe the credit crunch will leave many an online retailer in trouble this Christmas??

They say a downturn in the economy will drive more shoppers online, one things for sure, less of them will be visiting Play from today on!

[averasolutions]

Yeah, I agree!

But maybe they're considering putting the extra cash into dedicated PPC campaigns.

The problem is, as you have quite rightly outlined, they will loose traffic from their affiliates, but the people who have a ShopWindow plugin they will still automatically be on those sites.

...that, and they will still get the dedicated PPC traffic paid for by the money saved from paying affiliates.

[dave1167]

I may be a cynical old g** but its coming up to Christmas and I remember several merchants also cutting commissions in the lead up to the big shopping event then mysteriously they go back up again after the January sales

Retail times are hard but cutting marketing when times are hard normally leads to further trouble down the line due to the reduced sales.

I've removed them from all my sites now.

[TheBoy_78]

Will probably remove them too, although I dont see much traffic go their way...

And will keep an eye on commission rates after the Christmas season!