Updated below Online shopping marketplace, Flipkart has hiked affiliate payout fees to marketers on all categories that it offers. The timing cannot be missed - Last month, Amazon launched Associates, its affiliate program for marketers that pays 10% commission when visitors follow affiliated links from marketer's website to Amazon.in and make a purchase. Note that Flipkart mentions that the new affiliate payout is only for the month of July. It's offering 10% payout on books as opposed to 6% that it offered previously. In comparison, Amazon offers 10% and Infibeam offers 5% affiliate payout fees on books. Flipkart has increased the affiliate payout up to 10% on all of the categories that it is currently offering on its marketplace. Note that, Flipkart affiliate pays out to marketers via gift card or EFT. While the increase in higher affiliate payout must be taxing on Flipkart, we believe it was important for them to do so, specifically after Amazon's entry in the Indian market. Amazon.in already offers a lot of books for much cheaper than Flipkart. Combine that with lower affiliate payout, website owners are bound to ignore Flipkart for affiliate earnings. It's not clear whether Flipkart plans to stick with the higher affiliate payout option after the promotional month. However, we feel if Flipkart wants to stay relevant in the ever competing E-Commerce business, it has to offer competing prices as well, considering that India is a very price conscious market. Who benefits? Besides marketers, we believe the higher affiliate payout will also benefit price comparison…
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