EcommerceBytes-NewsFlash, Number 2576 - June 30, 2011     3 of 5

Amazon Says Goodbye to California Affiliates

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Website publishers in California who advertise Amazon.com's website through its affiliate program ("Associates program") received termination letters in the wee hours of Thursday morning.

Hello,
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. Those California residents will no longer receive advertising fees for sales referred to Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com. Please be assured that all qualifying advertising fees earned before today will be processed and paid in full in accordance with the regular payment schedule.

You are receiving this email because our records indicate that you are a resident of California. If you are not currently a resident of California, or if you are relocating to another state in the near future, you can manage the details of your Associates account here . And if you relocate to another state in the near future please contact us for reinstatement into the Amazon Associates Program.

To avoid confusion, we would like to clarify that this development will only impact our ability to offer the Associates Program to California residents and will not affect your ability to purchase from Amazon.com, Endless.com, MYHABIT.COM or SmallParts.com.

We have enjoyed working with you and other California-based participants in the Amazon Associates Program and, if this situation is rectified, would very much welcome the opportunity to re-open our Associates Program to California residents. As mentioned before, we are continuing to work on alternative ways to help California residents monetize their websites and we will be sure to contact you when these become available.
Regards,
The Amazon Associates Team

California Governor Jerry Brown signed the bill Wednesday that makes any company that markets itself through California businesses collect sales tax on items sold in that state.

New York was the first state to pass similar legislation, also known as the "Amazon Tax" but that also affects other online retailers including Overstock.com. Other states to pass such legislation include Illinois, Arkansas, Connecticut, North Carolina and Rhode Island.

A recent AuctionBytes survey of online sellers found that half (53%) would stop selling online if required to collect sales tax for every jurisdiction in the U.S.

Amazon.com has yet to comment on the impact of lost affiliate traffic in states where it has terminated affiliates.

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About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


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