Are U.S Affiliates “Up The Amazon Creek?”

Thursday, July 7th, 2011 at 4:17 am

Californian Affiliates “Up The Amazon Creek?”

Yes, unfortunately for Californian affiliates. The effect of a recent internet tax on affiliate programs (named the “Amazon tax”), may mean an end to many Amazon affiliate relationships following the trouble in California. This state has just passed a law that requires internet retailers like Amazon to charge their customers sales tax from sales made from the Amazon site. Many news articles, especially from the United States are covering this story with interest. What will the ramifications be for Amazon affiliates in the future?

It was the end of June 2011 when “hell broke loose” for the U.S. affiliates and their Amazon based online businesses were hit. This is when Californian affiliates got the boot from Amazon. For some affiliate internet marketers this was the back bone of their websites. It means the end for many businesses. The online retailer has already sent emails out to about 10,000 affiliates and other partners telling them that they will be ending their contracts.

Some will argue that Amazon.com are the bad guys. But was the writing on the wall from previous “rumblings”? California has passed the law that requires internet retailers like Amazon to charge customers for sales tax on purchases made on the site.

This new law, signed by Governor Mr. Jerry Brown, would require Amazon to charge customers sales tax if they have connection to California via workers, warehouses or offices, reports the Los Angeles Times.

The options open for affiliates is to now find affiliate programs for their websites elsewhere. Doable, but a huge time waster!

Helpful Links — Reuters.Com — Affiliate Marketing For Beginners — Amazon.Com