Is Amazon Affiliate Marketing Worth It? The Unfiltered Truth
Amazon is one of the world’s biggest businesses. Filled with millions of buyers and sellers alike, you can find practically anything on there. As a result, you can find a customer base on Amazon whether you sell books, clothes, or home furniture.
For it to be worth it to sellers, though, advertising is necessary. That’s why Amazon has an internal marketing program to help sellers boost their sales and brand image. Learn more about this below.
What is Amazon Affiliate Marketing?
Amazon Affiliate Marketing – also known as the affiliate marketing program – is a program that allows bloggers, content creators, and other online publishers to monetize their online presence. At the same time, it enables Amazon sellers to reach more people.
Amazon associates sign up with the program to promote Amazon products or brands on their website, blog, and social media account. They embed an Amazon link within their content and earn a commission every time someone clicks on the ad and buys the product. However, they only make a commission if the person purchases the product within 24 hours of clicking.
Commission rates for associates depend on the type of product. For example, the fixed commission income rate for amazon games is 20%, whereas, for physical books, it is 4.5%.
For this reason, it is in both the seller’s and the associate’s interest to increase conversion rates. The higher the conversion rate, the more money the associate gets paid. At the same time, the seller receives a new customer.
Who Uses Amazon Affiliate Marketing?
Both sellers and associates benefit from affiliate marketing with Amazon. With this kind of Amazon marketing, sellers can reach more customers and increase brand awareness. That’s why all Amazon sellers can use this program.
Amazon associates are those with an online audience on a website, blog, or social media platform. The bigger their audience, the more likely they will earn money through this program.
The Pros & Cons of Amazon Affiliate Marketing
So, now you know what affiliate marketing with Amazon entails, you are likely wondering whether or not it is worth it. Sure, it sounds great, but what about the little details? Before you sign up, consider these pros and cons first.
The Pros
A Wide Range of Products
Amazon is packed with various products, from baby clothes to the latest tech. It means you can work with product categories your audience will want to buy. If you run a skincare blog, you can work with brands that sell beauty products.
Free to Join
The Amazon associates program is entirely free to join. It’s a chance to earn money without risk – all you need to do is place the Amazon link on your website or blog. While promoting products requires effort, it doesn’t cost you any money.
A Supportive Team
Amazon has an excellent support team to help sellers and associates get the most out of the program. That makes sense when they also benefit from sales.
Amazon's Cookie Increases the Chance of Secure Commission
Amazon’s cookie remembers a clicked-on link for 90 days. The associate can still earn a commission if a sale is made within those 90 days. It increases your chance of earning money.
An Easy Way to Earn Money Online
Amazon affiliate websites don’t have to do much to earn money. By adding Amazon affiliate links to content, you can make a commission with minimal effort. It’s a great way to turn your blog into an online business.
The Cons
You Can't Use PayPal
Amazon doesn’t allow the use of PayPal for transactions. Instead, associates get paid via direct deposit, a check, or an Amazon gift card. This can be restricting for some people.
Low Commission
While generous compared to other affiliate programs, the commission earned is still low – you will likely only make about 4-5% commission rate as an associate.
Clicks Don't Determine Commission
Even if your Amazon link gets a lot of clicks, you will only receive a payment if there is a sale.
Rules to Follow
As you’d expect, Amazon expects its associates to follow rigid rules such as full disclosure and including the entire link. Amazon has all of this detailed in its terms and conditions.
What About the Benefits for Sellers?
As you can see, Amazon affiliate networks greatly benefit associates. What about sellers, though?
Sellers gain a lot from this Amazon marketing program. By paying a monthly fee to work with associates, they gain more customers and increase their brand awareness. This is especially true when they work with associates that produce content associated with what they sell.
The only real downside for sellers is if they spend more on affiliate marketing than what they earn through it. In this case, they would need to consider why this is happening. It might be because the promotions aren’t good enough. Or, perhaps, they aren’t working with the right associates.
As an Amazon seller, investing in Amazon marketing is essential to grow brand awareness and increase sales. An Amazon consultant can help you create a targeted campaign to reach the right customer base.
Is Amazon Affiliate Marketing Right for You?
Now that you know what affiliate marketing with Amazon involves, you can decide whether it is right for you. For sellers, it is almost a no-brainer – working with Amazon affiliate associates gives them the chance to reach new customers and boost their brand image. All it takes is becoming a professional seller to take advantage of the program.
For associates, whether it is worth it depends on if the commission is high enough to warrant the work put into promoting Amazon products. Generally, those with a large audience do better with the program than those with a small audience. That doesn’t mean niche blogs can’t make money, though – especially if they advertise specific products within that niche.
Amazon affiliate marketing can greatly boost income for both Amazon sellers and associates. It is free to use, so it is worth trying even if you’re still unsure or simply curious.
Ryan Flannagan is the Founder & CEO of Nuanced Media, an international eCommerce marketing agency specializing in Amazon. Nuanced has sold $100s of Millions online and Ryan has built a client base representing a total revenue of over 1.5 billion dollars. Ryan is a published author and has been quoted by a number of media sources such as BuzzFeed, CNBC, and Modern Retail.