homepage Welcome to WebmasterWorld Guest from 54.227.41.242
register, free tools, login, search, pro membership, help, library, announcements, recent posts, open posts,
Become a Pro Member
Visit PubCon.com
Home / Forums Index / WebmasterWorld / Ecommerce
Forum Library, Charter, Moderators: buckworks

Ecommerce Forum

    
CA Affiliates getting "The Letter" from Amazon
notice of potential termination
LifeinAsia




msg:4332675
 7:34 pm on Jun 29, 2011 (gmt 0)

Well, we've been fighting it for years, but it looks like the end is very near for California Amazon affiliates. Just got the e-mail today from Amazon.

I expect similar termination letters from most of our affiliate partners soon. :(

I won't bother posting it here (besides being against ToS, it's not that much different from the ones sent to other states), but it basically says all CA-based affiliates will be terminated effective when the law goes into effect.

 

LifeinAsia




msg:4332686
 7:43 pm on Jun 29, 2011 (gmt 0)

And just got the letter from Overstock.

CPC_Andrew




msg:4332696
 8:02 pm on Jun 29, 2011 (gmt 0)

When being progressive goes wrong.

keyplyr




msg:4332816
 12:13 am on Jun 30, 2011 (gmt 0)

Anyone have an email list of legislators to plead our case to?

dpd1




msg:4332821
 12:32 am on Jun 30, 2011 (gmt 0)

The thing that surprised me was that they own SmallParts. I had no idea.

onepointone




msg:4332836
 1:15 am on Jun 30, 2011 (gmt 0)

I saw on another forum where CA (canada) affiliates of some merchants were getting the same termination letters designated for CA (california) affiliates.

Somebody did an address search for 'CA' but forgot the 'thinking' part. doh!

keyplyr




msg:4332916
 7:16 am on Jun 30, 2011 (gmt 0)

Just got a follow-up Amazon email saying:

Unfortunately, Governor Brown has signed into law the bill that we emailed you about earlier today. As a result of this, contracts with all California residents participating in the Amazon Associates Program are terminated effective today, June 29, 2011.


And when accessing my Amazon Affiliate account page:

This account is closed and will not generate referrals. Access to this site is for historical purposes only.

LifeinAsia




msg:4333134
 3:57 pm on Jun 30, 2011 (gmt 0)

Anyone have an email list of legislators to plead our case to?

The majority don't care (hence the budget). They've been trying for years to ram this through. They don't care about the little buys when they're trying to make enough money to survive. Once they lose their jobs and are on the dole, THEN all of a sudden they care about them!

dpd1




msg:4333228
 7:11 pm on Jun 30, 2011 (gmt 0)

I never made any money from it anyway. But I feel for the people that do. Pretty sure there's ways around it though.

keyplyr




msg:4333292
 9:00 pm on Jun 30, 2011 (gmt 0)

I agree, I didn't make a lot from Amazon either but it was an additional set of products offered to my customers adding to the quality of my web site.

The irony is of course, that small biz owner will loose income, thus pay less in State income tax; Catch 22. Another down-side is it forces eCommerce away from California. If all States do thus, I'll be seeking off-shore servers I guess.

ken_b




msg:4333298
 9:12 pm on Jun 30, 2011 (gmt 0)

thus pay less in State income tax


I don't get that logic, maybe I just don't understand it right.

You sell a book for $100.00, your commission is what 4.5 - 7% (maybe $7.00) you take a few business deductions and you pay income tax on maybe $3.50.

So what's the max tax in CA, lets be generous and say 11%, the state gets $0.38.5 (38.5 cents) from the site owner in the form of income tax.

Or they can get, what 7 - 8% of the $100.00 from the book buyer.

So $0.38.5 vs $7 - 8.00 for the state in the form of sales tax.

Unless my math is way off, which it could be, it seems amazing states haven't done this before now.

LifeinAsia




msg:4333309
 9:28 pm on Jun 30, 2011 (gmt 0)

The irony is of course, that small biz owner will loose income, thus pay less in State income tax;

Plus have less money to spend on local businesses, further decreasing state income tax.

dpd1




msg:4333331
 10:52 pm on Jun 30, 2011 (gmt 0)

The bottom line is... Everybody knows what's really sinking CA. But none of the politicians here have the guts to say it. And even if they want to, they can't... Because it's too late to do anything about it. So instead, they keep trying to stick a band-aid on a giant wound that's bleeding all over the place. This is just another one of the band-aids.

CPC_Andrew




msg:4333341
 11:10 pm on Jun 30, 2011 (gmt 0)

Prisons. California's economy is so messed up.

LifeinAsia




msg:4333342
 11:14 pm on Jun 30, 2011 (gmt 0)

Unless my math is way off, which it could be, it seems amazing states haven't done this before now.

A few problems with the math:
1) All the affiliates get fired, so the state still gets $0 from Amazon.
2) With the affiliate fired, instead of the state getting $.38 in income tax from the affiliate, now they're getting $0.

Also, assuming the affiliate spent his leftover $3.12 (not to mention the $3.50 in business expenses) at local businesses, that money would have been revenue for those businesses, resulting in additional income and sales taxes for the state. With that discretionary income gone, the state also loses that tax revenue as well.

ken_b




msg:4333347
 11:24 pm on Jun 30, 2011 (gmt 0)


A few problems with the math:

I knew I should have paid more attention in pre-school! :)

dibbern2




msg:4333642
 2:43 pm on Jul 1, 2011 (gmt 0)

Its not about the numbers, so don't waste your time trying to see that argument.

Its about protecting local b&m's against big nameless on-line giants.
Protect local businesses = good politics. You help the local chain who sees sales tax as an unfair disadvantage. You level the playing field.

Webmasters are too tiny a group to even be considered in this trend.

keyplyr




msg:4333645
 2:50 pm on Jul 1, 2011 (gmt 0)

Its about protecting local b&m's against big nameless on-line giants.
Protect local businesses = good politics.

That doesn't play. There are interviews all over from small biz owners who are saying without Amazon selling there products for them, they wouldn't survive this economy (small local video stores as example.)

LifeinAsia




msg:4333657
 3:14 pm on Jul 1, 2011 (gmt 0)

Protect local businesses = good politics.

Most of the "local" businesses don't have the money that went into this lobbying effort. The money came from the deep pockets of Best Buy, Target, Barnes & Noble, and the like.

Global Options:
 top home search open messages active posts  
 

Home / Forums Index / WebmasterWorld / Ecommerce
rss feed

All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Home ¦ Free Tools ¦ Terms of Service ¦ Privacy Policy ¦ Report Problem ¦ About ¦ Library ¦ Newsletter
WebmasterWorld is a Developer Shed Community owned by Jim Boykin.
© Webmaster World 1996-2014 all rights reserved