Dixons Poor Commission Rates Discussed

[gadget]

I haven't worked with Dixons before but thought of them immediately when planning my latest project. Why? Well the product mix is right, their brand reach and position is right and with them now concentrating solely online, the channel is right.

Have I read this wrong or do they only pay 0.5% commission on their first tier?

[drivetowin]

They pay between 0.5% and 3% - it depends on the items you sell - for example 0.5% on DAB radios to 2.5% on PCs - don't get me started on the accessories and things they pay 0% on though...........grrrr................

[rplumridge]

Hi Funky Monkey

If you would like clarification on the commission groups, please feel free to contact me.

Richard

[gadget]

Your right, the range is broader. However, some of the products I was looking at are low, eg. ..

Digital Cameras .. 0.5%
Digital camcorders .. 0.5%
Cordless Telephone .. 0.5%

Richard - why are these so low .. it's not the product margin before you say!

[Bud]

Yes and No

0-3% is terrible but it has to be weighed up with prolific and trusted name they have and at least they have a 45 day cookie.

It's our choice at the end of the day.

Having said that I just had a £159.99 sale resulting in £0.80 commission - ouch

[Darren M]

Your right, the range is broader. However, some of the products I was looking at are low, eg. ..

Digital Cameras .. 0.5%
Digital camcorders .. 0.5%
Cordless Telephone .. 0.5%

Richard - why are these so low .. it's not the product margin before you say!

For digital cameras at least, it is the profit margin that's the issue. Either the manufacturers have cut their profits to the bone to compete with each other on price, or they've just decided to give the retailers a smaller piece of the pie. Maybe both.

It's always annoying to see an expensive Digital SLR go through at £2 commission though.

[Qui Gon Jinn]

Those commission rates are quite lousy & exploiting affiliates. There perhaps should be a bar commission rates raise to to qualify for the shop window feature, yet affiliate still feature them. Big Brand does not equate to big conversions. My EPC with them isn't even 1 pence though most of that is attributed to wii's being in the shopwindow feed which has since been removed, though when the program was on TD it was still lackluster. I don't know how shopwindow weights merchants in their feed, but with commission levels like that .. hmm. the term bottom feeders comes to mind (referring to merchant).

Just have a look at their merchant page and the number of products set at 0% (zero) commission. Are any of these in their shopwindow feed, well i just searched one of the product lines DVD RW and yes it is. What the heck? This is concerning. The producst should not be in there.

Affiliate Network - Affiliate Window

There are numerous on 0.5%. Yet they appear prominently in the feed! Why?

Currys are 2% on Level 1, though I may discontinue them unless placed on higher tier.

If affiliates meekly allow themselves to get treated like monkees, then they can be expected to be paid peanuts.

[drivetowin]

By picking specific products and not promoting any of the 0% or 0.5% items I'm getting an epc of around 20p which is not bad................compared to play.com where i can't even get an epc of 1p (glad I don't pay for any of those clicks...).

I agree with you though that AW really should exclude the 0% items from the feed.

[renegade]

Having said that I just had a £159.99 sale resulting in £0.80 commission - ouch

I hear your anguish, I've just had: £384.98 sale with £0.50 commission for Currys. It's demoralising and de-motivating.

[tbp]

Having said that I just had a £159.99 sale resulting in £0.80 commission - ouch

I hear your anguish, I've just had: £384.98 sale with £0.50 commission for Currys. It's demoralising and de-motivating

Why bother adding them if the commission is that low? I understand that they work with low margins, but those commissions are ridiculous. In the end buying online costs them less than a sale in one of their shops, so surely the commissions could be better.

[Andy]

No Dixons are definately not rubbish but are the BEST merchant for me.

I focus on white goods and LCD/Plasma TVs and am getting an EPC of 61p and conversion rate of 3.6%. These product groups currently pay 3%.

So it depends which product categories you push. Clearly Dixons are a poor merchant for Digital Cameras but are excellent for white goods and LCD/Plasma TVS.

Validation rates are now much better than they were on TD. Few sales are rejected.

[gadget]

Ok, taking the example of Digital Cameras (or any other 0.5% commission group from Dixons), who is worth promoting?

Currys ( same group as Dixons ) ?
Amazon ?
Comet ?

or some of the smaller names ?

Obviously its not all about commission, cookie length & conversion rates are also big factors.

[Frostie]

How about....
Pixmania
Tesco Direct
Argos
Littlewoods

They all stock digital cameras although I don't know what they %ages are like in comparison.

[Darren M]

Ok, taking the example of Digital Cameras (or any other 0.5% commission group from Dixons), who is worth promoting?

Currys ( same group as Dixons ) ?
Amazon ?
Comet ?

or some of the smaller names ?

Obviously its not all about commission, cookie length & conversion rates are also big factors.

Amazon are good if you're promoting digital cameras. You just have to make sure you're promoting cameras in the right price bracket, as there's a £7 commission limit on electronics. Try promoting cameras that are around the £120 mark, this will give you an ex vat sale price of about £100. If you can get into the upper commission tiers, you should make about 7% commission on these sales.

[befuddle]

Dixons are NOT rubbish. The average amount of commission I receive for Dixons is over £15.

I am more than happy with that. I don't promote their individual products but do push people to spend a lot to take advantage of their discount codes.