Affiliate marketing has been around for quite some time now, and has the potential to make people go from rags to riches, if done in the right way. One tried-and-tested, reliable way of generating a decent, steady income using affiliate marketing is through Amazon Associates. It’s not only designed to benefit affiliate marketers, but also presents a golden opportunity to retailers and sellers to boost their monthly sales.
Why Should You Use The Amazon Affiliate Program?
Just two decades ago, Amazon used to be a platform for simple online shopping – now, it has transformed into a full-fledged marketplace, creating amazing money-making opportunities for sellers and marketers alike. It is the largest eCommerce platform in the world, with millions of products and billions of dollars’ worth of transactions taking place every day. It’s no surprise that Jeff Bezos, the founder, and CEO of Amazon, was crowned the richest person in the world a few months ago, yet again.
About 1 percent of all websites on the World Wide Web are using Amazon Associates as their advertising or affiliate network, giving it a 5 percent of total market share. This shows that millions of online businesses, bloggers, and website owners have opted for Amazon’s affiliate marketing program to dig up a revenue stream.
If you are a seller and new to affiliate marketing or have been trying your hand at it for some time and want to explore the potential of Amazon Associates for your brand, we’ve compiled everything you need to know on how to get started.
What Amazon Associates Is All About
Amazon Associates is an affiliate marketing program that connects you (the retailer) with associates (advertisers), helping you expand your reach and market products to your target market. Since its launch in 1996, it has gathered millions of associates under its hood. The purpose of this program is to create a win-win situation where associates advertise retailers’ products on their platform, and if a customer buys that product, they are paid a commission, which can be up to 10% of advertising fees.
How an Amazon affiliate program runs is quite simple. Associates market your products on their channel by providing useful information comprising of benefits and uses, and compelling them to make the purchasing decision. They share a referral link leading to your product page on Amazon. The referral link is strategically sprinkled throughout the information piece, usually on actionable words or phrases. This allows readers to jump directly to your product page, if they decide to purchase your product within the next 24 hours.
This way, you enjoy increased sales while associates get paid for their hard work, putting money in everyone’s pocket in the process.
How to Set Your Brand Up on Amazon
The process of setting your brand up on Amazon is straightforward and will take only a few minutes – all you need is to follow these steps:
- Go to Amazon’s seller’s page and click on the “Start Selling” button. Make sure you are logged in with your user account.
- Fill in the form with the required information, enter the captcha code, and hit enter.
- Choose a legal name, enter information about your brand, and click on save & continue.
- Enter your credit card number and verify your identity via a text message or call.
- Provide the correct tax information about your business.
- Review the information and provide an electronic signature.
That’s about it. Your seller account has been set up. You will be directed to a dashboard where you can use tools to add products and start selling them on Amazon.
Different Ways to Sell on Amazon
Sellers essentially have two ways to sell their products on Amazon:
1. Sell ON Amazon
A simple way to use Amazon is to list your products on Amazon.com and sell items to customers and third-party sellers. It is an easy way to make sales, though you have to work on optimizing your products so that they appear in Amazon search results when customers type in relevant keywords. But the good news is that you can enjoy higher margins and greater control over your selling options, like prices, shipping, and fulfillment services.
2. Sell TO Amazon
It is an invite-only program where you grant Amazon ownership of your inventory that you want put on the platform. It’s up to Amazon then on how it markets and sells your products to shoppers. In other words, you sell your products at wholesale rates, get paid, and leave the rest to Amazon. While this way of selling is relatively easier than selling on Amazon, the downside is that you have to settle for low-profit margins, and lose control over almost everything.
Amazon is a gigantic marketplace where customers come in to shop from every corner of the world. Selling your products on this platform can provide greater exposure to your brand and significantly enhance your customer base. You can opt for an Amazon affiliate program to provide better exposure to your products and dramatically boost your sales.