My strategy is this: At these commissions in the Health niche, Amazon will no be in our "preferred" tier of stores. On March 1, their products will no longer show up on our blog (unless they are the only store with it in stock) -- and the blog gets the vast majority of our traffic.
They will still show up in our main site (where I need to decide whether or not to keep their exclusive buttons), and they'll still be involved in our hot deals and price drop alerts.
Stores need to earn our best visitors, and Amazon is no longer deserving. Surprisingly, they're most often not the best deal on our site anyway, so I don't think anyone will be too upset.
I may try to negotiate my own rates, but I don't think we're big enough for that (not yet, at least). Everything is negotiable when you have legit traffic and other options.
Meanwhile, we've been diversifying our revenue with various industry SAAS services that can be scaled globally. This has been a big focus of mine, knowing that these kinds of things can happen at the drop of a hat.
But at the end of the day, this is still a paycut, and it still hurts. Amazon will ultimately lose more of our traffic for it, and I really don't think they'll even notice this on their bottom line compared to the explosive profits they get from AWS.
Seems like bad PR more than anything.